Hygiene Industries v. Plastic, Metal, Novelty & Allied Workers' Union Local 132-98
Hygiene Industries sought to prevent Plastic, Metal, Novelty and Allied Workers’ Union, Local 132-98, I.L.G.W.U. from arbitrating a grievance concerning the proposed closure of two plants in Brooklyn, New York. Hygiene argued the dispute was not arbitrable because the collective bargaining and settlement agreements might expire before the plant closings. The Union contended that the settlement agreement’s duration was tied to Hygiene’s operations in Sardis, Mississippi, and that the broad arbitration clauses covered the dispute. The court emphasized the strong federal policy favoring arbitration in labor disputes. Ultimately, the motion to enjoin arbitration was denied, as the court found the expiration date of the Settlement Agreement ambiguous and a matter for the arbitrator, not the court, to decide.