A federal judge has ordered telecommunications giant Verizon to hash out a union dispute over disability benefits through arbitration.
U.S. District Senior Judge Robert F. Kelly of the Eastern District of Pennsylvania ruled that Verizon's contract with the Communication Workers of America requires any disputes over violations to the disability benefits part of the contract to be settled by arbitration.
The union's contract stipulates that employes who are terminated while on disability leave, including by retirement, are still entitled to benefits until they are deemed no longer disabled. The union claimed that Verizon discontinued certain benefits to claimants, including health care and life insurance.
The case centered on the interpretation of an article in the collective bargaining agreement, which said in Section 16.011 that Verizon will not "make any change in the 'Verizon Pension Plan' or the 'Verizon Sickness and Accident Disability Benefit Plan' which would reduce or diminish the benefits or privileges provided by the plans for employees within the bargaining unit without the agreement of the union."
It continued in Section 16.02, "A claim that this article has been violated may be submitted to arbitration under Article 10. A claim of an employee within the bargaining unit that they have been deprived of any benefits or privileges to which they are entitled under the plans may be processed as a grievance under the provisions of Article 10, but shall not be subject to arbitration. However, nothing in this agreement shall be construed to subject the provisions of the plans or their administration or the terms of a proposed change to arbitration."
Kelly said in his opinion that the language in the contract was narrow, but nonetheless, the union was still entitled to have its claims arbitrated.
"Although the arbitration clause in this case is narrow, the union's grievance comes within the scope of it because the union claims a violation of Section 16.011 of the CBA, which is expressly authorized under the first sentence of Section 16.02," Kelly said. "The remaining language in Section 16.02 does not exclude the union's grievance, nor is there any other forceful evidence to indicate the parties intended this type of grievance from being excluded from arbitration."
Kelly, however, rejected the union's request for attorney fees.
"Even though we reject Verizon's arguments concerning whether this grievance is arbitrable, we believe Verizon set forth worthy arguments as to why this type of grievance may not be the subject of arbitration. Accordingly, we deny the union's request for costs and attorneys' fees associated with bringing this action," Kelly said.
The attorneys for the union and Verizon did not respond to requests for comment.