Do Arbitrators Use Just Cause Standards in Deciding Discharge and Discipline Cases? A Test

This study used a rule induction, as a form of “machine learning” for pattern recognition to examine an alleged common law put forward by Arbitrator Carroll Daugherty regarding key factors used by labor arbitrators in the United States to decide discipline and discharge cases. Control variables for public sector or private sector origin of the case and characteristics of the aggrieved employee(s) or of the arbitrator were not found to influence arbitral thought. However, the alleged common law identified by Carroll Daugherty provided a set of rules which had a hit ratio of nearly 90% indicating strong support for there actually being a common law developed over the period examined. This scientific evidence supports the hypothesized common law of just cause for discipline being applied by labor arbitrators. Further, the existence of such common law should provide greater predictability and consistency to disciplinary proceedings and may be useful in examining similarly situated decision-making activities in arbitration, law, and other professions.