Independent Laboratory Employees' Union, Inc. v. ExxonMobil Research and Engineering Co., No. 19-2988 (3d Cir. 2021)
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The Union represents about 165 employees at the Clinton research facility, staffed by EMRE. In 2015, a bargaining unit member retired. After advertising internally failed to fill the open position, EMRE used independent contractors to staff the position. The Union filed a grievance regarding the propriety of EMRE contracting out bargaining unit positions and attempting to permanently fill bargaining unit positions with contractors. The Collective Bargaining Agreement (CBA) allows the Company to “let independent contracts” as long as: during any period of time when an independent contractor is performing work of a type customarily performed by employees and employees qualified to perform such work together with all of the equipment necessary in the performance of such work are available in the Company facilities, the Company may not because of lack of work demote or lay off any employee(s) qualified to perform the contracted work."
Arbitrator Klein found that the CBA “expressly limits contracting to a ‘period of time” and that EMRE pursued a plan to replace employees with contractors as they left EMRE. She concluded that EMRE’s actions undermined the composition and breadth of the bargaining unit. The Third Circuit affirmed the arbitration award preventing EMRE from permanently contracting out bargaining unit positions at the Clinton facility. Rejecting an argument that the arbitrator improperly considered extrinsic evidence contrary to the CBA, the court noted that the standard of review for upholding arbitration awards is highly deferential. The award “withstands the minimal level of scrutiny.”
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