1 Litton Financial Printing Court balancing three conflicting doctrines –In the absence of an agreement to extend contract past the expiration date, Katz “no changes” doctrine makes post-expiration TCE’s a matter of law, not contract grievance and arbitration a TCE –Nolde Bros. (Supreme Court) case that says that obligation to arbitrate cases arising under the contract survives expiration of the agreement –Arbitration a consensual process consent ceases when CBK expires

2 Litton Financial Printing (cont.) “Arising under the contract” means a right that accrued under the contract –vacation pay –severance pay Court decides whether the dispute is over a right accrued under the contract Court may be carving out an exception to Katz: –union security clauses - law –no strike clause - Sec. 13 –general duty to arbitrate - consensual nature of arb (Hilton-Davis, 1970)

3 Litton Fin. Printing (cont.) TCE that exist unchanged after expiration per Katz exist by law, not contract –enforced by legal, not contractual means Post-contract expiration grievance under the CBA exists only where: –grievance involves facts or occurrences that arose before expiration; –where a post-expiration action by er affects rights accrued or vested under the agreement; or –disputed contractual right survives expiration of the agreement After expiration of the agreement, obligation to arbitrate a function of the nature of the dispute rather than the scope of the grievance and arbitration clause

4 Litton Financial Printing (cont.) In general, unilateral change cases must go to Board as UFLP cases, not to arb Court avoids question of whether seniority accrues and vests over time –focuses on aptitude and ability language in contract –Dissent: seniority should vest and should accrue worked for over time

5 Contract Period Old Contract Terminates Parties Agree to Extend Contract or Statutory TCE Bargaining Process Timeline New Contract Impasse New Contract Impasse TC TC TCE based on final pre-impasse proposal TCE based on final pre-impasse proposal