Bargaining and the Law: Legal Basic for Local Leaders Jeff Murphy Doug Wilcox Dan Zarimba AGENDA • PERA & MERC • Topics of Bargaining • Union Access to Information • When Contracts Expire • ULPs • Impasse & Implementation • Mediation & Factfinding • Job Actions (Strikes) • Duty of Fair Representation PERA & MERC Doug Wilcox MEA Staff Attorney PERA OVERVIEW Labor Mediation Board • 1939 Statute • Jurisdiction over private employers not covered by NLRA Hutchinson Act • 1947 Statute • Regulated labor relations between public employers and employees • Prohibited striking • Any employee who violated Act abandoned job and terminated employment PERA OVERVIEW Hutchinson Act • • • • No mediation/fact-finding No ULPs No cause of action in court True "take-it-or-leave-it" relationship Labor PERA OVERVIEW PERA • PA 379 of 1965 • Amended Hutchinson Act • Extensive public employee involvement its passage • Signed by Republican Governor George Romney PERA OVERVIEW PERA • Strikes still prohibited • No longer automatic discharge • Section 6 and Review by Circuit Court • Right to bargain collectively over wages, hours and other terms and conditions of employment • ULPs defined NOTE: ULPs against unions added in 1973 PERA OVERVIEW PA112 of 1994 • Expanded definition of strike • Created subclass: public school employees • Fines for strikes • Prohibits job actions taken in response to employer ULPs • Seeks to limit role of MABOs in contract ratification • Extensive list of prohibited (illegal) bargaining subjects MERC • MERC is part of the Department of Labor and Economic Growth • MERC Jurisdiction: all public employers except civil service employees and Michigan Supreme Court employees MERC ENFORCES THREE LAWS • Labor Relations and Mediation Act (LMA) • Public Employment Relations Act (PERA) • Compulsory Arbitration Act (Act 312) MERC FUNCTIONS • Appoints mediators, arbitrators and fact finders • Conducts union representation elections • Determines appropriate bargaining units • Adjudicates ULP cases THE GRANHOLM COMMISSIONERS Christine A. Derdarian (D) • She replaced Nora Lynch Nino Green (D) Eugene Lumberg (R) • Appointed by Governor for three-year staggered terms ADMINISTRATIVE LAW JUDGES Three ALJs • David Peltz • Doyle O’Connor • Julia Stern Cases are very backed up! Mandatory, Permissive, and Prohibited Topics Jeff Murphy MEA Staff Attorney Mandatory Bargaining Topics • Mandatory Topics • The duty to bargain in good faith under Section 15 of PERA extends to those subjects found within the phrase “wages, hours and other terms and conditions of employment” • No unilateral action allowed on mandatory topics absent impasse Mandatory Bargaining Topics • Wages • Insurance coverage (including carrier) • Evaluation procedures • Grievance/ arbitration procedure • Just cause • School calendar • Layoff/recall • Seniority (for bargaining unit members) • Safety issues • Working conditions for accreted employees • Transfer of exclusive bargaining unit work • Change in the number of class periods per day • Residency requirement • Disciplinary procedures • Pensions • Overload hours Permissive Bargaining Topics • Those topics which fall outside the scope of wages, hours and other terms and conditions of employment, e.g., • • • • • • Hiring qualifications Administrative seniority in unit Size of work force Recognition clause Negotiations ground rules “Zipper clause” More Permissive or Voluntary Subjects • Maintenance of standards clause • Wages of substitutes not in unit • Availability of overtime • Decision to layoff workers • Existing benefits of retirees • Outside employment • Program cuts • Aggregate overload hours Prohibited Subjects of Bargaining (Traditional) • Neither union nor management can demand to bargain provisions that take away a member's rights under the law, such as: • the right to be free from discrimination and harassment • the right to minimum wage and overtime • the right to be free from discrimination because of union activity PA 112 and Prohibited Subjects • The policyholder of an employee group insurance benefit. (Section 15(3)(a)). Does not prohibit bargaining on the identity of the health care provider, carrier, or type or level of benefits. • The starting day of the school year and the amount of pupil contact time required to receive full state aid. PA 112 and Prohibited Subjects • The decision whether to subcontract or outsource non-instructional support services, the procedures for obtaining the contract with a third party, the identity of the third party, or the impact of the outsourcing on individual employees or the bargaining unit. • The use of volunteers in providing services. PA 112 and Prohibited Subjects • Decisions concerning use of experimental or pilot programs and staffing of experimental or pilot programs and decisions concerning use of technology to deliver educational programs and services and staffing to provide the technology, or the impact of these decisions on individual employees or the bargaining unit. PA 