Union Declines to Take Case to Arbitration; Now Union Is In Trouble

Unions have a duty to represent members, though this meaning is vague. Courts give unions wide latitude in deciding which cases to take to arbitration, and which to decline.

The employee had a 25-year good record. She was fired for theft from Jewel (grocery store) for inadvertently taking a 25 pound bag of birdseed from the store without paying for it.

Under Jewel’s rules, there is no requirement for intent in order to terminate an employee for taking merchandise without paying for it. You take it-- you're fired.

Big picture: Courts and legislatures are making it easier for members to avoid union dues. In Indiana, there is a requirement that unions take non-payer grievances to arbitration, a costly process.

Now this decision,  Rupich v. UFCW Local 881 (7th Cir. 2016), where the union had a non-discriminatory reason not to go to arbitration. The court ruled that the union violated the employee's rights.

Duty of fair representation looks like a lot of union expenditures without people paying for it.