We have consolidated the appeals in two employment discrimination cases that raise the same two issues: Are arbitration clauses in collective bargaining agreements other than in the maritime, railroad, and other transportation industries subject to the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq.1 And can a collective bargaining agreement compel an employee to arbitrate a claim that he may have under one of the federal statutes, such as Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, or the Americans with Disabilities Act, that confer litigable rights on employees? The first issue is critical to our jurisdiction of these appeals; the second is the issue on the merits — which, of course, we can reach only if we satisfy ourselves that we have jurisdiction.
Each of the two plaintiffs is a former employee of one of the defendants, and each
Both plaintiffs were employed under collective bargaining agreements. The agreement between defendant Thoesen and Sobierajski’s union, the automobile mechanics union, provided that “in accordance with applicable Federal and State law, neither the company nor the Union will discriminate against employees covered by this collective bargaining agreement in regard to any terms or conditions of employment on the basis of race, creed, religion, national origin, sex or age.” The agreement between Tractor Supply and Pryner’s union, the teamsters, contains a similar provision but does not refer to federal or state law and adds to the prohibition against discrimination in regard to any “terms or conditions of employment” a prohibition against discrimination “with respect to hiring [or] compensation.” Both agreements authorize the employer to impose discipline on an employee, up to and including discharge, for “just cause.” And both contain a clause that creates a grievance procedure, making the union the employee’s griever and culminating in arbitration if the matter is not resolved in the earlier stages of the procedure, for disputes involving “interpretation or application” of the agreement.
Both Sobierajski and Pryner invoked the grievance procedure in their respective collective bargaining agreements. Pryner’s union struck out at the earlier stages of the grievance procedure, and has demanded arbitration. Sobierajski’s grievance, however, was abandoned, though whether by his own actions or those of the union is unclear. Pryner and Sobierajski then filed these discrimination suits, seeking damages (including punitive damages in the case of Pryner), attorneys’ fees, and reinstatement. The defendants moved to stay the suits pending arbitration of the plaintiffs’ claims. The motions were denied (Pryner’s in
Pryner v. Tractor Supply Co.,
The issue of our appellate jurisdiction is whether these two appeals are authorized by the Federal Arbitration Act. The denial of a stay of proceedings before the court asked to grant the stay is not a final decision within the meaning of 28 U.S.C. § 1291, but when it is the denial of a stay of those proceedings pending arbitration it nevertheless is appealable immediately, at least (and probably at most, see
Central States, Southeast & Southwest Areas Pension Fund v. Central Cartage Co.,
A footnote in
United Paperworkers Int’l Union v. Misco, Inc.,
But aren’t we on both sides of the issue? We have cases like
Martin
that hold that section 301 supersedes the Federal Arbitration Act, a case that assumes it does not
(International Union of Operating Engineers),
and cases such as
Briggs & Stratton
that imply not by confining the exclusion in section 1 to transportation workers and saying nothing about supersession by section 301. This internal conflict is, fortunately, illusory. The cases that
say
that section 301 supersedes the arbitration act for cases within section 301’s domain
hold
(all but
Martin
itself and
Cleveland v. Porca Co.,
Professor Finkin argues that the prevailing view, which limits the exclusion in section 1 to employment contracts in transportation, is wrong. His review of the legislative history (the arbitration act was passed in 1925) has persuaded him that Congress’s intention was to exclude
all
employment contracts. Yet, as he acknowledges, the impetus for the exclusion came entirely from the seafarers union, concerned that arbitrators would be less favorably inclined toward seamen’s claims than judges were. Judges favored such claims, the union thought, in part because of a tradition that seamen were “wards in admiralty,” in part because of peculiarities of maritime law that would make it easy to slip an arbitration clause into a maritime employment contract without the seaman’s noticing it, and in part because the maritime employment relation was already heavily regulated by federal law. It was soon noticed that the railroad industry’s labor relations were also heavily regulated — by a statute (the Railway Labor Act) that included provisions for compulsory arbitration of many disputes. Motor carriers were not yet comprehensively regulated, but it may have seemed (and was) only a matter of time before they would be: hence the expansion of the exclusion from seamen to railroad to other transportation workers. It seems to us, as it did to the Third Circuit in
Tenney Engineering, Inc. v. United Electrical, Radio & Machine Workers,
Even if as we believe the collective bargaining agreements in this ease are not excluded from the act’s coverage by section l’s reference to employment agreements, they might be excluded, as some courts believe, by section 301 of the Taft-Hartley Act. Section 301(a), which makes collective bargaining agreements enforceable in the federal courts, was interpreted in
Textile Workers Union v. Lincoln Mills,
The cases that decline to apply the arbitration act’s three-month statute of limitations to suits under section 301 to set arbitration awards aside (e.g.,
Sullivan v. Gilchrist,
The arbitration act covers almost the whole field of arbitrable disputes, only a subset of which (and a small one in 1925) grow out of collective bargaining agreements. The act’s limitations periods were not designed with such agreements in mind, and may not suit them. When the question arose what the statute of limitations should be in suits under section 301 to challenge arbitration awards based on such agreements (the statute contains no limitations period), the courts cast about for analogous claims from which to “borrow” a limitations period. In so doing they did not hold that section 301 had repealed the arbitration act so far as collective bargaining agreements were concerned; and when in 1988, long after section 301 had been enacted, Congress amended the arbitration act to make denials of stays pending arbitration expressly appealable despite the absence of finality, it did not carve an exception for arbitration pursuant to collective bargaining agreements. Judicial Improvements and Access to Justice Act, Pub.L. No. 100-702, 102 Stat. 4671 (1988). That may have been an oversight, but we suspect not; for no reason is suggested why, if immediate appeals of denials of such stays are a good thing with respect to the arbitration of other types of dispute, they are a bad thing when the dispute is a labor dispute. If anything, the public interest in resolving labor disputes by arbitration, and therefore in allowing erroneous refusals to defer to arbitration to be corrected promptly, is greater than in an ordinary commercial arbitration.
