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Gibraltar School District v. Gibraltar Mespa-Transportation
505 N.W.2d 214
Mich.
1993
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*1 443 Mich v GIBRALTAR DISTRICT GIBRALTAR SCHOOL MESPA-TRANSPORTATION 7). (Calendar 12, Argued January No. Decided Docket No. 92723. 20, August 1993. Association, Support Michigan Personnel Education transportation represent custo- newly and certified had been employees School Dis- of the Gibraltar maintenance dial and district, charges against trict, practice labor filed unfair previous, grievances under claiming that its refusal to arbitrate agree- parties negotiated successor expired contracts while ments, and were effected without notice were unilateral actions public employ- statutory duty under the of its contravention respect bargain good faith with ment relations act hours, employment. A wages, conditions of other terms and and charges, finding that the associa- hearing referee dismissed previous standing charges because the to file the tion had no expired certified as the the association was had before contracts present representative, employees’ bargaining and that no by obligation to arbitrate past was owed the district contractual Michigan Employment grievances. Relations Commis- Wahls, P.J., Appeals, and Doctoroff sion affirmed. The Court JJ., opinion unpublished in an Allen, Jr., S. affirmed and G. curiam, agreements finding expired per had never by formally the school extended been obligation newly certi- with the had no contractual district (Docket grievances to arbitration union to submit fied 116964). appeals. The association No. by joined Brickley, opinion Boyle, Justices Justice In an Supreme Griffin, Court held: Riley, public employment create a statu- relations act does not arising grievances tory duty after the to arbitrate grievances bargaining agreement, in this a collective References 1787, 1790, 1838, 2d, Relations Labor and Labor §§ Am Jur 1842, 1844. Award; Employ- Labor and under Arbitration and ALR Index See Employees. ment; Public Officers and Dist v 1993] previous case did not accrue or vest under the collective bar- gaining agreement. 1. Grievances that arise after certification of a new union depend pera, expired for resolution on the not the mespa *2 bargaining agreement. Thus, standing the had to assert statutory practice charge. a However, violation and file an unfair labor pera, statutory duty under the there is no to arbi- expiration bargaining agreement. trate after of a collective Any rights to arbitrate under the arbitration clause of an 2. expired agreement parties otherwise are those that the in- beyond expiration tended should last date or that accrue or during agreement. case, vest the term of the In this there was showing parties no that intended arbitration to survive date, beyond expiration argued its and it was not grievances had accrued or vested. Affirmed. Cavanagh, joined by Chief Justice Justices Levin concurring Mallett, part dissenting part, in stated that a provision expiration contractual for arbitration survives the bargaining agreement a collective as a term and condition of pera. employment compels under the The a em- ployer bargain collectively employees’ representa- with its good respect mandatory subjects

tives faith with bargaining. party may regarding Neither take unilateral action mandatory subject case, impasse. absent In this there was no impasse extinguished at the time the district the arbitration procedure, mandatory subject bargaining. employees’ public employees compels rejection prece- status as of federal interpreting private employees. dent the nlra and its effect on unilaterally changed pro- Because the district the arbitration reaching impasse negotiations newly cess before an with the pera. union, certified it violated the — Employment — 1. Labor Relations Arbitration Public Bargaining Expired — — Relations Act Collective Contracts. public employment relations act does not create a duty grievances arising expiration to arbitrate after the of a bargaining agreement. collective — — Bargaining — 2. Labor Relations Arbitration Collective Expired Contracts. Any rights to arbitrate under the arbitration clause of an other- expired agreement

wise are those that intended beyond expiration should last date or that accrue or vest during agreement. the term of the Mich op Opinion the Court Akhtar) plain- Hodgman (by for Jamil Cox & tiff. Zuschlag,

Amberg, McNenly, Lee, Firestone & Amberg Joseph (by H. Fire- Steven J. P.C. stone), defendants. presented question an is whether J. Boyle, agree- bargaining clause of a collective arbitration expiration date of ment survives agreement bargaining it. created We are favoring strong precedent persuaded by arbi- being an as consensual tration of a collective does survive arbitrate statutorily or condi- as a term public employment contract under tion of griev- obligation to arbitrate act. The relations encompasses grievances postcontract involv- ances *3 rights ing employee under the that accrue or vest parties contract, pressly provided in which the ex- or situations beyond the term of for arbitration agreement. Appeals. of the Court of affirm decision We I employees, transportation The Gibraltar school employ- as its custodial and maintenance as well represented previously ees, were by the American Federa- with the school district Employees. Municipal County State, tion of griev- four-step contained a unit’s contract Each step procedure the final with arbitration as ance "[a]ny grievance dispute may or resolve concerning applica- parties arise between agree- meaning interpretation” tion, School Dist v 1993] Opinion of the Court Although ment.1 each contract contained a broad clause,2 automatic renewal neither included specific language providing for survival of arbitra- expired. tion the event the entire contract 7, Agreement, p AFSCME Custodial and Maintenance art 4 and Transportation Agreement, pressly recognized VII, 1, p agreements art 4. The § ex parties the sole to the contracts were the afscme, Board of Education of the Gibraltar School District and bargaining representative employees. exclusive for the Each contract provided complete agreement also with prevail during that it was the between the respect to all terms and conditions of that would parties. the term of the between the 34, 1, Agreement, pp AFSCME Custodial and Maintenance arts 1 and 23; pp Transportation XXXVI, Agreement, AFSCME I Workers arts 1, 26. 35, Agreement, The AFSCME Custodial and Maintenance art Agreement,” provided: labeled "Termination of Agreement This shall remain in full force and effect until 30, automatically year

