Opinion
In this case of first impression we must delineate the function of the court in interpreting a provision for arbitration in a city charter affecting public employees. Specifically we are asked, prior to the arbitration proceeding itself, to reconcile clauses which substantively overlap: a provision that grants city employees the right to bargain on “wages, hours and working conditions” but withholds that right as to matters involving the “merits, necessity or organization of any governmental service.” As we shall explain, our attempt now to define the issues of arbitration so that they assume the shape of rigid categories would be to reach premature judgments without benefit of the factual foundations of an arbitral record and to impede the arbitration process itself. We therefore largely leave to the arbitrators the moulding and resolution of the issues, subject to the proviso that neither party may be bound by a decision in excess of the arbitrators’ jurisdiction.
In 1971, during negotiations between representatives of the City of Vallejo and the Fire Fighters Union as to the terms.of a new contract, the parties failed to agree on 28 issues. Pursuant to the process prescribed in the city charter, they submitted the disputed matters to mediation and fact finding. When these procedures failed to effect a resolution, the city agreed to submit 24 of the issues to arbitration but contended that four other issues, namely “Personnel Reduction,” “Vacancies and Promotions,” “Schedule of Hours,” and “Constant Manning Procedure,” involved the “merits, necessity or organization” of the fire fighting service and did not come under the arbitrable provisions. The city refused to accept the recommendations of the fact finding panel with respect to these issues or to submit them to arbitration.
On December 22, 1971, prior to the scheduled hearing before the board
The present controversy therefore involves an interpretation of the Vallejo City Charter provisions which govern public employee contract negotiations. The-provisions for multi-level resolution of disputes at issue were drafted by a board of freeholders for incorporation in a new city charter in response to a strike by city police and fire fighters in July of 1969. These proposals, with the exception of a provision for final binding arbitration, were accepted by the city council and embodied in section 809 of the city charter. Section 809 sets up a “system of collective negotiating” and provides that city employees shall have the right to “negotiate on matters of wages, hours and working conditions,- but not on matters involving the merits, necessity, or organization of any service or activity provided by law. . . .” The section further provides that if the parties cannot reach agreement, they must submit successively to mediation and fact finding. 2
In the instant case, as we have stated, we are called upon to render a preliminary decision as to the scope of the arbitration. The arbitration process, however, is an ongoing one in which normally an arbitrator, rather than a court, will narrow and define the issues, rejecting those matters over which he cannot properly exercise jurisdiction because they fall exclusively within the rights of management. As Professor Grodin has observed: “. . . collective bargaining and issues arbitration are together a dynamic process, in which the ppsitions of the parties and their interaction with the arbitrator is in a state .of constant flux. Proposals get modified and non-negotiable positions become negotiable as the parties sort out their priorities, develop
Toa large extent the rendition of the definitions involved in this case will be welded by the facts developed in arbitration itself. We put the proposition in these words in
Butchers’ Union Local 229
v.
Cudahy Packing Co.
(1967)
With this caveat in mind, we approach the specific problem of reconciling the two vague, seemingly overlapping phrases of the statute: “wages, hours and working conditions,” which, broadly read could encompass practically any conceivable bargaining proposal; and “merits, necessity or organization of any service” which, expansively interpreted, could swallow the whole provision for collective negotiation and relegate determination of all labor issues to the city’s discretion.
In attempting to reconcile these provisions, we note that the phrase “wages, hours and other terms and conditions of employment” in the MMB A was taken directly from the National Labor Relations Act
7
(here
In the past we have frequently referred to such federal precedent in interpreting parallel language in state labor legislation. Thus, for example, in
England v. Chavez
(1972)
The origin and meaning of the second phrasie — excepting “merits, necessity or organization” from the scope of bargaining — cannot claim so rich a background. Apparently the Legislature included the limiting language not to restrict bargaining on matters directly affecting employees’ legitimate interests in wages, hours and working conditions but rather to forestall any expansion of the language of “wages, hours-and working conditions” to include more general managerial policy decisions.
