18:0263(34)CA - Customs Service and NTEU and All NTEU Chapters -- 1985 FLRAdec CA
[ v18 p263 ]
18:0263(34)CA
The decision of the Authority follows:
18 FLRA No. 34 U.S. CUSTOMS SERVICE Respondent and NATIONAL TREASURY EMPLOYEES UNION AND ALL NTEU CHAPTERS Charging Party Case No. 3-CA-30160 DECISION AND ORDER The Administrative Law Judge issued the attached Decision in the above-entitled proceeding, finding that the Respondent, U.S. Customs Service, had engaged in the unfair labor practices alleged in the complaint and recommending that it be ordered to cease and desist therefrom and take certain affirmative action. Thereafter, the Respondent filed exceptions with respect to the Judge's Decision and the General Counsel filed an opposition thereto. Pursuant to section 2423.29 of the Authority's Rules and Regulations and section 7118 of the Federal Service Labor-Management Relations Statute (the Statute), the Authority has reviewed the rulings of the Judge made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. Upon consideration of the Judge's Decision and the entire record, the Authority hereby adopts the Judge's findings, conclusions and recommended Order. Thus, in agreement with the Judge, the Authority concludes that the Respondent satisfied its obligation to give timely notice to the Union of its intention to implement its National Inspectional Contraband Enforcement Team Policy (CET) by mailing such notice to the Union on August 31, 1982, even though the Union never received such notice. As a result, the Respondent did not violate section 7116(a)(1) and (5) of the Statute /1/ when it proceeded to take the necessary steps to implement the policy on September 16, absent any request to bargain by the Union within the contractual notice period. However, also in agreement with the Judge, the Authority concludes that the Respondent's subsequent refusal to negotiate upon request by the Union concerning procedures and appropriate arrangements for adversely affected employees prior to the issuance of the plan did violate section 7116(a)(1) and (5) of the Statute. Thus, the Authority notes that the Union's request to bargain, immediately upon its discovery of the Respondent's intended change in policy, was more than two weeks before the actual issuance of the plan. Also in agreement with the Judge, the Authority finds that the Respondent's actions at that time, including its assertion that the Union had waived the right to bargain, effectively precluded the Union from submitting written proposals as required by the parties' agreement, and therefore such failure cannot be raised by the Respondent as a defense to its refusal to negotiate. Accordingly, in all the circumstances of this case, the Authority finds, in agreement with the Judge, that the Respondent violated section 7116(a)(1) and (5) of the Statute. ORDER Pursuant to section 2423.29 of the Rules and Regulations of the Federal Labor Relations Authority and section 7118 of the Federal Service Labor-Management Relations Statute, the Authority hereby orders that the U.S. Customs Service shall: 1. Cease and desist from: (a) Refusing to negotiate in good faith with the National Treasury Employees Union concerning procedures and appropriate arrangements for unit employees adversely affected by its National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982, as Manual Supplement No. 3290-04. (b) In any like or related manner interfering with, restraining or coercing its employees in the exercise of their rights assured by the Federal Service Labor-Management Relations Statute. 2. Take the following affirmative action in order to effectuate the purposes and policies of the Statute: (a) Upon request and perfection of a bargaining proposal, as required by the parties' current collective bargaining agreement, negotiate in good faith with the National Treasury Employees Union concerning procedures and appropriate arrangements for unit employees adversely affected by its National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982. (b) Post at each of its facilities, including its Headquarters Office in Washington, D.C., and each Regional Office, and at all places where notices to employees of the U.S. Customs Service are customarily posted, copies of the attached Notice on forms to be furnished by the Federal Labor Relations Authority. Upon receipt of such forms, they shall be signed by the Commissioner, U.S. Customs Service, or his designee, and shall be posted and maintained for 60 consecutive days thereafter, in conspicuous places, including all bulletin boards and other places where notices to employees are customarily posted. Reasonable steps shall be taken to ensure that such Notices are not altered, defaced, or covered by any other material. (c) Pursuant to section 2423.30 of the Authority's Rules and Regulations, notify the Regional Director, Region III, Federal Labor Relations Authority, in writing, within 30 days from the date of this order, as to what steps have been taken to comply herewith. Issued, Washington, D.C., May 24, 1985 Henry B. Frazier III, Acting Chairman William J. McGinnis, Jr., Member FEDERAL LABOR RELATIONS AUTHORITY NOTICE TO ALL EMPLOYEES PURSUANT TO A DECISION AND ORDER OF THE FEDERAL