Background
Elmar Hotel Management and related entities purchased the Inn of Chicago, assuming an existing collective bargaining agreement with the Union. When the Inn housed migrants, the operators used non-union staff for housekeeping and food services. The Union filed grievances and NLRB charge. Arbitrator found violation of CBA and NLRA, ordered compliance. District court confirmed award. Employers appealed.
The court’s reasoning
The court reviewed the confirmation of the arbitral award de novo for legal questions. It held that the employers participated in arbitration without explicitly reserving the right to challenge arbitrability, thus waiving that objection. The court found the arbitrator’s determinations regarding the building’s status as a hotel and the existence of a single employer were rooted in the collective bargaining agreement’s interpretation, not outside policy.
What it means going forward
Employers must comply with the arbitration award to operate the Inn under the collective bargaining agreement terms.