*1
Bruce A. Campbell city for the of Detroit.
Amici Curiae: Cox, General,
Michael A. Attorney Thomas L. Casey, General, Gartner, Solicitor and Richard E Assistant General, Attorney Michigan for the Employment Rela- tions Commission. Entenman,
Dykema (by Gossett FLLC John A. Melvin II) Muskovitz, J. and F. Arthur Jones for the Michigan Municipal League.
Nantz, Litowich, Smith, (by Firard & Hamilton John H. for the Gretzinger) city of Iron Mountain.
YOUNG, J. At issue in dispute labor law plaintiff between Detroit Fire Fighters Association and city defendant of Detroit is whether the circuit court properly issued a preliminary injunction prevent implementation of defendant’s proposed layoff and re- structuring plan where plaintiff contends that the (Act violates the “status PA quo” provision of 1969 312), 423.243, MCL by, among things, other jeopardiz- ing safety remaining firefighters. We conclude that the injunction erroneously was entered. party
Where a
seeks a preliminary injunction to
prevent
violation,
alleged
a two-step
*4
First,
is
process
required.
moving party
satisfy
must
four-part
the traditional
test
that
is
prerequisite
Second,
issuance
if
any preliminary injunction.
of
Opinion op the Court
injunction test are met and
preliminary
conditions of the
injunction
promptly
the circuit court must
granted,
is
the status
claim. Pursuant
resolve
merits of
3.310(A)(5),
granted,
if a
is
a
preliminary injunction
MCR
“trial of the action on the merits must be held within 6
granted,
good
months after the
unless
cause
a
parties stipulate
longer period.”
is shown or the
The
quo provision
prevents
status
Act 312
either
consent,
from
party
altering,
“existing wages,
without
hours,
employment,”
or other conditions of
which con-
mandatory subjects
bargaining,
cern
while Act 312
is pending.
quo provision
The status
does
prevent parties
exercising
not
from
their contractual
rights
they
hour,
if
not alter an existing wage,
do
or
case,
other condition of
In
it
employment.
is defen-
dant’s
implementation
restructuring
layoff
its
plan that is at issue. Plaintiff claims
it
change
is a
in “existing . . . conditions of
it
employment” because
jeopardize firefighter
safety,
precedent
will
which our
treats as a “condition of
employment”
mandatory
subject
bargaining. Defendant,
hand,
on the other
argues
lay
it has the contractual
right
off
Thus,
firefighters.
in order for the
quo provision
case,
to be violated in this
it must be determined that
restructuring
layoff
plan actually alters a
namely
condition of employment,
firefighter safety.
The question is what standard a circuit court must
apply
order for it to determine that an employer’s
challenged
actually
action
violates the status
pro-
by altering
vision
this condition
employment.
in Oak Park Pub Safety
Ass’n
Court of
Officers
v
Oak Park1
recently adopted
the standard
that a
staffing proposal
“inextricably
must be
intertwined
safety”
mandatory subject
to be
of bargaining.
317, 330;
Here, not did the circuit court fail to resolve the merits, safety claim on the it entered what amounted to a permanent injunction without applying traditional Thus, standards. we hold that the circuit court erroneously granted injunctive relief and the Court of Appeals erroneously affirmed that decision.
Accordingly, we reverse the Court of Appeals, vacate the preliminary injunction court, entered the circuit and remand proceedings for further consistent with this decision.
FACTS AND PROCEDURAL HISTORY Plaintiff is the exclusive bargaining representative of (DFD) eligible Detroit Fire Department employees. Defendant is the Both are employer. parties to a collec- (CBA) tive bargaining agreement that took effect expired 1998 and June on 2001. Until a new agreement forged arbitration, in the Act 312 operate under the old CBA. That continue CBA in pertinent states at Article 2.D part City right lay personnel
[t]he reserves off for lack of funds; beyond work or or for the occurrence of conditions Department; the control of the or when such continuation unproductive of work would be wasteful and ....
