PENNSYLVANIA LABOR RELATIONS BOARD, Appellant, v. STATE COLLEGE AREA SCHOOL DISTRICT, and the Board of School Directors. Appeal of STATE COLLEGE AREA EDUCATION ASSOCIATION. Appeal of AMERICAN FEDERATION OF STATE, COUNTY & MUNICIPAL EMPLOYEES, AFL-CIO.
Supreme Court of Pennsylvania.
Argued Jan. 21, 1974. Decided April 17, 1975.
337 A.2d 262
Israel Packel, Atty. Gen., James L. Crawford, James F. Wildeman, Francis A. Zulli, Raymond W. Cramer, Asst. Attys. Gen., Harrisburg, for Pa. Labor Relations Bd.
John R. Miller, Jr., Miller, Kistler, Campbell & Mitenger, Bellefonte, for appellee in No. 50.
Jerome H. Gerber, Handler, Gerber & Weinstock, Harrisburg, for amicus curiae, Pa. State AFL-CIO.
William Fearen, Cleckner & Fearen, Harrisburg, for amicus curiae, Pa. School Boards Ass‘n.
Woodley B. Osborne, Washington, D. C., for amicus curiae, American Ass‘n of University Professors; Stephen R. Goldstein, Robert A. Gorman, Philadelphia, of counsel.
Before JONES, C. J., and EAGEN, O‘BRIEN, ROBERTS, POMEROY, NIX and MANDERINO, JJ.
OPINION OF THE COURT
NIX, Justice.
The subject of this appeal is the relatively recent enactment of the Public Employee Relations Act.1 The dispute centers upon the tension evoked between what the legislature has specifically made bargainable and what the legislature has also specifically allowed management to reserve to its unilateral decision-making. In this instance we are required to interpret section 701 and determine its scope in light of sections 702 and 703.
The State College Area Education Association (Association) filed with the Pennsylvania Labor Relations Board (Board) an unfair labor charge consisting of twenty-three items on which the Board of School Directors of State College Area School District (School District) refused to bargain, allegedly in violation of section 701. The Association asserted that the School District
Both the School District and the Association petitioned the Court of Common Pleas of Centre County for review. That court affirmed the final order of the Board as to the sixteen items which were held to be non-bargainable and reversed the Board‘s final order as to the five items which the Board had found to be proper subjects for mandatory collective bargaining under section 701. Both the Association and the Board filed appeals to the Commonwealth Court from the order of the Court of Common Pleas of Centre County which resulted in an affirmance of the order with three judges of the Commonwealth Court concurring in part and dissenting in part. We granted allocatur and this appeal follows.
I.
It is argued that the absence of precedent interpreting the relatively new Act 195 in this area and the similarity of language between section 701, now under consideration, and section 8(d) of the National Labor Relations Act,
Although these deсisions may provide some guidance, we are mindful of the distinctions that necessarily must exist between legislation primarily directed to the private sector and that for public employes. The distinction between the public and private sector cannot be minimized. Employers in the private sector are motivated by the profit to be returned from the enterprise whereas public employers are custodians of public funds and mandated to perform governmental functions as economically
We also recognize the wisdom of refraining from attempting to fashion broad and general rules that would serve as a panacea. The obviously wiser course is to resolve disputes on a case-by-case basis until we develop, through experience in the area, a sound basis for developing overall principles.
Guided by these preliminary observations, we will now prоceed to consider the sections in question and determine their applicability to the items at issue. Section 701 provides:
“Collective bargaining is the performance of the mutual obligation of the public employer and the representative of the public employes to meet at reasonable times and confer in good faith with respect to wages, hours and other terms and conditions of employment, or the negotiation of an agreement or any question arising thereunder and the execution of a written contract incorporating any agreement reached but such obligation does not compel either party to agree to a proposal or require the making of a concession.”
“Public employers shall not be required to bargain over matters of inherent managerial policy, which shall include but shall not be limited to such areas of discretion or policy as the functions and programs of the public employer, standards of services, its overall budget, utilization of technology, the organizational structure and selection and direction of personnel. Public employers, however, shall be required to meet and discuss on policy matters affecting wages, hours and terms and conditions of employment as well as the impact thereon upon request by public employe representatives.”
