[ v09 p164 ]
09:0164(23)AR
The decision of the Authority follows:
9 FLRA No. 23 COLUMBIA BASIN TRADES COUNCIL AND ALL OF ITS CONSTITUENT UNIONS, SPOKANE, WASHINGTON Union and THE GRAND COULEE PROJECT OFFICE, BUREAU OF RECLAMATION, U.S. DEPARTMENT OF INTERIOR, GRAND COULEE, WASHINGTON Activity Case No. 0-AR-78 DECISION THIS MATTER IS BEFORE THE AUTHORITY ON EXCEPTIONS TO THE AWARDS OF ARBITRATOR WILLIAM H. DORSEY FILED BY THE AGENCY UNDER SECTION 7122(A) OF THE FEDERAL SERVICE LABOR-MANAGEMENT RELATIONS STATUTE (THE STATUTE) AND PART 2425 OF THE AUTHORITY'S RULES AND REGULATIONS. THE UNION FILED AN OPPOSITION. THE DISPUTE IN THIS CASE AROSE WHEN THE ACTIVITY UNILATERALLY DISCONTINUED PAYING CERTAIN CATEGORIES OF ITS PREVAILING RATE EMPLOYEES, WHOSE WAGES ARE NEGOTIATED, /1/ AT THE "LOCAL PREVAILING CONSTRUCTION RATE" AS PROVIDED BY THE PARTIES' COLLECTIVE BARGAINING AGREEMENT. AS RELEVANT TO THIS CASE, GRIEVANCES WERE FILED OVER THE DISCONTINUANCE OF THE RATE FOR PERMANENT DRILL EMPLOYEES AND CERTAIN TEMPORARY EMPLOYEES, AND THE GRIEVANCES WERE ULTIMATELY PRESENTED TO THE ARBITRATOR AT ONE HEARING. /2/ I. PERMANENT DRILL EMPLOYEES. WITH RESPECT TO ITS PERMANENT DRILL EMPLOYEES, THE ACTIVITY HAD NOTIFIED THE UNION THAT PAYMENT OF THE LOCAL PREVAILING CONSTRUCTION RATE WAS NO LONGER WARRANTED. IT WAS THE ACTIVITY'S VIEW THAT THESE EMPLOYEES WERE A PART OF ITS MAINTENANCE OPERATION AND THEREFORE THEY WERE NO LONGER "CONSTRUCTION ORIENTED." CONSEQUENTLY, THE ACTIVITY ADVISED THE UNION THAT THE PERMANENT DRILL EMPLOYEES WERE BEING RECLASSIFIED AND INCORPORATED INTO THE LOWER MAINTENANCE WAGE SCHEDULE. ACCORDINGLY, ON FEBRUARY 27, 1977, THE ACTIVITY CLASSIFIED THESE EMPLOYEES AS MAINTENANCE EMPLOYEES AND ESTABLISHED AN EMERGENCY WAGE RATE FOR THEM WHICH FROZE THEIR WAGE RATE AT THE LEVEL IT WAS THEN AT UNTIL THE LOWER MAINTENANCE RATE EXCEEDED IT. THE ARBITRATOR FIRST QUESTIONED WHETHER PERMANENT DRILL EMPLOYEES COULD BE UNILATERALLY RECLASSIFIED AS MAINTENANCE EMPLOYEES BECAUSE OF THE ACTIVITY'S VIEW THAT THEY WERE NO LONGER CONSTRUCTION ORIENTED. HE NOTED THAT THIS ACTION HAD RESULTED IN THESE EMPLOYEES BEING DENIED COMPENSATION AT THE LOCAL PREVAILING CONSTRUCTION RATE AND THUS BEING DENIED A WAGE INCREASE THAT WAS PUT INTO EFFECT FOR CERTAIN OTHER EMPLOYEES ON FEBRUARY 27, 1977. /3/ THE ARBITRATOR READILY ACKNOWLEDGED THE RIGHT OF THE ACTIVITY TO ESTABLISH NEW CLASSIFICATIONS IN THE MAINTENANCE RANKS, WITH PAY AT APPROPRIATE MAINTENANCE WAGE RATES, FOR DRILL PERSONNEL WHO WOULD BE DOING A TYPE OF WORK ENTIRELY DIFFERENT