In parties agreed Article Opinion of the Court legally [w]ages, employment hours and conditions of shall, agreement, except effect on the effective date of this herein, during improved be maintained the term of this as Agreement. restrict, with,
It is the intent of this Article to interfere not carrying prevent City from out its duties and or hinder illustration, being, by way responsibilities well limitation, rights, responsibilities duties and but not those Purpose in Article 2 and Intent clause enumerated hereof, subject City’s obligations [public under PERA to the employment relations and other laws. act] *6 2001, After the CBA in were expired 2002, to to a contract. In December agree unable new under Act 312 plaintiff compulsory invoked arbitration agreement. to create a successor Act 312 is meant to effective, “alternate, and bind- provide expeditious, ing” process.2 agreed by Unless otherwise parties, requires Act 312 the arbitrator to call a days being conclude hearing appointed,3 within commencement,4 hearing days within 30 of its and opinion days issue a written within 30 of the conclusion Here, of the the time hearing.5 parties waived imposes limitations that Act 312 on the arbitration result, process. “expeditious” As a Act 312 arbitra- process pending years. tion is still after more than five Defendant serious experienced budget shortfalls dur- ing the Act 312 arbitration. These difficult ongoing provides, pertinent part: public policy Section 1 of Act 312 in “It is the public police right departments, of this state that in and fire where the employees prohibited, requisite high to strike is law it is to the morale employees operation departments of such and the efficient of such alternate, expeditious, binding procedure afford an and effective added). disputes (emphasis ....” 423.231 resolution MCL 423.236. MCL 4 Id.
5 MCL 423.238. Ass’n v Detroit Opinion op the Court operations financial circumstances affected the DFD, leading defendant implement restructuring and a layoffs, July round effective 2005. Unfortunately, the budget problems persisted, and de- announced, fendant September additional plan to restructure the DFD. plan, Under this defen- dant off proposed lay firefighters, demote 10 chiefs, battalion and reduce number of battalions eight from to five. plan reassigned the battalion chiefs duties at “garden variety fires” to the senior scene, officer at the engine deactivated five ladder companies.
Plaintiff filed suit Wayne Circuit Court on 12, 2005, September seeking declaratory relief to stop September 2005 reorganization plan from going into effect while the Act 312 arbitration was pending. Plaintiff argued that unilateral implementa- tion of the restructuring plan violated the provision of Act 312 because it required unilateral alteration of staffing, duties, minimum job seniority, parity, and emergency medical service requirements, all of which affected both firefighter safety and mandatory subjects bargaining.
The circuit court held
hearings beginning
late
*7
September, and granted plaintiffs
for a
request
prelimi
nary injunction
17,
on October
2005. The court found
there were issues
concerning
of fact
whether the
layoffs would have an impact
safety
on the
of the
firefighters
mandatory subject
under
—a
1277,
this Court’s
decision Local
Metropolitan Coun
23, AFSCME,
cil No.
AFL-CIO v City Center Line6
(Center
II).
Line
6
(1982).
642;
414 Mich
The circuit arbitrator, Long, safety to decide the Michael E 2005, 27, at issue and render his decision October if judge time the circuit would determine which in place. Although would remain preliminary injunction to the circuit hearings, responded he held arbitrator opinion stating October that he court determination any was “not able to make well reasoned dispute.” Long as to the resolution of this Arbitrator jurisdiction safety indicated that he lacked to decide issue, observing that normal channels were not “[t]he regarding followed reference of the matter to [Act] arbitration.” He sent the case back to the circuit court the circuit recommended that court order to mediation while keeping place process until the mediation concluded. circuit court again granted preliminary injunc- 31, 2005, tion in an October order following another At this hearing. hearing the court reviewed its earlier statements and conceded: say reading
I do want for the record after transcript previous hearing 17th, of the that I felt my inapt choice of words was because it sounded like making impact. I was a determination that there was an my place That is not to do that.
