City of Bethany v. Public Employees Relations BoardCity of Bethany v. Public Employees Relations Board
Two dispositive issues are presented k (
1
) whether the statutory duty to bargain in good faith was violated when the City proposed that certain terms of the collective bargaining agreement (CBA) under negotiation
not
be subject to grievance arbitration as is required by
FACTS
The facts material to these issues, as found by the PERB, are not disputed on appeal. In March of 1987, the appellee, the International Association of Firefighters, Local 2085 (the Union) and the appellant, the City of Bethany (the City/Bethany), began negotiating for a collective bargaining agreement for the 1987-1988 fiscal year. During the course of negotiations, the City proposed that certain issues would not be subject to arbitration under the new contract.
4
In response to this proposal, the Union, arguing that pursuant to
In August of 1987, the Union filed an unfair labor practice charge against the City of Bethany with the Public Employees Relations Board (the PERB/Board). After a hearing, the PERB found that
I.
THE DUTY TO BARGAIN IN GOOD FAITH IS VIOLATED WHEN A PARTY INSISTS THAT CERTAIN TERMS OF THE FINAL AGREEMENT WILL NOT BE SUBJECT TO GRIEVANCE ARBITRATION.
A.
Although 11 O.S.SUPP.1985
Under the Act, union representatives and municipalities are obligated to meet and negotiate in good faith 8 over issues concerning wages, hours, grievances, working conditions and other terms and conditions of employment. 9 These items are mandatory subjects of bargaining and neither party is compelled to agree to a proposal or required to make a concession regarding such items during the negotiation process. 10
Arbitration is the prime vehicle for resolving a dispute concerning the interpretation of a collective bargaining agreement formed under the FPAA. The legislative proclamation in
Before addressing the duty to negotiate' in good faith as it applies to grievance arbitration
12
we must first ascertain the leg
Applying these rules of statutory construction to
With this outline of the statute in mind, the following principles of legislative policy emerge with respect to grievance arbitration:
(1) The prohibition against strikes by fire fighters and police officers is not contained in the constitution. It occurs only in the statute. The Legislature explicitly balanced the requirement that CBAs contain a no-strike provision with the right to grievance arbitration. 16 Invalidating grievance arbitration would destroy this vital, conscious public policy decision.
(2) “Any” dispute over the “interpretation or application of any provision” of the CBA is subject to grievance arbitration. Neither side can bargain to exclude certain
(3) When the parties cannot agree to a grievance arbitration procedure, they may resort to the statutory procedures for selecting impasse arbitrators and use those procedures for selecting a grievance arbitration panel.
(4) Advisory grievance arbitration decisions are not contemplated by the statute. The statute unequivocally mandates “final” grievance arbitration, whatever procedure is used to select the arbitrators.
The fundamental flaw in the arguments advanced by the City and Amicus on the issues of statutory construction posed by
This Court has held, in
Midwest City v. Harris,
B.
The duty to bargain in good faith is violated when a party insists upon contract terms which would be illegal if incorporated in the collective bargaining agreement.
Once the grievance arbitration statute,
This Court has frequently recognized the fPAA’s public policy “trade-off’ between rievanee arbitration and strike prohibitions. In
City of Yukon v. International Ass’n of firefighters, Local 2055,
“While the private employee who, when confronted with an impasse in negotiations or with an unfair labor practice committed during negotiations, has the option to strike, the firefighter or policeman is denied this option. In partial compensation for the denial of the traditional economic (weapons of labor, the Firefighter’s and I Policemen’s Arbitration Law provides a (method of arbitration for issues unresolved (by negotiation. To allow a municipal em(ployer to force negotiations to an impasse (by insistence on a proposal of, at best, (questionable legal tenability, resulting in a (process of arbitration, which is then not (binding on the municipal authority would (be to deny the right to engage in effective ¡collective bargaining reserved to these public employees by 11 O.S.1981, Sec. 51-101(A). This strong policy of requiring [absolute good faith in bargaining is necessary to counter-balance the absence of the the right to strike and the absence of availability of binding arbitration.”
