SAUK COUNTY, Petitioner-Respondent-Petitioner, v. WISCONSIN EMPLOYMENT RELATIONS COMMISSION, Co-Appellant, AFSCME, Local Union No. 3148, AFL-CIO, Complainant-Appellant.
No. 89-2059
Supreme Court
Oral Argument September 4, 1991.--Decided December 9, 1991.
477 N.W.2d 267
LOUIS J. CECI, J.
For the complainant-appellant there was a brief by Richard V. Graylow and Lawton & Cates, S.C., Madison and oral argument by Mr. Graylow.
For the co-appellant there was oral argument by David Rice, assistant attorney general.
Amicus curiae brief was filed by Marianne G. Robbins, Naomi E. Eisman and Previant, Goldberg, Uelmen, Gratz, Miller & Brueggeman, Milwaukee for Wisconsin State AFL-CIO.
Amicus curiae brief was filed by Richard Thal and Cullen, Weston, Pines & Bach, Madison for Wisconsin Professional Police Association/Law Enforcement Employee Relations Division.
Amicus curiae brief was filed by Bruce Meredith, Madison for Wisconsin Education Association Council.
Amicus curiae brief was filed by Timothy E. Hawks, Linda Schmidt Quartaro and Shneidman, Myers, Dowling & Blumenfield, Milwaukee for Wisconsin Federation of Teachers.
Amicus curiae brief was filed by Bruce F. Ehlke and Lawton & Cates, Madison for Wisconsin State Employees Union and Professional Firefighters of Wisconsin.
LOUIS J. CECI, J. This case is before the court on petition for review of a decision of the court of appeals, Sauk County v. WERC, 158 Wis. 2d 35, 461 N.W.2d 788 (Ct. App. 1990). The majority of the court of appeals (Sundby, J., dissenting) reversed the order entered by the circuit court for Sauk county, Howard W. Latton, Reserve Circuit Judge. The circuit court‘s order reversed a Wisconsin Employment Relations Commis-
Three issues are presented on review. The first issue is whether an “arbitration decision,” as that phrase is used in
The second issue is whether fair-share fees and union dues are economic items that should be given retroactive effect. We hold that they are.
The third issue is whether the county‘s refusal to retroactively deduct fair-share fees and union dues in this case amounts to a failure to implement an arbitration decision, in violation of
The facts of this case are not in dispute. AFSCME, Local Union No. 3148, AFL-CIO (the union), is certified as the exclusive bargaining representative of all employees at Sauk County Health Care Center. The union and the county were parties to a labor contract covering calendar years 1983-84. Prior to the expiration of the
The parties entered into interest arbitration pursuant to
The resultant 1985 contract contained a fair-share provision which was identical to the fair-share provision in the 1983-84 contract. The provision required that fair-share fees and union dues be deducted “once each month.” The 1985 contract‘s duration clause stated that the contract “shall be effective as of the first day of January, 1985, and shall remain in full force and effect throughout the 31st day of December, 1985 . . . .” The 1985 contract also contained a grievance arbitration procedure whereby the parties agreed to submit to arbitration “any dispute concerning the interpretation or application of a provision of this contract . . . .”
After the county refused to retroactively deduct fair-share fees and union dues for the period of time between
The hearing examiner decided that even though fair-share fees and union dues were not in dispute before the arbitrator, the arbitration decision nonetheless included those items. The examiner also determined that a fair-share/voluntary dues provision is most likely to be considered an economic item capable of being applied retroactively and should have been retroactively applied here. After noting that the issues posed by this case had not been “addressed before this by the Commission,” the examiner decided that a
The WERC issued an order confirming the examiner‘s decision, and the county then instituted proceedings in Sauk county circuit court for review of that order. The circuit court determined that the county had not violated
The issues presented by this case are questions of law. When reviewing questions of law, we are not bound by an administrative agency‘s conclusions. Local No. 695 v. LIRC, 154 Wis. 2d 75, 82, 452 N.W.2d 368 (1990). This court has in the past generally applied three levels of deference to conclusions of law and statutory interpretations in agency decisions. The first and highest amount of deference given to agency interpretations is the “great weight” standard. Under this standard, it is “only when the interpretation by the administrative agency is an irrational one that a reviewing court does not defer to it.” Beloit Education Ass‘n v. WERC, 73 Wis. 2d 43, 67, 242 N.W.2d 231 (1976) (footnote omitted). The “great weight” standard is “the general rule in this state.” Id. We have described the proper use of the “great weight” standard as follows:
[I]f the administrative agency‘s experience, technical competence, and specialized knowledge aid the agency in its interpretation and application of the statute, the agency‘s conclusions are entitled to deference by the court. Where a legal question is intertwined with factual determinations or with value or policy determinations or where the agency‘s interpretation and application of the law is of long standing, a court should defer to the agency which has primary responsibility for determination of fact and policy.