LABOR RELATIONS AUTHORITY AND IN ORDER TO EFFECTUATE THE POLICIES OF CHAPTER 71 OF TITLE 5 OF THE UNITED STATES CODE FEDERAL SERVICE LABOR-MANAGEMENT RELATIONS WE HEREBY NOTIFY OUR EMPLOYEES THAT: WE WILL NOT refuse to negotiate with the National Treasury Employees Union concerning procedures and appropriate arrangements for unit employees adversely affected by our National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982, as Manual Supplement No. 3290-04. WE WILL NOT in any like or related manner interfere with, restrain or coerce our employees in the exercise of their rights assured by the Federal Service Labor-Management Relations Statute. WE WILL upon request and perfection of a bargaining proposal, as required by our current collective bargaining agreement, negotiate in good faith with the National Treasury Employees Union concerning procedures and appropriate arrangements for unit employees adversely affected by our National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982. (Activity) Dated: By: (Signature) (Title) This Notice must remain posted for 60 consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. If employees have any questions concerning this Notice or compliance with its provisions, they may communicate directly with the Regional Director, Region III, Federal Labor Relations Authority, whose address is: 1111 18th Street, N.W., Room 700, P.O. Box 33758, Washington, D.C. 20033-0758, and whose telephone number is: (202) 653-8500. -------------------- ALJ$ DECISION FOLLOWS -------------------- Alfonso Robles, Esquire For the Respondent Mr. John McEleney For the Charging Party Carolyn J. Dixon, Esquire For the General Counsel Before: WILLIAM B. DEVANEY, Administrative Law Judge DECISION Statement of the Case This proceeding, under the Federal Service Labor-Management Relations Statute, Chapter 71 of Title 5 of the United States Code, 5 U.S.C. 7101, et seq., /2/ and the Final Rules and Regulations issued thereunder, 5 C.F.R. 2423.1, et seq., involves Respondent's asserted failure and refusal "to negotiate in good faith with the Union over the impact and the procedures relating to the implementation of the issuance entitled 'National Inspectional Enforcement Team Policy'" (Complaint, Paragraph 9, G.C. Exh. 1(c)). In actuality, two principal issues are presented: First, did Respondent lawfully proceed with the issuance of the above policy when it had mailed to the Union timely notice, addressed to the designated person, which fixed a date for response; the Union did not respond and denies receipt of Respondent's notice; and the Union asserts that it learned of the policy, and its imminent implementation, after its approval by top management of Respondent? Second, if Respondent lawfully proceeded with the issuance of the above policy, did it lawfully refuse to negotiate with the Union concerning "procedures which management officials . . . will observe in exercising any authority under this section" (Sec. 6(b)(2)) and/or "appropriate arrangements for employees adversely affected by the exercise of any authority under this section by some management officials" (Sec. 6(b)(3))? This case was initiated by a charge filed on December 14, 1982 (G.C. Exh. 1(a)), which alleged violations of Secs. 16(a)(1), (5) and (8) of the Statute. The Complaint and Notice of Hearing issued on March 23, 1983; alleged a violation only of Secs. 16(a)(1) and (5) of the Statute; and set the hearing for May 18, 1983, pursuant to which a hearing was duly held on May 18, 1983, in Washington, D.C., before the undersigned. All parties were represented at the hearing, were afforded full opportunity to be heard, to examine and cross-examine witnesses, to introduce evidence bearing on the issues involved, and were afforded opportunity to present oral argument. At the close of the hearing, June 20, 1983, was fixed as the date for mailing post hearing briefs, which time was extended to July 8, 1983, by Order issued June 7, 1983, on the Motion of Respondent and for good cause shown; and subsequently, on the Motion of the Charging Party and for good cause shown, was further extended to July 29, 1983, by Order dated July 1, 1983. Each party has timely filed a brief received on, or before, July 29, 1983, which have been carefully considered together with closing arguments. Upon the basis of the entire record, /3/ including my observation of the witnesses and their demeanor, I make the following findings and conclusions: FINDINGS 1. By letter dated August 31, 1982 (Res. Exh. 2), addressed to Mr. Vincent L. Connery, National President of National Treasury Employees Union (hereinafter referred to as "NTEU"), the recognized exclusive representative, nationwide, of Respondent's employees, with certain exceptions more fully set forth in Paragraph 5 of the Complaint, Respondent transmitted a proposed Customs issuance entitled "National Inspectional Contraband Enforcement Team Policy" (CET). The enclosed policy was General Counsel Exhibit No. 2. This was to be issued as a "Manual Supplement". 2. Respondent's covering letter of August 31, 1982, stated, in part, that: " . . . This issuance will be implemented September 14, 1982 . . . ." (Res. Exh. 2). 