## Facts

- The grievant worked for General Dynamics Land Systems (General Dynamics) as a fire marshal.
- The grievant was not represented by a union and was not covered by a collective bargaining agreement.
- Instead, the employment dispute process was governed by a General Dynamics Dispute Resolution Handbook (handbook).
- The handbook gave employees the right to appeal employment decisions to a Management Appeals Committee (committee).
- The handbook provided for arbitration only in a limited circumstance: when the committee’s decision was based on a “legally protected right.”
- General Dynamics laid off the fire marshal without giving an explanation.
- The fire marshal appealed the layoff to the committee.
- The committee recommended that General Dynamics give an explanation for the layoff.
- After the committee process, the fire marshal filed a request for arbitration.
- The arbitration request asserted that the layoff was wrongful and that the grievant disagreed with General Dynamics’ decision to lay him off.
- The arbitration request sought reinstatement.
- The arbitration request did not identify any specific “legally protected right” that General Dynamics allegedly violated, although it stated that such information would be provided later.

## Issues

1. Under the handbook, could the grievant compel arbitration when his arbitration request did not specify any “legally protected right” and instead alleged only a “wrongful” layoff?
2. Did the arbitrator have jurisdiction to hear a general challenge to the layoff decision where the handbook limited arbitration to disputes based on a “legally protected right”?

## Decision

- The arbitrator treated the handbook’s “legally protected right” requirement as a limit on arbitral jurisdiction.
- Because the grievant’s arbitration request did not identify any legally protected right allegedly violated, the arbitrator found the dispute not subject to arbitration under the handbook.
- The arbitrator declined to proceed to the merits of whether the layoff was “wrongful” and did not award reinstatement.

## Legal Principles

- Arbitration exists only by agreement; the arbitrator’s power is defined and limited by the parties’ arbitration grant (including an employer handbook procedure accepted by the employee).
- When an arbitration clause limits arbitration to a particular category of disputes, the party seeking arbitration must present a claim that fits within that category.
- A bare allegation that an employer decision was “wrongful,” without tying the claim to an identified legal protection required by the arbitration agreement, does not establish arbitral jurisdiction.
- An arbitrator may decide threshold arbitrability and jurisdiction questions before reaching the merits of the employment action.

## Conclusion

In *General Dynamics Land Systems*, a nonunion fire marshal challenged a no-explanation layoff using an employer Dispute Resolution Handbook that allowed internal committee review and permitted arbitration only for claims based on a “legally protected right.” After the committee recommended that the company provide an explanation, the employee sought arbitration and reinstatement but did not identify any legally protected right allegedly violated; the arbitrator therefore concluded the matter was not arbitrable under the handbook and did not reach the layoff’s merits.


General Dynamics Land Systems, 111 Lab. Arb. Rep. 319 (1998)