112 and Prohibited Subjects • Every effort should be made by bargaining units to interpret this provision as narrowly as possible. • Narrowly define "experimental or pilot programs" to its common and ordinary meaning • "relating to or having the characteristics of an experiment; tentative,” and only related to technology. PA 112 and Prohibited Subjects • Any compensation or additional work assignment intended to reimburse an employee or to allow an employee to recover any monetary penalty imposed under the Act. Union Access to Information Dan Zarimba MEA Staff Attorney Union Access to Information General Rule • The employer must provide the union with requested information in a timely fashion to either administer the contract or engage in bargaining • The information sought must be relevant to union's bargaining issues or grievances • “Relevance” is interpreted broadly, i.e., information which aids the arbitral or bargaining process. Union Access to Information • When information is sought as to individual bargaining unit members, union's access to data is not limited by FOIA defenses (e.g., privacy) • So long as information is otherwise relevant and would normally be considered by arbitrators in cases of like nature • Discipline records of other employees • Criteria to determine merit increases Union Access to Information • Employers must provide information concerning non-unit employees if the union demonstrates relevance • Information re: leaves of absence for non-unit members relevant as employer claims polices were identical for both • Topic of grievance is the propriety of non-unit status of position Union Access to Information • The manner, method, and cost of providing information are themselves mandatory subjects of bargaining. • Employer not necessarily required to provide union with free copies of requested information Union Access to Information • Requests for information may be made by a union both under PERA and FOIA • Kent County Case • PERA does not supersede FOIA • Battle Creek Case (MERC) • Initial investigation records need not be produced until the witness testifies Union Access to Information • Union Access to Worksite • BUMs have a right to discuss union business and engage in protected activity during non-work time and in nonwork areas • Employers may regulate any such activities during work time Union Access to Information • Union Access to Worksite • In the organizing context, employers need not provide access to nonemployee union organizers during regular business hours if union has other means of access (mail, off-site meetings, telephones, etc) When Contracts Expire: Maintaining the Status Quo Jeff Murphy MEA Staff Attorney When Contracts Expire • General Rule • The duty to bargain includes the obligation to maintain existing mandatory terms of employment until an agreement or impasse has been reached • NLRB v Katz (1962) • The purpose is to maintain the status quo while the parties negotiate a new contract When Contracts Expire • MERC follows federal law • Even though CBA expired, its terms continue until a new CBA or impasse is reached • Provisions that continue in effect all relate “wages, hours and other terms and conditions of employment”, i.e., mandatory topics of bargaining Mandatory Topics that Continue after CBA Expires • Sick leave policy (part of compensation) • Fringe benefits (type and level of benefits) • Coordination of benefits (spousal benefits) • Hours of hourly employees • Salary grid/step increases • Big issue in recent years! • COLA • Longevity • Breaks and Lunch Periods Continuation of School Calendar • Mandatory Topic, but . . . • Legislature and MERC have modified status quo when it comes to school calendar • Legislative Mandates • • • • PA 112 – no bargaining over “starting day” 2000 – no school on Friday before Labor Day 2005 – no school at all before Labor Day PA 101 (2007) – common calendar w/ ISD for winter and spring breaks Continuation of School Calendar • MERC decisions • Imposition of calendar OK if sufficient bargaining and normal start date near • Business necessity • Imposing same schedule as prior years is seen as effort to maintain status quo • District must continue to bargain, or at least show willingness to do so Continuation of School Calendar • MERC decisions – limits on school boards • Can’t impose too early - no business necessity • Board must bargain calendar with each bargaining unit – but no ULP if it agrees with one unit before another • Financial crisis does not justify imposition of calendar Mandatory Topics that EXPIRE with CBA • Permissive topics, and • Mandatory topics that “inure to the benefit of the union” • • • • • Dues deduction Payment for released time for union officers No strike clause Waiver of bargaining rights Duty to arbitrate Unfair Labor Practices Doug Wilcox MEA Staff Attorney Unfair Labor Practices Overview • Charges are filed with MERC • Legal counsel represents association at the hearing • Six month statute of limitations