FROM THE TYPE OF WORK BEING DONE BY THE INCUMBENT PERMANENT DRILL PERSONNEL. HOWEVER, THE ARBITRATOR EMPHASIZED THAT THIS WAS NOT WHAT HAD OCCURRED IN THIS CASE. HE FOUND THAT, INSTEAD, THE ACTIVITY HAD SIMPLY DECLARED THAT THE INCUMBENT PERMANENT DRILL EMPLOYEES WERE NO LONGER CONSTRUCTION ORIENTED AND THAT THEREFORE THEY NO LONGER HAD TO BE PAID AT THE LOCAL PREVAILING CONSTRUCTION RATE. HOWEVER, THE ARBITRATOR DETERMINED THAT UNDER THE PARTIES' COLLECTIVE BARGAINING AGREEMENT THESE EMPLOYEES WERE ENTITLED TO THE LOCAL PREVAILING CONSTRUCTION RATE BECAUSE OF THEIR STATUS AS CONSTRUCTION CRAFTSMEN AND REJECTED THE POSITION OF THE ACTIVITY THAT THE AGREEMENT INTENDED THAT PERMANENT DRILL EMPLOYEES WERE TO BE PAID THE LOCAL PREVAILING CONSTRUCTION RATE ONLY WHEN THEY WERE DOING CONSTRUCTION-ORIENTED WORK. /4/ THE ARBITRATOR THEREFORE RULED THAT THE INCUMBENT PERMANENT DRILL EMPLOYEES WERE ENTITLED TO BE PAID THE LOCAL PREVAILING CONSTRUCTION RATE UNTIL THE AGREEMENT LANGUAGE WAS RENEGOTIATED. ACCORDINGLY, HE AWARDED THE PERMANENT DRILL EMPLOYEES BACKPAY FOR THE DIFFERENCE IN PAY FROM THE DATE (SOMETIME BEFORE FEBRUARY 27, 1977) THAT THE ACTIVITY WAS NOTIFIED OF THE INCREASE IN THE LOCAL PREVAILING CONSTRUCTION RATE UNTIL THE PARTIES' AGREEMENT PROVISION WAS RENEGOTIATED. /5/ THE AGENCY'S EXCEPTION TO THIS AWARD IS THAT THE AWARD IS CONTRARY TO LAW. IN SUPPORT OF THIS EXCEPTION, THE AGENCY PRINCIPALLY MAINTAINS THAT THE STATUTORY REFERENCE POINT FOR HOURLY WAGES, WHETHER ESTABLISHED UNDER THE PREVAILING RATE SYSTEMS ACT OR NEGOTIATED, IS THE LOCALLY PREVAILING RATE. THE AGENCY'S POSITION IN THIS REGARD IS THAT THE PREVAILING RATE PRINCIPLE OF THE STATUTORY FRAMEWORK GOVERNING THE NEGOTIATION OF WAGES FOR PREVAILING RATE EMPLOYEES COMPELLED AND AUTHORIZED THE ACTIVITY TO UNILATERALLY IMPOSE A MAINTENANCE RATE OF PAY ON PERMANENT DRILL EMPLOYEES ONCE IT WAS DETERMINED BY THE ACTIVITY THAT SUCH AN ADJUSTMENT WAS NECESSARY TO CONFORM TO LOCALLY PREVAILING RATES AND PRACTICES OF THE PRIVATE SECTOR, NOTWITHSTANDING THE PARTIES' AGREEMENT THAT THEY BE PAID AT THE HIGHER LOCAL PREVAILING CONSTRUCTION RATE. THE AGENCY ACKNOWLEDGES THAT THE UNION CAN THEN REACT THROUGH APPROPRIATE ACTION AND TRADITIONAL PROCEDURES, BUT MAINTAINS THAT MANAGEMENT'S RIGHT TO INITIALLY ACT IN WHAT IT VIEWS TO BE CONFORMANCE WITH LAW MAY NOT BE RESTRAINED. THE AGENCY THEREFORE ARGUES THAT THE ARBITRATOR'S AWARD IS CONTRARY TO LAW BECAUSE IT CONDITIONS THE ADJUSTMENT OF THE RATE OF PAY OF PERMANENT DRILL EMPLOYEES ON THE RENEGOTIATION OF THE