[ v21 p1092 ]
21:1092(125)CA
The decision of the Authority follows:
21 FLRA No. 125 DEPARTMENT OF DEFENSE DEPENDENTS SCHOOLS SYSTEM Respondent and OVERSEAS EDUCATION ASSOCIATION Charging Party Case No. 31-CA-40176 DECISION AND ORDER I. Statement of the Case This unfair labor practice case is before the Authority based on the Regional Director's "Order Transferring Case to the Authority" in accordance with section 2429.1(a) of the Authority's Rules and Regulations. The complaint alleged that the Respondent violated section 7116(a)(1) and (5) of the Federal Service Labor-Management Relations Statute (the Statute) by repudiating the parties' collective bargaining agreement which provides for payment of certain travel and per diem expenses, thereby failing to bargain in good faith with the Charging Party. II. Background The parties' collective bargaining agreement, which was negotiated in 1977 and continues in full force and effect, contains the following provisions relating to the payment of travel and per diem expenses which are the subject of this case: Article 10 - Association Management Deliberations The (Union's) Area Director shall be in duty status during such deliberations in accordance with Article 8, Section 2 and shall receive transportation and per diem at government expense in accordance with the JTR. The Area Director may be accompanied and assisted for such deliberations by no more than three teachers in duty status and receiving transportation and per diem at government expense in accordance with the JTR. Article 13 - Grievance Procedure /1/ All Participants, including witnesses, in the hearing shall be in a duty status and, in the event the hearing is not held at a site within commuting distance, participants, including witnesses, shall be provided transportation in accordance with the JTR, Vol. II. Under these provisions, the Respondent paid the travel and per diem expenses of its employees who were the Charging Party's representatives at deliberations and of bargaining unit employees at arbitration hearings. This practice existed since at least 1977. On February 21, 1984, the Respondent notified the Charging Party that effective on March 10, 1984, it would no longer make the payments for travel and per diem expenses required by Articles 10 and 13 of the parties' agreement. This action was based upon the Respondent's view that Articles 10 and 13 were not in compliance with law and that decisions concerning whether or not to pay travel and per diem expenses would be made solely by management. III. Positions of the Parties The Respondent argues that the Authority lacks jurisdiction to resolve the issues raised in the complaint because reimbursement for travel and per diem expenses is covered by Section 5702 of the Travel Expense Act, 5 U.S.C. Sections 5701, et seq., not the Statute; that implementation of the United States Supreme Court's decision in Bureau of Alcohol, Tobacco and Firearms (BATF) v. FLRA, 464 U.S. 89 (1983), on the matter of payment for travel and per diem expenses, as applicable to this case, is subject to the parties' contractual grievance procedure and not to the unfair labor practice procedures of the Statute; and that there can be no repudiation of contractual rights or privileges where none exist, which is the case here. The Respondent further argues that the mere announcement of an intention to no longer pay travel and per diem expenses without any actual denial of such payments is not a violation of the Statute, and that it did not unlawfully refuse to bargain. The General Counsel's position, as set forth in the complaint, is that the Respondent unilaterally repudiated the parties' collective bargaining agreement and thereby failed and refused to negotiate in good faith with the Charging Party. /2/ IV. Analysis As to the Respondent's first contention to the effect that the Authority lacks jurisdiction under the Statute to address payment of travel and per diem expenses, the Authority notes its recent decision in National Treasury Employees Union and Department of the Treasury, U.S. Customs Service, 21 FLRA No. 2 (1986), petition for review filed sub nom. Department of the Treasury, U.S. Customs Service v. FLRA, No. 86-1198 (D.C. Cir. Mar. 27, 1986). In that case, the Authority found that the Travel Expense Act, 5 U.S.C. Sections 5701, et seq., does not specifically address payment of travel expenses incurred by employees engaged in labor-management activity. Therefore, the Respondent's contention that the Authority lacks jurisdiction to resolve the issues raised in the complaint because they are covered by the Travel Expense Act is without merit. The answer to the Respondent's second contention, that the issues raised in this case are subject to the parties' contractual grievance procedure rather than to the unfair labor practice procedures of the Statute, is that we are here presented with an alleged repudiation of the agreement rather than with differing and arguable interpretations of that agreement. It is entirely appropriate to resolve this issue in an unfair labor practice proceeding. See, for example, American Federation of Government Employees, Local 1923, AFL-CIO, 20 FLRA No. 88 (1985). As to the substantive issues raised by the complaint and the Respondent's further contentions addressing those issues, the Authority concludes that the announced intention to no longer make payments of travel and per diem expenses was an unlawful repudiation of the parties' agreement, as explained below. As already noted, the parties had negotiated for the payment of travel and per diem expenses and had included those provisions in their collective bargaining agreement. Under these provisions, payment of travel and per diem expenses was made by the Respondent for its employees who represented the Charging Party at deliberations with Agency management, as well as for bargaining unit employees at arbitration hearings. At the time that the Respondent notified the Charging Party that the payments would no longer by made under the terms of the agreement but would be based solely upon a decision by management, the United States Supreme Court had rendered its decision in Bureau of Alcohol, Tobacco and Firearms (BATF) v. FLRA, 464 U.S. 89 (1983), finding that section 7131(a) of the Statute did not entitle employees on official time to the payment of travel and per diem expenses. However, the Court added in footnote 17 of its decision that "unions may presumably negotiate for such payments in collective bargaining as they do in the private sector." 