3. Mr. Phillip Spayd, Chief, Collective Bargaining and Contract Administration, United States Customs Service, testified, without contradiction, that the period prior to date of intended implementation, here August 31 to September 14, is the notice period for NTEU to request negotiations; that, pursuant to Article 37, Section 4 of the parties' agreement (Res. Exh. 3), an impact bargaining demand is effected only by the submission of written proposals (Tr. 62); and that this is the practice in all cases (Tr. 62). Mr. Spayd further stated that a proposed issuance is suspended for the duration of the notice period (here to September 14) or until completion of negotiations (Tr. 76). 4. Mr. Robert M. Smith, in 1982 Chief, Labor Disputes in Fields Branch of Respondent's Office of Labor Relations and currently Acting Director, Employment and Compensation, signed Respondent's Exhibit 2 for Mr. Dana as he was Acting Director of the Office of Labor-Management Relations on that date (Tr. 42). Mr. Smith testified that "All of our letters are normally sent to Mr. Connery" (Tr. 42); and that he had the letter mailed to Mr. Connery. Ms. Diane Flood, who typed Respondent's Exhibit 2, testified that she placed the letter in a franked envelope, which had the printed return address of the U.S. Customs Service; that she either placed the letter on the mail cart (Tr. 90) or she placed it in the mailbox (Tr. 91); that she did not recall whether she had personally placed this particular letter in the mailbox or whether she had placed it on the mail cart (TR. 91, 92); that, by one procedure or the other, she had "mailed" this letter (Tr. 89); and this letter was never returned by the Post Office (Tr. 89; see, also, Tr. 78). 5. Mr. Spayd testified that, even though no response had been received from NTEU by September 14, he waited until September 16, "to see if something was mailed", and still having no response, called Mr. Victor G. Weeren, Director of Law Enforcement Liaison, on September 16 and told him that "he could continue implementation, that implementation which was suspended during the notice period" (Tr. 77). Mr. Spayd on the same date, September 16, "signed off" by initialing the yellow file copy (Tr. 60, 61). Mr. Weeren testified that Mr. Spayd told him that, "the opportunity to bargain had expired and that apparently the Union chose not to bargain" (Tr. 95, 109). Mr. Weeren further testified that with that news he "started the machinery in place to have it fully implemented" (Tr. 95). This meant that this policy issuance first went to the issuance office to insure that it had the right format; then to the Chief Counsel; then to the Commissioner's Office for signature; and then to printing for printing and distribution (Tr. 95). Mr. Weeren stated that this policy was urgent (Tr. 96, 97); that it was signed by the Commissioner "within a week" after he received notification that "NTEU chose not to ask for bargaining" (Tr. 113), i.e., by, or about September 23, 1982. 6. Mr. Howard F. Swinimer, a Senior Customs Inspector at J. F. Kennedy Airport, while on assignment as Instructor at the U.S. Customs Academy, Federal Law Enforcement Training Center, Glynco, Georgia, on the evening of September 27, 1982, upon his return to Glynco, learned from associates of the CET policy which they understood was to go into effect October 1 (Tr. 32). His associates had been shown a copy and had been told that "the Union had been notified and agreed to the manual supplement" (Tr. 32). 7. The following day, September 28, 1982, Mr. Swinimer testified that he obtained a copy of the CET policy and called Mr. John McEleney, Assistant Director of Negotiations for NTEU who handles labor relation for NTEU with Customs (Tr. 17), and asked if he were familiar with the Manual Supplement and whether he had received notice and had negotiated on it (Tr. 32-33). Mr. Swinimer stated that Mr. McEleney stated that he had not received a copy of the Manual Supplement, that, so far as he knew, no one had but " . . . that he would check, he would ask around, check with other people in the office, see that it might have been misrouted or something . . ." (Tr. 33) and that he, McEleney would call back. Mr. Swinimer stated that Mr. McEleney did call back later in the day and told him no one had any record of having received such a supplement. 8. Mr. Swinimer testified that he mailed Mr. McEleney a copy of the Manual Supplement on September 28 (Tr. 38). 9. Mr. McEleney testified that he first learned of the Manual Supplement when Mr. Swinimer called him on September 28. There is no dispute that Mr. McEleney called Mr. Robert M. Smith; but there is a dispute as to the date that he called Mr. Smith. Mr. McEleney testified that he called Mr. Smith immediately after the call from Mr. Swinimer (Tr. 19). Mr. McEleney stated that he called Mr. Smith and ". . . asked him if he knew of the supplement and why he hadn't received notice and an opportunity to bargain. He explained to me . . . that they had notified us by letter sometime in August, that the letter had a specific date by which proposals should be received. That date had come and gone. And it was their position that we waived our right to bargain on it. He told me that he didn't know whether they had been put into effect on October 1, but he would check and find out for me" (Tr. 19-20). 