June year, 1985. It shall be renewed from party notify party, unless either shall days prior the other writ- (90) ing, ninety 30, at least to June 1985 that modify Agreement. desires to revise or such notice is sixty this In the event that given, negotiations begin shall not later than (60) days prior anniversa[r]y to the date. Agreement This shall remain in full force and be in effect during tion of this manner set forth in the period negotiations and until notice of termina- Agreement provided party to the other in the following paragraph: party In the event that either desires to terminate this Agreement, less than ten given party written notice must be the other (10) date, days prior to the desired termination anniversa[r]y which shall not be before the date set forth in the preceding paragraph. [Emphasis added.] provision contract, XXXVII, transportation A in the afscme art However, language. contained similar automatic renewal it did not provide stay during period negotiations: for a of termination Agreement This shall in full continue force and effect until party June this termination 1984. If either desires terminate or amend (90) Agreement, ninety days prior it shall to the above *4 date, give written notice termination or amend- of notice, party give giving party ment. If neither shall or if each prior notice of termination or to the in effect from termination or amendment written notice withdraws the amendment same date, Agreement termination above this shall continue year year subject thereafter to notice of (90) by party ninety days either on prior to current termination date. 443 Opinion the Court of expired transportation 30, June on unit’s contract unit’s and maintenance and the custodial Although 30, 1985. on June contract terminated the con- evidence that record is void of the by contracts’ virtue of the were renewed tracts logical provisions, we make the renewal automatic inference quent ing agent light they not, in the subse- of were bargain- of a new election and certification units.3 for both labor Michigan Support As- Personnel Education Employ- Michigan petitioned the sociation (mespa) recognition as the for ment Relations Commission prohibits commission act relations conducting certifying bargaining agent when an a from valid MCL recognition election or act, bargaining agreement exists. of collective Section 423.212(b); 17.455(12)(b), petition provides MSA that when bargaining representation commission: is filed with the and, petition investigate has if it The commission shall question representation that a reasonable cause believe

exists, provide hearing appropriate notice. If after due shall an hearing upon finds record of that such commission the a secret this section shall be construed to hearings by exists, representation question election shall direct an Nothing certify in the results ballot and shall thereof. prohibit waiving of stipulation purpose of a consent election for the conformity with the the commission. rules of act, 17.455(14), 423.214; provides part: Section 14 of MCL any bargaining unit or election shall be directed An not thereof there is in effect a valid subdivision where force and bargaining agreement prematurely which was not collective extended agreement A and which fixed duration. is of upon petition shall not bar an election years persons more have not thereto where than renewal, agreement’s timely elapsed execution or last since later. whichever was above, the will not an election while a As noted commission conduct addition, bargaining agreement is in testi- valid collective mony force. In hearing school district before the officer revealed both the newly agreed that contracts had certified union the afscme and expired working employees For and that the were without contracts. mespa’s reasons, though reject outright that even we contention these expired, were all of the terms and conditions were the contracts provisions. by virtue of contracts’ automatic renewal terminated *5 1993] Dist v Opinion the Court agent bargaining units. both labor exclusive mespa prevailed in an the afscme over August certified 26, 1985, and was consent election representative by the sole as the merc Negotiations September for new con- 9, 1985. on mespa the district and the school tracts between According following day. began the union’s the representative representative, the school district’s they verbally the would "extend them that assured parties despite ac- that both contracts,” knowledged the fact expired had the afscme contracts working currently without units were and both contracts.4 18, 1985, district offered the school

On October mespa four- that included a contract a written procedure step grievance arbitration as with step. provision on was conditioned final At that clause. a no-strike union’s griev- proposed an interim time, the school district procedure contain arbitration. that did not ance plan, objected mespa the interim After proposal and indicated its district withdrew school procedure grievance estab- to the it would adhere expired contract, under lished afscme step. exception as a final of arbitration reaching impasse negotiate without continued agree- Ultimately, bargaining. subject on Williamson, superintendent of the school Conversely, Mr. Michael testified: district Mespa recognized a need to continue union. was a new We individual, provided in an rights as to the that adhered

those agreement however, union; negotiated it was the with another dealing new employer with a position union, that we were to be rights union needed adhered to the negotiated anew. recognized questioned specifically the school district whether When mespa continuing as an existing to exist previously contracts as "Absolutely an contract, replied, not. That was Mr. Williamson afscme contract.” 443 Mich op Opinion the Court the con- units were reached and merits for both School Board on tracts ratified the Gibraltar 14, 1986. October grievances Meanwhile, filed several mespa during period district between

with the school Citing February 24, 1985, 1986. October provisions *6 expired contract, the of the afscme concerning grievances alleged run bus violations working assignments, payment runs, hours, for changes, layover payment time, schedule out- for bargaining employees performing work, unit side and the Unable bargaining position. assignment of a unit processing* to resolution after the achieve grievances through steps of the the initial three procedure, the union filed a demand for afscme the American Arbitration Associ- arbitration with ation, claiming right pursuant arbitration, to a to expired the refused the demands no current parties granting contract.5 The school district afscme stating arbitration, for that

labor contract existed between the party

the association or third authority process It the to such demands. also complained provisions that the written arbitration attached to the union’s arbitration demands were excerpts expired from the contract to afscme party. which the the the issue was not a Arbitration of of mespa grievances pending stayed was resolution right of the to arbitration itself. February May 13, 1986, 20 and On mespa practice charges against filed unfair school district ployment labor

pursuant § to 10 of the em- act, amended, 1965 PA relations as mespa completed the association’s arbitration demand forms indicating party that it was "a to an arbitration contained arbitration, providing in a written contract” for and attached the portions expired appears relevant had afscme contract. It the union difficulty determining purport the date of written contract edly relying variety was on because it listed a of dates on the forms, "1982,” 1986,” "1985-1986,” arbitration "ending such as "to demand 1986,” "continuing.” 1993] School Dist v Opinion of the Court 17.455(10). Specifically, 423.210; MSA MCL agreement, parties, by had that the claimed union agreed "mutually working to the last under been agreement, bargaining dated engage[d] February 9, 1982, while agreement.” negotiations mespa charged successor for a to refusal the school district’s that grievances "with- actions unilateral were arbitrate in contravention effectuated and were out notice bargain duty under its good respect Charging Party with faith wages, and conditions terms hours and other continuing effort constitute^] a District] to undermine [the Gibraltar representative mespa] as [the status represented by employees [the mespa].” hearing charges consolidated were hearing who found referee conducted before charges. standing mespa He file the no had employer mespa’s theory rejected obligation arbitrate, repudiated its contractual *7 by had ex- terms, the contract because, its own employ- pired the certified as the union was before present Finding representative. bargaining no ees’ or school the by obligation the past owed to be contractual grievances issue, at the to arbitrate district charges. hearing the referee dismissed findings hearing upheld referee’s merc order. dismissal right mespa appealed Court of in as of unpublished per