The big thing that section 301 did (besides creating federal jurisdiction over suits to enforce collective bargaining agreements), so far as labor arbitration is concerned, was to ordain the creation of a body of federal common law to govern disputes arising out of such arbitration. Included in that body are limitations periods, which by analogy to the substance-procedure distinction worked out in the wake of the
Erie
decision fall on the substantive side of the divide.
Guaranty Trust Co. v. York,
Our resolution of the jurisdictional issue can be criticized as creating an arbitrary difference between the appeal rights of parties to employment contracts, including collective bargaining agreements, in nontransportation industries and the corresponding appeal rights of, parties to collective bargaining agreements and other employment con
Another anomaly concerns the specific statutes of limitations that the courts have borrowed for use in section 301 arbitration cases. Always these are statutes of limitations applicable to arbitration awards rather than anything specially to do with labor. See, e.g.,
Sullivan v. Gilchrist, supra,
Two competing interests have to be considered. One is the interest in allowing unions and employers to establish a comprehensive regime for the adjustment of employment disputes; it argues for allowing the collective bargaining agreement to force all such disputes into the grievance and arbitration groove even when the dispute arises out of a claim that a worker’s statutory rights have been infringed. The other is the interest in the effective enforcement of rights designed for the protection of workers whom Congress has classified as belonging to vulnerable groups, generally and in these two cases minority groups — blacks, the disabled, and the aged (though whether persons 40 years old and older, the group protected by the age discrimination law, should be considered a vulnerable segment of the population may certainly be questioned as an original matter). That interest will be impaired if the right to bring suit in federal district court to enforce these rights is taken away from the workers.
Or will it? The employers in our two cases, supported by employer groups that have filed amicus curiae briefs, argue that the workers will actually-be better off if the employers’ position is adopted. Because the Equal Employment Opportunity Commission has an enormous backlog and limited resources for litigating, the vast majority of workers who have claims under any of the statutes that the Commission enforces have perforce to bring and finance their own lawsuits; they cannot rely on the Commission to do so for them. In contrast, a grievance is prosecuted by the worker’s collective bargaining representative (the union) at no cost to the worker. It is true that the plaintiffs in these cases do not wish to abandon their right to invoke the grievance machinery created by the collective bargaining agreements;
The employers emphasize that these collective bargaining agreements do not take away any of the workers’ substantive statutory rights, but merely substitute an arbitral for a judicial proceeding as the means of vindicating the rights. Although the arbitrator’s award, whether or not confirmed, 4 Ian R. Macneil, Richard E. Speidel & Thomas J. Stipanowich,
Federal Arbitration Law
§ 39.6 (1994); G. Richard Shell, “Res Judicata and Collateral Estoppel Effects of Commercial Arbitration,” 35
UCLA L.Rev.
623, 642 (1988), can — this is implicit in the notion of binding arbitration — be pleaded as res judicata in the worker’s federal district court suit,
Rudell v. Comprehensive Accounting Corp.,
The defendants concede that to the extent that the rights conferred by the collective bargaining agreements, or the sanctions available to the arbitrators, fall short of fully vindicating the plaintiffs’ substantive and remedial statutory rights, the plaintiffs will be free to resume their suits after the arbitrators render their awards, having filed the suits within the statute of limitations. But the findings made' by the arbitrators might be entitled to collateral estoppel effect in the resumed suits.
