In a dispute arising out of a collective bargaining agreement between the plaintiff and the defendant, the plaintiff argued that it was not required to make good on a 40-hour minimum requirement contained in the agreement where the employer’s stores were required to close or operate at reduced hours during the Covid-19 pandemic because this constituted an Act of God that created an exception to the promised hourly floor. The arbitrator ruled in favor of the union, finding that while pandemics could constitute an Act of God, it was the governmental response and not the disease itself that led to the reduction of hours. The employer asked the district court to nullify the arbitrator’s decision, it declined, and the employer appealed. The Seventh Circuit affirmed, explaining that the parties chose arbitration and elected to have an arbitrator and not a court resolve disagreements about the meaning of the contractual terms and that the arbitrator’s interpretation was conclusive. (ROVNER and LEE, concurring)
Federal 7th Circuit Court
Civil Court
Arbitration