PARTIES' COLLECTIVE BARGAINING AGREEMENT. IN OPPOSITION, THE UNION'S POSITION IS ESSENTIALLY THAT THE ARBITRATOR PROPERLY ENFORCED THE WAGE SCHEDULE OF THE COLLECTIVE BARGAINING AGREEMENT. THE AUTHORITY FINDS THAT THE AGENCY'S EXCEPTION FAILS TO ESTABLISH THAT THE AWARD RELATING TO THE PERMANENT DRILL EMPLOYEES, WHICH ESSENTIALLY ENFORCED THE WAGE SCHEDULE OF THE PARTIES' COLLECTIVE BARGAINING AGREEMENT UNTIL IT WAS RENEGOTIATED, IS CONTRARY TO LAW. AS HAS BEEN NOTED, ALL OF THE EMPLOYEES IN THIS CASE HAVE COLLECTIVE BARGAINING RIGHTS, WHICH HAVE BEEN EXPRESSLY PRESERVED AND RECOGNIZED BY LAW, TO NEGOTIATE WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT IN ACCORDANCE WITH PREVAILING RATES AND PAY PRACTICES IN THE PRIVATE SECTOR. AS WAS EXPRESSLY ACKNOWLEDGED BY THE COURT IN IBEW V ANDRUS, CIVIL ACTION NO. 80-M-701 (D. COLO. MAR. 31, 1981), THE DEPARTMENT OF INTERIOR AND ITS ACTIVITIES "DO NOT SET THE RATES OF PAY" OF THESE EMPLOYEES. ID. AT 2 OF MEMORANDUM OPINION AND ORDER. INSTEAD, PRESERVATION OF THE BARGAINING RIGHTS OF PERMANENT DRILL EMPLOYEES COMPELLED NEGOTIATIONS AS THE RESPONSE OF THE PARTIES TO ANY ASSERTED CHANGE IN PREVAILING RATES AND PAY PRACTICES. THEREFORE, CONTRARY TO THE AGENCY'S CONTENTION THAT THE PARTICULAR ADJUSTMENT MADE BY THE ACTIVITY WAS REQUIRED BY PREVAILING RATE PRINCIPLES, ONLY NEGOTIATIONS ARE COMPELLED IN SUCH CIRCUMSTANCES BECAUSE NO PRECISE RATE OR PAY PRACTICE IS PRESCRIBED BY LAW. COLLECTIVE BARGAINING IS THE MEANS BY WHICH SUCH RATES AND PRACTICES MUST BE DETERMINED AND OBTAINED. SEE MEDLER V. UNITED STATES, 616 F.2D 450, 454 (9TH CIR. 1980). ACCORDINGLY, THE ARBITRATOR PROPERLY REFUSED TO SANCTION THE ACTIVITY'S UNILATERAL IMPOSITION OF A LOWER MAINTENANCE RATE OF PAY ON PERMANENT DRILL EMPLOYEES AND PROPERLY INVOKED RENEGOTIATION AS THE MEANS FOR THE PARTIES TO CONFORM THEIR AGREEMENT TO CURRENTLY PREVAILING PRACTICE, WITH THE PREEXISTING AGREEMENT TO BE EFFECTIVE UNTIL SUCH RENEGOTIATION. II. TEMPORARY HOURLY OPERATION AND MAINTENANCE EMPLOYEES. WITH RESPECT TO THESE EMPLOYEES, THE RELEVANT PROVISION OF THE PARTIES' COLLECTIVE BARGAINING AGREEMENT PROVIDES: "TEMPORARY EMPLOYEES IN THE FOLLOWING CLASSIFICATIONS WILL BE HIRED AT LOCAL PREVAILING CONSTRUCTION RATES OF PAY." THE ACTIVITY, AFTER RECEIVING A LEGAL OPINION FROM THE AGENCY'S SOLICITOR'S OFFICE, HAD NOTIFIED THE UNION THAT PAYMENT TO THESE EMPLOYEES OF THE LOCAL PREVAILING CONSTRUCTION RATES AS PROVIDED BY THE AGREEMENT WAS LEGALLY AUTHORIZED ONLY IF SUCH PAY PRACTICE WAS A LOCALLY PREVAILING PRACTICE AND THAT A