Section 703 states:
“The parties to thе collective bargaining process shall not effect or implement a provision in a collective bargaining agreement if the implementation of that provision would be in violation of, or inconsistent with, or in conflict with any statute or statutes enacted by the General Assembly of the Commonwealth of Pennsylvania or the provisions of municipal home rule charters.”
The conflict in the Commonwealth Court centered upon the extent the legislature intended to limit the scope of negotiation made mandatory under section 701 by its inclusion of sections 702 and 703 within this act. The majority of that court concluded that any item of wages, hours, and other terms and conditions of employment affecting policy determinations or the impairment of other performance of the duties and responsibilities imposed upon public employers by statute are not bargainable. Pa. L. R. B. v. State College Area School District, 9 Pa.Cmwlth. 229, 306 A.2d 404 (1973). Judge
“My reading of the statute (Act 195) leads me to find a legislative intent to provide for good faith collective bargaining wherever the teachers’ employment rights are directly affected by ‘wages, hours and other terms and conditions of employment.‘” Id. at 247, 306 A.2d at 414-415 (dissenting opinion).
Where provisions of a statute appear to be ambiguous or inconsistent, the intention of the legislature may be determined by examining the occasion, reason or necessity for the law. Thus, we should look to the circumstances that existed at the time of the enactment and determine the mischief sought to be remedied or the objеct to be obtained in its passage.
“The 1947 Act does not require public employers to bargain collectively with their employes. This has led
to an almost complete breakdown in communication where the public employer has not chosen to recognize the right of its employes to bargain collectively. In our judgment, this inability to bargain collectively has created more ill will and led to more friction and strikes than any other single cause.”
The declaration of policy contained in Act 195, section 101 clearly establishes that the legislature concurred with the commission‘s belief that the right to collective bargaining was necessary to promote orderly and constructive relationships between public employers and employes.5
In this setting we are forced to conclude that the legislature at the time of the passage of Act 195 fully recognized that the right of collective bargaining was crucial to any attempt to restore harmony in the public sector. It would be absurd to suggest that the legislature deliberately intended to meet this pressing need by providing an illustory right of collective bargaining.
II.
Section 702, when read in conjunction with section 701, requires us to distinguish between the area of managerial prerogative and the areas of vital concern to employes.6 The Commonwealth Court‘s premise that any interpretation of sections 701 and 702 must recognize the dominance of a legislative intention to preserve the traditional concept of inherent managerial policy emasculates section 701 and thwarts the fulfillment of the legislative policy sought to be achieved by the passage of the Act.7 Further, such a view ignores the fact that the acceptance of the Hickman Commission‘s recommendation and the passage of Act 195 was a repudiation of the traditional concept of the sanctity of managerial prerogatives in the public sector. The introduction of a concept of mandatory collective bargaining, regardless of how narrowly the scope of negotiation is defined, necessarily represents an encroachment upon the former autonomous position of management. Further, the Hickman Commission‘s recognition of the need for collective bargaining to produce stability in the public sector arguеs against an inference that they intended their recommendation8 to be con-
“The General Assembly of the Commonwealth of Pennsylvania declares that it is the public policy of this Commonwealth and the purpose of this act to promote orderly and constructive relationships between all public employers and their employes . . . the General Assembly has determined that the overall policy may best be accomplished by . . . (2) requiring public employers to negotiate and bargain . . .” Art. I, § 101.