A party may not insist at the negotiating table upon terms which would modify statutory requirements for CBAs. We hold that the Firefighters and Policemen’s Arbitration Law defines and determines the make-up of a collective bargaining unit and is not a proper subject for negotiation between the City and the bargaining agent for the firefighters. 21
We also hold that the entities covered by the FPAA violate their duty to bargain in good faith when they assert positions at the collective bargaining table which would, if accepted, require the other side to agree to terms contrary to those mandated by statute. This is consistent with our ruling in
Stone v. Johnson,
It is important to distinguish this decision from prior eases construing the role of grievance arbitration under the teacher negotiation statutes,
The
Raines
court construed
Mindemann
as recognizing two major limitations on a school board’s ability to include certain terms in a collective bargaining agreement. First,
1) The Legislature has not mandated grievance arbitration for school teachers. In fact, the statutes make no reference at all to grievance arbitration in teacher bargaining. In Mindemann — Raines the parties voluntarily chose this means of dispute resolution for themselves.
2) The Legislature has not mandated a detailed statutory procedure for the nonre-newal or discharge of firefighters as it has for teachers.
3) In teacher bargaining, the conflict to be resolved between statutes is between the detailed teacher dismissal statute and legislative silence on grievance arbitration. In effect it is a conflict between a teacher dismissal statute and the contractual preferences of the parties.
4) In firefighter bargaining, the conflict to be resolved is between an unequivocal legislative mandate for grievance arbitration and virtual legislative silence as to the procedures for discharging firefighters.
In
Mindemanrir-Raines,
there is considerable judicial dicta about “managerial prerogative.” To the extent that it is applicable, it is only insofar as there are constitutional or statutory indicia of such prerogatives.
22
In the absence of specific guidance in the Oklahoma Constitution, it is the Legislature, and not this Court, which is vested with responsibility for declaring the public policy of this state. When courts make public policy pronouncements, they are worthy of respect only when they are rooted in specific sources of law and not in the policy preferences of the judges who render them. [It is most ironic that the statute the Court used to defeat
contractual
grievance arbitration in
Mindemanm-Raines
(
The wisdom and value of this legislative! policy choice concerning firefighters and poT lice officers has been tragically underlined ⅛| the sequelae to the April 19, 1995, bombing of the Murrah Federal Building. The idea ol a work stoppage by rescue workers, foi whatever reason, was simply unthinkable The nation watched the heroics of firefightl ers and police officers from Oklahoma Citf and other communities as they placed theil lives on the line around the clock. While thil particular disaster was unique in our State! history, it helps us understand that civil soe| ety as we know it hinges on the availability < these uniformed officers every day, everl hour, every minute, and every second to deif
II.
TITLE 11 O.S.SUPP.1985
Although we have previously considered the legal viability of arbitration agreements in a variety of contexts, those eases have generally involved circumstances in which parties have specified arbitration contractually as their preferred method of resolving future disputes. We have never been presented the issue posed so starHy here: Can the Legislature create a method for dispute resolution which mandates arbitration as its primary mechanism for addressing interpretive issues in collective bargaining agreements without running afoul of the OHahoma Constitution? The presumptive answer, of course, is yes. Acts of the Legislature are constitutionally valid unless they are shown beyond a reasonable doubt to violate the Constitution. 23
The City and the OHahoma Municipal League contend that forcing parties who are negotiating a contract, under the threat of an unfair labor charge and criminal sanctions,
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to agree to final and binding arbitration of every item of any contract negotiated under the Act,
None of the decisional authority cited by the City for the position that mandatory grievance arbitration is unconstitutional addresses the underlying legislative facts in this case. Here, the Legislature has set out with striking clarity the requirements for resolving interpretive disputes over the terms of collective bargaining agreements between municipalities and their uniformed employees. It has also provided a public policy framework for the requirements imposed on municipalities to stabilize and ensure the continuous provision of essential services from the firefighters and police officers who work for them.
Were we to strike down, this statute, for the reasons advanced by the City and the League, we would by implication jeopardize other significant legislative attempts to play an appropriate constitutional role in structuring the ground rules for adjudicating disputes in an increasingly litigious society.
We conclude that
Turning to the specific constitutional defects asserted we find the statute constitutional for the following reasons: 1) the
For almost two decades we have found grievance arbitration to be an appropriate substitute for the litigation of issues covered in the collective bargaining agreement. In 1980, we held that the grievance arbitration is an exclusive remedy for rights conferred by the CBA and that the bargaining agent can waive the rights of individuals covered by the CBA to sue. In
Voss v. City of Oklahoma City,
Special laws prohibited by the
The legislative command that public safety workers and their municipal employers submit their contract interpretation disputes to binding arbitration is enforceable and binding on the parties. Title
Notes
. Although the appellant argues 4 propositions of error, we find that they are appropriately encapsulated in two dispositive questions.
