Board of Education of the City of Chicago v. Illinois Educational Labor Relations Board
69 N.E.3d 809
Ill.2016Background
- The Chicago Teachers Union (Union) and the Board of Education of the City of Chicago (Board) were parties to a 2007–2012 collective bargaining agreement (CBA) that provided a grievance procedure culminating in binding arbitration.
- In 2010 the Board adopted a policy marking certain nonrenewed probationary appointed teachers (PATs) as "Do Not Hire" (DNH) in personnel files; affected PATs were not notified of the DNH designation.
- The Union filed four grievances (three individual, one collective) claiming the DNH policy violated the CBA (including article 34-4 on personnel-file notice) and demanded arbitration; the Board refused, asserting hiring decisions are inherent managerial rights excluded from arbitration.
- The Union filed an unfair labor practice charge with the Illinois Educational Labor Relations Board (IELRB); the IELRB found the Board violated section 14(a)(1) of the Illinois Educational Labor Relations Act by refusing to arbitrate and ordered arbitration.
- A divided Illinois Appellate Court reversed the IELRB, holding the grievances were not arbitrable under the CBA and, alternatively, arbitration would conflict with the Act and School Code; the Illinois Supreme Court granted review.
- The Supreme Court affirmed the appellate court: it held the grievances implicated the Board’s inherent managerial right to select employees and were therefore not subject to mandatory arbitration under the CBA and section 10(b) of the Act; the cause was remanded to the IELRB.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the CBA requires arbitration of grievances challenging DNH designations placed in PATs' files | Grievances allege violations of CBA terms (broad grievance definition and article 34-4 personnel-file notice) and thus are arbitrable | DNH designations concern hiring/rehire decisions, a matter of inherent managerial policy excluded from bargaining/arbitration per the CBA | Held for Defendant: grievances relate to selection of new employees (managerial policy) and are not arbitrable under the CBA |
| Whether arbitration would be barred by section 10(b) of the Illinois Educational Labor Relations Act because it would conflict with Illinois law | Union: arbitration of procedural violations (notice/response) does not conflict with law and does not decide rehiring | Board: arbitration would effectively constrain the Board’s statutorily conferred discretion over hiring/nonrenewal of probationary teachers, conflicting with the Act and School Code | Held for Defendant: arbitration would conflict with section 4 of the Act and School Code provisions protecting boards’ authority over hiring/nonrenewal, so enforcement barred by section 10(b) |
| Appropriate standard of review for IELRB’s decision | Union: de novo review because facts are stipulated and issues are legal | IELRB: mixed question of law and fact; apply clearly erroneous review | Court: mixed question; apply clearly erroneous (deferential) standard |
| Whether IELRB clearly erred in finding an unfair labor practice under section 14(a)(1) by refusing to arbitrate | Union/IELRB: IELRB did not clearly err—grievances were arbitrable and refusal to arbitrate violated section 14(a)(1) | Board: IELRB erred; refusal to arbitrate was lawful because grievances were inarbitrable | Held for Defendant: IELRB clearly erred; no violation of section 14(a)(1) because grievances were inarbitrable |
Key Cases Cited
- Wade v. City of North Chicago Police Pension Board, 226 Ill. 2d 485 (Illinois Supreme Court) (reviews scope of judicial review of administrative decisions)
- AFM Messenger Service, Inc. v. Department of Employment Security, 198 Ill. 2d 380 (Illinois Supreme Court) (standard for reviewing mixed questions of law and fact; clear-error standard)
- Central City Education Ass'n v. Illinois Educational Labor Relations Board, 149 Ill. 2d 496 (Illinois Supreme Court) (three-part test for mandatory bargaining and deference to IELRB on inherent managerial policy)
- Board of Education of Community School District No. 1, Coles County v. Compton, 123 Ill. 2d 216 (Illinois Supreme Court) (binding arbitration is mandatory in CBAs but does not permit arbitration of matters conflicting with statutory authority)
- Illinois Education Ass'n Local Community High School District 218 v. Board of Education of School District 218, 62 Ill. 2d 127 (Illinois Supreme Court) (school board discretion over probationary teachers cannot be delegated to an arbitrator)
- Lockport Area Special Education Cooperative v. Lockport Area Special Education Cooperative Ass'n, 33 Ill. App. 3d 789 (Illinois Appellate Court) (parties may agree to procedural prerequisites before a board exercises discretionary rehiring authority)