464 U.S. at 107. Following that decision, the Authority decided in National Treasury Employees Union and Department of the Treasury, U.S. Customs Service, supra, that a union's proposal which would require an agency to pay travel and per diem expenses incurred by employees using official time, while not an entitlement under the Statute, is within the duty to bargain as it is not inconsistent with law or Government-wide regulation. In reaching its decision, the Authority found that agencies have discretion to determine whether and under what circumstances travel related to labor-management relations activities is sufficiently within the interest of the United States so as to constitute official business for which employees may receive appropriate expenses from Federal funds and, further, that the exercise of such discretion is subject to negotiation. Therefore, parties may mutually decide what labor relations activities are sufficiently within the interest of the United States so that payment of travel and per diem expenses may be made. Within these negotiated parameters, however, determinations as to the appropriateness of specific travel and per diem expenses which are necessary and proper under law and governing regulation would have to be made on a case-by-case basis. /3/ In this case, the provisions authorizing the payment of travel and per diem expenses had been negotiated by the parties and incorporated into the terms of their agreement. The parties therefore were obligated to adhere to those provisions during the term of their agreement which, as previously noted, the parties stipulated has continued in full force and effect. Internal Revenue Service, 17 FLRA 731, 734 (1985), petition for review filed sub nom. National Treasury Employees Union v. FLRA, No. 85-1361 (D.C. Cir. June 14, 1985). The Respondent has not shown that the provisions of Articles 10 and 13 are inconsistent with law and regulation; rather, we note that payment for travel and per diem expenses is within the duty to bargain. The Respondent's announced intention to no longer make payments for travel and per diem expenses in accordance with the contractually agreed-upon provisions therefore constituted a repudiation of the agreement which was inconsistent with the Respondent's good-faith bargaining obligation in violation of the Statute. See Adjutant General, State of Ohio, Ohio Air National Guard, Worthington, Ohio, 21 FLRA No. 124 (1986). V. Conclusion The Authority finds that the Respondent repudiated the parties' collective bargaining agreement providing for payment of travel and per diem expenses, and thereby failed to bargain in good faith with the Charging Party in violation of section 7116(a)(1) and (5) of the Statute. To remedy this unfair labor practice, we shall order the Respondent to abide by the terms of the 1977 agreement and to pay travel and per diem expenses to all bargaining unit employees who submit or previously submitted appropriate claims for such payments under the terms of Articles 10 and 13 of the parties' collective bargaining agreement. Of course, such payments must be consistent not only with the terms of the parties' collective bargaining agreement, /4/ but also with law and regulation, including the Federal Travel Regulations. ORDER Pursuant to section 2423.29 of the Federal Labor Relations Authority's Rules and Regulations and section 7118 of the Statute, it is ordered that the Department of Defense Dependents Schools System shall: 1. Cease and desist from: (a) Repudiating the terms of Articles 10 and 13 of the 1977 collective bargaining agreement negotiated with the Overseas Education Association, the exclusive representative of its employees, which provides for the payment of travel and per diem expenses, thereby failing and refusing to bargain in good faith with the Overseas Education Association. (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) Comply with the 1977 collective bargaining agreement negotiated with the Overseas Education Association, which provides in Articles 10 and 13 for the payment of travel and per diem expenses to representatives of the Overseas Education Association at deliberations, and unit employees at arbitration hearings. (b) Pay travel and per diem expenses to all bargaining unit employees who submit or previously submitted appropriate claims for such payments under the terms of Articles 10 and 13 of the 1977 collective bargaining agreement, to the extent that such payments are consistent with the terms of the collective bargaining agreement and law and regulation, including the Federal Travel Regulations. (c) Post at its facilities where bargaining unit employees represented by the Overseas Education Association are located, 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 Director, or a 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. (d) 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 with it. Issued, Washington, D.C., May 30, 1986. /s/ Jerry L. Calhoun, Chairman /s/ Henry B. Frazier III, Member FEDERAL LABOR RELATIONS AUTHORITY --------------- FOOTNOTES$ --------------- (1) This provision addresses attendance at arbitration hearings. Although it does not specifically reference payment of per diem expenses, the parties' stipulation indicates that such payment is encompassed by the provision. (2) The General Counsel's brief was untimely filed and therefore has not been considered. (3) See National Treasury Employees Union and Department of the Treasury, U.S. Customs Service, 21 FLRA, No. 2 (1986), slip op. at pp. 6-7; see also American Federation of Government Employees, AFL-CIO, National Council of Federal Grain Inspection Locals and U.S. Department of Agriculture, Federal Grain Inspection Service, 21 FLRA No. 21 (1986) and National Treasury Employees Union and Department of the Treasury, Internal Revenue Service, 21 FLRA No. 19 (1986), in which the Authority found proposals authorizing payment of various travel and per diem expenses to be within the duty to bargain. (4) We note in this regard that the language of Articles 10 and 13 reference that payment will be in accordance with the Joint Travel Regulations. 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 NOT repudiate the terms of Articles 10 and 13 of the 1977 collective bargaining agreement negotiated with the Overseas Education Association, the exclusive representative of our employees, which provides for the payment of travel and per diem expenses, thereby failing and refusing to bargain in good faith with the Overseas Education Association. 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 comply with the 1977 collective bargaining agreement negotiated with the Overseas Education Association, which provides in Articles 10 and 13 for the payment of travel and per diem expenses to representatives of the Overseas Education Association at deliberations, and unit employees at arbitration hearings. WE WILL pay travel and per diem expenses to all bargaining unit employees who submit or previously submitted appropriate claims for such payments under the terms of Articles 10 and 13 of the 1977 collective bargaining agreement, to the extent that such payments are consistent with the terms of the collective bargaining agreement and law and regulation, including the Federal Travel Regulations. (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, 1111 18th Street, N.W., Room 700 (P.O. Box 33758), Washington, D.C. 20033-0758, and whose telephone number is: (202) 653-8500.