Classified Employees Ass'n v. Matanuska-Susitna Borough School District

**School Custodians Lose Fight Over Outsourcing Decision** A group of school custodians and their union sued the Matanuska-Susitna Borough School District in Alaska after the district decided to outsource custodial services to outside companies. The custodians argued this violated their collective bargaining agreement and wanted to force the dispute into arbitration, where a neutral third party would decide if the district broke its contract with the workers. The Alaska Supreme Court ruled against the custodians in 2009. The court decided that the school district's choice to outsource custodial work could not be challenged through the grievance and arbitration process outlined in the union contract. The court determined that decisions about outsourcing fall outside the scope of what can be disputed under the collective bargaining agreement's grievance procedures. This ruling matters for workers because it shows that union contracts may not always protect against outsourcing decisions, even when those decisions eliminate union jobs. Workers should understand that their collective bargaining agreements might have limits on what types of employer decisions can be challenged through grievance procedures. The case demonstrates the importance of negotiating specific contract language about outsourcing if workers want protection against having their jobs moved to outside companies.