. Title
"Any agreement actually negotiated between the bargaining agent and the corporate authorities either before or within thirty (30) days after arbitration shall constitute the collective bargaining contract governing fire fighters or police officers in the municipality for the period stated therein; provided that such period shall not exceed one (1) year. Any collective bargaining agreement negotiated under the terms and provisions of this article shall specifically provide that the fire fighters or police officers who are subject to its terms shall have no right to engage in any work stoppage, slowdown or strike, the consideration for such provision being the right to a resolution of disputed questions. All rules, regulations, fiscal procedures, working conditions, departmental practices and manner of conducting the operation and administration of fire departments and police departments currently in effect on the effective date of any negotiated agreement shall be deemed a part of said agreement unless and except as modified or changed by the specific terms of such agreement. Every such agreement shall contain a clause establishing arbitration procedures for the immediate and speedy resolution and determination of any dispute which may arise involving the interpretation or application of any of the provisions of such agreement or the actions of any of the parties thereunder. In the absence of such negotiated procedure such dispute may be submitted to arbitration in accordance with the provisions of Section 51-107 through 51-110 of this title, except that the arbitration board shall be convened within ten (10) days after demand therefor by the bargaining agent upon the corporate authority or áuthorities. In such case the arbitration board's determination shall be final.”
This section was amended in 1985. Prior to the amendment it required parties to establish procedures for mediation and fact-finding, rather than arbitration.
. Grievance arbitration is ordinarily referred to as contract interpretation and it involves the resolution by a third party of a dispute between the public employer and the public employee over the proper interpretation of an existing collective bargaining agreement, whereas impasse/interest arbitration, involves the resolution of an impasse in collective bargaining over the terms of a new contract.
Moon v. Police Officers,
. The Union proposed that grievances be filed with the corporate authorities and if the dispute were not resolved, it be submitted to arbitration as provided in
. Title
. The parties resumed negotiations in late May of 1987, and eventually submitted several disputed issues to interest/impasse arbitration. However, the dispute at issue was never submitted to impasse arbitration. Instead, the impasse was resolved through the agreement of the parties in October of 1987.
. Title
" ‘Collective bargaining’ shall mean the performance of the mutual obligation of the municipal employer or his designated representatives and the representative of the employees to meet at reasonable times ... to confer in good faith with respect to wages, hours and other conditions of employment, or the negotiation of an agreement, or any question arising thereunder; and to execute a written contract incorporating any agreement reached if requested by either party. Such obligation shall not, however, compel either party to agree to a proposal or require the making of a concession.”
The current version of this section remains unaltered.
Title
"Fire fighters and police officers in any municipality shall have the separate right to bargain collectively with their municipality ... with respect to wages, salaries, hours, rates of pay, grievances, working conditions and all other terms and conditions of employment.”
The current version of this section remains unaltered.
It is an unfair practice, within the jurisdiction of PERB, for the "corporate authorities [to] refus[e] to bargain collectively or discuss grievances in good faith with the designated bargaining agent
with respect to any issue coming within the purview of this article."
Title
. Refusing to bargain collectively or discuss grievances in good faith subjects the bargaining agent and/or the corporate authority to an unfair labor charge and criminal penalties. See,
.
Stone v. Johnson,
. Title
.
City of Muskogee v. Martin,
. Our jurisprudence has long recognized that the Act provides for two different types of arbitration to resolve disputes which arise between the parties to a collective bargaining agreement. The first type of arbitration, known as impasse or interest arbitration, is used to facilitate negotiations. This type of arbitration applies when parties, during the negotiation process, reach an impasse and cannot agree on a term or an issue when writing the collective bargaining contract. See,
The second type of arbitration under the Act is known as grievance arbitration. Grievance arbitration is ordinarily referred to as contract interpretation and it originates only after the parties have reached a complete agreement on the terms and conditions of employment.