Unfair Labor Practices Overview • Respondent may file an answer • Charges can be amended or withdrawn • Charges can be filed by and against either party or an individual Unfair Labor Practices ULP Must Include Factual Details • Must provide a clear and complete factual statement • Including the date, name of employer’s agent involved and sections of the Act allegedly violated • ULP worksheet helps us develop pleadings Unfair Labor Practices Bill of Particulars • The charged party can ask for more information ULP Cases Four Basic ULPs Against Employers • Interference with, restraint or coercion of public employees • Assistance, domination or interference with a labor organization • Discrimination against public employees • Refusal to bargain in good faith Interference, Restraint or Coercion of Public Employees Section 9 Rights • Organize together or to form, join or assist in labor organizations • Engage in lawful concerted activities for purpose of collective bargaining or other mutual aid and protection • Bargain collectively with the employer through representatives of their own free choice Protected Concerted Activity Conduct must be protected by PERA • Unlawful conduct is not protected Concerted action • Usually involves > one employee Examples of Protected Concerted Activity • Lawful picketing or leafletting • Organizing activities • Speaking on behalf of other employees about wages, hours and working conditions • Other activity designed to benefit more than one employee Conduct Which Interferes With, Restrains or Coerces Examples • Denying member union representation • Polling employees to determine views on bargaining topics • Retaliation for filing grievance • Retaliation against employee because of status as union member or officer Conduct Which Interferes With, Restrains or Coerces More Examples • Granting/withholding benefits because employees sought union representation • Surveillance of or threats to employees • Interfering with union affairs or union’s representation of its members Saginaw Township (2005) Police Chief Threatens Union • I thought of killing you and burying your bodies where no one could find them, like Hoffa • There is a price to pay when you come in here • If grievances are filed over stand-by pay, they’re going to report here in uniform on stand-by • I will put them on a “short leash” Saginaw Township (2005) Charge against Employer • Statements were threatening, coercive and interfered with Section 9 rights • Held: An employer cannot threaten employees or retaliate against them City of Detroit (2005) Retaliatory Discharge of Union Steward • Disciplinary conference • Steward objected to discipline • Supervisor asked member for driver’s license • Steward said “no” • Heated discussion followed • Steward fired for abusive language City of Detroit (2005) ALJ • Steward was engaged in protected activity • Steward’s behavior was not flagrant • Steward never threaten supervisor • Steward is reinstated with full back pay Assistance, Domination or Interference with Union Domination • Supervisors included in non-supervisory unit Assistance to Union • Employer can’t assist one union over another • If there is a question concerning representation (QCR), employer must stop bargaining with incumbent union Assistance, Domination or Interference with Union Interference with Union • Communicating with members to degrade or bypass union • Encouraging decertification efforts • Conduct that drives a wedge between union and its members Discrimination Against Employees Unlawful to discriminate in regard to hire, terms or other conditions of employment in order to encourage/discourage union membership • Protected Concerted Activity • Discrimination against employees • Focus is on employer’s motive Discrimination Against Employees Unlawful Conduct • Discipline and discharge motivated by anti-union animus • Pay different wages • Transfer or reassign employee • Lay off or fail to recall employee Discrimination Against Employees Employer Can’t Encourage Union Membership • Super-seniority clauses • Special protection for union officers is problematic Discrimination Against Employees Discrimination for Testifying or Instituting Proceedings under Act •Employer’s aren’t usually this dumb •Actual participation is not required Discrimination Against Employees Dual Motive Test • Union must show union activity was a motivating factor • Union often relies upon suspicious timing • Employer must show it would have made the same decision in the absence of protected conduct City of Detroit (Planning & Development Dept) (2005) Union Steward’s Conduct not Protected • Steward accessed database to collect information about employee’s work production without authorization • Steward gave info to manager to show another employee was unfairly disciplined • Steward disciplined for three days City of Detroit (Planning & Development Dept) (2005) ALJ: • Steward’s conduct was unjustified • Removing private information from files for union purposes