The union had a prior arbitration win on its side – it wasn't enough
A federal appeals court ruled a union cannot force arbitration over a healthcare benefits dispute tied to a prior arbitration award.
On March 23, 2026, the U.S. Court of Appeals for the Third Circuit ruled 2-1 that a union grievance over healthcare contributions did not belong in arbitration – even though the collective-bargaining agreement between the parties contained a broad arbitration clause. The decision reversed a lower court that had ordered the employer to the arbitration table.
The dispute traces back to 2021. Energy Harbor Nuclear Corporation owned and operated the Beaver Valley Power Station, a nuclear power plant in Pennsylvania, where IBEW Local 29 represented roughly 400 employees. Under the existing collective-bargaining agreement, the union ran its own healthcare plan, and Energy Harbor was required to contribute premiums to it. Each year, the company had to increase those contributions by the same percentage as any increase to its own health care plan.
When the union alleged that Energy Harbor had shortchanged its contributions, the matter went to an arbitrator. In February 2022, the arbitrator sided with the union, finding that the company should have raised its 2021 contributions by 6.7 percent instead of the 2.77 percent it actually paid. The arbitrator ordered Energy Harbor to pay the unions the difference. The award did not change the company's own health plan in any way, and it...
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