An employee was terminated for making angry accusations about a manager. His union intervened and the employer

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An employee was terminated for making angry accusations about a manager. His union intervened and the employer agreed to reinstate the employee, subject to his signing a “last-chance” agreement. The agreement, which he signed, specified that the employee would be fired for any similar conduct in the future and that the union “waive[d] its right to grieve such future incident.” A couple of years later, the employee got into a loud argument in front of customers with a manager, who he accused of being racist. The employee was terminated. The union again intervened. When the case went to arbitration, the arbitrator determined that the employee’s behavior might be indicative of underlying psychological problems. Rather than uphold the termination, the arbitrator ordered that the employee undergo psychological treatment and evaluation, at the union’s expense. If, after nine months of treatment the employee was certified as fit to work, he would be reinstated (without back pay). The employer went to court to have the arbitrator’s decision overturned. What should the court decide? Why?
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