10. Mr. McEleney further testified that after talking to Mr. Smith he ". . . checked about my office to be certain that there wasn't something that I overlooked and I didn't discover anything. I then went down and spoke to Vincent Connery who is our national president and asked him if he had received a copy of the Manual Supplement that dealt with contraband enforcement and he told me that he had no recollection of that, and also checked some of his files to be certain it wasn't there . . ." (Tr. 20). Mr. McEleney stated that he asked Mr. Smith to send him a copy" of the document as well as a cover letter that he said was attached to it" (Tr. 20), which Mr. Smith did (Tr. 20, 21). Mr. McEleney stated that Mr. Smith called back, either late that day or first thing the next morning, ". . . and explained that the manual supplement was not issued, but he believed it was somewhere in the system and there wasn't any plans to have it implemented on October 1st. He said he didn't know when it would be implemented" (Tr. 21). 11. Mr. Smith testified that he received a call from Mr. McEleney on September 30 (Tr. 43, 51); that he was sure of the date, "Because I wrote a note to the file when I received a call from Mr. McEleney" (Tr. 44); that Mr. McEleney, ". . . told me that he had been speaking to some of his regional people and that he had a copy of this policy and he was, wanted to know whether or not we had formally sent it to him . . . I told him that I would check, ran to the files, pulled out our file and read to him . . . the letter to Mr. Connery" (Tr. 44); that "I think I put John on hold at the time, yes, and checked our records" (Tr. 51). Mr. Smith called Mr. Spayd and subsequently talked to Mr. McEleney and ". . . told John that the policy was on the way to the print shop for distribution and John again asked what can we do about this. I really didn't know what we could do about it. He didn't have any suggestions, nor did I and the conversation pretty much ended" (Tr. 45). Mr. Smith stated, "When a policy is at the printer, it is implemented as soon as it comes off the presses. As to a specific exact date, no, I didn't know that and I don't think anybody did" (Tr. 55); " . . . I told him (Mr. McEleney) it was signed and at the printer" (Tr. 56). 12. Mr. Connery was asked about a conversation with Mr. John McEleney at "the end of September, 1982," and testified, in part, as follows: "A. Well I recall a discussion and a subsequent brief time therein John called me, came down to tell me that he wanted to talk to me about a letter, asked me if I had received a letter which I had no recollection of receiving and we talked about the letter. I told him that there was no letter around. We made a look around the desk area, went all through one of the drawers of my desk where it might possibly have been. That was it. "Q. Do you know what the contents of the letter was that you were looking for? "A. Well, John told me that there was some matter which I don't recall at this time. "Q. Would that have been the contraband enforcement team policy? "A. Yes. "Q. And do you recall about when the conversation took place? "A. Yes, it was in September of last year" (Tr. 138). After being handed Respondent's Exhibit 2 (erroneously referred to as Respondent's Exhibit 1 (Tr. 138)), Mr. Connery stated: ". . . I have no recollection of receiving this before" (Tr. 139). 13. Mr. McEleney testified that in his conversation with Mr. Smith, either on September 28 or on September 30, he ". . . told him (Smith) that we were interested in bargaining, that we hand't waived anything inasmuch as we hadn't received the document" (Tr. 20A); that sometime in the first part of October, he spoke to Mr. Spayd at the Holiday Inn in Georgetown and ". . . asked him if he was familiar with issuance and our request to bargain and if he knew the status and he said he wasn't aware of the situation. He didn't know the status of the request. He knew that the matter was being discussed but he wasn't deeply involved with it since he was involved primarily in negotiations of the national contract. I asked him if he would check it out and let me know the status and he told me that he would" (Tr. 21-22); that the following week, he again spoke to Mr. Spayd who again responded, ". . . that he didn't know, wasn't aware of what the decision was or if a decision had been made" (Tr. 22); that he heard nothing further until October 26, 1982, when he received a call from Mr. Smith who stated, " . . . they had decided they weren't going to bargain and that the manual supplement had been implemented on October 19th" (Tr. 22, 23). CONCLUSIONS The record shows and I find that Respondent mailed the letter of notification (Res. Exh. 2) to President Connery on August 31, 1982, with a copy of the proposed Manual Supplement (G.C. Exh. 2). When NTEU failed to request negotiations within the notice period (September 14, 1982), Respondent, in accordance with established practice, proceeded with implementation. Department of the Treasury, U.S. Customs Service, Region 1, Boston, Massachusetts, 1 FLRA No. 49, 1 FLRA 397 (1979) (hereinafter referred to as the "Region 