However,
judge clarified,
the circuit
“I find that there’s
as
question
serious
of fact
to whether or not [the
restructuring
have an
plan]
impact
fight-
would
on fire
safety,
ers’
or indeed upon working conditions or work-
ing
Relying
hours.”
on Center Line II and Detroit Police
Detroit,7
Ass’n v
court
found that
Officers
reorganization
layoff
“may
implicate manda-
tory
provisions
bargaining, namely
collective
(1984),
The Court of affirmed the circuit court in a published Observing parties decision.8 had a duty collectively bargain under PERA to about manda- subjects of tory layoff and that decisions are mandatory subjects, panel not relied on this Court’s II Center Line “where, here, decision to hold that as proposed layoffs restructuring may impact safety working firefighters, conditions for those pro- are posals mandatory subjects bargaining.”9 panel agreed finding with the circuit court’s that “the evidence established ‘serious issues of fact’ as to proposed whether would changes impact safety, hours,” working working conditions and as a result “the proposed changes subjects mandatory were bargaining, and defendant could not therefore make these unilateral alterations while the are en- gaged compulsory arbitration.”10 It disagreed with argument inap- defendant’s relief was propriate permitted because the terms of the CBA carry defendant out the restructuring plan. Detroit, Detroit Fire Ass’n v 722 NW2d 9 Id. at 461. 10 Id. at 463. Opinion the Court appeal filed an for leave application
Defendant Follow- granted leave to this Court. This Court appeal.11 *9 supplemental ordered ing arguments, oral this Court subsequently ordered reargument.13 briefing,12 REVIEW
STANDARDOF denial a grant a trial court’s or of This Court reviews There is an injunction for abuse of discretion.14 temporary discretion when the trial court’s decision falls abuse of A range question of principled outside the outcomes.15 question of law that we statutory interpretation is of contract Finally, interpreta- review de issues novo.16 tion are also of law reviewed de novo.17 questions
ANALYSIS
are
Michigan
governed by
Public labor relations
purposes
PERA. One of PERA’s
“is to resolve
primary
11
(2006).
grant
parties
order
to brief
Thus, public employer
[u]nder Act if police and the fighters’ bargaining offers’ or fire unit have not reached an agreement concerning mandatory subject bargaining, proves unsuccessful, and mediation party may either ini strike.[22] binding tiate arbitration in order to avert a The status quo provision of Act 312 states that [d]uring pendency proceedings before the arbitration panel, existing wages, hours and other conditions of em ployment changed by shall not be party action of either without the party may consent the other but a so consent act.[23] prejudice rights position without to his or under this Recalling the delicate balance of bargaining power our labor statutes preserve seek to in police and firefighter disputes, labor provision was prevent intended to party either from gaining unfair leverage during the pendency of Act 312 interest arbitration.
Under the
quo provision,
neither party with-
out consent can alter “existing wages, hours, and other
conditions
employment”
while Act 312 arbitration is
pending. We observed in Center
II
Line
that safety is a
condition of employment and,
such,
as
a mandatory
subject of bargaining.24
Consequently,
status quo
upheld by majority
of this
Court Detroit v Detroit Police Officers
Ass’n,
(1980),
408 Mich
Of chief restruc employer’s is whether violation employment of alters a condition turing layoff plan recently held of safety. as The Court such Act 312 compel seeks to that where a union Oak Park decisions, it must staffing respect with to arbitration in “inextricably are those decisions demonstrate that sub mandatory to constitute a safety” with tertwined not, employer If it then the of does ject bargaining.25 decision staffing arbitrate the compelled cannot be to “unten- rejected Park as panel under Act 312. The Oak duty bargain complements § PERA the PERA and that under 15 of only subjects, panel only mandatory can .. . the arbitration extends to Thus, mandatory subjects.” compel agreement Id. at 654. we as to scope panel of in Center Line II exceeded concluded that the Act 312 layoff compelled accept provision authority a as its when it clause, layoff provided part which new labor contract because of a layoffs made in police lack of funds could be that officer departments, conjunction layoffs fell within and cutbacks other with scope management prerogative and outside the realm of was However, mandatory subjects bargaining. Line II cautioned that Center subject lay mandatory a initial decision to off is not “while the award, bargaining, compelled in it therefore cannot be duty bargain impact decision.” over the of that is clear that there is a off, lay according impact to Center Line of the decision to Id. at 661. triggers II, mandatory subject bargaining might implicate that a collectively bargain. duty to that, case, parties appear to concede consistent In this both lay firefighters. II, prerogative to off Line defendant retains the Center restructuring plan, However, argues impact plaintiff mandatory subject layoffs, implicates includes which employment” safety, firefighter “condition of it because affects proceedings. during Act 312 arbitration should not be altered Park, App also Trenton v Trenton Fire Mich at 329-330. See Oak 2701, IAFF, Union, Mich 420 NW2d Local *12 Opinion of the Court able” the union’s proposed alternative standard that long “as as a staffing affects, decision arguably con- cerns, or relates safety to the effect be mini- —whether mal, insignificant, or unjustifiable issue of staffing —the is a employment condition of subject that is to manda- tory arbitration.”26 It reasoned: implemented
