[ v12 p122 ]
12:0122(33)CA
The decision of the Authority follows:
12 FLRA No. 33 DEPARTMENT OF THE NAVY HEADQUARTERS, NAVAL MATERIAL COMMAND Respondent and NATIONAL FEDERATION OF FEDERAL EMPLOYEES Charging Party Case No. 3-CA-761 DECISION AND ORDER The Administrative Law Judge issued the attached Decision in the above-entitled proceeding, finding that the Respondent had engaged in certain unfair labor practices and recommending that it be ordered to cease and desist therefrom and take certain affirmative action. The Judge further found that the Respondent had not engaged in certain other alleged unfair labor practices and recommended dismissal of the complaint with respect to them. Exceptions to the Judge's Decision were filed by the Respondent, the Charging Party and the General Counsel. 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 recommendations. In adopting the Judge's finding that employees Paul E. Rasmussen and William J. Hancock were not "management officials" within the meaning of section 7103(a)(11) of the Statute, the Authority relies upon its decision in Department of the Navy, Automatic Data Processing Selection Office, 7 FLRA No. 24 (1981), issued after the Judge's Decision herein, which interpreted the statutory definition of "management official" to include those individuals who: (1) create, establish or prescribe general principles, plans or courses of action for an agency; (2) decide upon or settle upon general principles, plans or courses of action for an agency; or (3) bring about or obtain a result as to the adoption of general principles, plans or courses of action for an agency. The Authority concludes that the individuals in question are not involved in any of the foregoing duties, but rather, as found by the Judge, are technical experts providing professional resource information in the Fleet Readiness Branch. ORDER /1/ Pursuant to section 2423.29 of the Federal Labor Relations Authority's Rules and Regulations and section 7118 of the Statute, it is hereby ordered that the Department of the Navy, Headquarters, Naval Material Command, shall: 1. Cease and desist from: (a) Interfering with, restraining, or coercing employees Paul E. Rasmussen and William J. Hancock by directing them not to act on behalf of, or render assistance to, any labor organization because they have been designated as management officials for purposes of coverage under the merit pay provisions of the Civil Service Reform Act of 1978. (b) In any like or related manner interfering with, restraining, or coercing 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 carry out the purposes and policies of the Federal Service Labor-Management Relations Statute: (a) Rescind all orders directing employees Paul E. Rasmussen and William J. Hancock not to act on behalf of, or render assistance to, any labor organization on the ground that they are management officials for purposes of coverage under the merit pay provisions of the Civil Service Reform Act of 1978. (b) Post at its facilities in Arlington, Virginia, 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 an appropriate official of the Department of the Navy, Headquarters, Naval Material Command, 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 insure that said 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., June 2, 1983 Barbara J. Mahone, Chairman Ronald W. Haughton, Member Henry B. Frazier III, 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 interfere with, restrain or coerce employees Paul E. Rasmussen and William J. Hancock by directing them not to act on behalf of, or render assistance to, any labor organization because they have been designated as management officials for purposes of coverage under the merit pay provisions of the Civil Service Reform Act of 1978. WE WILL NOT, in any like or related manner, interfere with, restrain or coerce any of our employees in the exercise of their rights assured by the Statute. WE WILL rescind all orders directing employees Paul E. Rasmussen and William J. Hancock not to act on behalf of, or render assistance to, any labor organization on the ground that they are management officials for purposes of coverage under the merit pay provisions of the Civil Service Reform Act of 1978. . . . 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 for Region III, Federal Labor Relations Authority, whose address is 1111 18th St., NW., Room 700, P.O. Box 33758, Washington, D.C. 20033-0758 and whose telephone number is: (202) 653-8507. -------------------- ALJ$ DECISION FOLLOWS -------------------- Case No.: 3-CA-761 Herbert L. Zipperian, Esq. For the Respondent Sharon Prost, Esquire Peter Robb, Esquire For the General Counsel Bruce P. Heppen, Esquire For the Charging Party Before: LOUIS SCALZO Administrative Law Judge DECISION Statement of the Case This case arose as an unfair labor practice proceeding under the provisions of the Federal Service Labor-Management Relations Statute, 92 Stat. 1191, 5 U.S.C. 7101, et seq., (hereinafter referred to as "the Statute") and the Rules and Regulations issued thereunder. On June 25, 1980, an unfair labor practice complaint was filed by the Regional Director, Region III, Federal Labor Relations Authority, Washington, D.C., against the Department of the Navy, Headquarters, Naval Material Command (Respondent), on behalf of the National Federation of Federal Employees (Charging Party or Union). An amended complaint was filed on October 8, 1980, and on January 6, 1981, the Regional