without approval was not protected Refusal to Bargain ULPs • Unlawful for Employer to refuse to bargain collectively with union representatives • Issues • • • • Employer must bargain in good faith Impasse Duty to provide information Unilateral change in employment conditions Refusal to Bargain ULPs How to Prove Bad Faith Bargaining • Authority to bargain • Meeting at reasonable times • Content of proposals • Preconditions on bargaining • Conduct away from table • Unilateral changes Orion Township (2005) Duty to Bargain After Factfinder’s Report • Report issued 12/6 • Parties met on 1/9 • 30 minute meeting – parties did not really negotiate • Union subsequently requested future bargaining Orion Township (2005) MERC • Single meeting after fact finding is not good faith bargaining. • Parties must at least meet and bargain during 60 day period after report is issued. Unfair Labor Practices Union Unfair Labor Practices • Restrain (not interfere) or coerce public employees in exercising their rights under the Act, including the right to select a bargaining representative • Cause or attempt to cause an employer to discriminate against an employee • Refuse to bargain collectively Unfair Labor Practices Examples of Union ULPs • Making actual or threatened economic reprisals and/or physical violence • Causing employer to discriminate (super-seniority for union officers can be problematic) Unfair Labor Practices Conclusion • Focus of ULPs is on process, not substance – the process must be fair. • ULP Worksheet focuses on bargaining. • Keep it handy for reference. • Take good notes – this is critical! Unfair Labor Practices Conclusion • But, watch for ULPs outside of bargaining • Unilateral changes in working conditions • Changes in practice or policy affecting working conditions • Surveys of members • Side deals or direct dealing with members • Repudiation of all or part of the contract Impasse and Imposition in Collective Bargaining Jeff Murphy MEA Staff Attorney Effect of Impasse • Allows employer to take unilateral action on mandatory topics of bargaining Definition of Impasse • Point at which further bargaining would be futile • Positions of parties have solidified and further bargaining would be useless Impasse • Because the finding of an impasse depends on the facts of each case, a bargaining impasse does not readily lend itself to an objective definition applicable to all cases. Impasse Factors • Proper disclosure of information by employer • Length of bargaining • Willingness of the parties to formulate and offer new proposals • Business necessity Impasse in the Old Days Pre-Engler Days • MERC was reluctant to find impasse • City of Saginaw (MERC, 1982) • No impasse after eight sessions over a five-week period even though union rejected proposal • No impasse if fact-finding petition is pending The Engler Years MERC is more willing to find impasse • Wayne County (MERC, 1995) • Impasse upheld after only four sessions over a three month period! • Ida Public Schools (MERC, 1996) • Impasse after only four sessions in summer! The Engler Years Waldron Area Schools (1997) • Impasse even though district did not present its offer as its “last best offer” no impasse was declared when union rejected offer, and employer agreed to schedule another meeting The Engler Years City of Detroit (1996) • A union ignores or avoids confronting employer demands for cutbacks at its peril. Ferris State University (1998) • Impasse even though parties had only one short mediation session Granholm Commission MERC is slowly returning to earlier standards •Oakland Community College (2001) • Employer must prove that neither party, not just one, was willing to compromise! •Orion Twp (2005) • Once a factfinder’s report is issued, the parties must bargain over the substance of report for a reasonable period of time. Impasse Instant Impasse • A party cannot isolate an issue and upon receiving a readily foreseeable response from its opponent create an "instant impasse" Constructive Impasse • Parties may be deemed at "impasse" on the school calendar for, despite the fact that the school calendar is a mandatory bargaining topic, if • sufficient bargaining has taken place, and • business necessity requires announcement of school calendar • following prior year calendar as closely as possible is seen by MERC as an attempt to maintain the status quo Selective Implementation of Last Offer • Employer may selectively implement elements of its last package offer upon reaching impasse. • Employer may implement a final offer that incorporated elements of its official or table position and elements of its "package" proposal • Employer not required to identify proposal as “last best offer” Selective Implementation of Last Offer • Employer is not required to reinstate dues deduction or grievance/arbitration as part of implemented work rules even though provisions were part of the employer’s last offer • After Impasse, the employer is free to impose all, or part, of its proposals