Appeals, in an affirmed (Docket opinion, .17, decided October curiam No. 116964). expired found that The Court by formally agreements extended never were no contrac- district had that the school newly obligation union to certified tual grievances arbitration. to submit (1992). appeal. granted 440 Mich 889 leave We 443 Mich Opinion of the Court

II A turning Before case, to the central issue this briefly mespa we deal lacked sions of the with the contention that the

standing provi- to enforce the arbitration

expired contract. We conclude that inappropriate such a contention is for the issue of statutory obligation the text, In arbitrate. this con-

"standing” authority newly refers to the of a litigate rights originally acquired certified union to predecessor usually union, under a collec- bargaining agreement tive or because of actions or relating predecessor omissions to the union’s sta- bargaining representative tus as collective unit. In this of the charging parties case, were certi- expiration bargain- fied after the ing agreements. During of the collective period,

this the terms and conditions of are continued because of obligation statutory bargain, the Officers Detroit Police Detroit, Ass’n v 54-55; (1974). NW2d 803 Grievances that arise after certi- depend statutory fication of the new union on the obligation, expired agreement. Any question concerning authority newly rights certified union to enforce granted by expired agreement is irrelevant. reject mespa Thus, we the claim that the does not standing have to claim a violation practice charge. file an unfair labor

B question posed The central is the extent bargain- which an arbitration clause of a collective ing agreement survives the date of a *8 bargaining agreement. collective recently This issue was Supreme addressed the United States private disputes Court in the context of sector Dist 335 1993] v Opinion Court Act, 29 USC Relations under the National Labor Printing seq.; NLRB, Div v 151 et 501 US Litton Financial (1991). 2215; S 115 L Ed 2d 190; 111 Ct Michigan’s public long recognized that have We seq.; act, 423.201 MCL et relations 17.455(1) seq., on et is modeled nlra. prece- Although controlling, we to federal look guidance developed in our under the nlra for dent interpretation Michigan Univ Central pera, Michigan Faculty Univ, 404 Mich Ass’n v Central (1978); Police 268; Pontiac Officers 273 NW2d (After Remand), 674; v Pontiac Ass’n (1976); v Detroit Police Officers Ass’n NW2d 831 appropriate supra Detroit, Thus, Litton an at 53. begin inquiry. place to our bargaining expired Litton, In grievance proce- agreement two-step contained a During step. as the final dure with arbitration consulting contracts, and hiatus between without portion employer union, of its eliminated operations The union de- off workers. and laid grievance procedures and arbitration con- manded cerning layoffs pursuant of its to the terms employer prior employer. The with the contract grievances. process refused to arbitrate charge upheld of an unfair labor the union’s nlrb procedures grievance practice and ordered Supreme granted Court the em- arbitration. right ployer’s petition to the limited issue Kennedy’s opin- postcontract.6 Justice arbitration two sources for the Court differentiates ion obligation employer imposing on an arbitrate an arising dispute date of one after the a collective but before finding that Litton commit- not address the nlrb’s Court did practice by abandonment of the its unilateral ted an unfair labor any postexpiration repudiation grievance process and wholesale employer obligations raise did not the issue because the arbitration Litton, petition appeal. 111 S Ct 2220. its on *9 443 Mich 326 Opinion of the Court any agreement.7 effective date of successor These might obligation sources be called the obligation. and the contract 8(a)(5) statutory obligation §§ is found in 8(d) 158(a)(5) (d), and of the 29 USC nlra, require employer bargain good an to "in respect wages, hours, faith with to and other terms employment.”8 and conditions of As the Court stated Litton: determined, has acceptance, with our [nlrb] employer

that an if, practice commits an unfair labor bargaining impasse, without to it effects a uni- change existing lateral employment. of an term or condition of Katz, 736; See NLRB v 369 US 82 S (1962). 1107; Ct 8 L Ed 2d 230 In Katz the union newly parties was certified and yet had to agreement. reach an initial The Katz doctrine has where, here, been extended as well to cases as an existing agreement expired negotiations has suggest possible The facts of this case a third source of an obligation n 4 ate that arbitrate, postexpiration agreement by parties, to see accompanying typically, might negoti text. More agreement might successor be retroactive to the date of prior agreement, pending, the unresolved successor of the with the intent that grievances might be submitted to arbitration under the agreement. corresponding 423.215; pera, section of the MCL 17.455(15), requires: also public employer bargain collectively A repre- shall with the employees sentatives of its as defined in section 11 and is bargaining agree- authorized to make and enter into collective representatives. purposes ments with such For the of this section, bargain collectively performance is the of the mu- obligation employer representative tual of the and the employees good to meet at reasonable times and confer in faith respect hours, wages, with employment, tion and other terms and conditions of negotiation agreement, any ques- or the of an or thereunder, arising and the execution of a written con-

tract, incorporating any agreement ordinance or resolution requested by party, obligation reached if not either but such does compel party agree proposal require either to a making of a concession. Dist 1993] v op Opinion the Court See, e.g., completed. yet one be on a new have v Ad- Trust Fund Health and Welfare Laborers Co, 539, Lightweight Concrete 484 US vanced (1988). [Litton, 830; L 6;n Ct 98 Ed 2d 108 S Ct 111 S 2221.]

Among mandatory subjects of including grievance arbitration, resolution, United of Amer Co v Int’l Woodworkers Gypsum States *10 (1951).9 112, the nlrb CIO, NLRB 131 While ica, 94 mandatory subjects of bar that most has ruled gaining rule, created it has are within Katz among grievance exceptions, is arbi which several tration, Hilton-Davis Chemical Co v Int’l Chemical (1970). Union, 185 241 NLRB Workers signifi- Supreme Court, with