Director entered an order withdrawing paragraphs six and ten of the amended complaint, and the reference to paragraph six contained in paragraph nine of the amended complaint. The amended complaint, as modified by the January 6, 1981 order, alleged that the Respondent through the conduct of its agents violated Sections 7116(a)(1)(2) and (8) of the Statute by issuing memoranda to Mr. William J. Hancock and Mr. Paul E. Rasmussen on October 15, 1979, for the purpose of notifying them that their positions were managerial; by advising them on or about November 1, 1979, that as management officials they were not authorized to act on behalf of the Union in any capacity; and by notifying them in November 8, 1979 memorandums that they should discontinue any activities involving assistance to a labor organization. Counsel for the Respondent argues that both Mr. Rasmussen and Mr. Hancock were, at all times material, management officials within the meaning of Section 7103(a)(11) of the Statute, and that since neither may be classified as an "employee" within the purview of Section 7103(a)(2) of the Statute, the protective provisions of the statute may not be extended to them or the Union. All parties were represented by counsel and were afforded full opportunity to be heard, adduce relevant evidence, and examine and cross-examine witnesses. Post-hearing briefs were received from counsel of record. These have been duly considered. Based upon the entire record herein, including my observations of the witnesses and their demeanor, the exhibits and other relevant evidence adduced at the hearing, and the briefs, I make the following findings of fact, conclusions and recommendations. Findings of Fact The record disclosed that the Respondent employs about 500 civilian in Arlington, Virginia. There is currently no labor organization , certified or recognized to represent civilian employees employed by the Respondent. In the fall of 1979, employees of the Respondent began active organizing efforts on behalf of the Union. These efforts included conducting meetings, preparation of letters to employees, and circulating petitions. Both Mr. Rasmussen and Mr. Hancock were primary participants in these organizing activities. They were then, and on the date of the hearing, both assigned to a segment of the Office of the Assistant Deputy Chief Naval Material for Fleet Readiness and Support, an organizational component under the supervision of the Office of the Deputy Chief of Naval Material Logistics. The latter was, in turn, a component under the jurisdiction of the Chief of Naval Material, a key element under the jurisdiction of the Chief of Naval Operations. By memorandum dated October 15, 1979, Mr. Rasmussen and Mr. Hancock were informed by Mr. Allen I. Barke, Respondent's Civilian Personnel Officer, that they had been designated as management officials under the merit pay provisions of the Civil Service Reform Act of 1978. /2/ The record revealed evidence that both Rasmussen and Hancock always considered themselves to be experts and specialists rather than management officials; and further that prior to the fall of 1979, both had, for training purposes, been classified by a representative of the Respondent as "specialists" rather than as "administrative clerical" or "management/supervisory." (Tr. 16-17). Following receipt of October 15th memoranda designating them as management officials, Rasmussen and Hancock continued their organizing activities on behalf of the Union. However, on November 1, 1979, they were summoned to a meeting in the office of their immediate supervisor, Mr. William P. Emery, III, Head, Fleet Readiness and Support Branch. The meeting was also attended by Mr. Barke, the Civilian Personnel Officer, and his assistant. At the meeting Rasmussen and Hancock were told by Emery and Barke that because they had been designated as management officials they were required to cease their active involvement in Union activities, and that they should cease and desist all activities in furtherance of the formation of a Union. Both Rasmussen and Hancock unsuccessfully questioned the designation at the meeting. Subsequently, memoranda dated November 8, 1979, addressed to Rasmussen and Hancock by Emery, formalized oral instructions conveyed on November 1, 1979. The memoranda included the following statement: The Deputy Director, Civilian Personnel Law, has expressed an opinion that since you are the incumbent of a position identified as "Managerial", you do not have the right to form, join, or assist any labor organization. Therefore, you are hereby directed to discontinue any activities aimed at forming or assisting a labor organization. (G.C. Exh. 6). Both Rasmussen and Hancock ceased their organizing activities on behalf of the Union following receipt of the November 8, 1979 communications. The work responsibilities of both Rasmussen and Hancock relate to the Department of the Navy Maintenance and Material Management System, more commonly referred to as the "Ships' 3-M Systems," or "3-M System." This is a large computer based management information system created in 1966 for the purpose of providing information about equipment and systems aboard ships. The information is used by personnel aboard ships and on shore to manage maintenance, and to facilitate equipment design and the supply of spare parts. The organization and responsibilities for the 3-M System are outlined in an April 30, 1979, Chief of Naval Operations Instruction (G.C. Exh. 