Grievance Information Detail

AWARD 548 GRANTED Determination of appropriate rate of interest to be paid to a grievant onì back wages awarded in a reinstatement action. Arbitrator reinstated the Grievant with back pay in a written opinionì 04/30/90. After that opinion, the Employer did not reinstate the Grievantì until 05/20/90, and the Grievant did not receive back pay until 06/01/90. Theì Union asked for interest on the back pay from the date of the award untilì actual payment. Interest was ordered to be paid at the prime lending rate inì effect 04/30/90 and compounded daily. The Employer argues that an award of interest on the back pay is punitive andì not warranted in this situation. Furthermore, the Employer asserts that theì Arbitrator lacks the authority to impose an obligation, such as this, that isì not required by the specific language of the contract. The Union asserts that the Arbitrator does have this authority, only to beì limited to the extent that she must substitute her own rule o