West Bend Education Ass‘n v. WERC, 121 Wis. 2d 1, 12, 357 N.W.2d 534 (1984) (footnote omitted).
The second level of review is a mid-level standard, referred to as either the “due weight” or “great bearing” standard. We use this standard if the agency decision is
The lowest level standard of review we use in reviewing agency decisions is the “de novo” standard, in which no weight at all is given to the agency interpretation. Local No. 695, 154 Wis. 2d at 84.
In Local No. 695, we reversed a labor and industry review commission determination that dues refunds to union stewards constituted “wages” for purposes of unemployment compensation. In deciding the case, the commission “neither relied on, nor referred to, any precedents or any prior decision in its own proceedings.” Id. at 81. The case was clearly one of first impression for the commission. It was also clear from the lack of precedent that the commission had no special expertise or experience in determining whether the refunds in question constituted wages. Id. at 84. A de novo standard of review was therefore necessarily used. Id.
Against this background, we have determined that this case involves two standards of review. The first issue, whether an arbitration decision encompasses those items not in dispute, and the third issue, whether the county‘s actions constitute a violation of
The second issue, whether fair-share fees and union dues are economic items which should be given retroac-
The first issue requires us to determine the scope of “arbitration decision,” as used in
The legislative council notes which accompanied
In making his or her arbitration decision, the ‘mediator-arbitrator,’ acting as arbitrator, shall adopt the ‘entire package’ final offer of one of the parties, including any previously agreed to modifications thereof. Such decision shall be final and binding on both parties and shall be incorporated into a written collective bargaining agreement.
Wis. Stat. Ann. sec. 111.70, Legislative Council Notes, sec. III(g) (West 1988). The “entire package final offer” of a party is not just that party‘s position on the disputed issues; it is that party‘s position on all issues, whether stipulated or disputed. When the statute is read together with the legislative council notes, we are led to the conclusion that an arbitration decision encompasses all matters, whether disputed or not. This result makes sense, as the statutes direct the arbitrator to give weight to the stipulations of the parties before choosing one party‘s final offer on the disputed issues. See
We therefore hold that an arbitration decision, as that term is used in
The second issue concerns the retroactive application of fair-share fees and union dues. The WERC found that fair-share fees and union dues were economic items easily capable of retroactive application. We grant the WERC‘s decision great weight, and, because we find it rational, we affirm the decision.
Labor contracts are often back-dated for the purpose of retroactive application of economic items such as wage increases. Indeed, as we noted above, “retroactivity is a way of life in labor negotiations.” Berns, 99 Wis. 2d at 266.
A typical economic item in a bargaining agreement is wages, while a typical noneconomic item would be a standard of cause for discharge. We find that fair-share fees and union dues are almost purely economic items similar to wages and are not a condition of employment. The WERC‘s determination that fair-share fees and union dues are economic items is, therefore, rational, and we defer to it.
In addition, the language of the agreement does not contradict a finding that the fees and dues were to be applied retroactively. The agreement‘s duration clause
The county contends that our decision in Berns, 99 Wis. 2d 252, requires that the parties bargain for and reach an agreement on retroactivity of fair-share fees before they may be deducted retroactively. We do not agree. The issue in Berns was whether or not a fair-share provision in a collective bargaining agreement may be applied retroactively. Id. at 254. Nothing in the language of Berns mandates that the parties to a fair-share provision specifically bargain for the retroactivity of the provision before it may be applied retroactively.
In fact, our language in Berns supports the WERC‘s finding of retroactivity. In particular, when we addressed the policy behind fair-share fees, we stated:
The availability of the fair-share device as protection against ‘freeloaders’ who benefit from the efforts of the bargaining representative but who, being nonunion members, do not pay regular union dues is important in light of the duty imposed by statute upon the certified majority representative to bargain collectively on behalf of all unit members.
Id. at 264. We reaffirm this holding and state that this policy applies with equal force today. Because all the members in the bargaining unit here were represented by the union during the entire term of the contract, it is rational to require that all members of the unit pay for the representation during the entire term.
The third issue is whether the county‘s actions in this case amount to a failure to implement an arbitration decision, in violation of
The collective bargaining agreement in this case contained a broad grievance arbitration provision which stated that “any dispute concerning the interpretation or application of . . . this contract . . . shall be handled [by arbitration].” The county argues that this dispute is over the interpretation of the contract and should therefore be before an arbitrator. The county also argues that if we find a refusal to implement an arbitration decision in this case, any dispute involving a violation of any part of an agreement reached through arbitration could be viewed as a failure to implement an arbitration decision. We do not agree.
An obvious situation which could give rise to a charge that an employer has failed to implement an arbitration decision under
We hold that under
By the Court.--The decision of the court of appeals is affirmed.
