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Happy Valley, Inc.

Question

Happy Valley, Inc. is a manufacturer of portable toilets. It has been in

business since 1855, the past few years under the leadership of James Franklin, its President and CEO. All 84 hourly workers at the toilet plant are represented by the Pennsylvania Operators and Olfactory Engineers, affectionately referred to as P.O.O. Doug Allen is the President of P.O.O. Happy Valley, Inc. and P.O.O. are parties to a collective bargaining agreement (CBA). Pursuant to the CBA, employees cannot be discharged without “just cause.” The agreement does not define just cause. Employees have 10 days to file a grievance to challenge terminations. If grievances cannot be resolved between the parties, they are resolved by final and binding arbitration. In the past, talented prospects have come from far and wide to work for Happy Valley, Inc. Unfortunately, the labor market ain’t what is used to be. One sign of the times is an increasing attendance problem at Happy Valley, Inc., which Mr. Franklin attributes to a cavalier attitude by members of the Millennial Generation. To stem the tide, Mr. Franklin developed a new attendance policy. Pursuant to the new attendance policy, any employee with five or less years of service will be summarily dismissed if they are late for work. Mr. Franklin sent an e-mail to Mr. Allen at 6:00 p.m. on July 3 stating, “attached is a copy of the attendance policy that will be implemented at the toilet plant on July 5.” Mr. Allen did not respond to Mr. Franklin’s e-mail. On July 5, Mr. Franklin implemented the new attendance policy. On July 6, Christian Hackenberg arrived to work five minutes late for his shift at the toilet plant. Mr. Franklin terminated Mr. Hackenberg’s employment on the spot. 

 
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