The United States interpretation of the the nlrb’s cant deference to this Court likewise extended nlra, quoted from Hilton-Davis and summarized merc,10 as follows: clauses Board determined that arbitration [T]he prohibition unilateral from the on

are excluded to arbi- changes, reasoning that the commitment right of final "voluntary surrender of trate is a to the Congress . . . reserved which decision parties. sual surrender is, bottom, consen- . . at . [Arbitration power which the economic free to utilize.” [Hilton- are otherwise upon our The Board further relied at 242. Davis] labor acknowledging the basic federal statements law matter of contract is a

policy "arbitration to arbi- required be submit party and a cannot 9 grievance procedures similarly jurisdiction deemed This has Ottawa Co v bargaining. mandatory subjects See as arbitration (1985); Jaklinski, Pontiac Police Officers 1; 423 Mich 377 NW2d 668 (1976). (After Remand), 674; 831 Ass’n Pontiac 397 Mich 246 NW2d v 10 Orchestra, 116, 124; Symphony 223 v Detroit 393 Mich MERC Union, 1564, (1974); Amalgamated AFL-CIO Transit Local NW2d 283 441, Transportation Authority, Michigan Mich 437 v Southeastern (1991). 450; 249 473 NW2d 443 op Opinion the Court dispute agreed

tration he has not so to submit.” United v Steelworkers America War- Co, 574, Navigation 582; rior & Gulf US 80 S (1960). 1347; L Ct Ed 2d 1409 See also USC 173(d) (phrased parties’ agreed upon terms dispute existing method of resolution under an agreement.) [Litton, 111 S Ct 2222.] agreed A unanimous court in Litton11 that there right is no to arbitration under the nlra reject refused invitation to the nlrb’s relying totally decision, almost on the consensual nature of arbitration: We think the decision in Board’s Hilton-Davis Co, is

Chemical both rational and consistent with grounded strong the Act. The rule statu- tory principle, found in language both the drafting history, its of consensual rather nlra compulsory than arbitration. See Indiana & Michi- gan 1392, Co v Union Local No Int’l [Electric Workers, Brotherhood of Electrical 284 NLRB (1987)]; Co, 57-58 supra. Hilton-Davis Chemical The rule our conforms with statement "[n]o obligation to dispute arbitrate a labor solely arises *11 by operation of compels party law. The law a to grievance submit his only to arbitration if he has to Gateway contracted do so.” v Coal Co Mine Workers, 368, 374; 629; 414 US 94 S L Ct 38 Ed 2d (1974). 583 We today reaffirm that under the nlra consent, is a arbitration matter of it and that will not imposed upon parties be beyond scope of agreement. their In binding the absence of a method for resolu- tion relegated postexpiration disputes, of party may a be filing practice to labor charges unfair Board if that counterpart believes its 11 Stevens, joined by Justices Marshall and Justices Blackmun and Scalia, agreed in majority dissented Litton but all with the that there statutory right Litton, disputes. was no to arbitrate labor See 111 S Ct 2231, (Marshall, J., (Stevens, dissenting), J., n 4 and 111 S Ct 2231 dissenting). 339 School Dist v

1993] op Opinion the Court change in implemented a violation has unilateral If, urges, parties who as the of the nlra. favor labor arbitration tract putes, Union during the term a con- of postexpiration dis- also it to desire resolve arrangement that parties can to consent Further, a explicit agreement. collective- as to bargaining agreement might be drafted so expiration the old of eliminate hiatus between agreement, the new to remain and execution of bargain impasse. parties in effect until impose that suggestion Unlike Union’s we upon disputes parties postexpiration of arbitration once disputes arising under they agree to arbitrate contract, that alternatives would reinforce a statutory these compulsory. not that policy arbitration [Litton, 111 S Ct 2222-2223.] guid- source of only is not the authority Federal have the benefit of question. ance on this We case, de- in which was of the merc this decision opinion Supreme Court issued its cided before the princi- to use the in Litton.12 The merc was forced 358, Bros, Inc v Local in Nolde ples announced AFL-CIO, Union, Confectionery & Bakery Workers Jaklinski, supra, n 9 this Court addressed In Ottawa Co v There, deputy postexpiration lost her arbitration. a sheriff of issue negotia impasse position tions led to MCL for of a contract and after after 312, petition 1969 PA under interest arbitration 17.455(33). 423.233; possible led to three sources The facts MSA expiration. obligation was that an after first an to arbitrate subjects bargaining, mandatory includ employer had maintain arbitration, negotiations impasse. during ing until We stated argu reasoning logically rejected . . but . follows” "this line impasse. This parties bargained Id. at 13. had ment because the acceptance logic argument not of the was an about the statement the doctrine possible Michigan of the law. source into The second 13, 312, obligation requirement of PA § was the Jaklinski 17.455(43), hours, 423.243; wages, condi other MCL tions changed be without consent of not proceedings. This during pendency of Act interest arbitration However, prompted dissent. it is relevant discussion present case, safety applies only to certain because Act obligation possible employees. discussed The third source Bros, Bakery Confectionery Inc v & is the Nolde Local Jaklinski AFL-CIO, 243; 1067; Union, 2d 300 S Ct 51 L Ed 430 US Workers part II(D). (1977), obligation. We this in contract discuss *12 443 Mich 326 Opinion op the Court (1977), 243; 1067; US 97 S Ct 51 L 2d 300 Ed obligation post the lead case on contract bargaining agreement, authority as well as nlrb implementing Bros, Nolde and our decision in Jaklinski, v 1; Ottawa Co 423 Mich 377 NW2d 668. (1985), However, which also drew on Nolde Bros. interpreting as a matter of merc, pera, reached a conclusion that matches Litton’s inter pretation Citing approval of the nlra. Indi Michigan, supra, applying ana & an nlrb decision employer’s Bros, stated, Nolde "[A]n the merc obligation post-contract only to arbitrate extends grievances to those hiatus which involve 'vested or ” rights,’ rights is, accrued under the contract obligation. part II(d). See

Recognizing our historical inclination to be fa- vorably by apply- influenced decisions of the merc ing persuasive and the force of federal pera, authority applying appellants seek to nlra, distinguish present private the circumstances employment public They from those of the sector. contend: private While is true that in the sector both

parties are power, free to utilize economic such a public balance does not exist employment Michigan. law, Under federal arbitration is consid- quid pro quo ered the for an strike.

