Age discrimination is not established -- or even suggested -- merely by the fact that another employee is younger than you.
Do you have evidence that an adverse employment action against you by your employer was based on the fact of your age? And are you over 40? Your union agreement rule is swiss cheese (and purposely so, inevitably), but you can ask your union to assert your rights under the contract provision that you have cited here. Unlikely the union will press the issue through arbitration as the provision, as written, leaves the employer with almost unlimited discretion.
You may have a sound claim based on disability discrimination -- more likely than a claim based on age. .Talk with your union rep and local employment counsel.
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I see no facts that suggest age discrimination. Perhaps there are some, but you did not post them.
Your situation suggests you should take two paths from here. First, you should address the violation of the union agreement with your union representative. That is likely the exclusive way to address the violation of that agreement. Second, you should locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options related to a possible disability discrimination case.
I would suggest you look either on this site in the Find a Lawyer section, or go to www.cela.org, the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers.
Most employment attorneys who practice this area of law work on a contingency basis, meaning you can hire an attorney without paying any money until the matter results in a positive outcome for you. Many advance all the costs of the litigation as well. Do not let fear of fees and costs keep you from finding a good attorney.
Good luck to you.
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