Ways to Avoid Impasse • Employer’s last offer cannot be implemented if fact-finding petition is pending • Race to courthouse steps! • Employer can’t implement last offer until it has fulfilled all of union’s request for information needed for bargaining Ways to Avoid Impasse • At the table • Always be willing to consider the matter further • When it is difficult to move significantly toward the board's last offer, try packages that rearrange the pieces. Ways to Avoid Impasse • Ask for another bargaining session before a session breaks up • Indicates that bargaining should continue • Keep pressing the board for proposals • Never say, "That is our final position and we are not moving further" Ways to Avoid Impasse • Request Mediation • It is more difficult for the board to declare impasse when mediation is in progress • Once a mediator is involved, press the mediator to continue sessions • Mediation needs a fair chance to work • But, mediation won’t prevent the employer from declaring impasse and imposing its’ last offer Breaking Impasse • Impasse can be broken • Impasse is a temporary situation, as most contracts eventually settle • Duty to bargain continues even during impasse • Impasse is broken if there are changes in conditions • Once a there has been a significant change in conditions, duty to bargain becomes more urgent Never at Impasse Mediation and FactFinding Dan Zarimba MEA Staff Attorney Mediation • The parties have an affirmative duty to notify MERC 60 days before a contract expires of the status on negotiations. (MCL 423.207) • Mediators are state employees who are assigned (not selected by parties) by MERC. Mediation • Mediators have no authority to force concessions on either party. (R 423.121) • "Information disclosed by a party to a mediator in the performance of mediation functions shall NOT be divulged voluntarily or by compulsion.“ (R 423.122) Mediation • Mediator does have authority to designate a date, time, and place for mediation conferences. • Failure to attend may be a ULP! Mediation • Failure to participate in and/or allow adequate time for mediation may be a ULP. • East Jordan Public Schools, 1982 MERC Lab Op 1101. Union committed ULP by going on strike after four bargaining sessions! Impasse Mediation • Section 7A of PA 112 provides for an additional form of mediation. DO NOT AGREE TO SUBMIT TO THIS "NEW" MEDIATION! Fact-Finding • The union and/or employer may apply for fact-finding; also the Commission can order fact-finding on its own (R 423.131). • MERC appoints fact finders who are not state employees, but independent contractors. • MERC will appoint a person from the panel mutually agreed by the parties; • if no such agreement, a list of three fact finders is sent out and each party can strike one name. Fact-Finding • Fact-finding hearings are public (R423.136), as are the findings and recommendations • A form is available to file for factfinding. File a request under R 423.132 -133 • The other side is required to file an answer to the request for fact-finding (R 423.134) Fact-Finding • Fact-finding reports are not binding on either side. • On rare occasions, the parties may agree, before the report is issued, that both will accept it as binding. Fact-Finding • Once a petition for fact finding is filed with MERC, the employer may not implement its last offer until at least 60 days after the fact finder’s report has been issued • But only if the board has engaged in good faith bargaining over the fact finder’s report. • Remember Orion Twp case! Strikes by Public School Employees Dan Zarimba MEA Staff Attorney Two Elements of a Strike • Some failure or refusal to perform all or part of the duties of employment • For the purpose of inducing a change in conditions of employment or compensation “Strike” = Partial Withholding of Services • Refusing to perform extra-duty work, even if voluntarily assumed, is a “strike” when: • the work is routinely performed by the bargaining unit • has become an accepted function of the job, and • the refusal is for the purpose of influencing a change in wages and working conditions “Strike” Includes ULP Job Actions • Before PA 112, ULP job actions enjoyed some legal protection • MERC could, at its discretion order reinstatement of dismissed employees if the "strike" was precipitated by an employer's ULP.) • Lamphere Schools v Federation of Teachers, 400 Mich 104, 117 (1977) • Under PA 112, an unfair labor practice strike is illegal for public school employees only. What Happens to Employees on “Strike” • • • • Section 2a of PERA May be fined Employer must file notice with MERC Notice must be served on union and members • Union and employees have ten days to answer • Hearings conducted quickly What Happens to Employees on “Strike” • Section 6 of PERA • Once employer disciplines or fires public employee for engaging in strike, employee is entitled to a hearing • Request must be filed in writing with school board within ten days after employee’s regular pay has