SOUTER, Associate Justice.
This appeal is from a district court order confirming an arbitration award against an employer who failed to make contributions to benefit funds as required by the governing collective bargaining agreement with a labor union. We affirm.
International Brotherhood of Electrical Workers Local 103 ("Union") is a union of electrical and construction laborers in eastern Massachusetts. Employers who are party to a Collective Bargaining Agreement ("CBA") with the Union must contribute to funds ("Funds") that provide benefits to union members. Ada Alfonso is one of those employers.
The Funds sued Alfonso
Alfonso filed a motion in court to vacate the arbitration award, to which the Union responded by bringing its own judicial action to confirm it. Thereafter, the actions by the Funds and the Union were consolidated.
The district court initially granted Alfonso's motion to vacate the award, ruling that the Committee was biased because it included several individuals who were also trustees of the Funds. The court's decision rested in part on the fact that the Union had presented no evidence that Alfonso knew in advance about the Committee's membership. Later, however, the district court granted the Union's motion for reconsideration, finding that new evidence demonstrated that, when Alfonso agreed to the CBA arbitration procedure, she had indeed known of the Committee's potential composition. The court thus confirmed the arbitration award in a judgment against Alfonso, who appealed. The Union cross-appealed on an issue we find it unnecessary to reach, as explained in footnote 6, below.
We review de novo the district court's decision to confirm the arbitration award.
Alfonso contends that the following arbitration provisions of the CBA are too narrow to embrace the dispute in this case.
According to Alfonso, the reference in section 1.4 to disputes over "matters relating to this Agreement" covers only interpretive disagreements about the very terms of the CBA, and does not extend to a collection dispute like this one. She points to a section of the document that imposes the CBA's terms on non-signatories whom employers might oversee, such as subcontractors: "As a remedy for violations of this section, the Labor-Management Committee . . . [is] empowered . . . to require an Employer to . . . pay into the affected . . . funds . . . any delinquent contributions to such funds which have resulted from the violations." Alfonso says that if the CBA's general arbitration provisions were sufficiently broad to embrace all collection disputes there would have been no need to empower the Committee explicitly to award delinquent contributions to remedy violations "of this section."
Alfonso's argument against imputing redundancy to the CBA is not, however, the only interpretive guide at hand. This case arises under section 301 of the Labor Management Relations Act ("LMRA"), 29 U.S.C. § 185, and in section 301 cases the Supreme Court has directed that, if there is any doubt, an arbitration clause should be interpreted to embrace a particular dispute.
Thus, both the statutory presumption and the comprehensive language of the arbitration clause itself point to arbitrability in this instance, a conclusion buttressed by the CBA article devoted to the Funds themselves, which warns that consequences will result "[t]o the extent an individual Employer becomes delinquent, as determined by the Joint Conference Committee." Accordingly, the specific language Alfonso points to is most harmoniously read, not as defeating arbitrability here but as guaranteeing it elsewhere as a belt-and-suspenders provision, making it clear that even if an employer tries to circumvent its obligations under the CBA through, for example, subcontracting, resultant losses to the Funds are remediable through arbitration. Hence, we think the dispute in this case was arbitrable under the CBA.
Alfonso argues that the Committee's award was not fit for enforcement because it was not final and binding, a conclusion she rests on the fact that in referring to Committee decisions, the CBA does not use the phrase "final and binding." Against this silence, she contrasts language from the CBA elsewhere, providing that "[s]hould the Labor-Management Committee fail to agree or to adjust any matter, such shall then be referred to the Council on Industrial Relations for the Electrical Contracting Industry for adjudication. The Council's decisions shall be final and binding." And she claims support for her reading in what she sees as the character of the Committee's procedures, being so cursory that they must not have been meant to produce final, binding decisions.
But whether the Committee's award is final and binding turns on whether Committee arbitration "is the parties' chosen instrument for the definitive settlement of grievances under the [CBA]."