WAGE SURVEY CONDUCTED BY THE ACTIVITY REVEALED THAT IT WAS NOT. ACCORDINGLY, THE ACTIVITY TERMINATED THE PAYMENT OF THE LOCAL PREVAILING CONSTRUCTION RATES AND COMMENCED PAYING LOWER MAINTENANCE RATES OF PAY TO NEW HIRES IN THESE CLASSIFICATIONS ON DECEMBER 18, 1977. FOR EMPLOYEES ON THE ROLLS PRIOR TO DECEMBER 18, THE ACTIVITY TERMINATED PAYMENT OF THE LOCAL PREVAILING CONSTRUCTION RATES ON FEBRUARY 12, 1978. ON THE BASIS OF THE ACTIVITY'S WAGE SURVEY, THE ARBITRATOR CONCLUDED THAT CERTAINLY AS OF THE DAY OF THE ARBITRATION HEARING, THE PAYMENT OF CONSTRUCTION RATES TO THESE EMPLOYEES WAS NOT A LOCALLY PREVAILING PRACTICE. HOWEVER, THE ARBITRATOR STILL HAD TO DEAL WITH WHAT EFFECT TO GIVE TO THIS SURVEY RESULT. THE ACTIVITY INSISTED THAT THE WAGE SURVEY RENDERED THE AGREEMENT PROVISION FOR PAYMENT OF THE LOCAL PREVAILING CONSTRUCTION RATES ILLEGAL AND OF NO FORCE AND EFFECT AND THAT CONSEQUENTLY IT HAD ACTED PROPERLY WHEN IT UNILATERALLY DECLARED THE AGREEMENT PROVISION NULL AND VOID. HOWEVER, THE ARBITRATOR QUESTIONED THE AUTHORITY AND PROPRIETY OF THE ACTIVITY ABROGATING, SOLELY ON THE BASIS OF A LEGAL OPINION OF THE AGENCY'S SOLICITOR'S OFFICE, AN EXPRESS PROVISION OF THE PARTIES' COLLECTIVE BARGAINING AGREEMENT. THE ARBITRATOR ALSO NOTED THE ACTIVITY'S REFUSAL TO SEEK AN OPINION FROM THE COMPTROLLER GENERAL AS TO THE VALIDITY OF ITS UNILATERAL ACTIONS. STRESSING THAT HE DID NOT HAVE THE EXPERTISE OF THE COMPTROLLER GENERAL IN THIS AREA, BUT RULING THAT THE ACTIVITY'S UNILATERAL ACTIONS WERE IN EXPRESS VIOLATION OF THE PARTIES' AGREEMENT, THE ARBITRATOR ORDERED THE PARTIES TO REQUEST A DETERMINATION FROM THE COMPTROLLER GENERAL AS TO WHETHER THESE EMPLOYEES COULD CONTINUE TO BE PAID AT THE LOCAL PREVAILING CONSTRUCTION RATES. ON THE BASIS OF THE AGREEMENT, HE DETERMINED THAT THE EMPLOYEES WERE ENTITLED TO BE PAID THE LOCAL PREVAILING CONSTRUCTION RATES UNTIL SUCH TIME AS THE COMPTROLLER GENERAL RULED OTHERWISE. ACCORDINGLY, THE ARBITRATOR AWARDED THESE EMPLOYEES BACKPAY UNTIL THE PARTIES RECEIVED A DECISION FROM THE COMPTROLLER GENERAL DETERMINING THAT THESE EMPLOYEES COULD NOT CONTINUE TO BE PAID AT THE LOCAL PREVAILING CONSTRUCTION RATES. THE ARBITRATOR EXPLAINED THAT BY THIS AWARD HE HAD ATTEMPTED TO MAKE THESE EMPLOYEES WHOLE FOR THE IMPROPER UNILATERAL ACTION OF THE ACTIVITY AND AT THE SAME TIME AFFORD THE ACTIVITY AN OPPORTUNITY FOR THE COMPTROLLER GENERAL TO SETTLE THE DISPUTE AS TO THE CONTINUATION OF THE PAYMENT OF SUCH RATES. THE AGENCY'S EXCEPTION TO THIS AWARD IS THAT THE AWARD IS CONTRARY TO