7). The Instruction provides specifically that the 3-M System operates "under the policy guidance provided by the CNO (Chief of Naval Operations)." The CNO has responsibility for, among other things, "(d)eveloping and implementing the overall policy governing the management of the 3-M Systems." Below the CNO, organizationally, are a 3-M Systems Coordinating Group and a Policy Committee whose membership consists of high level agency officials. The Coordinating Group considers and studies proposals for improvement of the 3-M Systems for presentations to the Policy Committee. The Policy Committee, in turn, "submits recommendations to the CNO on the continued refinement, operation and use of the Ships' 3-M Systems." Below the CNO and the Coordinating Group and Policy Committee, is the Chief of Naval Material. The Chief of Naval Material is the head of Headquarters, Naval Material Command, the Respondent herein. The Chief of Naval Material, pursuant to Navy Instructions, has "overall responsibility for development, coordination and maintenance of the Ships' 3-M Systems." More specifically, the Chief of Naval Material is responsible "for providing instructions and technical directions for the management of the Ships' 3-M Systems consistent with the policy established by CNO and the requirements of Fleet (Commanders) . . . ." Six supervisory layers are placed between Rasmussen and Hancock and the Chief of Naval Material under the organizational chain of command. They are Vice Chief of Naval Material, Deputy Chief of Naval Material Logistics, Assistant Deputy Chief of Naval Material Logistics, Assistant Deputy Chief Naval Material for Fleet Readiness and Support, Deputy to the Assistant Deputy Chief of Naval Material for Fleet Readiness and Support, and lastly Head of Fleet Readiness Branch, William Emery. The Fleet Readiness Branch is staffed by Rasmussen, Hancock, one other professional, and one clerical employee. No one is below them organizationally and neither Rasmussen nor Hancock performs supervisory responsibilities. (Tr. 25-26, 53-54). Although Mr. Rasmussen is a program analyst, GS-345-14 and Mr. Hancock a general engineer GS-801-14, the types of duties and responsibilities which they perform are markedly similar, although the specific work performed varies according to the specialized technical expertise of each employee. /3/ The primary work function of both Rasmussen and Hancock relates to the review and preparation of draft responses from the Naval Material Command to the Chief of Naval Operations concerning the technical feasibility of suggestions contained in incoming correspondence relating to the 3-M System. This correspondence may suggest a technical improvement, a change in procedures, or request information. The correspondence typically comes from users of the System. Correspondence comes into the Naval Material Command at organizational levels above Rasmussen and Hancock and frequently, when these employees receive it, they also receive guidance from their superiors as to whether or not their draft response should favor the suggestion contained in the correspondence. When Rasmussen or Hancock receive these suggestions, they review and comment on technical feasibility. In order to do so, they will often contact relevant technical experts or interested parties to obtain their views for incorporation into the draft responses prepared. In other cases, they may rely on the documentation from previously reviewed similar cases or on their knowledge of Navy instructions. Once the draft response commenting on the technical feasibility of the suggestion recommended or answering the question presented has been prepared by Rasmussen or Hancock, it is reviewed by their immediate supervisor and then, by at least several supervisory levels above them. Drafts are usually revised by officials operating at organizational levels above them. /4/ Responses are signed off by someone three or more levels above Rasmussen and Hancock organizationally. When procedural changes being considered are not minor in nature, they are typically reviewed by the 3-M System Coordinating Group and Policy Committee, described above. Neither Mr. Rasmussen nor Mr. Hancock has ever participated in a 3-M System Policy Committee meeting. Rasmussen has, on occasion, attended 3-M System Coordinating Group meetings. The purpose and extent of his participation has been to familiarize him with a subject being discussed, or to provide the Coordinating Group with his technical expertise in certain areas. Hancock has attended one Coordinating Group meeting as an observer. Rasmussen and Hancock each spend approximately seventy percent of their time performing duties of the type described. The types of tasks performed during the time remaining are much more varied. Rasmussen, for example, spends approximately thirty percent of his time identifying data requirements or changes in functional descriptions for the 3-M System as part of the Navy's efforts in redesigning this computer system. Rasmussen's role is to serve as a facilitator in obtaining comments on proposed data requirements. Hancock's other duties are more varied. For example, he spends approximately five percent of his time coordinating financial matters that come into the Branch. His responsibility in this regard is to coordinate the review of budget documents by persons in his office and send the material on to others. Other work was described as being similar in nature to that outlined herein. Discussion