The majority in the Commonwealth Court and some of the briefs filed in this Court attempt to equate the preservation of the inherent managerial policy as synonymous with the public interest and the concern of the employes as a private interest. Proceeding from this premise it is asserted that the private interest must give way before the public good. This reasoning is offered to provide the basis for their premise, the dominance of the legislative intention to preserve managerial prerogatives. This argument fails to perceive that the true public interest is the effective and efficient operation of public employment and that collective bargaining as well as managerial prerogatives are only significant insofar as
A determination of the interrelationship between sections 701 and 702 calls upon us to strike a balance wherein those matters relating directly to “wages, hours and other terms and conditions of employment” are made mandatory subjects of bargaining and reserving to management those areas that the public sector necessarily requires to be managerial functions. In striking this balance the paramount concern must be the public interest in providing for the effective and efficient performance of the public service in question. The Supreme Court of Kansas was recently required to consider this problem. National Education Ass‘n of Shawnee Mission, Inc. v. Board of Education of Shawnee Mission Unified School District No. 512, 212 Kan. 741, 512 P.2d 426 (1973). In that decision the Court was confronted with a dispute between a teachers’ association and the board of education. In resolving questions relating to the scope of negotiations provided under their statute they recognized that “terms and conditions” which were negotiable under the terms of the statute as something more than minimal economic terms of wages and hours, but something less than the basic educational policies of the board of education. That Court suggested that the courts of that jurisdiction should resolve these issues on a case-by-case basis. As has been indicated, we also agree with the wisdom of this approach at this time. Further, the Kansas Court suggested:
“The key, as we see it, is how direct the impact of an issue is on the well-being of the individual teacher, as opposed to its effect on the operation of the school system as a whole.” Id. at 753, 512 P.2d at 435.
Thus we hold that where an item of dispute is a matter of fundamental concern to the employes’ interest in wages, hours and other terms and conditions of employment, it is not removed as a matter subject to good faith bargaining under section 701 simply because it may touch upon basic policy. It is the duty of the Board in the first instance and the courts thereafter to determine whether the impact of the issue on the interest of the employe in wages, hours and terms and conditions of employment outweighs its probable effect on the basic policy of the system as a whole. If it is determined that the matter is one of inherent managerial policy but does affect wages, hours and terms and conditions of employment, the public employer shall be required to meet and discuss such subjects upon request by the public employe‘s representative pursuant to section 702.
III.
The relationship between sections 701 and 703 is particularly significant in a highly regulated area such
“The General Assembly shall provide for the maintenance and support of a thorough and efficient system of public education to serve the needs of the Commonwealth.”
Under the
The mere fact that a particular subject matter may be covered by legislаtion does not remove it from collective bargaining under section 701 if it bears on the question of wages, hours and conditions of employment. We believe that section 703 only prevents the agreement to and implementation of any term which would be in violation of or inconsistent with any statutory directive. The distinction between this view and that expressed by the majority of the Commonwealth Court (as we understand it) is best illustrated by an example. Under
The fallacy in the view expressed by the Commonwealth Court‘s majority is the failure to perceive the distinction between the “inherent managerial prerogative” concept set forth in section 702 and the thrust of section 703. The purpose of section 703 was not to further define “inherent managerial policy” but to recognize that Act 195 did not affeсt the continuing vitality of existing law at the time of that Act‘s passage. Thus, the fact that a prerogative was statutorily recognized under
We therefore conclude that items bargainable under section 701 are only excluded under section 703 where other applicable statutory provisions explicitly and definitively prohibit the public employer from making an agreement as to that specific term or condition of employment.
IV.
The areas of bargaining that are in issue in this lawsuit provide a wide spеctrum of concern.11 It is, how-
ever, clear that there has been significant disagreement as to the principles to be applied in determining the applicability of section 701. As noted by Judge Kramer, the wording of many of the items in issue is ambiguous and difficult to categorize in accordance with the principles set forth herein. It is clear that many of the items were framed in terms of the objective sought to be obtained as opposed to the issue sought to be negotiated. We assume the reason for the artless framing of the issues was as a result of the general confusion which prevailed in the area. We also believe that the Pennsylvania Labor Relations Board should have an opportunity to again re-assess the respective positions of the parties in light of thе principles set forth herein.
We therefore remand the cause to the Pennsylvania Labor Relations Board for further proceedings consistent herewith, granting leave to each party to modify and amend their position as they may wish.
POMEROY, J., filed a concurring opinion in which JONES, C. J., joined.
EAGEN, J., filed a dissenting opinion.
I agree in general with the opinion of the Court, but write this separate statement in an attempt to place in perspective certain aspects of the problems presented as they appear to me.
