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Rite Aid Prevails in Fight Over Arbitration of Labor Dispute

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By FindLaw Staff on February 16, 2010 4:02 PM

In Rite Aid of Pennsylvania, Inc. v. United Food & Commercial Workers Union, No. 09-1989, the U.S. Court of Appeals for the Third Circuit addressed the issue of whether the parties had agreed to arbitrate a labor dispute under the parties' collective bargaining agreement (CBA).

As stated in the decision: "In 2007 Rite Aid acquired a chain of drugstores formerly operated by Brooks Eckerd.  The employees of the newly acquired stores were not yet represented by the Union.  When Union representatives attempted to enter six of the new stores, Rite Aid denied them entry."

In affirming the judgment in favor of Rite Aid, the Court held that none of the three provisions of the CBA provided a basis for the Union's claim that its representatives are entitled to access Rite Aid's newly acquired stores and their employees. 

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