The standards by hearing referee in MERC this case are require consistent with the ment that significant those matters that have a impact employment subject on conditions of are to mandatory bargaining. impact staffing The of a decision conditions, working on including safety, proven must be significant, to merely be not to exist. ... To arguably adopt position the union’s would be tantamount to requiring most, all, that if not staffing minimum proposals particularly regard [public safety — officers], police officers, firefighters, engaged and others high-risk professions subject mandatory bar —be gaining, given that a reduction in the number of these employees arguably will have some—albeit minimal— impact safety. on Such a conclusion would have the effect invading city’s prerogative to determine the size scope business, including its the services it will conclusion.[27] provide. We decline to reach such a Although Oak Park addressed a legal different issue and not the presented here, issue we find the logic and standard endorsed Oak Park compelling A hasty context.28 or tentative finding that a Park, Oak at 326. (citations omitted). Id. at 329-330 Park, city In Oak practice charge against filed an unfair labor union, alleging unlawfully bargaining that the union demanded over permissive subjects, safety/staffing provision, such as a in an hearing Act 312 arbitration. panel referee and the MERC ruled in city, deciding favor of duty that bargain the union breached its good published faith. The Court of opinion per affirmed in a curiam. V DETROIT ASS’N DETROIT FIRE FIGHTERS Opinion the Court the status layoff plan violates restructuring to determine city’s prerogative “invad[e] would it business, including the services of its scope size and every employer’s if surely as as provide,”29 just will safety affected merely arguably staffing decision Thus, mandatory bargaining. subject to conditions were restructuring plan jeopardizes layoff and whether examination a careful safety requires employee “inextricably plan finding details and *13 have a it would safety” such intertwined with safety.30 on “significant impact” decision the circuit court’s problem The central the Court of case, by extension in this defen- it, it found that is that decision to affirm a “may” implicate restructuring plan layoff dant’s this case and that subject mandatory After firefighter safety. of fact” about questions “raised the circuit court injunction, issuing preliminary the unlawfully determined that the conclusively never Indeed, circuit court ex- the quo. the status altered deciding the merits it was not stated pressly attempted And, the circuit court claim. when plaintiffs safety dispute, the to resolve Long to induce Arbitrator so. he declined to do to restrain of a decision magnitude
Given the this prerogative, management exercise of a employer’s unten- ruling court uncertainty a circuit level of place terms, was to remain injunction its this By able. arbitration, but a Act 312 until the conclusion of have been the merits would never determination on the level, termed what was practical made. On a a de became injunction” a “preliminary circuit court mer- resolving the injunction, without permanent facto 29 Id. at 330.
30 Id. 482MICH18
Opinion
the
Court
alleged
its of the
status
Moreover,
violation.
injunction was issued where the traditional elements
required
relief had not been established.
Specifically,although the circuit court found that there
regarding
safety
were “issues of fact”
issue,
it did
not find that there was a likelihood of success on the
regard,
merits in this
nor did the court conclude that
firefighters
irreparable
would suffer
harm.
party
preliminary injunction
Where a
seeks
prevent
alleged
case,
violation as
party
satisfy two-step process.
must
First, it bears
proving
the burden of
that the traditional four elements
preliminary injunction.
favor the issuance of a
The trial
(1) movingparty
court must evaluate whether
made
required
(2)
irreparable
demonstration of
harm,
applicant
injunction
harm to the
absent such an
out-
weighs
(3)
party,
the harm it would cause to the adverse
moving party
likely
prevail
showed that it is
on
(4)
merits,
there will be harm to the
interest if an
is issued.31
Second,if a trial court determines that the standards
preliminary injunction
for a
have been met and chooses
*14
31Michigan
Employees
Dep’t
Health,
State
Ass’n v
Mental
421 Mich
152,
(1984).
