WHO'S TELLING THE TRUTH National Car Rental System (a.k.a NCRS) and the Teamsters, Local 841

National Car Rental System (NCRS) is in the business of rental cars. NCRS operates a major rental car facility near Logan Airport, Boston, MA. The preparation of rental cars takes place in NCRS' main wash bay - a large building with a central heating system. During winter months, employees often set the thermostat as high as 90 degrees - to keep the washing bay warm while washing cars. This practice consumes a large amount of energy and keeps the bay area warmer than necessary.Because of the high energy costs, NCRS turned down the thermostat in the car wash bay to 72 degrees and requested employees not to change the 72-degree setting. Some employees ignored this request and continued to turn the thermostat up to 90 degrees. Finally, on March 17, Peter Walton, the assistant manager, set the thermostat at 72 degrees and installed a lock box on the thermostat to prevent continued misuse.

Walton also posted the following notice/rule on several of NCRS' bulletin boards:

The lock box and thermostat in the bay area are not to be touched. The heat is set at the proper temperature and must not be altered.If I find this unit tampered with again, I will shut the heat off altogether.Also, if I catch you touching the unit, you will be terminated.

This notice was posted, and a locked plastic box placed over the thermostat to prevent vandalism to the thermostat. At about 4:30 PM, on December 27, Walton noticed that the doors to the main car wash bay were open and letting in cold air. As he entered the bay through the open doors, he observed from about 20 feet away, two employees, John and Melvin Ziegler, standing in front of the thermostat. Bosworth was holding a straightened metal coat hanger, a newspaper and other trash. Manager Walton then thought he saw Bosworth insert the hanger into the locked plastic box and tamper with the thermostat. Peter Walton shouted at both men to stop tampering with the thermostat, whereupon they turned around and stared at Walton apparently startled by his voice. Walton proceeded to walk towards them.

When Walton got nearer, he noticed that the lock box had been cracked and the temperature setting changed to a setting of 85 degrees. Walton then escorted Bosworth to the shift manager's office and questioned him about the incident. Bosworth stated that he reported for work at 4:15 PM and he immediately started cleaning cars. He said that he and Ziegler talked about the temperature in the bay and walked over to the thermostat to check it out. Bosworth said he was still holding a coat hanger, a newspaper and other trash he removed from a car when Walton walked into the bay. Bosworth claimed he was merely checking the temperature, and that he did not insert the coat hanger into the lock box. He also claimed he did not break it, and he did not change the thermostat setting in any way.

Bosworth admitted he read the notice dated March 17 prohibiting any tampering with the thermostat or its locked protective covering. He stated he knew violators would be discharged. John Bosworth is a 25-year-old high school graduate with two years of employment with NCRS. His duties with NCRS included cleaning the interior of rental cars; operating the mechanical car wash equipment; checking for deficiencies and checking oil, water, and air levels. Bosworth's personnel records indicate the following prior disciplinary actions over a two-year period of employment:

1. Six months ago, a verbal warning for being late for work on four days out of five days during a one-week period. The union did not arbitrate the grievance. 2. Two months ago, a three-day suspension for screeching tires while exiting the bay. The union did not arbitrate the grievance.

Walton did not believe Bosworth's story, and after reviewing Bosworth's employment record, Walton terminated him. The termination notice included the following reasons:

1. Bosworth was observed using a coat hanger to lower the thermostat inside the service bay area. Locks had been placed on these thermostats so no one would tamper with them. 2. Previous misuse of company property by Bosworth happened only two months ago.

The Teamsters, Local 841, filed a grievance on behalf of John Bosworth protesting his termination and requesting full reinstatement with restoration of full back pay and any other benefits. The union stated Bosworth was innocent, never proven to be guilty of the charges and terminated without just cause.

Relevant Articles of the Collective Bargaining Agreement (CBA) between NCRS and Teamsters, Local 841

1. Article I: Management Rights: Management reserves all rights to manage the facility. These rights shall include the ability to plan, organize, lead and control all functions necessary to efficiently and effectively operate the car rental facility. These rights include the ability to discipline employees for just cause, to relieve employees for lack of work and to implement reasonable rules of employee conduct. These rights are subject to any article expressly stated in this CBA which by their wording modifies these management rights. 2. Article X: Discipline/Termination: Management has the right to discipline/terminate employees solely for just cause. All disputes are subject to the four-step grievance procedure which terminates in binding arbitration. The arbitrator shall be selected from the Federal Mediation and Conciliation Service (FMCS). The arbitrator's decision shall be final and binding. The arbitrator possesses the right to modify any penalty levied against an employee by management.

Position of the Company (NCRS) NCRS argues that Bosworth was caught red handed tampering with the lock box that covered the thermostat. Manager Walton should be believed because there is no reason for him to fabricate such a story. Both Bosworth and Ziegler had a strong self-interest in denying that Bosworth had tampered with the setting on the thermostat. NCRS pointed out that Bosworth has a poor employment history including a warning for excessive tardiness and a suspension for misuse of company property. Bosworth was clearly aware of the rule prohibiting tampering with the thermostat, which warned of termination for violation. In response to Bosworth's and Ziegler's statements about their work activities, NCRS contends there was no reason for Bosworth to be carrying the trash items which he held when manager Walton observed him near the thermostat.

Trash items removed from rental cars are to be thrown on the floor, or in a trash bin to be removed at the end of the shift. It is more logical to conclude that Bosworth deliberately carried the metal coat hanger (and other trash items) to the thermostat with the full intention of using the hanger to crack the plastic box over the thermostat and tamper with the temperature setting.NCRS claims it has ample just cause and CBA rights to terminate John Bosworth for just cause. Bosworth was observed by a manger engaging in an act which he and other employees were notified would lead to termination. The termination should be fully upheld, and the union's grievance be denied per Article I: Management Rights and Article X: Discipline/Termination.

Position of the Union, Teamsters, Local 841 The union did not contest the company's right to post the notice about tampering with the thermostat. The union acknowledged that the reason for NCRS' action was to conserve energy costs. However, the company failed to meet the required burden of proof that Bosworth violated a company rule against tampering with the thermostat and deserved to be terminated. Bosworth is presumed innocent and NCRS never proved Bosworth was guilty. The union contends both Bosworth and Ziegler were doing nothing more than standing in front of the thermostat to check the temperature when Walton entered the car wash bay. Ziegler under oath testified that Bosworth did not tamper with the thermostat, Bosworth's coat hanger was a part of trash from a car rental, and the coat hanger was not used to vandalize the thermostat.

Furthermore, the entrance to the bay area is 20 feet away from the thermostat. Walton could not have possibly seen a thin metal hanger at that distance. It is even more unlikely that he could have seen the hanger inserted into the thermostat since both Bosworth and Ziegler were standing in front of it with their backs to Walton. Again, the union contended that Bosworth is innocent and NCRS never proved him guilty! This is a just cause basic tenet of Labor-Management Relations and arbitration. The union contends that Bosworth was a two-year employee who corrected his tardiness record and inadvertently screeched tires while exiting the bay area. The union believes the arbitrator should return Bosworth to his job, and be should be made whole for all monies and benefits lost as a result of NCRS' actions because NCRS violated the just cause provision of Article X: Discipline/Termination.

1. You're the Arbitrator, you must interpret the complete key contract language.

2. Fully explain your thorough case analysis/reasoning by: analyzing, evaluating and explaining your conclusion from the case's facts and their impact.

3. Based upon the above conclusions, please provide your reasoning for how the employee will be treated. Thereafter, give your final and binding award/decision.