TriMet, a public mass transit agency, refused to arbitrate a grievance filed by the Amalgamated Transit Union Local 757, concerning a decision to enter into contracts with nonunion shuttlebus companies. TriMet receives federal grant funds which it passes on to nonprofit shuttlebus operators. When TriMet contracted with a non-union operator, the union claimed a violation of a collective bargaining agreement provision which requires that “all vehicles run on the lines of the District shall be run by [union members],” and argued that TriMet was required to arbitrate that claim. TriMet contended that the collective bargaining agreement did not apply because it was merely passing along federal funds and was not entering into an employer-employee relationship with those drivers. TriMet refused to process or arbitrate the grievance. Hank Kaplan, representing the Union, challenged that decision before the Oregon Employment Relations Board (ERB), and the Union prevailed.
TriMet appealed the ERB decision. The Oregon Court of Appeals affirmed the Employment Relations Board’s finding that TriMet committed an unfair labor practice by refusing to process the grievance. The court pointed out that the collective agreement “broadly requires TriMet to arbitrate with ATU on ‘all grievances relating to any alleged violation of any provision of this Agreement.'” Finding this language unambiguous, the court upheld the Union’s right to challenge the third-party contracts.