Although the NLRA does not contain specific wording comparable to the “merits, necessity or organization” terminology in the city charter and the state act, the underlying fear that generated this language — that is, that wages, hours and working conditions could be expanded beyond reasonable boundaries to deprive an employer of his-legitimate management prerogatives — lies imbedded in the federal precedents under the NLRA. As a review of federal case law in this field demonstrates, the trepidation that the union would extend its province into matters that should properly remain in the hands of employers has been incorporated into the interpretation of the scope of “wages, hours and terms and conditions of employment.”
8
The City of Vallejo objects to the use of NLRA precedents because of the alleged differences between employment relations in the public and private sectors. Although we recognize that there are certain basic differences between employment in the public and private sectors, 9 the adoption of legislation providing for public employment negotiation on wages, hours and working conditions just as in the private sector demonstrates that the Legislature found public sector and private sector employment relations sufficiently similar to warrant similar bargaining provisions. 10 We therefore conclude that the bargaining requirements of the National Labor Relations Act and cases interpreting them may properly be referred to for such enlightenment as they may render in our interpretation of the scope of bargaining under the Vallejo charter.
We now turn to an analysis of the specific bargaining proposals which are at issue here.
1. Schedule of Hours
The issue of Schedule of Hours by which the union proposed a maximum of 40 hours per week for fire fighters on 8-hour shifts and 56 hours per week for fire fighters on 24-hour shifts is clearly negotiable and arbitrable despite the city’s argument that it involves the “organization” of the fire service. The Vallejo charter provides explicitly that city employees shall have the right to bargain on matters of wages,
hours
and working con
2. Vacancies and Promotions
The union’s Vacancies and Promotions proposal concerns fire fighters’ job security and opportunities for advancement and' therefore relates to the terms and conditions of their employment. (Cf.
District 50, United Mine Workers, Local 13942
v.
N.L.R.B.
(4th Cir. 1966)
The city contends that this proposal may not apply to appointment or promotion to the position of deputy fire chief. Although the Vallejo charter does not contain any provision for determining the proper bargaining unit, supervisory or managerial employees are routinely excluded from the bargaining units under the National Labor Relations Act.
(N.L.R.B.
v.
Gold Spot Dairy, Inc.
(10th Cir. 1970)
We are presented with no facts which disclose whether the deputy fire chief’s duties are supervisory; his title alone does not constitute a sufficient basis for excluding him from the bargaining unit. We therefore conclude that this issue should be submitted to the arbitrators who will hear the facts which will enable them to determine whether the deputy fire chief’s duties are indeed supervisory. If so, the union’s Vacancies and Promotions proposal does not apply to him or his position because he is not a member of the bargaining unit.
3. Constant Manning Procedure
An examination of this issue illustrates the wisdom of judicial self-restraint in attempting pre-arbitral definitions of the scope' of arbitration. Apparently the union originally sought to add one engine company and to increase the personnel assigned to the existing engine companies. If these
Although the city challenges even the limited status quo version of the manpower issue, contending that the fact- finding ruling involves the “merits” and “organization” of the fire department and is therefore excluded from the scope of bargaining, we cannot conclude at this stage that the manpower proposal is necessarily nonarbitrable.
The city argues' that manpower level in the fire department is inevitably a matter of fire prevention policy, and as such lies solely within the province of management. If the relevant evidence demonstrates that the union’s manpower proposal is indeed directed to the question of maintaining a particular standard of fire prevention within the community, the city’s objection would be well taken.
The union asserts, however, that its current manpower proposal is not directed at general fire prevention policy, but instead involves a matter of workload and safety for employees, and accordingly falls within the scope of negotiation and arbitration. Because the tasks involved in fighting a fire cannot be reduced, the union argues that the number of persons manning the fire truck or comprising the engine company fixes and determines the amount of work each fire fighter must perform. Moreover, because of the hazardous nature of the job, the union also claims that the number of persons available to fight the fire directly affects the safety of each fire fighter.