Michigan public employees legal right have no strike, even after of a collective agreement, 423.202; MCL 17.455(2). acknowledge While truism, we this we persuaded are both the structure of the statute and the realities of sector the merc’s conclusion is correct. power

First, the consideration of the to strike *13 341 Dist v 1993] School Opinion of the Court Hilton- Litton’s to not the basis for adherence was Rather, influenced the Court was Chemical. Davis strong principle, hy in both found "the drafting history, language and its the nlra compulsory arbitration.” consensual rather than of nature of Litton, 111 S The consensual Ct 2222. important grievance this arbitration is no less explained: Riley state, as Justice has legal policy judicial of underlying basis [the] reviewing arbitra- the merits of an deference [in grounded is in contract: the contrac- tion award] accept the and to tual to arbitrate binding.” and Labor decision as "final arbitral therefore, contract, and, is a of product arbitration upon legal entirely particular depends basis its particular parties. con- of Arbitration contracts terms, according may vary, specific to their tracts final and scope of to in the the matters entrusted arbitration, authority binding in the and arbitral mat- disputes concerning such to conferred resolve authority to jurisdiction An ters. arbitrator’s concerning appro- particular dispute resolve a priate interpretation of a collective exclusively from the contrac- agreement derives pos- parties; an agreement of the arbitrator tual mat- general to resolve such jurisdiction no sesses ters independent the arbitration contract. of [Port Ass’n, Area Dist v Port Huron Ed Huron (1986).] 150-151; 393 Mich NW2d 811 power Second, to strike Hilton-Davis consideration only rationales in one of three was supra. the consen- Chemical, other two were right final and "the nature arbitration sual par- Congress [the] . . . reserved to which decision of both 242. essential nature Id. at ties.” only provide is that acts nlra agree- might process by reach proposal power agree remains ment, to a Opinion op the Court 17.455(15), party, 423.215; with each MCL MSA USC 158(a)(5) (d).13 Legisla- Additionally, importantly, and most expi- when, ture has made the determination after bargaining agreement, public ration of a collective right employees’ lack of the an strike creates power public contrary imbalance of interest. It determined that an imbalance affected only types safety employees, certain gave right whom it interest arbitration 17.455(33). 312; 423.233; 1969 PA MCL It *14 appears Legislature thus that did not believe purported public in that a imbalance other sector required adjustment. The dissent’s suggestion acknowledge that we have failed to that supplements Act 312 is thus wide of the pera dispute acknowledge mark. We do not or fail to purpose Rather, of Act 312. we draw the Legislature inference that the did not intend arbi- part tration to be of the contract from danger the fact strikes it concluded that of required only response a limited not ex- public employees general. tended to in Turning general public to the context of sector employment, negotiating while the balance of power private sector, is different than in the we implication reject public employees are as disadvantaged by charging the differences as the Ass’n, supra 683, See also Pontiac Police Officers at where Justice obligate public employer Levin observed that agree "does not to grievance disciplinary procedures proposed by to or the union. simply obligates public employer bargain good It regarding in faith procedures.” such Moreover, Rapids Rapids Lodge in Grand v Grand No Fraternal Police, 628, 637; (1982), Order of 415 Mich 330 NW2d 52 we noted regarding resolution, grievance they agree, the issue of "If cannot only statutory duty negotiate their statutory right; is to continue to is the —that statutory right binding there is no arbitration.” procedure agreed upon Where no method or grievances, has been to resolve simply negotiate grievance "the must on the in good faith.” Id. at 635. Dist 1993] v Opinion of the Court possess employees parties suggest. certain Public They private employees. rights enjoyed by not protection Clause in Due Process have the employment, many of Re- Bd of their attributes Colleges gents Roth, 564; 92 S Ct 408 US v of State (1972); Perry Sindermann, v 2701; 33 L Ed 2d 2694; 33 L Ed 2d 570 593, 601-602; 92 Ct S US (1972). pensions employee employers and Public always ways financially realized not secure are Additionally, employer private deci- sector. popu- public are sector either sionmakers larly persons answer who elected officials public popularly nature of officials. The elected likely to are more that citizens is such service involving dispute in a interest labor have an active or the collection of their children the education involving dispute they one in a than are the trash goods suppliers many of commercial alternate plus concern, access to This or services. decisionmakers, employees gives a source private generally in the found influence direct bargaining. sector public employees means left without are

Nor go resolving grievances. to the can Grievances negotia- during resolved table be *15 retroactivity perhaps by in the clause tions, suggested agreement.14 instances, as In some new pursued might grievance as be Litton, itself in practice labor charge._ an unfair 14 case, representative hearing present union in the At the merc with the union refused to meet district never the school testified to discuss grievances at the grievances were discussed that all period. during negotiation point other table or at some processing of filed discussions continual The school district’s grievances supports sought school district inference that practice. Int’l Brotherhood committing See an unfair labor avoid America, Helpers Chauffeurs, Local Teamsters, & Warehousemen (CA 6, Bottlers, F2d Pepsi-Cola General 1199 v Union AFL-CIO, CLC v Wells 1992); Paperworkers Int’l Union United 1987). (CA 7, Industries, Inc, 701, 704-705 Badger 835 F2d 443 Opinion op the Court public public employer’s situation, like the private employee’s, from that of the is .different public employer frequently employer. sector private counterpart has less control than its sector public employer expenses. over its income and approve dependent on the electorate to new frequently from This results in a revenues taxes. public employer and its situation aligned proposing employees find themselves supporting requests ap- and prove to the electorate to millages. salutary effect

additional tax One public em- of these alliances is that the affected ployers employee in- unions have additional negotiate mutually satisfactory resolu- centive grievances. postexpiration tions to despite prohibits Finally, the fact that the by public employees, 423.202; strikes MCL 17.455(2), candid if we would be less than we did acknowledge public the real world of employment, public employees occasionally assume power employer’s Thus, the perspective, stringent strike.15 from the securing

there is value in a more agreement contractual with the union prohibiting employees striking during from affording term of the contract while more reme- pro- of that dies breach than those vided pera. summary,