and Conclusions Section 7103(a)(2) of the Statute provides that the term "employee" does not include "a management official." Section 7103(a)(11) of the Statute provides: '(M)anagement official' means an individual employed by an agency in a position the duties and responsibilities of which require or authorize the individual to formulate, determine, or influence the policies of the agency. In U.S. Army Communications Systems Agency, Fort Monmouth, New Jersey, 4 FLRA No. 83 (November 12, 1980), the Authority determined that the mere performance of duties as an expert or professional rendering resource information or recommendations with respect to policies would not justify classification as a management official within the meaning of Section 7103(a)(11); and further that there must be a finding that duties and responsibilities involved extend to the point of active participation in the ultimate determination as to what policy will be. A careful examination of the actual work performed by Mr. Rasmussen and Mr. Hancock discloses that neither formulates, determines, or influences the policies of the Respondent. They both work as experts providing professional resource information in the Fleet Readiness Branch, which is situated under a number of organizational layers having review authority over their work activity. The procedure pursued by both in developing correspondence and messages indicates that they are not in a position to participate actively in ultimate determinations of policy. Such determinations are made at higher levels in the Respondent's organizational structure, or at the Chief of Naval Operations level. Accordingly, there being no other impediment to their inclusion within the "employee" classification, it must be concluded that both Rasmussen and Hancock are employees within the meaning of Section 7103(a)(2) of the Statute. The Authority has held that an agency would "act at its own peril in removing an employee from an established bargaining unit simply because of a determination that such an employee is a supervisor or management official for merit pay purposes," and further that the unfair labor practice procedures of the Statute would be applicable in an appropriate case to remedy such removal. Interpretation and Guidance, Case No. 0-PS-15, 4 FLRA No. 99 (December 16, 1980). It follows that an agency would act at its peril by precluding any "employee," within the meaning of the Statute, from engaging in protected activity because of a determination that such employee is a supervisor or management official for merit pay purposes. The Authority's Interpretation and Guidance in 4 FLRA No. 99, reflects that a determination by an agency that an employee is a supervisor or management official for purposes of coverage under the merit pay provisions of the Civil Service Reform Act of 1978, would not, without more, constitute an unfair labor practice. The Authority also concluded that it was "not within the jurisdiction of the Authority to make determinations as to whether an individual is a supervisor or management official" for merit purposes. /5/ Counsel for the Charging Party takes issue with the mentioned conclusions set out in the Authority's Interpretation and Guidance. The undersigned is bound to follow them. However, this is not a case involving a mere determination that an employee is a management official for purposes of coverage under the merit pay provisions of the Civil Service Reform Act. The Respondent's answer admits that agents of the Respondent directed Rasmussen and Hancock not to act on behalf of the Union in any capacity and to discontinue any activities involving assistance to a labor organization. Since Rasmussen and Hancock were employees within the meaning of the Statute, such conduct clearly constitutes a showing by a preponderance of the evidence that the Respondent interfered with, restrained and coerced these two employees in the exercise of employee rights guaranteed to them in Section 7102 of the Statute. Accordingly, there has been a showing that the Respondent violated Section 7116(a)(1). Section 7116(a)(2) of the Statute provides that, "it shall be an unfair labor practice for an agency . . . to encourage or discourage membership in any labor organization by discrimination in connection with hiring, tenure, promotion, or other conditions of employment." The record here in no way reflects that the Respondent discouraged membership in a labor organization "by discrimination." Even assuming that the Respondent's administrative act of designating these employees as management officials affected the terms and conditions of their , employment, the record is devoid of any showing of discriminatory motive associated with the designation. No evidence was introduced to show that the Respondent's designation of these employees as management officials was made in bad faith or with animus. It appeared that the decision was made with the understanding (albeit erroneous) that their duties and responsibilities fell within the purview of the definition of "management official" in Section 7103(a)(11). In this context it would not be possible to find that Respondent's issuance of orders prohibiting Union activity constituted disparate treatment as a result of protected activity. The absence of such a showing precludes a determination that Section 7116(a)(2) has been violated. Department of the Treasury, Internal Revenue Service and IRS Richmond District Office, 3 FLRA No. 3 (April 4, 