Appeal of Professional Fire Fighters of Hudson, IAFF Local 3154
167 N.H. 46
N.H.2014Background
- Town of Hudson (public employer) and Professional Fire Fighters of Hudson, IAFF Local 3154 (Union) had a series of CBAs; the 2006 CBA expired June 2009 and contained no evergreen clause.
- Historically, after prior CBAs expired, the Town paid step (seniority) wage increases during status quo periods; the Town paid such steps through August 2011 but then stopped.
- The Union grieved; an arbitrator found a binding past practice and ordered payment of step increases accruing after August 2011.
- The Town refused to comply and defended before the PELRB, arguing the award violated RSA chapter 273-A and public policy regarding municipal expenditures and legislative approval of cost items.
- The PELRB held the arbitrator’s award violated public policy (local legislative-body approval required for expenditures that are cost items) and dismissed the Union’s unfair labor practice claim.
- Supreme Court of New Hampshire affirmed, holding step increases paid at employer discretion during status quo are not binding cost items and need not be paid absent an evergreen clause and legislative ratification.
Issues
| Issue | Plaintiff's Argument (Union) | Defendant's Argument (Town) | Held |
|---|---|---|---|
| Whether past practice of paying step increases during status quo created a binding obligation | Past practice bound Town to continue steps despite CBA expiry | Steps during status quo were discretionary and not binding cost items absent evergreen clause and legislative ratification | Held for Town: past practice cannot convert discretionary status-quo step increases into binding cost items |
| Whether the arbitrator’s award is unenforceable as contrary to public policy | Arbitrator properly enforced past practice and remedy; PELRB exceeded authority in overturning award | Award contravenes strong public policy requiring legislative approval of cost items/expenditures | Held for Town: PELRB may refuse to enforce award that violates strong and dominant public policy |
| Whether Town waived or was time-barred from contesting the award | Town consented to arbitration and waived right to contest arbitrability/enforceability | Town did not challenge arbitrability; challenged enforceability on public policy grounds after award (timely) | Held for Town: challenge to enforceability on public policy grounds was timely and not waived |
| Whether equitable defenses (laches, disparate treatment) or evidentiary rulings require relief | Laches/disparate treatment bar Town’s defense; PELRB erred admitting evidence not in arbitration | Laches fails as a matter of law; disparate treatment not preserved; any extra evidence was irrelevant | Held for Town: laches not applicable; disparate treatment not preserved; any evidentiary error harmless |
Key Cases Cited
- Alton School Dist. v. Alton School Board, 140 N.H. 303 (1995) (status quo doctrine and requirement that cost items be ratified by legislative body)
- Laconia Patrolman Assoc. v. Laconia, 164 N.H. 552 (2013) (status quo does not require payment of step increases after CBA expiration; such increases discretionary)
- Milton School Dist. v. Milton School Board, 137 N.H. 240 (1993) (employer must maintain salary levels but not projected step schedules during status quo)
- Appeal of Amalgamated Transit Union, 144 N.H. 325 (1999) (agencies may decline to enforce arbitration awards that contravene public policy)
- Appeal of N.H. Dep’t of Corrections, 164 N.H. 307 (2012) (definition and limits of past practice)
- City of Franklin v. Franklin School Board, 137 N.H. 723 (1993) (monetary provisions requiring appropriation are cost items)