We think that the CBA reveals the parties' intent to use Committee arbitration for the definitive settlement of grievances such as the one here, by words pointing adequately to the finality of a Committee decision. As quoted before, section 1.4, which appears under the heading "Grievances — Disputes," provides that "[a]ll . . . matters [relating to the CBA] must be handled as stated herein." The subsequent sections, also reproduced above, proceed to spell out the grievance hierarchy: disputes are to be resolved in the first instance by representatives of each party, failing which the Committee is to try its hand, followed by the Council if necessary. If we were to accept Alfonso's position, binding arbitration awards could result only when the Committee fails to resolve a matter, necessitating review by the Council; matters that the Committee succeeded in resolving would never reach finality. That would be so absurd that the more likely reading of the "final and binding" language describing the Council's decisions does not imply that decisions reached by the other grievance bodies are tentative, but instead stresses the administration hierarchy: the Council is the end of the road. Thus the mere availability of a higher order procedure was not meant to render the process one step down impotent when it produces a decision.
We see nothing to disturb this conclusion in what Alfonso calls the cursory treatment of her case by the Committee. She directs us to no authority, and we have found none, to support her apparent position that grievance procedures must approximate those of the courtroom for them to produce binding results. Again, the touchstone is the parties' intent to use certain processes to resolve disputes,
Alfonso says that the Union waived its right to arbitrate by first having the dispute litigated in court. Of course, she recognizes that it was the Funds, not the Union, that brought the initial judicial action, so she claims an identity of interest between the two, and argues that individuals who drove the Funds' litigation were also instrumental in the Union's decision to call for arbitration.
It is true that by engaging in litigation, a party may waive its right to arbitrate.
Here, there is a basis for doubt, at the least. The right to arbitrate springs from the CBA, and because the CBA is an agreement between employers and the Union, not the Funds, the Funds lacked any right to call for arbitration. And Alfonso has directed us to no authority, nor have we found any, to support her argument that the Funds' decision to litigate waived the Union's ability to arbitrate.
Alfonso claims that the award should be vacated because she did not consent to arbitrators of a sort she characterizes as biased. Under the CBA, the Union and NECA (which represents the employers) each has authority to select three arbitrators for the Committee. In Alfonso's case, two of those selected by the Union and one of the arbitrators selected by NECA were also trustees of the Funds. According to Alfonso, these three arbitrators were biased, as being subject to a statutorily imposed fiduciary duty to act solely in the interest of the Funds' participants and beneficiaries.
The parties agree that, although this action arises under the LMRA, the Federal Arbitration Act ("FAA"), 9 U.S.C. § 1 et seq., provides guidance on the issue of arbitrator neutrality. Under the FAA, an arbitration award may be vacated on the ground of "evident partiality . . . in the arbitrators," 9 U.S.C. § 10(a)(2), understood as requiring "more than just the appearance of possible bias," but less than bias in fact,
But parties can agree to have partisan arbitrators.
This law is key. Assuming, without deciding, that the trustees of the Funds on the Committee were subject to evident partiality,
Similarly, on the management side, since 2006, the year Alfonso became an employer party to the CBA, NECA has appointed the same individual to serve both as a trustee of the Funds and as a representative to the Committee. There is nothing in the record to rebut an affidavit of NECA's executive director saying that Alfonso would have had knowledge of these appointments: she was part of NECA's membership committee and, through Old Goat, was a voting NECA member until 2010.
In sum, the record before us reflects that when Alfonso became an employer signatory to the CBA, and so agreed to resolve disputes through Committee arbitration, she had notice that the Committee could, and indeed would, contain some trustees of the Funds. Having agreed to that method for resolving disputes, she can demand no more impartiality than naturally comes with it.
The district court's order confirming the arbitration award and the corresponding judgment against Alfonso are
It is true that "[a]rbitration proceedings must meet the minimal requirements of fairness," which include "a hearing on the evidence."
Alfonso leaves us to speculate. She does not explain what further information could have come to light during the proceedings that would have altered the Committee's award, and she points to nothing in the record that causes us to doubt the adequacy of her hearing.