Moon v. Police Officers,
see note 3, supra. An arbitrator’s function in grievance arbitration is to make factual findings pertaining to a specific claim that the contract has been violated, and to interpret and apply the relevant contractual provisions, reading the agreement as a whole and discerning the intent of the parties, without rewriting the agreement. See,
City & County v. Denver Firefighters Local No. 858,
.
McSorley v. Hertz Corp.,
.
Midwest City v. Harris,
. Voss
v. City of Oklahoma City,
. Sections 51-101(A) and (B) of the FPAA each contain strike prohibitions and penalties for strikes.
.
Voss v. City of Oklahoma City,
see note 15, supra; See,
.
Midwest City v. Harris,
see note 14 at 1359, supra; See,
.Title
. See also, 11 O.S.1985 Supp. § 51-101(D), in J/hich the Legislature stated that “[t]he establishment of this method of arbitration ... shall be |eemed to be a recognition solely of the necessity provide some alternative procedure for set-ling disputes where employees must, as a matter of public policy, be denied the usual right to strike.” (Emphasis supplied.).
. Oliver v. City of Tulsa, see note 4 at 612, supra; See also, Stone v. Johnson, see note 9, supra.
. See,
Pennsylvania Labor Relations Bd. v. State College^Area School,
.
Earnest, Inc. v. LeGrand,
. See,
. The
“The courts of justice of the State shall be open to every person, and speedy and certain remedy afforded for every wrong and for every injury to person, property, or reputation; and right and justice shall be administered without sale, denial, delay or prejudice."
. The
"No person shall be deprived of life, liberty, or property, without due process of law.”
. The
"The right of trial by jury shall be and remain inviolate ..."
. The
“The Legislature shall not, except as otherwise provided in this Constitution, pass any local or special law authorizing: ...
Regulating the practice or jurisdiction of, or changing the rules of evidence in judicial proceedings or inquiry before the courts, justice of the peace, sheriffs, commissioners, arbitrator, or other tribunals....
For limitation of civil or criminal actions ... Providing for a change of venue in civil and criminal cases.”
. The
"Any provision of a contract, express or implied, made by any person, by which any of the benefits of the Constitution is sought to be waived, shall be null and void.”
. Tide
. Title
. Title
. We discussed the standard of review for grievance arbitration awards in
City of Muskogee v. Martin,
see note 11, supra. In that case, we reviewed an arbitration agreement in a collective bargaining agreement to determine if a particular dispute was subject to arbitration procedures under the agreement. We recognized that, although the arbitrator’s decision is final and binding on the parties, courts have the authority to determine if a dispute is arbitrable under an agreement.
Martin
encompasses the law as we viewed it in
Voss v. City of Oklahoma City,
see note 15, supra; and
City of Yukon v. International Ass’n of Firefighters Local 2055,
In
Voss,
we noted that an agreement for the submission of an issue to impartial arbitrators is a prerequisite for a valid arbitration agreement. Judicial review of a valid arbitration agreement is limited to a determination of whether the grievance alleged is covered by the agreement or to determine if the arbitrator acted within the authority granted by the agreement. If the arbitration clause is broad enough to include the alleged dispute, arbitration must be ordered. If the arbitrator's award is within the submission and authority established by the contract, the award will be enforced. The courts will not vary an arbitration award which is contested on the merits of the controversy submitted to the arbitrator or on the sufficiency of the evidence on which the arbitrator based its decision. In
City of Yukon v. International Ass’n of Firefighters Local 2055,
supra this note, this Court, relying on its prior decision in
Garner v. City of Tulsa,
. The
. The
"The Legislature shall create a Board of Arbitration and Conciliation in the Department of Labor and the Commissioner of Labor shall be ex-officio chairman.”
. The
"Every license issued or charter granted to a mining or public service corporation, foreign or domestic, shall contain a stipulation that such corporation will submit any difference it may have with employees in reference to labor, to arbitration, as shall be provided by law.”
. The
. The ancient English court initially refused to enforce arbitration agreements. The premise for their refusal was not based on the sound reasoning of contract enforcement principles. Rather it was based on English courts fight " 'for extension of jurisdiction — all of them being opposed to anything that would altogether deprive every one of them of jurisdiction.' ”
Allied-Bruce Terminix Co., Inc. v. Dobson
, — U.S.-,-,
. The
. The
. The
.
State v. Goforth,
. Title
.Bethany's argument that