This decision reverses a judgment confirming an arbitration award on the ground that the award violates public policy.  The award interpreted a provision of the union’s memorandum of understanding with plaintiff department to mean that after one year the employing state agency not only had to delete negative material from the employee’s file but also barred the agency from retaining any record of the negative material or basing any future discipline on it.  The decision holds that this offends the state constitutional provision requiring state employment to be based on merit.  Merit must be used not only in hiring and promotion but in dispensing discipline.  And without a record of prior discipline or ability to base future discipline on it, the employing agency cannot base discipline on de-merit.