1" case or decision), which arose under Executive Order 11491, as amended, involved not only the same parties-- Customs and NTEU-- but a strikingly similar issue, namely, timely notice mailed to the Union, no request for negotiations until after the proposed grooming standards had been implemented, and a denial of receipt of the notice letter by the Union. In affirming the Administrative Law Judge's decision, that the Respondent had not violated sections 19(a)(1) and (6) of the Order when it issued new grooming standards, the Authority stated, in part, as follows: "In reaching our conclusion that issuance of the new grooming standards did not violate the Order, it is noted that the Respondent did all that could reasonably be expected in order to provide adequate, timely notice of the proposed new standards to the Union. Thus, it precisely followed the Union's instructions and the past practice between the parties, in timely mailing notice of the proposed change to the Union's mailing notice of the proposed change to the Union's designated official in Washington, D.C." (1 FLRA at 339 n.1). I find the Region 1 decision persuasive. Here, as in Region 1, Respondent did all that could reasonably be expected in order to provide adequate, timely notice of the CET policy to NTEU and followed the established past practice of sending the notice of nationwide policy issuances to President Connery. (See, also, Res. Exh. 3, Art. 37, Section 3). Issuance of a nationwide policy is immeasurably more complex than issuance of a policy change which is not so all encompassing. Here, after the notice period to NTEU had expired and no request to negotiate (by the submission of written proposals, pursuant to Res. Exh. 3, Art. 37, Section 4) had been received, the policy first went to the issuance office, to insure that the format was proper; then to the Chief Counsel; then to the Commissioner for signature; and then to printing for printing and distribution. Prior to issuance, officials in the various Regions had to be advised. As the CET policy had been signed by the Commissioner on, or about, September 23, 1982, and substantial expenditure of money was required for equipment for the Contraband Enforcement Teams, Respondent committed funds available to it from its 1982 budget. I have weighed the testimony carefully and conclude that Mr. McEleney initially called Mr. Smith on September 30, 1982, as Mr. Smith testified, rather than on September 28, 1982, as Mr. McEleney testified. I reach this conclusion for several reasons. First, Mr. Smith's recollection of the date was supported by his written note to the file. Second, Mr. Swinimer, who was a very credible witness, testified that he mailed a copy of the Manual Supplement (CET) to Mr. McEleney on September 28. Third, Mr. McEleney made no reference to the Manual Supplement mailed to him by Mr. Swinimer. Fourth, Mr. Smith very credibily testified that when Mr. McEleney called him on September 30, Mr. McEleney told him he "had a copy of the policy." Fifth, Mr. Connery's testimony is as consistent with one date as the other. Sixth, Mr. McEleney's testimony as to the sequence of events is not wholly convincing. Thus, in view of Mr. Swinimer's testimony that he had been told "the Union had been notified and agreed", which he relayed to Mr. McEleney, it is more logical that Mr. McEleney would have contacted President Connery prior to calling Mr. Smith, rather than after calling Mr. Smith, especially as Mr. Swinimer testified that Mr. McEleney called back and told him, "no one had any record of having received such a supplement." The record shows that Respondent committed FY 82 funds for equipment sometime after the CET policy issuance was signed and prior to the end of FY 82-- September 30, 1982. As I find that Mr. McEleney initially called Mr. Smith on September 30, 1982, I conclude that all of the steps set forth above, including the expenditure of FY 82 funds, had occurred prior to Mr. McEleney's call. I fully understand that "implementation" means, and meant, different things to different people. Thus, to Mr. Spayd, it meant signing-off by the labor-management relations office upon expiration of the notice period to NTEU without a request to negotiate. To Respondent, it meant clearance to proceed with issuance of the policy, including signature by the Commissioner, the advising of Regional officials of the forthcoming issuance, commitment of funds, etc. To NTEU it meant issuance. In partial agreement with Respondent, I conclude that Respondent did not violate Secs. 16(a)(5) or (1) of the Statute by the issuance, on October 16, 1982, of the CET policy (Jt. Exh. 1). However, I do not agree with Respondent that it lawfully refused NTEU's request to negotiate impact and implementation pursuant to Sec. 6(b)(2) and/or (3), either because the policy had been substantially implemented prior to NTEU's request to negotiate or because NTEU did not, after notice of the proposed issuance, on September 28, 1982, when Mr. Swinimer called Mr.McEleney, submit written proposals. In short, I conclude that Respondent could, and did, lawfully issue the Manual Supplement with respect to its CET policy. Respondent had taken all steps to implement this policy prior