stopped • School Board must render decision within 10 days after conclusion of hearing • Decision may be appealed to local circuit court • Standard of review is limited Duty of Fair Representation Doug Wilcox MEA Staff Attorney Source of the Duty • Implied duty arising through PERA - in exchange for employees giving up their individual rights to bargain directly with their employers Statement of the Duty • GOOLSBY v CITY OF DETROIT (1984) • To serve the interests of all members without hostility or discrimination • To exercise discretion with complete good faith and honesty • To avoid arbitrary conduct Applicability of the Duty • Grievance Processing • Contract Negotiation • Internal Union Affairs Grievance Processing • Not every grievance must be submitted to arbitration • Union’s decision must be made without hostility or discrimination, rationally and in complete good faith. Grievance Time Lines • Many DFR claims arise from the untimely processing of grievances. • Every effort should be made to see that grievances are filed and processed on a timely basis. Quality of Representation Unless decisions are made arbitrarily or in bad faith, issues involving case presentation, utilization of witnesses, evidence produced, brief writing, and related matters rarely form the basis of a DFR claim. Involve the Grievant • drafting the grievance • gathering evidence • outlining the case Consider the grievant’s ideas even if they are ultimately rejected. Explain why things are being done the way they are, especially if the grievance will likely be dropped before arbitration. Merits of the Grievance • The primary consideration in whether to file a grievance or take it to arbitration is the merits of the grievance (likelihood of success). • Failure to file or arbitrate a meritorious grievance creates a likely situation for the filing of a DFR claim. Other Legitimate Considerations • Burden another grievance will place on the contractual grievance machinery • Amount at stake • Cost of the process • Desirability of winning • Use extreme caution if a meritorious grievance might be dropped on the basis of one of these secondary considerations! Compromise and Settlement Theory: • Union has the right to compromise or settle a grievance with or without an individual’s consent Reality: • Settlement without the grievant’s consent is an invitation to a DFR claim. Representing Non-Members • The union has a duty to fairly represent ALL members of the bargaining unit, regardless of union membership status. Negotiations • As a practical matter, the union is given much broader discretion in bargaining than in grievance processing. Negotiations • “Inevitably, differences arise in the manner and degree to which the terms of the negotiated agreement affect individual employees and classes of employees. The mere existence of such differences does not make them invalid. The complete satisfaction of all who are represented is hardly to be expected...” Ford Motor Company v Huffman (1953) Duty to Inform While there is no duty to inform the general membership of progress in negotiations, or the terms of a TA, efforts along these lines are useful in avoiding subsequent DFR claims. Advancing Interests of Identifiable Groups • Union v Individuals • Member v Member • Special Treatment of Union Officers • Illegal Employer Acts Union v Individuals • The standard in negotiations is whether the union’s actions were intended to achieve the greatest possible good for the greatest number of members. Member v Member • Can favor some members over others where there is a rational basis (seniority, education level, qualifications, etc) • Avoid irrational discrimination! Special Treatment of Union Officers • Super seniority, special assignment rights, and other preferential treatment of union officers should be handled with care. • Such treatment should be limited to that necessary to carry out the functions of the officer’s position. Duty to Prevent Illegal Employer Conduct • Obscure case authority (very rare) • A union may have the affirmative duty, through negotiations or otherwise, to prevent an employer from acting illegally. • Refer questions regarding the legality of bargaining demands or correction of other illegal employer conduct to Legal Services. Internal Union Administration • The constitution and bylaws of the local, state, and national organizations constitute a “contract” between the membership and the organizations. • Violation of those procedures to the detriment of one or more members may result in litigation seeking damages and equitable relief. DFR Claims • File either in circuit court OR as a ULP charge with MERC • Six-month statute of limitations • Members must exhaust union remedies first Damages and Remedies Legal Remedies: • back pay • front pay • consequential damages (e.g., job search costs) • attorney fees Equitable Remedies: • reinstatement • seniority awards • assignment or transfer Bargaining and the Law: Legal Basic for Local Leaders Thank you!