Benjamin v. Traffic Executive Ass’n Eastern Railroads,
The honey-tongued assurances of the employers’ able counsel and their amici, unusually and perhaps opportunistically aligned with the unions’ interest in controlling their members’ access to remedies, do not persuade us that there is no genuine conflict between employer and employee interests in these cases. The plaintiffs’ rights under the collective bargaining agreements are not as extensive as their statutory rights, so that to
Most important, the grievance and arbitration procedure can be invoked only by the union, and not by the worker. The worker has to pei'suade the union to prosecute his grievance and if it loses in the early stages of the grievance proceedings to submit the grievance to arbitration.
Vaca v. Sipes,
The essential conflict is between majority and minority rights. The collective bargaining agreement is the symbol and reality of a majoritarian conception of workers’ rights. An agreement negotiated by the union elected by a majority of the workers in the bargaining unit binds all the members of the unit, whether they are part of the majority or for that matter even members of the union entitled to vote for union leaders — they need not be. The statutory rights at issue in these two cases are rights given to members of minority groups because of concern about the mistreatment (of which there is a long history in the labor movement, see, e.g.,
Steele v. Louisville & Nashville R.R.,
The defendants cite provisions added in the early 1990s to Title VII, the Age Discrimination in Employment Act, and the Americans with Disabilities Act that “where appropriate and to the extent authorized by law, ... arbitration ... is encouraged to resolve disputes arising under” these laws. Pub.L. No. 102-166, § 118, 105 Stat. 1071, 1081 (1991); 42 U.S.C. § 12212. These provisions, a polite bow to the popularity of “alternative dispute resolution” and perhaps a mild sop to the judiciary, which has expressed alarm at Congress’s relentless expansion of the jurisdiction of the federal courts, encourage arbitration “where appropriate” — and if we are right it is not appropriate when it is not agreed to by the worker but instead is merely imposed by a collective bargaining agreement that he may have opposed. Nothing in the background of the amendments is inconsistent with this interpretation. It would be at least a mild paradox for Congress, having in another amendment that it made to Title VII in 1991 conferred a right to trial by jury for the first time, Pub.L. No. 102-166, § 102, § 1977A(c), 105 Stat. 1071, 1073 (1991), to have empowered unions, in those same amendments, to prevent workers from obtaining jury trials in these cases. We know that statutes, being products of compromise, frequently reflect inconsistent aims. But if that is the case here, we might expect' to find a hint of it in the statutory language or design, or in the legislative history, but we find none.
We are not holding that workers’ statutory rights are never arbitrable. They are arbitrable if the worker consents to have them arbitrated. If the worker brings suit, the employer suggests that their dispute be arbitrated, the worker agrees, and the collective bargaining agreement does not preclude such side agreements, there is nothing to prevent a binding arbitration.
Austin v. Owens-Brockway Glass Container, Inc.,
Thus far we have analyzed the arbitrability of the disputes in these two cases without reference to the precedents that might be thought to govern the issue, even though the hundreds of pages of briefs are devoted to little else. That in itself is a sign that case law is unlikely to be dispositive of the issue. The' authority of a previously decided case is at its greatest when it is apparent that the case does not differ in any material particular from the case in which it is cited as authority; and to show the absence of a material difference usually is easy. When instead a lawyer tries to create a mosaic of case authority from a large number of previous eases all distinguishable from the present one, what purports to be an investigation of case law is really a quest for policies or principles that can be found in the previous cases and are thus legitimate factors to guide the decision of a new case. Those factors we have discussed. Both sides of these appeals also are able to cite a case or two that squarely support their position — cases that really do not differ in any material particular from the present one — but in doing so all they have done is identify a circuit split. Compare
Austin v. Owens-Brockway Glass Container, Inc., supra,
Each side has its favorite Supreme Court case that it has flogged mercilessly to yield
By stressing, somewhat formalistically it might seem, the “distinctly separate nature” of contractual and statutory rights,
Although the Court did not overrule
Alexander,
it did say that the mistrust of the arbitral process that had permeated that opinion had been “undermined” by subsequent decisions evincing a positive attitude toward arbitration.
The second distinction drawn in
Gilmer
was that the issue in the earlier case had been the preclusive effect of an arbitration award concerning a contractual right on the litigation of a statutory right, rather than (as in
Gilmer)
the enforceability of the agreement to arbitrate the statutory claim-. The third distinction was that
Alexander
had not been decided under the Federal Arbitration Act. This was not to say that the act had been totally inapplicable, but only that, as we saw earlier, substantive issues in suits that are within the scope of both the arbitration act and section 301 of the Taft-Hartley Act are governed by section 301. So the third ground of distinction ties back to the first, and like the first puts our two cases on the
Alexander
side of the line — while the second
On balance our case is closer to
Alexander;
but is enough left of
Alexander
to compel a decision in favor of the plaintiffs? Only the Supreme Court can answer that question; and we are timid about declaring decisions by the Supreme Court overruled when the Court has not said so.
Khan v. State Oil Co.,
Affirmed.
