When it terminated its interim labor agreement, the Hearst Corporation notified the union that both the arbitration and dues checkoff provisions of the collective bargaining agreement would be terminated. The union filed a grievance challenging the termination of checkoff, claiming that the contract compels it for any checkoff authorization that has not been revoked. When the grievance was not resolved, the union notified Hearst of its intention to take the matter to arbitration and, after the company refused to arbitrate, filed suit to compel arbitration. The court granted summary judgment to the union, which meant that Hearst was required to arbitrate the issue unless Hearst won on appeal.
The U.S. Court of Appeals for the Second Circuit affirmed, but went on to say that the written checkoff authorization by individual employees directing Hearst to deduct dues from their pay remains effective according to its terms, which state that "this assignment and authorization of dues-checkoff continues until revoked by the employee and is automatically renewed and irrevocable in certain instances." Moreover, according to the court, the labor agreement "does not provide Hearst the unilateral right to revoke any assignment. Nor is there any indication that Hearst's obligation to remit dues . . . terminates upon expiration of the CBA."