Newark, NJ – A federal judge has refused to vacate an arbitration award favoring Local 53 of the Bakery, Confectionery, Tobacco Workers, and Grain Millers Union, shutting down Bimbo Bakeries USA’s effort to undo the ruling tied to the firing of a worker after a 2021 altercation at its Albany bread plant.
Arbitration battle over worker’s termination
Bimbo Bakeries, the U.S. arm of Mexico’s Grupo Bimbo, petitioned to overturn an award issued in a grievance dispute filed by Local 53 on behalf of former employee Tahir Khan. Khan was disciplined and terminated following a June 2021 fight with a co-worker. The union filed a grievance alleging improper discharge, which proceeded through arbitration.
The arbitrator sided with the union, finding the grievance properly before arbitration and concluding the company’s actions were improper under the collective bargaining agreement that governed the Albany facility.
Company challenged timeliness and merits
In federal court, Bimbo argued the grievance was filed late and that the arbitrator exceeded his authority by reinstating Khan. The company petitioned to vacate the award under Section 301 of the Labor Management Relations Act, seeking dismissal of the grievance altogether.
Local 53 countered that the arbitration was valid, the grievance was timely, and the arbitrator acted squarely within his authority.
Court sides with union, upholds award
U.S. District Judge Esther Salas denied the company’s motion and dismissed its petition, holding that arbitration decisions under labor law are entitled to broad deference. The court found no basis to disturb the arbitrator’s ruling, leaving the union’s victory intact.
Key Points
- Bimbo Bakeries tried to vacate an arbitration award favoring Local 53 after a worker’s firing.
- The dispute stemmed from a 2021 fight at the Albany bread plant.
- Judge Esther Salas upheld the arbitrator’s decision, dismissing the company’s petition.
The bakery giant’s fight with the union ends with the arbitrator’s ruling standing firm.