LAW. HOWEVER, IN SUPPORT OF THIS EXCEPTION, THE AGENCY MAKES ESSENTIALLY THE SAME CONTENTIONS THAT HAVE BEEN REJECTED SUPRA WITH RESPECT TO PERMANENT DRILL EMPLOYEES. THE AGENCY AGAIN ARGUES THAT THE PAYMENT OF THE LOCAL PREVAILING CONSTRUCTION RATES WAS PROHIBITED BY LAW AS NOT BEING A PREVAILING PRACTICE AND THAT THEREFORE THE ACTIVITY ACTED PROPERLY TO UNILATERALLY ADJUST THE COMPENSATION OF THESE EMPLOYEES TO CONFORM TO THE LOCALLY PREVAILING RATES. IN TERMS OF THIS AWARD, THE AGENCY SPECIFICALLY MAINTAINS THAT THE AWARD OF BACKPAY UNTIL RECEIPT OF THE DECISION OF THE COMPTROLLER GENERAL IS NOT AUTHORIZED BY LAW. /6/ THE AGENCY CLAIMS THAT THE ACTIVITY PROPERLY ACTED WHEN IT DID WITHOUT THE REQUIREMENT OF A DECISION BY THE COMPTROLLER GENERAL AND THAT THEREFORE THE ARBITRATOR'S AWARD OF BACKPAY UNTIL RECEIPT OF THAT DECISION IS CONTRARY TO LAW. IN OPPOSITION, THE UNION PRINCIPALLY MAINTAINS THAT IN VIEW OF THE WAGE PROVISION OF THE PARTIES' COLLECTIVE BARGAINING AGREEMENT, THE ARBITRATOR'S AWARD OF BACKPAY WAS PROPER. THE AUTHORITY FINDS THAT THE AGENCY'S EXCEPTION FAILS TO ESTABLISH THAT THIS AWARD, WHICH ESSENTIALLY ENFORCED THE WAGE SCHEDULE OF THE PARTIES' COLLECTIVE BARGAINING AGREEMENT UNTIL RECEIPT OF THE COMPTROLLER GENERAL'S DECISION, IS CONTRARY TO LAW. AS DETERMINED WITH RESPECT TO THE AGENCY'S EXCEPTION RELATING TO PERMANENT DRILL EMPLOYEES, PRESERVATION OF THE BARGAINING RIGHTS OF THESE EMPLOYEES AS REQUIRED BY LAW MAKES IT IMPERMISSIBLE FOR WAGE RATES AND PAY PRACTICES TO BE IMPOSED UNILATERALLY. ACCORDINGLY, CONTRARY TO THE ASSERTION OF THE AGENCY, THE ARBITRATOR PROPERLY REFUSED TO SANCTION THE ACTIVITY'S UNILATERAL IMPOSITION OF LOWER MAINTENANCE RATES OF PAY ON THESE EMPLOYEES AND PROPERLY REMEDIED THE ACTIVITY'S ABROGATION OF THE AGREEMENT BY ENFORCING THE WAGE SCHEDULE IN THE AGREEMENT UNTIL AN APPROPRIATE RESOLUTION OF THE DISPUTE AS TO WHETHER THESE EMPLOYEES COULD CONTINUE TO BE PAID AT CONSTRUCTION RATES OF PAY. FURTHER, IN VIEW OF THE EXPRESS PROCEDURES OF THE COMPTROLLER GENERAL PROVIDING FOR THE RESOLUTION OF SUCH DISPUTES (SEE 4 C.F.R. PART 22), THE AGENCY HAS ALSO NOT DEMONSTRATED IN WHAT MANNER THE ARBITRATOR'S INVOCATION OF THE EXPERTISE OF THE COMPTROLLER GENERAL IS CONTRARY TO LAW. FOR THE FOREGOING REASONS, THE AGENCY'S EXCEPTIONS TO THE AWARDS OF THE ARBITRATOR RELATING TO BOTH PERMANENT DRILL EMPLOYEES AND TEMPORARY HOURLY OPERATION AND MAINTENANCE EMPLOYEES ARE DENIED. ISSUED, WASHINGTON, D.C., JUNE 23, 1982 RONALD W. HAUGHTON, CHAIRMAN HENRY B. FRAZIER III, MEMBER LEON B. APPLEWHAITE, MEMBER