In while the nature of the balance negotiating power in the sector is different private sector, than that in the find we no evi- legislative dence of intent to strike a different regarding essentially balance arbitration as con- agree charging par- can sensual. Nor we with the discourage clearly Such mandates strikes but. do not (2d ed), prevent p Kearney, them. Labor Relations in the Public Sector ninety percent 287. It has been estimated that since 1960 more than government level, place of all eight percent strikes have taken at the local percent at the state level and one at the federal level. Id. 276. at *16 Dist v 1993] Opinion Couet clearly public employees are so disadvan- that ties compel taged result. a different as abandoning estab- are The accusation that we wrong. post, p simply precedent, is lished only impression. The is one of first instant case Michigan authority point the decision on this Appeals of merc and the decision the Court of the conclu- cases, which reach and other all of this obligation to arbi- there is no sion that general authority relied Moreover, the state trate. adopt- Court decisions of this the dissent are on ing Michigan. The dissent law in federal labor erroneously Jaklinski, DPOA, CMU, and cites proposition Michi- that established for the PPOA interpreting pera gan precedent exists interpretations is there- reliance on federal labor inappropriate. However, that CMU we note fore Borg-Warner Corp, on NLRB v and DPOA relied (1958), and 718; 2 L Ed 2d 823 342; 78 S Ct 356 US Corp Paper NLRB, 379 US v Products Fibreboard (1964). Jaklinski 398; 13 L Ed 2d 203; 85 S Ct PPOA, there Bros, in which followed Nolde opinion, majority followed DPOA. was no attempt dissent, in the do we discern Nor policy weigh explain considerations how the underlying that of the in Litton and the decision its result. These harmonized with can be merc, precedent supported by strongly considerations, of arbitration law, nature are the consensual state nature of to the essential and adherence nlra provide process by that and the might agreement. reach weigh- legislative intent, a Thus on basis underlying policy ing arbitra- considerations precedent, we find tion, state and federal and case,- in this Litton, the merc the Court is no there conclusion the correct reached 443 Mich *17 Opinion of the Court duty statutory after of a to arbitrate bargaining agreement. C Finally, syllogism rests, on which the dissent response. Stripped requires in- additional of the precedent that and "the accurate observations Legislature’s post, p require command,” its following proposi- result, the dissent rests on the mandatory subject tions. Grievance arbitration is a of passe bargaining. bargain employer im- An must to

regarding bargaining. mandatory subjects of expiration of the Therefore arbitration survives collective bargaining agreement statutory as a term of the contract. necessarily

It should be obvious that it does not follow the fact from that arbitration is manda- bargaining, tory subject of that arbitration is one mandatory subjects of those part that is a question contract. That is the presented by syllogism posed case, this and the Thus, it. does not address explanation why the dissent offers no duty im- would eliminate the posed by bargain good pera in to faith over grievances that arise in the absence of a collective bargaining agreement, in favor of resolution third-party arbitrator. syllogism

The dissent buttresses its with refer- "quid” employer ence to the lack of an for the employees "quo,” historically is inaccurate. represents enlightened legislative pera an approach public employment that amended prior public Previously, any employee law. who went on strike was deemed to have abandoned the position and all attendant benefits. Criminal sanc- imposed inciting, influencing, tions ing, were coerc- urging strike, another to MCL 423.201 et 1993] Dist v Opinion the Court 17.455(1) pub- granted seq. seq.; et organize right to insist employees and lic bargain good employers over faith that wages, employment, while hours, conditions prohibition Thus, there retaining if strikes. on power concerning bargain loss of is obliga- public employer’s "quid” strike, good bargain for the in return faith tion prohibition of strikes.16 continued are merc decision Litton decision employers approach. Public this consistent good bargain employees faith about have to grievances no collective there is arise while *18 po- employees bargaining have a against charge practice the unfair labor tential working change condi- employer for unilateral impose pera however, arbitra- not, The does tions. tion, determining merely a of a method is which right, involving dispute on other substantive some process bargaining term of as a contract.

D obligation to arbitrate of an The second source bargaining collective in Litton is the discussed agreement topic this case on seminal The itself. supra. held Bros in Nolde Bros, The Court Nolde disputes may after that arise some there be agree- bargaining expiration a collective of agree- granted rights under that involve ment Detroit, 428 Mich Ass’n v Police Officers in Detroit We observed J.): (1987) Boyle, (opinion 79, 95; of 404 NW2d 595 labor-management in the strife resolution of pera, goal through of is a basic sector 423.202; MSA proscription, MCL joins strike collectively, duty bargain MCL 17.455(2), employer’s 17.455(15). 423.215; MSA Opinion of the Court disputes, governed by agreement, ment. These would still be arbitrable under an arbitration expired agreement. clause of the otherwise rights are those that intended to last beyond expiration agreement. date of the scope rights subject among of those was to debate courts, the lower federal see Ottawa Co v Jaklin- supra explaining ap- ski, 15-21, at the various proaches. during Jaklinski was decided the debate. majority Jaklinski, For reasons discussed proper application this Court decided that right Nolde Bros to the was that "the grievance expiration arbitration survives the bargaining agreement the collective pute when the dis- rights concerns the kinds of which could during accrue or vest the term of the contract.” 423 Mich 22. Litton,

In the Court ended at least the initial scope round of the debate on the a fashion identical of Nolde Bros in to our decision in Jaklinski. The Court stated: postexpiration

A grievance can be said to arise only under the contract occurrences that arose before where involves facts and expiration, where an expiration action accrued or under the of 2225. infringes right taken after where, agreement, vested under the principles normal interpretation, contract disputed right contractual survives *19 agreement.[17] the remainder of the S Ct [111 Emphasis added.] charging parties The invite us to "declare that concept rights Jaklinski’s of 'accrued’ or 'vested’ provisions expired agreement extends to all of an 17 may appear listing types postexpira It that the Court is three of believe, disputes. strictly speaking, tion employer only We there is one. The leading dispute action or inaction to the first listed arises expiration. dispute expiration before third The listed arises before the agreement applying dispute. of the clause of the to that v 1993] Dist Opinion of the Court relationship represents core of the be- the parties.” They not, however, do indicate tween the rights to draw line on which are are where the choosing point rights only “core,” found by vested, lower federal courts to be accrued or pensions, days, as vacation health and dis- such seniority. Leaving ability insurance, aside rights types of that would whether these are the given they case, in a we that are be vested note rights subject grievances types of not the to the grievances filed of this case. transportation on behalf the assignment runs,

unit involved working payment payment runs, hours, for for griev- changes. layover time, and schedule the ances filed on behalf of custodial-maintenance out-contracting, to have a unit unit involve failure sponsored event, at a school member attendance assignment position. These involve the of one wages, working hours and traditional areas subjects mandatory words, conditions, in the other ap- bargaining. the to one of of proaches This is identical rejected ap- in Jaklinski we obligation reject proach that we for above. argue charging parties the testi- also that

mony in- their shows witness that agreements the collective tended were throughout negotia- to continue in effect to events that occurred tions. The evidence relates agreement. expiration It does not after show agreements signers any intent agreements provided any terms to last right beyond Thus, date. grievances in this case did not derive arbitrate original agreement manner of in the from may most, At have been a Bros. there Nolde during negotia- temporary side made charges case did not tions, filed this but *20 443 Mich 326 by Dissenting Opinion Cavanagh, J.C. allege agreement any a violation of side and the charging parties exception to the did take hearing agree- referee’s failure to find such an ment. We do not separate agreement contention believe about preserved appellate re- view. charging parties argued have not that

grievances filed meet the "accrued or vested” test Thus, of Litton and Jaklinski. we do not discuss question.18 III We hold that does not create a statu- tory duty expiration grievances arising to arbitrate after the bargaining agreement.

