8th Circ. Reinstates Arbitrator's Severance Award To Union

Law360, New York (September 5, 2013, 6:36 PM EDT) -- The Eighth Circuit on Thursday reversed a district court's decision to toss a severance award in a dispute stemming from the sale of packaging plants operated by a former subsidiary of Rio Tinto PLC, ruling that the court must defer to the arbitrator's reasonable interpretation of a collective bargaining agreement.

In a 2-1 opinion issued Thursday, the Eighth Circuit ruled that just because Alcan Packaging Co. disagreed with a severance award by the arbitrator did not give the Iowa federal court the right to vacate the...
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