SHIRLEY S. ABRAHAMSON, J. (dissenting). If this court were the appropriate body to decide the issue, I would be persuaded that the fair share provision under the collective bargaining agreement was retroactive. I
I conclude that the dispute is governed by the parties’ collective bargaining agreement that provides that “any dispute concerning the interpretation or application of a provision of this contract . . . shall be handled [by arbitration].” The court should remand this case to the circuit court, and the circuit court should direct the parties to submit the issue to grievance arbitration.
I.
As an initial matter, I must decide what standard of review to apply to WERC‘s interpretation of
The cases also provide some guidance, although one commentator observed in 1973 that the Wisconsin Supreme Court defers to agencies in an “inconsistent manner [and] employs different review standards in cases involving similar issues without attempting to resolve the conflict.”1 Some attorneys probably think that the same situation still exists today. Professor Davis also cautions about “the formulas to which courts pay lip service.” They are, he writes, “guides that leave a good deal of room for judicial discretion, which varies in response to judicial impressions of acts and circumstances of particular cases.”2
I find the brief of amicus curiae Wisconsin Education Association Council (WEAC) helpful in stating the following standard of review distilled from our cases. Courts retain the ultimate authority to decide questions of law.3 Courts defer to administrative agencies in specified situations where they believe the administrative agencies can offer the court guidance on the construction of a particular statute, rule, or policy or where deference advances other important objectives. In considering the weight to accord the agency‘s decision about a question
The court has explained this comparative institutional approach to the scope of review as follows: “[M]erely labeling the question as a question of law and
Some of the circumstances of this case point to according WERC‘s interpretation of
Other factors point, however, to giving little if any weight to WERC‘s interpretation of the statute in this case. First, WERC never decided the merits of this case; it merely adopted the hearing examiner‘s decision because the county‘s petition to WERC to review the
II.
The question of law presented to the hearing examiner and to this court is whether the county refused or failed to implement an arbitration decision under
The county asserts that it has not refused to implement the arbitration award. It acknowledges that the fair share provision must be incorporated into the parties’ agreement. It has not refused to withhold fair share dues in any month following the issuance of the award. The county asserts that it is implementing the award but that the parties disagree about the meaning of the terms of the agreement.
It is important to distinguish refusing to implement an interest arbitration decision and disputing the meaning of the terms of a collective bargaining agreement because they have different consequences. An employer who refuses to implement an interest arbitration award violates
If the parties had arrived at the collective bargaining agreement through a voluntary settlement rather than through interest arbitration and the same question of the retroactivity of the fair share provision in the collective bargaining agreement had arisen, this dispute
Arbitration is what the parties bargained for when there is a dispute about the meaning of the agreement. The determination of retroactivity turns on the language of the particular agreement and the circumstances of the bargaining. Arbitrators handle retroactivity disputes under the collective bargaining agreement frequently. Why should this dispute be subject to a prohibited practices complaint merely because the parties settled other disputed terms of the collective bargaining agreement through interest arbitration? The majority opinion does not answer this question. The majority turns to defining the word “implement” without examining these policy considerations.
The majority opinion defines the word “implement” in
If this case is to fall within
The majority further defines “implement” to mean that an employer “fails to give retroactive effect to economic items in a retroactive contract.” Majority op. at 420. Nothing in the language or legislative history of
(3) Prohibited practices and their prevention. (a) It is a prohibited practice for a municipal employer individually or in concert with others:
7. To refuse or otherwise fail to implement an arbitration decision lawfully made under sub. (4)(cm).
The majority‘s interpretation of “implement” as being the failure to “give retroactive effect to economic items” permits the court to resolve the substantive issues in this case. The problem is that this interpretation cannot be derived from
Although I believe an arbitrator would reach the same result as the hearing examiner did about retroactivity, I do not think the majority‘s decision complies with the procedures the legislature established. For the reasons set forth, I dissent.
Notes
111.70 Municipal employment. . . .
(3) Prohibited practices and their prevention. (a) It is a prohibited practice for a municipal employer individually or in concert with others:
...
7. To refuse or otherwise fail to implement an arbitration decision lawfully made under sub. (4)(cm).
Paul B. Hewitt, The Scope of Judicial Review of Administrative Agency Decisions in Wisconsin, 1973 Wis. L. Rev. 554, 575, quoted in West Bend Education Ass‘n v. WERC, 121 Wis. 2d 1, 12-13 n.13, 357 N.W.2d 534 (1984).In interpreting Local No. 695, the majority opinion unfortunately appears to confirm WEAC‘s view that Local No. 695 has ushered in a new rule. The majority opinion looks only to LIRC‘s experience in “determining whether the refunds in question constituted wages” and not to its experience in determining the meaning of wages under unemployment compensation law in numerous other fact situations. Majority op. at 414.
The hearing examiner cites no authority for his interpretation of the term “implement.” Sauk County WERC Dec. No. 23489-A, at 18 (1987).