FEDERAL LABOR RELATIONS AUTHORITY --------------- FOOTNOTES$ --------------- /1/ ALL OF THE EMPLOYEES IN THIS CASE HAVE COLLECTIVE BARGAINING RIGHTS WHICH HAVE BEEN PRESERVED AND RECOGNIZED BY SECTION 9(B) OF THE PREVAILING RATE SYSTEMS ACT OF 1972, PUB. L. NO. 92-392, 5 U.S.C. 5343 NOTE, AND SECTION 704 OF THE CIVIL SERVICE REFORM ACT OF 1978, PUB. L. NO. 95-454, 5 U.S.C. 5343 NOTE, TO NEGOTIATE WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT IN ACCORDANCE WITH PREVAILING RATES AND PRACTICES IN THE PRIVATE SECTOR. /2/ ONE OF THE ARBITRATOR'S AWARDS ALSO COVERED TEMPORARY DRILL EMPLOYEES AT THE ACTIVITY. THE ACTIVITY HAS NOT FILED AN EXCEPTION TO THIS AWARD. /3/ THE ACTIVITY HAD PUT A WAGE INCREASE INTO EFFECT FOR ITS TEMPORARY DRILL EMPLOYEES (WHOM THE ACTIVITY CONTINUED TO PAY AT THE LOCAL PREVAILING CONSTRUCTION RATE) EFFECTIVE FEBRUARY 27, 1977, AFTER ACKNOWLEDGING THAT IT HAD PREVIOUSLY BEEN NOTIFIED OF AN INCREASE IN THE LOCAL PREVAILING CONSTRUCTION RATE. THE ARBITRATOR ORDERED BACKPAY FOR THESE TEMPORARY DRILL PERSONNEL FOR THE DIFFERENCE IN PAY FROM THE DATE THE ACTIVITY WAS NOTIFIED OF THE INCREASE (THE PRECISE DATE OF WHICH IS NOT SPECIFIED IN THE AWARD OR IN THE RECORD) TO FEBRUARY 27, 1977, WHEN THE ACTIVITY ACTUALLY INCREASED THE WAGE RATE OF THE TEMPORARY DRILL EMPLOYEES. AS PREVIOUSLY INDICATED, THE AGENCY DID NOT TAKE EXCEPTION TO THIS AWARD. /4/ SPECIFICALLY, THE PARTIES' AGREEMENT PROVIDED: CONSTRUCTION CRAFTS: TEMPORARY AND PERMANENT EMPLOYEES IN THE FOLLOWING CLASSIFICATIONS WILL RECEIVE BASIC RATE OF PAY EQUAL TO THE LOCAL PREVAILING CONSTRUCTION RATE. /5/ THE RECORD REFLECTS THAT THIS PROVISION WAS APPARENTLY RENEGOTIATED ON AUGUST 10, 1980. /6/ PURSUANT TO THE PARTIES' REQUEST IN ACCORDANCE WITH THE AWARD, THE COMPTROLLER GENERAL ISSUED A DECISION. ON THE BASIS OF THE ARBITRATOR'S FINDING THAT PAYMENT OF CONSTRUCTION RATES OF PAY TO TEMPORARY HOURLY OPERATION AND MAINTENANCE EMPLOYEES WAS NOT A LOCALLY PREVAILING PRACTICE, THE COMPTROLLER GENERAL RULED THAT THESE EMPLOYEES "MAY NOT CONTINUE TO BE PAID AT CONSTRUCTION RATES OF PAY." MATTER OF: GRAND COULEE PROJECT OFFICE, B-198590, AUGUST 26, 1981, AT 10 OF DECISION. HOWEVER, NOTING THAT UNDER THE STATUTE HE DID NOT HAVE THE AUTHORITY TO REVIEW ARBITRATION AWARDS, THE COMPTROLLER GENERAL "EXPRESS(ED) NO OPINION ON THE ARBITRATOR'S RULING THAT THE TEMPORARY EMPLOYEES ARE ENTITLED TO BACKPAY AT CONSTRUCTION RATES UNTIL THE DATE OF RECEIPT OF A COMPTROLLER GENERAL DECISION DECLARING SUCH PAYMENTS INVALID." ID. AT 7 OF DECISION.