Phillips v. Manhattan and Bronx Surface Transit Operating Authority

Tony Aiken was employed by the Manhattan and Bronx Surface Transit Operating Authority (the authority) (plaintiff) as a bus driver. A bus dispatcher filed a complaint with the authority’s Office of Equal Employment Opportunity (EEO), alleging that Aiken repeatedly sexually harassed her. The EEO initiated an investigation. Shortly thereafter, Aiken’s union, the Transport Workers Union of America, Local 100 (the union) (defendant), requested that Aiken be put on union-paid release time. The request was approved by the authority. The EEO concluded that it was reasonably likely that Aiken engaged in sexual harassment, and it recommended appropriate corrective action. The authority presented disciplinary charges, but Aiken did not appear for the hearing, following advice from his union, which disputed the authority’s power to maintain a disciplinary grievance against an employee on union-paid release time. The authority dismissed Aiken after the hearing. During arbitration, the union filed a contract-interpretation grievance with the arbitrator, contending that the authority could not discipline an employee who was on paid release time under the parties’ collective-bargaining agreement (CBA). The arbitrator found that the authority violated the CBA by attempting to impose a disciplinary penalty while Aiken was on paid time off. The union filed an action in supreme court seeking to confirm the arbitrator’s award reinstating Aiken. The authority cross-moved for an order dismissing the petition and vacating the award, arguing that the award was a violation of public policy because it prevented the authority from taking steps to address sexual harassment in the workplace.