to NTEU's request to negotiate except formal issuance, which meant the fixing of an issuance date, printing and distribution. Ordinarily, in full agreement with the established practice and the specific provision of the parties' agreement, /4/ I would concur with Respondent that NTEU did not perfect a proper impact bargaining request by submitting written proposals within a reasonable period after conceded notice, on September 28, 1982, of Respondent's CET policy (Respondent's Brief, pp. 26-27); however, under the circumstances of this case I conclude that Respondent effectively precluded the submission of written proposals and accordingly, Respondent may not assert NTEU's failure to submit written proposals as a defense to its refusal to negotiate. Thus, as Mr. McEleney testified, Mr. Smith told him on September 30 that, ". . . it was their (Respondent's) position that we (NTEU) waived our right to bargain on it" (Tr. 20). Mr. Smith's testimony is wholly consistent and confirms Mr. McEleney's testimony. Mr. Smith testified that he read to Mr. McEleney the letter to Mr. Connery; that he called Mr. Spayd and ". . . we felt that we gave Mr. McEleney reasonable advance notice and an opportunity for bargaining and he did not request negotiations and there wasn't anything we could do. It was out of our hands" (Tr. 46); that after his first conversation with Mr. McEleney he talked to Mr. McEleney again and ". . . told John that the policy was on the way to the print shop for distribution and John again asked what can we do about this. I really didn't know what we could do . . . . He didn't have any suggestions, nor did I . . . " (Tr. 45). On September 30, 1982, when NTEU requested impact negotiations, Respondent had not issued the Manual Supplement relative to its CET policy and with notice that NTEU asserted that Respondent's notice of August 31, 1982, had not been received, Respondent refused to negotiate. Unlike the Region 1 case, Respondent's CET policy had not been fully implemented at the time NTEU demanded impact negotiations and Respondent's obligation to negotiate was neither satisfied nor extinguished by its notice of August 31, receipt of which NTEU specifically denied. /5/ Upon notice of the non-receipt of the August 31, 1982, notification, Respondent, prior to implementation of its CET Manual Supplement, was obligated to treat NTEU's demand to negotiate after actual notice, /6/ on September 28, 1982, as a timely demand to negotiate prior to implementation. This, Respondent refused to do and asserted that NTEU had already waived its right to negotiate. Because I find that Respondent had lawfully proceeded with implementation of its CET Manual Supplement, /7/ NTEU's right to negotiate on, and after, September 30, 1982, was more limited than if it had requested negotiations during the notice period. NTEU must accept the CET Manual Supplement /8/ and its right to negotiate, and Respondent's obligation to negotiate, is limited essentially to "appropriate arrangements for employees adversely affected," pursuant to Sec. 6(b)(3) of the Statute, although there may also be "procedures which management . . . will observe," pursuant to Sec. 6(b)(2) of the Statute, subject to negotiation notwithstanding that the form of the Manual Supplement was a fait accompli as of September 30, 1982. Although NTEU testified as to areas of interest in impact bargaining, no particular proposal was presented, and I express no opinion whatever concerning the appropriateness of any bargaining demand or of any expressed area of interest. Having found that Respondent refused to negotiate, prior to implementation, on impact of its CET Manual Supplement, after notice of the non-receipt of Respondent's prior notice, in violation of Secs. 16(a)(5) and (1) of the Statute, it is recommended that the Authority issue the following: ORDER Pursuant to Section 18(a)(7) of the Statute, 5 U.S.C. 7118(a)(7), and Sec. 2423.29 of the Regulation, 5 C.F.R. 2423.29, the Authority hereby orders that the U.S. Customs Service shall: 1. Cease and desist from: (a) Refusing to consult or negotiate in good faith with the National Treasury Employees Union concerning the impact of its National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982, as Manual Supplement No. 3290-04. (b) In any like or related manner interfering with, restraining, or coercing unit employees in the exercise of their rights assured by the Statute. 2. Take the following affirmative action in order to effectuate the purposes and policies of the Statute: (a) Upon request and perfection of an impact bargaining request, as required by the parties' current collective bargaining agreement, meet and consult or negotiate in good faith with the National Treasury Employees Union concerning the impact of its National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982. (b) Post at each of its facilities, including its Headquarters Office in Washington, D.C. and each Regional Office, and at all places where notices to employees of the U.S. Customs Service are customarily posted, copies of the attached Notice, on forms to be furnished by the Federal Labor Relations Authority. Upon receipt of such forms, they shall be signed by the Commissioner, U.S. Customs