157-158; 365 NW2d
93
See also Pontiac Fire
Union
Pontiac,
(2008).
Local
10-11;
376 v
482 Mich
CONCLUSION when it issued court erred that the circuit We hold implementa- preventing injunction the preliminary issued The circuit court restructuring plan. of the tion where the a permanent amounted to what violation alleged merits of the underlying 3.310(A)(2) permits accelerate However, the court MCR consolidating action on the by advancing the trial of the process case, the merits hearing In either on the motion. merits with the unresolved. claim cannot remain *15 Opinion by Kelly, J. resolved,
would be never contrary to the requirements 3.310(A)(5). of MCR that, We further hold when a safety claim is alleged, an employer’s challenged action alters the status quo during the pendency of an Act 312 if the action is so “inextricably inter- twined with safety” that the action would alter a “condition employment.”
We reverse the Court of judgment, vacate the preliminary injunction by entered court, circuit remand the case to the circuit court for further proceed- ings consistent opinion. with this
Taylor, C.J., Weaver, Corrigan, Markman, JJ., concurred J. YOUNG, IJ. concur in the only. result
CAVANAGH, KELLY, J. (concurring part and dissenting part). I concur the majority’s decision to remand this case to the circuit court for a clear determination of whether city reorganization Detroit’s § violates 13 of Act 312. The remand is necessary because the circuit court stated its conclusions in terms that are too tentative.
The circuit court must determine whether the union likely to succeed on the merits of its claim that a status quo violation occurred. If it finds such a likeli- hood, it may presume that the union will be irreparably harmed should the violation not be enjoined for the duration of the arbitration proceedings. Because I have reached conclusion, it follows I that would not overrule Detroit Police Ass’n v Detroit.1 Officers Detroit, Detroit Police v Ass’n 369 NW2d Officers (1985) (Detroit POA). ASS’N V DETROIT DETROIT FIRE FIGHTERS Kelly, J. Opinion *16 held that the POA, the Court of In Detroit finding of make a required not trial court was remedy at law before inadequate harm or irreparable It relied on § 13 of Act 312.2 of violations enjoining quo status a similar courts of by federal interpretation (RLA).3That Act Railway Labor in the federal provision pay, “rates of part in relevant states provision by the shall not be altered conditions rules, working or finally acted has been controversy until carrier . .. .”4 Mediation Board by ... upon Supreme the United States courts, including Federal injunctive allows Court, provision held that have showing of a district courts without by the enforcement Federal major disputes.5 in cases of harm irreparable irreparable requirement forgo the traditional courts does not statutory language plain because the harm pre- harm is showing irreparable a such require major involving disputes.6 sumed cases 2 Id. at 253.