Insofar as the manning proposal at issue does in fact relate to the questions of employee workload and safety, decisions under the National Labor Relations Act fully support the union’s contention that the proposal is arbitrable. First the federal authorities uniformly recognize “workload”
11
Moreover, a recent California public employment case,
Los Angeles County Employees Assn. Local 660
v.
County of Los Angeles
(1973)
Given the parties’ divergent characterizations of the instant manpower proposal, either one of which may well be accurate, we believe the proper course must be to submit the issue to the arbitrators so that a factual record may be established. The nature of the evidence presented to the arbitrators should largely disclose whether the manpower issue primarily involves the workload and safety of the men (“wages, hours and working conditions”)
Furthermore, the parties themselves, or the arbitrators, in the ongoing process of arbitration, might suggest alternative solutions for the manpower problem that might remove or transform the issue. Indeed, the union in the instant case has already abandoned one position and assumed another. These are the elements and considerations that argue against preliminary court rulings that would dam up the stream of arbitration by premature limitations upon the process, thwarting its potential destination of the resolution of the issues. Hence we hold that the charter provision as to “merits, necessity or organization” of the service does not at this time preclude the arbitration of the union proposal that the manning schedule presently in effect be continued for the term of the new agreement.
4. Personnel Reduction
Finally, the union advanced a Personnel Reduction proposal which would require that the city bargain with the union with respect to any decision to reduce the number of fire fighters. Under the proposal, any reduction would be on a least-seniority basis, and no new employees could be hired until all those laid off were given an opportunity to return. The city objects to. that part of the proposal requiring bargaining on a decision to reduce personnel and contends that any such matter is not negotiable because it involves the merits, necessity or organization of the fire fighting service. .
A reduction of the entire fire fighting force based on the city’s decision that as a matter of policy of fire prevention the force was too large would not be arbitrable in that it is an issue involving the organization of the service.
Thus cases under the NLRA indicate that an employer has the right unilaterally to decide that a layoff is necessary, although it must bargain about such matters as the
timing
of layoffs and the
number
and
identity
of the employees affected.
(N.L.R.B.
v.
United Nuclear Corporation
(10th Cir. 1967)
On the other hand, because of the nature of fire fighting, a reduction of personnel may affect the fire fighters’ working conditions by increasing their workload and endangering their safety in the same way that general manning provisions affect workload and safety. To the extent, therefore, that the decision to lay off some employees affects the workload and safety of the" remaining workers, it is subject to bargaining and arbitration for the same reasons indicated in the prior discussion of. the manning proposal.
Our conclusion that the issues of Personnel Reduction, Vacancies and Promotions, Schedule of Hours and Constant Manning Procedure, except as limited above, involve the wages, hours or working conditions of fire fighters and are negotiable requires in the context of this suit that the City of Vallejo submit these issues to arbitration. We in no way evaluate the merit of the union proposals, but hold only that under the Vallejo charter they are arbitrable.
Such a result comports with the strong public policy in California favoring peaceful resolution of employment disputes by means of arbitration. We have declared that state policy in California “favors arbitration provisions in collective bargaining agreements and recognizes the important part they play in helping to promote industrial stabilization.”
(Posner
v.
Grunwaid-Marx, Inc.
(1961)
At the same time Vallejo voters provided that any employee who participated in a strike against the city should be automatically terminated. (§ 810.) Thus, the employee’s
quid pro quo
for this no-strike provision con
For the foregoing reasons we dispose of the issues as follows: (1) The Schedule of Hours proposal must be submitted to arbitration in full. (2) The proposal as to Vacancies and Promotions is arbitrable. The arbitrators shall additionally hear the facts to determine whether the position of deputy fire chief is a supervisory one and thus excluded from the bargaining unit. If so, the Vacancies and Promotions proposal cannot apply to the deputy fire chief position. (3) The proposal that the manning schedule presently in effect be continued without change during the term of the new agreement is arbitrable to the extent that it affects the working conditions and safety of the employees. (4) As to Personnel Reduction, the proposal to reduce personnel is arbitrable only insofar as it affects the working conditions and safety of the remaining employees. Matters of seniority and reinstatement included in the Personnel Reduction proposal are arbitrable.
