Way Bakery v. Truck Drivers Local No. 164 and James Zentgraf

GILMAN, Circuit Judge.

This case arises out of an arbitrator’s reinstatement of a white employee who was terminated for making a racially offensive remark to a black coworker. The employer brought suit to vacate the arbitrator’s award. After the district court ruled in favor of the employee and Truck Drivers Local No. 164 (the Union), the employer appealed. For the reasons set forth below, we AFFIRM the judgment of the district court.

I. BACKGROUND

James Zentgraf worked for Way Bakery and is a member of the Union. In February of 2000, Zentgraf, a white employee, told Diana Thomas, an…