1980); Naval Air Station, Jacksonville, Florida, 2 FLRA No. 68 (January 25, 1980); Department of Health, Education and Welfare, Social Security Administration, Great Lakes Program Service Center, Chicago, Illinois, 2 FLRA No. 12 (November 29, 1979). /6/ Accordingly, it is concluded that the facts fail to reflect a violation of Section 7116(a)(2) of the Statute. Although counsel representing the General Counsel and counsel representing the Charging Party argue that Respondent violated Section 7116(a)(8) of the Statute by reason of Respondent's denial of rights guaranteed by Section 7102, it is noted that it is unnecessary to determine this issue since even assuming the applicability of Section 7116(a)(8) to the factual situation herein, no useful purpose would be served by such a finding, since the questioned conduct is already adequately remedied by provisions of the recommended Order herein. Defense Logistics Agency, 5 FLRA No. 21, (February 12, 1981). Having found that the Respondent violated Section 7116(a)(1) of the Statute, it is recommended that the Authority issue the following Order: ORDER 1. Cease and desist from: (a) Interfering with, restraining or coercing, employees Paul E. Rasmussen and William J. Hancock by directing them not to act on behalf of, or render assistance to, any labor organization because they have been designated as management officials. (b) In any like or related manner, interfering with, restraining, or coercing 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 carry out the purposes and policies of the Federal Service Labor-Management Relations Statute: (a) Rescind all orders directing employees Paul E. Rasmussen and William J. Hancock not to act on behalf of, or render assistance to, any labor organization on the ground that they are management officials. (b) Post at its facilities in Arlington, Virginia, copies of the attached notice marked "Appendix" on forms to be furnished by the Federal Labor Relations Authority. Upon receipt of such forms they shall be signed by the Chief, Naval Material, Headquarters, Naval Material Command, and shall be posted and maintained for 60 consecutive days thereafter in conspicuous places, including all bulletin boards and other places where notices are customarily posted. Reasonable steps shall be taken to insure that said notices are not altered, defaced, or covered by any other material. (c) Notify the 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. LOUIS SCALZO Administrative Law Judge Dated: April 22, 1981 Washington, D.C. APPENDIX 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 rescind all orders directing employees Paul E. Rasmussen and William J. Hancock not to act on behalf of, or render assistance to, any labor organization on the ground that they are management officials. WE WILL NOT interfere with, restrain, or coerce employees by directing them not to act on behalf of, or render assistance to, any labor organization because they have been designated as management officials. 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. (Agency or Activity) (Signature) 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 any of its provisions, they may communicate directly with the Regional Director of the Federal Labor Relations Authority, Region 3, whose address is 1133 15th Street, N.W., Suite 300, Washington, D.C. 20005, and whose telephone number is: (202) 653-8452. --------------- FOOTNOTES$ --------------- /1/ The Authority has amended the Judge's recommended Order to clarify that the Respondent may not direct employees to refrain from acting for or assisting a labor organization merely because they have been designated as "management officials" for merit pay purposes under Title V of the Civil Service Reform Act of 1978. /2/ 5 U.S.C.Chapter 54. /3/ Mr. Hancock was also a program analyst until 1976 when his classification was changed to that of a general engineer. /4/ Mr. Rasmussen's testimony established that he did not have drafts typed until Mr. Emery reviewed them. Hancock testified that since 1975, he had to rewrite all but five of the letters which he prepared as a result of the process of review utilized by his superiors. /5/ The Interpretation and Guidance explains the role of agencies and the Authority as follows: Determinations as to an individual's supervisory or management status made under titles V and VII of the Civil Service Reform Act are related to the extent that those who administer the respective separate titles utilize the same definitions of supervisor and management official. However, determinations under title V of status as a supervisor or management official for merit pay purposes does not confer supervisory or managerial status under Title VII. Since it is not within the jurisdiction of the Authority to determine whether an individual is a supervisor or management official for merit pay purposes under title V, it follows that it is outside the jurisdiction of the Authority to direct agencies to follow the binding determinations of the Authority as to whether an individual is a supervisor or management official under title VII when agencies are implementing the merit pay provisions of title V. /6/ In the light of authority developed under Executive Order 11491, it is determined that animus need not be present to support a finding of an independent violation of Section 7116(a)(1) of the Statute. Naval Air Rework Facility, Marine Air Station, Cherry Point, North Carolina, 1 FLRA No. 85 (July 17, 1979).