IN THE MATTER OF THE ARBITRATION BETWEEN PICKMAN BROKERAGE, NORDMAR APARTMENT CO. AND MORTON PICKMAN, Petitioners, v. GUS BEVONA, PRESIDENT, LOCAL 32B-32J SERVICE EMPLOYEES INTERNATIONAL UNION, Respondent., 1994 U.S. Dist. LEXIS 1234

Summary

The employer, who ran a hotel, had his property foreclosed on by HUD. The property was purchased by another, who kept the employees on for a short while before terminating them. Prior to the foreclosure, the union had entered into a collective bargaining agreement (CBA) on behalf of the employer's employees. The CBA provided for 6-month severance pay in the event employment was lost due to a change in ownership. In affirming the severance pay, the court held that the award was not irrational, as the foreclosure was no an "uncontrolled" event, and the employment after the purchase was de minimus. In reversing the termination and accrued benefit pay, the court held noted that, pursuant to the CBA, the union was to first seek such benefits from the public authority, which it admittedly never did. The court also held that the arbitrator was not required to make a general disclosure of relationships with any party, especially where no evidence or allegation of a specific relationship was ...