3 seq. 151 et 45 USC 4 45 USC 156. rights Major disagreements future contractual disputes over involve required parties existing agreements. The are changes in the terms in or during lengthy and mediation the status to maintain Air, the Int’l Brother process. Ass’n ABX Inc v Airline Professionals (CA 392, 1224, AFL-CIO, Teamsters, 266 F3d Local Union No hood of 2001). Supreme the use of Court authorized The United States major quo provision of the RLA for the status relief to enforce Ass’n, Corp Executives’ 491 US disputes. v R Labor Consolidated Rail 2477; 299, 303; In Detroit & Toledo L Ed 2d 250 109 S Ct 150; Union, 90 S Transportation 396 US Line R Co v United Shore (1969), explained Supreme its rationale: Court L 2d 325 Ct 24 Ed self-help provides “[Djelaying can resort the time when atmosphere rational cool, helps in which tempers create an time for opinion public to be occur, permits the forces bargaining can or lockout.” without strike in favor of a settlement mobilized light injury required irreparable showing is not A duty to disputes the fact that of labor interest in settlement Opinion by Kelly, J. majority argues issuing with
out a showing irreparable harm goes against public policy of this state and that a violation should not special receive However, treatment.7 one of the by cases cited the majority involves a viola § tion of 13 of Act 312. In its peremptory order in that
case, the Court did not consider the public policy concerns codified in Act 312.8 And when the Court had an opportunity to consider whether the holding of Detroit POA contradicted the public policy of this state, it denied leave to appeal.9
It is an accepted rule of statutory construction that
the Court should not impose policy choices that differ
from
those selected
the Legislature.10 The majority
here acknowledges the public policy concerns that oc-
*17
casioned the passing of Act 312:
intended,
“Act 312 was
in the specific context
police
of
and firefighter unions,
to redress the
in
imbalance
bargaining power created by
prohibition
strikes,
of
and
preclude
to
the possibility
of an illegal
by
strike
these unions that provide vital
public services, namely police and fire protection.”11
These policy concerns are expressly codified in two
423.231,
statutes: MCL
which affords arbitration to
police and firefighter unions
alternate,
as “an
expedi-
tious,
and
effective
binding procedure for the resolution
quo
maintain
qualification
the status
“contains no
to the effect that the
obligation
carrier has no
quo]
[maintain
irreparable
status
unless
injury would otherwise result.” Southern R Co v Brotherhood
Locomo
(DC
Enginemen,
127,
1964).
tive
Cir,
Firemen and
337 F2d
133-34
7 Ante at 34 n 31.
8 Michigan
Union,
See
Law
High
Teamsters Local 129 v
Enforcement
(1985).
Park,
land
requires
A unilat-
injunction.14
than an
means other
by
repaired
obviously negative
quo has
in the status
change
eral
It compromises
bargaining power.
a union’s
effect on
Because of the
bargaining process.
integrity of
changes
unilateral
at which
disadvantage
to attain a retroac-
unlikely
union, the union
place
is the
a strike
quo.
status
Because
restoration
tive
in the
bargaining power
maintaining
method of
prevent
312 aims to
change, Act
a unilateral
face of
Thus,
firefighters.
by police
to strikes
resort
decided that
effectively
Legislature
Act
passing
inad-
would be
other than
remedy
any
presump-
violation
Consequently,
equate.
harm.
irreparable
causes
tively
did not err
in Detroit POA
The Court of
harm was
irreparable
showing
that no
concluding
during
of the status
enjoin
violations
necessary
in the decision to
I concur
While
Act 312 arbitration.
not
court, I would
circuit
case to the
remand this
policy
part:
“It is the
in relevant
423.231 states
MCL
right of
departments, where the
public police and fire
state that
high
requisite
morale
prohibited,
to the
it is
employees to strike is
law
departments
operation
of such
employees
efficient
and the
of such
alternate,
binding procedure
expeditious,
afford an
effective
added.)
(Emphasis
disputes ....”
resolution of
*18
proceedings
“During
pendency before
states:
MCL 423.243
employ
existing wages,
panel,
hours and other conditions
party
the consent
changed by
without
action of either
be
ment shall not
rights
prejudice
his
or
may
party
consent without
so
of the other but
position
act.”
under this
Comm,
Employee
v Civil Service
Unions
Michigan
State
Coalition of
(2001)
J., dissenting).
212, 241;
require the union to
irreparable
show
harm. Such harm
presumed
should be
if the court determines that
city’s reorganization plan violates the status quo.15
important
I believe that the most
issuing
reason for
the duration of Act
proceedings
protect
parties’
312 arbitration
is to
bargaining positions.
irreparable
presumed
But
harm should be
in the
case of a status
violation for another reason as well.
majority
that,
posits
quo violation,
show status
the union
city’s reorganization
must
demonstrate that the
‘inextricably
is “so
safety’
implementation
intertwined with
impermissibly
its
would
quo by altering
alter the status
employment.”
this ‘condition’of
Ante at
impact
proposed
23. But
layoffs
firefighter safety
on
was also
question
deemed
irreparable
relevant to the
harm in Pontiac Fire
Pontiac,
Union Local
10-11;
376 v