John Chipman Gray well said that interpretation of statutes is “one of the most difficult of a judge‘s duties.” Gray, Nature and Sources of Law, Section 370. Many other legal scholars have, of course, made similar observations. This case is a striking illustration of the truth of that statement. The prоblem, of course, is that courts are called upon to ascertain the “intention of the legislature.” Where the legislature has had a real intention, one way or another, on a point, it usually expresses it clearly and there is no doubt about it. But when the legislature has had no specific meaning on a point, or when the question presented never occurred to it, the difficulties arise. See op. cit. supra; J. Landis, A Note on “Statutory Interpretation,” 43 Harv.L.Rev. 886 (1930).
In this case the legislature, through its declaration of policy, did make clear its general intent, namely, to provide for the orderly and peaceful settlement of labor disputes in the so-called “public sector” by means of collective bargaining, mediation and arbitration, and by establishing the right of employеes to strike when all else fails. The specific intent, however, as to what subjects are within the scope of collective bargaining, is, to say the least, elusive. While the title of the PERA refers to “defining the scope of collective bargaining,” see
Given the vagueness of the terms with which we must deal, there is no room, as I see it, for dogmatism; the courts can but strive as best they can to reach a result which comes closest to giving effect to what they find to be the legislative intent.2 This the courts below sought
to do, and I cannot subscribe to the majority‘s characterization of the painstaking opinion of the Commonwealth Court as one which “emasculates” the legislative intent. See Opinion of the Court, ante, at 267.3
As to the main thrust of the Court‘s opinion, that Act No. 195 should be so construed as to afford a viable framework for meaningful collective bargaining in the public sector, I am in complete agreement, for this is necessary to accomplishment of the public policy announced by the legislature. I also agree that this requires a balancing approach, and that in striking the balances undue emphasis must not be placed on either Sec. 702 or Sec. 703 of the Act, lest the innovative provision of Sec. 701 be lost in the shuffle. Thus, as the Court‘s opinion states, an item of dispute must not be removed from the orbit of bаrgaining under Sec. 701 “simply because it may touch upon basic policy.” I have difficulty, however, with the Court‘s statement that the Board is to “determine whether the impact of the issue on the interest of the employe in wages, hours and terms and conditions of employment outweighs its probable effect on the basic policy of the system as a whole.” Opinion of the Court, ante at 268, for I fear that in application this directive may prove no more lucid than the words of the Act of which we strive to give meaning. I am not sure how one identifies the “interest” of the employe in
As to each item of potential dispute, (i. e., the items put forward in a request for bargaining) the factors to be balanced in determining the susceptibility of an item to collective bargaining are the probable effects of the granting or refusal of the item upon (a) the individual performance by the teachers of their duties as such, and upon (b) the school board‘s overall operation of an educational system within its district. If the effect of the granting or denial of a request would be more direct, immediate and substantial upon the teachers’ individual performance of their duties than it would be upon the school board‘s overall operation of an educational system, the item should be considered negotiable. On the other hand, if the effect would bear more directly, immediately and substantially upon the school board‘s overall operation of an educational system, the opposite result should obtain—i. e., the item should be considered non-negotiable. Such balancing, of course, should be made with due regard for those areas of discretion or policy which by the terms of Sec. 702 are expressly included within the phrase “inherent managerial policy.”
Reading the Board‘s “nisi decision” and its “final order,” in this case, I am not at all certain that its approach differed in any material way from that which the Court now directs. However that may be, the Court‘s opinion does not undertake to consider the specific issues involved in this litigation. (The items about which the teachers seek to bargain are merely listed in footnote 11 at the end of the opinion). The Court‘s mandate is thus much like granting a “new trial” without telling the tri-
JONES, C. J., joins in this opinion.
EAGEN, Justice (dissenting).
I cannot subscribe to the views expressed in Part II or Part III of the opinion filed by Mr. Justice Nix. He fails to give proper weight to Section 702 of Act 195 and, in effect, nullifies it. In fact, if the Legislature intended to give public employees the sweeping, all-encompassing collective bargaining rights that Mr. Justice Nix indicates, enactment of Section 702 was the height of futility.
After reviewing the instant record, it is my personal view that the conclusions and ruling of the Pennsylvania Labor Relations Board reasonably comport with the intent of thе Legislature when it enacted Act 195. Moreover, the expertise of the Board in this class of case should be recognized and its conclusions sustained absent
