In United States Steelworkers v Warrior and Gulf Navigating Co, the situation was very similar except for one specific provision providing for the use of arbitration in case of a CBA dispute comprising the words “except for matters which are strictly functions of management” (United States Steelworkers v Warrior and Gulf Co., 1960). This provision essentially enlarges the scope of the Court’s inquiry thereby making it deal with all other provisions in order to understand whether the parties intended being discharged or contracting out as a function of management. To understand why the Court has to consider other provisions here, the decision has to be seen in the context of that provision along with the fact that it is not exactly clear. The function of management concept seems to be a vague description and for the Courts to determine whether this description covers contracting out, the intention of the parties has to be put into perspective. For that purpose, resort is had to other provisions of the CBA.
However, an obvious objection against that notion is concerned with letting lower courts use other provisions of the CBA in general to determine whether the arbitration promise should be enforced. Such a feat is only allowed in Warrior-like cases which contain specific (but vague) exclusion clauses and not American-like cases because the national labor policy comes into play in the former. The Court concluded that appropriate regard must be had for the national labor policy and in matters governing arbitral adjudication, special factors that may be relevant should be taken into account so that the explicit provisions that bring the grievance suffered by the claimant under the exclusion clause, thereby precluding arbitration, since “the exclusion clause is vague and arbitration clause quite broad” (United States Steelworkers v Warrior and Gulf Co., 1960). Even so, on the basis of the ambiguity of the exclusion clause, the Court of Appeal ruled in favor of Warrior and allowed it to opt out of the contract without the need for arbitration, thereby rendering the promise of arbitration in the CBA ineffective.
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