of a collective grievances We also find that filed in this case type were not the that accrued or vested under the previous bargaining agreement. Accord- ingly, Ap- we affirm the decision Court of peals. JJ., concurred

Brickley, Riley, Griffin, J. Boyle, (dissenting). I dissent from the Cavanagh, C.J. majority’s holding "that an to arbitrate bargain- does not survive of a collective ing employment statutorily contract as a term or condition of public employment

under rela- strong precedent tions act” because of "the favor- ing p Ante, arbitration . . . as consensual.” 328. holding Michigan Faculty Our in Central Univ Michigan Univ, Ass’n v Central 277; dissenting opinions, Litton had two each of which contended that rights expira the determination whether the contractual survived the bargaining agreement tion of the collective was a matter to be initially by determined an arbitrator. We need not and do not reach issue this case. Dist v 1993] Dissenting Opinion Cavanagh, C.J. (1978), application compels

273 NW2d *21 mandatory preimpasse to doctrine unilateral bargaining. subjects ais Because arbitration of apply bargaining, mandatory subject I would of preimpasse the case at doctrine to the unilateral bar.

I provision inquiry the contractual whether the con- of survives for arbitration stop, of its an examination with tract does viability Instead, the Court under the contract.1 pera provides whether must also determine support to the arbitration clause. life compels pera em- a 152 of the Section employees’ bargain collectively ployer its to Additionally, representatives. directs a the statute participate public employer in bar- to wages, respect "good gaining to faith with of and conditions hours, other terms and held that . . . .” This Court has employment” are terms and conditions "other " bargain- 'mandatory subjects’ of referred to as ing.” specific subject p Faculty, 277. "Once CMU subject mandatory of bar- as a has gaining, classified been bargain required con- are party may cerning subject, take neither and impasse subject absent an on the unilateral action negotiations.” Id. determining Accordingly, whether when affecting prohibits an estab- action unilateral (1) practice, determine must the Court lished viable, pursuant provision to the ex can remain 1 A contractual (2) terms, (1) agreed contract, parties expressly pired if expira the contract’s accrued before claim vested or the contractual tion. The arbitrate, however, to survive under failed these methods. either of 17.455(15). 423.215; MSA 2 MCL 443 Mich Dissenting Opinion Cavanagh, C.J. practice mandatory whether subject the established is (2) negotiations bargaining, whether impasse. See id. If the Court have reached an concludes that the established

practice is a manda- negotiations tory subject of have impasse, Faculty yet to reach an then CMU directs preimpasse apply the Court change unilateral bar, doctrine.3 In the case at there was not appel- impasse negotiations at the time the an lee extinguished grievance procedure of arbi- only inquiry remaining Thus, tration. mandatory subject is a whether arbitration bargaining. majority jurisdiction "[t]his concedes that grievance procedures similarly has deemed mandatory subjects bargaining. arbitration as See Ottawa Co v 668

Jaklinski, 1; 377 423 Mich NW2d (1985); Pontiac Police v Pontiac Officers Ass’n (After Remand), 674; 397 Mich 246 NW2d 831 (1976).” p Despite majority’s Ante, 337, n 9. the acknowledgment precedent, of established it an- mandatory arbitration, nounces that while a sub- ject bargaining, judicially of collective excluded preimpasse change from the unilateral doctrine.

II today’s holding, Before this Court has not dimin- 3 Jaklinski, 1, 13; (1985), In Ottawa Co v 423 Mich 377 668 NW2d recognized logical compelled by prior prece- this Court dent. the conclusion reasoning, logically part Under this line of it follows that as duty bargain good joint employers of its to faith the had a duty prior impasse reaching unilaterally to alter the

grievance arbitration mechanism .... propriety logical The Court did not examine the of the conclusion compelled by Michigan instead, precedent, rejected plaintiffs it (1) plaintiff’s grievance 15 asserted negotiations claim because § arose after (2) impasse, plaintiff had reached an failed to proper procedure filing follow the for 15 her claim. § 353 Dist v 1993] by Dissenting Opinion Cavanagh, C.J. Legislature’s em- command that ished the ployers respect bargain good "in faith with wages, hours, of and other terms and conditions 423.215; MSA . . . .”4 MCL 17.455(15). apply- practice of I would adhere to change ing preimpasse doctrine unilateral subjects bargaining. mandatory Fac- See CMU applica- reject majority’s ulty. Furthermore, I 8(d) interpreting precedent § tion of federal in this instance. §to 15 of the PERAj nlra, position support majority its finds 8(d) interpreting precedent mainly § in federal 158(d). Act,5 29 USC the National Labor Relations Admittedly, prece- to federal this Court has looked construing interpreting when dent the nlra past.6 pera on federal cases is not in the Reliance appropriate bar, however, because the case at 4 fact, vigorously today this Court had advanced In before "pera pera: (The p Faculty, 279 was intended mandates of the by CMU conflicting superimposed Legislature supersede and is laws power from the Consti institutions which derive their even on those Pontiac, 674; itself”); 397 Mich Pontiac Police Officers Ass’n v tution (1976) (A majority of the Court concluded 246 NW2d 831 pera provisions prevail contrary of the charter mandates of the over Ed, city); Dist Bd of Rockwell v Crestwood School of a home-rule Mich prevail pera (1975) (The 616, 628-629; mandates 227 NW2d act); Wayne provisions conflicting of the teacher tenure over 363, 371; Supervisors, v Bd of 384 Mich Co Civil Service Comm (1971) (The supersedes conflicting provisions of the NW2d 201 act). county civil service 2215; NLRB, 190; Printing 111 S Ct v 501 US In Litton Financial (1991), Supreme Court held that the United States 115 L Ed 2d change subject preimpasse unilateral is not to the nlra’s arbitration doctrine law. operation by consent and not because arbitration arises