We affirm the judgment as herein modified and remand the case to the superior court with directions to issue a writ of mandamus requiring the City of Vallejo to proceed to arbitrate the issues of “Reduction of Personnel,” “Vacancies and Promotions,” “Schedule of Hours,” and “Constant Manning Procedure” in accordance with this opinion. Each party shall bear its own costs on appeal.
Notes
The court rejected the union’s contention that the California Arbitration Act, Code of Civil Procedure section 1280 et seq., applied to this dispute, holding that it had no jurisdiction under the arbitration act and could not issue an order to arbitrate. The court upheld the writ of mandate to compel the city to arbitrate, however, because the union had no other plain, speedy and adequate remedy. Since the union did not initially seek an order to arbitrate under section 1281.2 of the act, but proceeded in the superior court with a petition for writ of mandate, we need not resolve the issue of the applicability of the California Arbitration Act.
Section 809 provides: “Consistent with applicable law, the City Council shall by ordinance provide a system of collective negotiating to include:
“a. It shall be the right of City employees individually or collectively to negotiate on matters of wages, hours, and working conditions, but not on matters involvingthe merits, necessity, or organization of any service or activity provided by law, or on any matter arising out of Sections 803 (n) or 803 (o) of this Charter.
“b. The City Council shall direct the City Manager and/or his designated representative (s) to negotiate in good faith with recognized employee organizations.
“c. Agreements reached between City representatives authorized in (b) above and the representatives of recognized employee organizations shall be submitted in writing to the City Council for its approval, modification, or rejection.
“d. There shall be established a timetable for the total process of collective negotiations, including mediation and fact finding, as herein provided, which will, if successful,- assume a final agreement between the parties no less than 45 days before the end of the current fiscal year.
“e. If, after a period of time to be set forth in the ordinance, no agreement can be reached between City representatives authorized in (b) above and the representatives of recognized employee organizations or if the City Council refuses to ratify the agreement arrived at or modifies such agreement in any manner unacceptable to said employee organizations, the parties shall request the State Conciliation Service, or other available impartial third-party mediation service mutually acceptable to the parties, to provide a mediator in accordance with its usual procedures.
“f. If no agreement between the parties has been reached within 10 days after the date for start of mediation, a fact-finding committee of three shall be appointed to deal with the disputed issues. One member of the fact-finding committee shall be appointed by the City Council, one member shall be appointed by the recognized employee. organization, and those two appointed shall name a third, who shall be the chairman. If they are unable to agree upon a third, they shall select the third member from a list of five names to be provided by the State Conciliation service. The fact-finding committee shall make public its report, with recommendations, within 30 days. The Council shall then promptly consider and act upon the report.”
Section 810 provides: “Consistent with applicable law, the ordinance adopted by the Council under Section 809 shall in addition include a requirement that if the parties do not reach agreement within 10 days after the report and recommendations of the fact-finding committee, the issues shah be submitted to arbitration. The Board of Arbitrators shall be composed of three persons; one appointed by the City Council, one appointed by the recognized employee organization, and those two appointed shall appoint a third, who shall be chairman. If they are unable to agree upon a third, they shall select the third member from a list of five names to be provided by the State Conciliation Service. No member of the fact-finding committee shall be a member of the Board of Arbitrators. The arbitrators shall consider all factors relevant to the isues from the standpoint of both the employer and the employee, including the City’s financial condition. To the extent permitted by law, the decision of a majority of the Board of Arbitrators shall be final and binding upon the parties. The cost of árbitration shall be borne equally by all parties.
