Wednesday, February 5, 2014

(LABOR) (HR) A Primer for “Just Cause” Termination and Unionized Employees


Many collective bargaining agreements have a specific provision for the termination of an employee represented by a bargaining unit.   That provision is often referred to as “just cause” and must be justified prior to the termination of an employee covered by that collective bargaining agreement.  The term “just cause” in a unionized environment is often interpreted differently from that in a non-unionized employment contract or agreement.

Whether “just cause” exists for unionized employees is contingent upon many factors, including the language within the affected collective bargaining agreement, an independent arbitrator’s decision, the employer’s past practice with the union and the specific facts and circumstances of each individual case.

Many terminations will go before an arbitrator and an employer can never really predict how an arbitrator will rule in any single case. However, many arbitrators will often rely on the “seven tests” model which was developed by Arbitrator Carroll Daugherty in Enterprise Wire Co., 46 LA 359 (1966), to determine whether “just cause” is present.  The “seven tests” are defined below:
  • Was the employee forewarned of the consequences of his or her actions?
  • Are the employer’s rules reasonably related to business efficiency and performance the employer might reasonably expect from the employee?
  • Was an effort made before discipline or discharge to determine whether the employee was guilty as charged?
  • Was the investigation conducted fairly and objectively?
  • Did the employer obtain substantial evidence of the employee’s guilt?
  • Were the rules applied fairly and without discrimination?
  • Was the degree of discipline reasonably related to the seriousness of the employee’s offense and the employee’s past record?
GMCS recommends that all of their clients, with both unionized and or a non-unionized workforce, should familiarize themselves with the “seven tests” of “just cause” termination.  Understanding your current processes and procedures as it relates to a “just cause” termination and revising them to satisfy these seven requirements will help your organization to adequately define whether you have “just cause” for termination.

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