Labor & Employment Law Daily Wrap Up, LABOR—ARBITRATION—Comment about MLK Day and possession of weapon warranted discharge, (Jan 21, 2026)

By WK Editorial Staff

The employee referred to Martin Luther King Jr. Day as “Brother’s Day,” offending a coworker.

A water and wastewater service employee who was fired for making an allegedly racist comment and for possessing a 12-inch knife in his workplace locker, both of which the employer said violated company policies on dignity, respect, and workplace violence, was unsuccessful in grieving his termination. An arbitrator denied the grievance, upholding the employer’s decision after a hearing (Illinois American Water and Teamsters Local No. 525 (Suardi, Arb. Aug. 28, 2024)).

The incident began in the lunchroom where the employee—a wastewater treatment operator with over 30 years of experience—referred to Martin Luther King Jr. Day as “Brother’s Day,” a comment that deeply offended a coworker. After internal complaints, an investigation followed, and the employee was placed on leave. Subsequently, during the cleaning of his locker, a large knife was discovered among his belongings, prompting a supplemental termination letter under the company’s Violence Free Workplace Policy. The employee denied ownership of the knife and claimed no knowledge of its presence.

Recent training. The arbitrator found both charges substantiated. While acknowledging the employee’s long service and the contextual ambiguity of the remark, the arbitrator found that the comment, made twice, showed poor judgment and violated multiple workplace dignity policies. The arbitrator emphasized that the company had made considerable efforts to train the grievant on its behavioral expectations and workplace respect standards, including several recent sessions. The comment was found to be offensive, especially considering past incidents of insubordination and disregard for managerial directives by the employee, which reflected a broader pattern of noncompliance.

Knife possession. Regarding the knife, the arbitrator found that the presence of the weapon in the employee’s assigned locker created a permissible inference of possession. The argument that a third party might have planted the knife was rejected as unreasonable. While the employee denied knowledge of the knife, his testimony was weighed against circumstantial evidence, and the arbitrator found that the company had presented sufficient proof to meet its burden under the “just cause” standard.

Ultimately, the arbitrator concluded that both the inappropriate comment and possession of the knife, considered separately or together, justified termination. Given the employee’s prior conduct (incidents in which he was allegedly argumentative and did things after being explicitly instructed not to), recent training, and demonstrated resistance to employer expectations, reinstatement was found unwarranted.

Attorneys: Kristine G. Derewicz for Illinois American Water. George O. Suggs for Teamsters Local No. 525.

Companies: Illinois American Water; Teamsters Local No. 525

Cases: Labor Arbitration UnionsMembers Discharge RaceDiscrimination Discrimination