Arco Enterprises, Inc. v. Operative Plasterers' & Cement Masons' International Ass'n of United States & Canada

# Arco Enterprises v. Operative Plasterers' Union ## What Happened Arco Enterprises, a construction company, hired union plasterers but refused to pay them certain wages and benefits they were contractually owed. When the dispute arose, the case went to arbitration—a private hearing where a neutral panel decides the outcome instead of a judge. Arco later challenged the arbitrator's decision, claiming the panel had no authority to rule on the matter and that one panel member was biased against them. ## What the Court Decided The Third Circuit Court of Appeals sided with the union workers. The court upheld the original arbitration decision, requiring Arco to pay the workers their back wages and fringe benefits. The court rejected Arco's claims that the arbitrators overstepped their authority or acted unfairly. ## Why This Matters for Workers This ruling protects union workers' right to use arbitration to enforce their contracts. It shows that courts will enforce arbitration awards when employers owe workers promised pay and benefits, even when employers argue the arbitration was flawed. This makes it harder for employers to escape payment obligations through legal challenges.