In re the Arbitration between Sarle & Sperry Gyroscope Co. Division of Sperry Rand Corp.

An employer, party to a collective bargaining agreement containing an arbitration clause, appeals from an order denying its application to stay an arbitration on the ground that the proposed issues do not constitute bona fide disputes. The demand for arbitration was made by the labor union, the other signatory to the collective bargaining agreement.

Five employees were charged with gambling by plant security officers, who claimed to have observed them. The employees were brought to a supervisor’s office. After a lapse of time each of the five executed a purportedly voluntary resignation.…