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Does the FAA Apply to Collective Bargaining Arbitrations After 14 Penn Plaza?

BY Seth M. Galanter
August 25, 2009

Your client has just been involved in an arbitration proceeding under a collective bargaining agreement (CBA), and the arbitrator has issued an award. Whether the question involves the statute of limitations for initiating court proceedings or the standards for challenging the enforceability of the arbitration award, the answers have, in the past, been found only in case law. That is because it has been the longstanding view of most federal courts that the Federal Arbitration Act (FAA) does not apply to arbitration provisions in CBAs. The U.S. Supreme Court's recent decision in 14 Penn Plaza v. Pyett, 129 S. Ct. 1456 (2009), suggests a different answer.

The Status Quo Prior to 14 Penn Plaza

Under the traditional view, your arbitration award, arising from a CBA, will be governed by the federal common law of labor arbitration under the Labor Management Relations Act of 1947 (LMRA). The federal common law of labor arbitration finds its genesis in the Supreme Court's holding in Textile Workers Union of America v. Lincoln Mills of Alabama, 353 U.S. 448, 455-58 (1957). That case held that the LMRA, which on its face simply granted exclusive subject-matter jurisdiction over disputes involving CBAs to federal courts, empowered those courts to create and apply federal common law to interpret and enforce arbitration provisions in CBAs and confirm or vacate arbitration awards resulting from these agreements.

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