Service, and they shall be posted and maintained for 60 consecutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted. The Commissioner shall take reasonable steps to insure that such notices are not altered, defaced, or covered by any other material. (c) Pursuant to Sec. 2423.30 of the Regulation, 5 C.F.R. 2423.30, notify the Regional Director of Region III, Federal Labor Relations Authority, whose address is: 1111 18th Street, NW., Room 700, P.O. Box 33758, Washington, DC 20033-0758, in writing within 30 days from the date of this Order, as to what steps have been taken to comply herewith. William B. Devaney Administrative Law Judge Dated: August 8, 1983 Washington, DC NOTICE TO ALL EMPLOYEES PURSUANT TO A DECISION AND ORDER OF THE FEDERAL LABOR RELATIONS AUTHORITY AND IN ORDER TO EFFECTUATE THE POLICIES OF CHAPTER 71 OF TITLE 5 OF THE UNITED STATES CODE FEDERAL SERVICE LABOR-MANAGEMENT RELATIONS STATUTE WE HEREBY NOTIFY OUR EMPLOYEES THAT: WE WILL NOT refuse to consult or negotiate in good faith with the National Treasury Employees Union concerning the impact of our National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982, as Manual Supplement No. 3290-04. WE WILL NOT in any like or related manner interfere with, restrain or coerce our employees in the exercise of their rights assured by the Statute. WE WILL, upon request and perfection of an impact bargaining request, as required by our current collective bargaining agreement, meet and consult or negotiate in good faith with the National Treasury Employees Union concerning the impact of our National Inspectional Contraband Enforcement Team Policy, issued October 19, 1982. (Agency or Activity) Dated: By: (Signature) This Notice must remain posted for sixty (60) consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. If employees have any questions concerning this Notice or compliance with any of its provisions, they may communicate directly with the Regional Director of the Federal Labor Relations Authority, Region III, whose address is: 1111 18th Street, NW., Room 700, P.O. Box 33758, Washington, D.C. 20033-0758, and whose telephone number is: (202) 653-8507. --------------- FOOTNOTES$ --------------- /1/ Section 7116(a)(1) and (5) of the Statute provides: Sec. 7116. Unfair labor practices (a) For the purpose of this chapter, it shall be an unfair labor practice for an agency-- (1) to interfere with, restrain, or coerce any employee in the exercise by the employee of any right under this chapter; * * * * (5) to refuse to consult or negotiate in good faith with a labor organization as required by this chapter(.) /2/ For convenience of reference, sections of the Statute hereinafter are, also, referred to without inclusion of the initial "71" of the Statute reference, e.g., Sections 7116(a)(5) will be referred to, simply, as Sec. 16(a)(5). /3/ Respondent has filed a Motion to Correct Transcript, to which no opposition was filed, which I find wholly meritorious and hereby grant. The transcript is hereby corrected as fully set forth in the Appendix hereto. /4/ Article 37, Section 4, provides, in part, that: "If the union wishes to negotiate concerning the implementation or impact on employees of the proposed change(s), the union will submit written proposals to the employer within a reasonable period after notification of the proposed change(s) . . . ." (Res. Ex. 3). I am aware that the Agreement was effective June 30, 1980; was for a term of 2 years; and that, by its terms the Agreement expired June 30, 1982; however, as the Authority held in U.S. Nuclear Regulatory Commission, 6 FLRA No. 9, 6 FLRA 18 (1981), ". . . In the Authority's opinion, the purposes and policies of the Statute are best effectuated by a requirement that existing personnel policies, practices, and matters affecting working conditions continue, to the maximum extend possible, upon the expiration of a negotiated agreement, absent an express agreement to the contrary or unless modified in a manner consistent with the Statute. Such a result fosters stability in Federal labor-management relations, which is an underlying purpose of the Statue . . . ." (6 FLRA at 20). See, also, Internal Revenue Service, Ogden Service Center, et al. FLRA Nos. 77A-40 and 77A-92, 6 FLRC 310 (1978). General Counsel's contention that because Article 37 concerns permissive subjects of bargaining, Article 37 did not survive the expiration of the contract (Tr. 67), is rejected. I am not aware of any Authority decision that has treated this question; but I am aware that the Council in the Ogden Service Center, case, supra, did. There, the Council stated, in part, as follows: "Of course, just as in the situation where no collective bargaining agreement has previously existed, agency management, upon the expiration of a negotiated agreement, retains the right to unilaterally change provisions contained therein relating to 'permissive' subjects of bargaining, i.e., those matters which are excepted from the obligation to negotiate by section 11(b) of the Order, and either party may change matters which are outside the scope of such obligation under section 11(a) of the Order. Consequently, absent the parties' agreement to the contrary, the parties are not