6 probably Although certainty, it is safe cannot state with we adopted Michigan Legislature intentionally to assume that the pera expectation that that it did with the 15 in the form § legal prece rely Michigan on the merc and the courts would 8(d) they nlra, developed to the extent dents apply under § bargaining. public Ass’n Police Offcers sector [Detroit (1974). 44, Emphasis Detroit, 53; 214 NW2d 803 v original.] 391 Mich 354 443 326 Dissenting Opinion by Cavanagh, C.J. pera

is not concerned with the and its effect on public employees. Contrary majority’s to the asser- pera’s prohibition against pub- by tion, the strikes employees7 possible penalties lic and the faced public employees places strike,8 who choose to public employees disadvantaged position in a as compared private counterparts, to their sector warranting protection § broad under 15 of the public employees9 pera. Thus, their status as com- pels rejection precedent interpreting of federal private employees its effect on in this nlra instance.10 majority supports position its with the

premise availability that the of interest arbitration under 1969 PA 31211 somehow diminishes rights public employees afforded to § under 15 of pera. majority states:

Additionally, importantly, Legisla- and most when, ture has made the expi- determination after ration of a employees’ bargaining agreement, public right

lack of the to strike creates an power imbalance of is contrary 7 17.455(2). 423.202; MCL MSA 8 pera See, Rockwell, (The generally, supra, p n 4 allows a public employer discipline public employee striking to terminate or pera). in violation of the policy While is true that the merc has announced a similar to interpreting nlra, that interpretation, found in the federal cases such an persuasive, binding upon while is not this Court. We perpetuating agency interpretations must refrain from that are hos Legislature. tile to the clear mandate of the keep public employees must in mind that '"[W]e because Michigan strike, are forbidden to 'section 15 of must be expansively counterpart’ even more construed than its nlra adequately protect public employees’ rights.” order to [Central Michigan Faculty Univ, Michigan Univ Ass’n v Central (1977) App 113; (Cavanagh, P.J., Mich dissenting), 254 NW2d 802 268; (1978).] rev’d 404 Mich 273 NW2d 21 17.455(33). 312; 423.233; 1969 PA MCL *24 1993] School Dist v 355 Dissenting Opinion by Cavanagh, C.J. It

interest. only determined that an imbalance affected types public certain of safety employees, gave whom it right to interest arbitration in 312; 17.455(33). 1969 423.233; PA MCL It appears thus Legislature did not believe purported that a imbalance in other sector employment required adjustment. [Ante, p 342.] majority acknowledge What the fails to is that clearly supplement "Act 312 was intended to pera.” 1277, Local AFSCME Line, v Center 414 (1982). 642, 652; Mich 327 NW2d 822 Section 15 of pera prevents preimpasse change unilateral mandatory subjects bargaining. in impasse Once an public employer reached, however, a unilaterally change mandatory subjects can bargaining. picks up Act 312 § where 15 of the providing protection off, left additional public safety employees. Act 312 is "directed to- major ward the resolution of impasses prevention police and the and fire department employee 1518, strikes.” Local Sheriff, AFSCME v St 1, Clair Co 407 12-13; (1979). obviously 281 313 NW2d While Act 312 provides supplemental protection public safety employees,12 protec- it does not detract from the public employees tions afforded to all § under 15 of pera. Finally, majority’s treatment of this issue effectively protections nullifies the afforded under pera. recognized employee This Court that an may rights expired retain afforded under an con- (1) tract on the basis of either a contractual invoked, After 312” party "Act interest arbitration is neither dispute may hours, existing "wages, to the alter other [or] employment” conditions of during without the consent of the other pendency proceedings before the arbitration panel. [Jaklinski, supra, p 14.] Mich Dissenting Opinion Cavanagh, C.J. (2) "good-faith right claim,13 pera. bargaining” v Co § under 15 of Ottawa 12-13; 377 NW2d Jaklinski, 423 Mich (1985).14 right approach, majority’s Under *25 theory, only under contract can exist a arbitration protection to which, course, afforded vitiates of Legislature. by public employees it re- Legislature appropriate to If the deems obligation scope bargaining of define the collective particular of employers generally public of representatives their public employees other may of employers and hours, "wages, to some include it employment,” of and conditions terms so. do properly ad hoc that Court cannot decide This uniformly regarded a "condition” of been

what has applied to a is not a condition as such although it continues particular public employer to be such employers, public for other condition redefinition, private. eschewing we under- By and score the such consideration claims give prerogative Legislature it to the of the as deems warranted scope public employers that obligation impinges unduly bargaining Faculty, power govern. p on their [CMU Ass’n v Pontiac quoting Pontiac Police Officers (After Remand), (1976) 674, 684; 246 397 Mich NW2d J.). in Emphasis original.] (opinion Levin, III It is an "other term clear arbitration 13See n 1. required hours, bargain employers It is are true "wages, good impasse regarding and other terms faith to 17.455(15). 423.215; employment.” MCL and conditions of hours, "wages, and other terms and conditions Because regarded subjects bargain employment” mandatory are as negotiating ing, proposes party a collective once subject, party may take unilateral such a neither prior regarding impasse. it Police Detroit Officers action (1974). Detroit, 44, 54-55; 214 v Ass’n NW2d School Dist v

1993] Dissenting Opinion Cavanagh, C.J. employment” condition of ally changed that cannot be unilater- impasse negotiations.

absent an appellee unilaterally changed Because the the ar- process reaching impasse bitration before an negotiations newly with the union, certified pera. Accordingly, violated the I would reverse the holding Appeals. of the Court of JJ., Mallett,

Levin concurred Cavanagh, C.J.

Case Details

Case Name: Gibraltar School District v. Gibraltar Mespa-Transportation
Court Name: Michigan Supreme Court
Date Published: Aug 20, 1993
Citation: 505 N.W.2d 214
Docket Number: 92723, (Calendar No. 7)
Court Abbreviation: Mich.
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