Synopsis By: Goldman - Proceeding Author: Donald A. Crawford, Mark L. Kahn

Analyzing the small number of arbitration decisions then published on the subject (64), the author finds few consistent themes – and attributes this to inconsistency in the behavior of the parties. Where contracts have been silent on contracting out, arbitrators have generally not adhered to a reserved rights theory, even when they ruled in favor of the employer. The existence of a CBA and a recognition clause have not sufficient to prevent all contracting out. Contracting out has been more likely to be permitted if the work was temporary. Contracting out of permanent work has been more likely to be permitted when done for reasons of special efficiency, not for the purpose of avoiding union rates.