obligated to maintain those matters upon the expiration of the agreement. (Footnote omitted) 6 FLRC at 319; see, also 6 FLRC at 321-322). Although I have serious reservations that Article 37 contains "permissive" subjects of bargaining within the meaning of Sec. 6(b)(1) of the Statute, and I expressly make no such determination, even if it were assumed that Article 37 constituted a permissive subject of bargaining and if it were further assumed that the Council's statement were applicable under the Statute, nevertheless, Mr. Spayd testified that, "Both sides have proposals to amend Article 37 at this time . . ." (Tr. 79) which does not indicate that either party had refused to maintain these provisions pending completion of negotiations. To the contrary, Respondent testified that it was complying with all provisions of the Agreement, notwithstanding its expiration (Tr. 64), and Mr. McEleney, NTEU's Chief negotiator, presented no testimony to the contrary. Nor, for that matter, neither Respondent nor NTEU presented any evidence or testimony concerning the notice given, i.e., whether to terminate the Agreement or to notify the agreement, (Article 40, Section B) or whether there was any written agreement to extend the agreement pursuant to Article 40, Section 2C. Indeed, where, as here, the parties are renegotiating, as the Council also stated in Ogden Service Center, supra, ". . . a party may not effect changes in otherwise negotiable personnel policies and practices and matters affecting working conditions without first providing the other party with sufficient notice of its intent to implement the change . . . so that the other party is afforded a reasonable opportunity . . . to invoke the processes of the Panel . . . ." (6 FLRC at 332). Accordingly, since the parties had not negotiated to impasse, Respondent had not refused to bargain as to Article 37 because of any perceived management right, and NTEU had not given notice of its intent to implement any change of Article 37, NTEU could not unilaterally change the otherwise negotiable personnel policies and practices and matters affecting working conditions as described in Article 37. I conclude that Article 37 continued, despite the expiration of the Agreement, until terminated or modified in a manner consistent with the Statute. /5/ Collective bargaining is a continuing process, Conley v. Gibson, 355 U.S. 41 (1957), and, notwithstanding language of Judge Mason in the Region 1 case, I am not fully persuaded that the duty to bargain as to 6(b)(3) is wholly extinguished by lawful implementation. For example, a union might conclude that a proposed management action would have no adverse effect and, accordingly, decline to request negotiation; but thereafter become aware of serious adverse impact and long after implementation and request negotiations. cf., Library of Congress, 9 FLRA No. 51, 9 FLRA 421 (1982); Library of Congress, 9 FLRA No. 52, 9 FLRA 427 (1982). Nevertheless, I neither reach nor decide this issue, since, here, Respondent had not fully implemented its CET policy at the time NTEU demanded negotiations. In accordance with the Region 1 decision, I hold merely that Respondent satisfied its obligation to give timely notice by its notice of August 31, 1982, properly mailed to the designated official of NTEU; but Respondent was obligated to negotiate, prior to issuance of the CET Manual Supplement, upon notice of nonreceipt of the August 31 notice and the demand of NTEU for negotiations. /6/ The manner of giving notice is, of course, wholly relegated to the parties. In view of the continuing problems experienced by the parties, as evidenced by this case and by the Region 1 case, each party may be well advised to consider the mutual benefit of the use of registered mail, at least with respect to policy issuances having nationwide scope. /7/ Normally, the appropriate remedy for a refusal to negotiate prior to implementation (issuance) of a policy change would be withdrawal of the change. I do not hold, nor should it be inferred by anything contained herein, that even substantially completed "implementation", standing alone, warrants the issuance (implementation) of such change without satisfaction of the obligation to negotiate, pursuant to notice given prior to implementation. I hold that Respondent could, and did, lawfully issue its CET policy, notwithstanding its unlawful refusal to negotiate, only because of the coalescence of all the factors present in this case, including, inter alia: timely notice to the Union; Respondent's right to proceed with required steps to implement the change after passage of the notice period without request by the Union for negotiations; the disruptive impact of withdrawal of the policy; and the stipulation by the General Counsel that a status quo ante remedy was not sought. Indeed, the record shows that the areas of concern of NTEU relate to matters which can fully be addressed by present negotiations. /8/ Respondent was prepared to show that a status quo ante remedy was inappropriate, and, indeed, presented some evidence and testimony to this effect. General Counsel stipulated that no such remedy was sought and, for this reason, I rejected Respondent's further proffer of proof.