“The Council shall also provide in said ordinance that any employee who fails to report for work without good and just cause during negotiations or who participates in strike against the City of Vallejo will be considered to have terminated his employment with the City, and the Council shall have no power to provide, by rein
The Meyers-Milias-Brown Act [hereinafter MMBA] applies to all local government employees in California. It provides for negotiation (“meet and confer”) and mediation but not fact-finding or binding arbitration. (Gov. Code, §§ 3505 and 3505.2.)
The meaning of the scope of bargaining language in the Vallejo charter does not differ from the meaning of such language in the MMBA because of the existence of dispute resolution provisions in the charter not present in the MMBA. The essential difference between the bargaining rights afforded Vallejo employees and those afforded local government employees in general under the MMBA relates only to the remedies available when negotiation breaks down and not to the scope of negotiation required.
The charter provides that “[i]t shall be the right of City employees ... to negotiate on matters of wages, hours and working conditions, but not on matters involving the merits, necessity, or organization of any service or activity. ...” (Italics added.) If no agreement is reached on these matters, they must be submitted to mediation, then fact-finding, then arbitration. The matters which are submitted to the three levels of dispute resolution are those upon which the parties negotiate but do not reach agreement. There is nothing in either section 809 or 810 which can be interpreted to exclude any matters which are subject to negotiation from subsequent submission to mediation, fact-finding and arbitration. Therefore interpretation of the scope of negotiation under the Vallejo charter is necessarily an interpretation of the scope of arbitration.
California authorities establish that after an arbitration decision has been rendered, judicial review is available to determine whether the arbitrators have exceeded their powers. (See, e.g.,
Morris
v.
Zuckerman
(1968)
The NLRA provides that “to bargain collectively is ... to meet at reasonable times and confer in good faith with respect to wages, hours, and other term.s and conditions of employment . . . .” (29 U.S.C. § 158(d)).
Thus federal cases have held an employer need not bargáin about a decision to shut down one of its plants for economic reasons
(N.L.R.B.
v.
Royal Plating & Polishing Co.
(3d Cir. 1965)
See generally Shaw & Clark, Practical Differences Between Public & Private Sector Collective Bargaining (1972) 19 U.C.L.A.L.Rev. 867; Wellington & Winter, The Limits of Collective Bargaining in Public Employment (1969) 78 Yale L.J. 1107; Report of the Western Assembly on Collective Bargaining in American Government (1972) pages 4-5; Project: Collective Bargaining and Politics in Public Employment (1972) 19 U.C.L.A.L.Rev. 887.
The Assembly Advisory Council on Public Employee Relations reached the same conclusion after studying arguments of alleged differences between the public and private sectors. (Final Rep., p. 139, Mar. 15, 1973.) Furthermore, we applied private sector precedent in interpreting another aspect ot the MMBA in
Social Workers’ Union, Local 535
v.
Alameda Welfare Dept.
(1974)
In the private sector employees rarely seek higher “manning” levels but instead usually frame similar demands in terms of reducing “workload.” In one case, however, a union did phrase its proposal in “manning” terms, demanding an increase in the number of employees assigned to operate a specific 10-inch mill. The National
The city argues that the Los Angeles County Employees case is distinguishable from the instant matter because it only concerned the “negotiability” of the caseload issue and not its “arbitrability.” As noted above (see fn. 5, supra), however, under the charter provision at issue in this case, the scope of negotiation and the scope of arbitration are identical.
An amicus has contended that the disputed issues are not arbitrable because submission of them to arbitration constitutes an unconstitutional delegation of legislative power. Arbitration of public employment disputes has been held constitutional by state supreme courts in
State
v.
City of Laramie
(Wyo. 1968)
To the extent that the arbitrators do not proceed beyond the provisions of the Vallejo charter there is no unlawful delegation of legislative power.
