The United States Court of Appeals for the Fifth Circuit has reversed a district court’s order allowing an arbitrator to determine the issue of arbitrability in a labor contract dispute. In Houston Refining, L.P. v. United Steel, Paper and Forestry, Rubber, Mfg., No. 13-20384 (August 25, 2014), a company, Houston Refining, filed for bankruptcy. Not long after, the company stopped matching its workers’ contributions to their personal 401(k) retirement accounts. Houston Refining then entered into a settlement agreement with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“the Union”) over the company’s decision to suspend matching funds. After that, the company and the workers engaged in arbitration pursuant to the terms of the settlement agreement along with the provisions included in the parties’ collective bargaining agreement (“CBA”).

Following a hearing, an arbitrator determined that the company violated its 2006 CBA with the workers when it ceased matching employee retirement contributions. Houston Refining then asked a district court to vacate the arbitration award. In response, the Union asked the court to enforce the arbitrator’s decision. Both parties moved for summary judgment and the court granted the Union’s motion in part. The district court also remanded the case back to the arbitrator for clarification regarding the appropriate remedy in the case. Houston Refining then appealed the court’s decision to the nation’s Fifth Circuit.

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