[ v25 p987 ]
25:0987(83)NG
The decision of the Authority follows:
25 FLRA No. 83 AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES LOCAL NO. 12 Union and U.S. DEPARTMENT OF LABOR Agency Case No. 0-NG-981 DECISION AND ORDER ON NEGOTIABILITY ISSUES I. Statement of the Case This case is before the Authority because of a negotiability appeal filed under section 7105(a)(2)(E) of the Federal Service Labor-Management Relations Statute (the Statute), and concerns the negotiability of seven Union proposals. II. Procedural Issues The Agency contends that the petition for review should be dismissed because the Union did not provide an explicit statement of the meaning to be given to the disputed proposals. The Union did not file a response. With the exception of Proposal 5, we find that the meaning of the proposals is clear and that the petition complies with the Authority's Rules and Regulations. See American Federation of Government Employees, AFL-CIO, Local 3004 and Department of the Army and Air Force, National Guard Bureau, 15 FLRA 270, at n.1 (1984). Our reasons for finding that Proposal 5 is not sufficiently clear for us to decide its negotiability are fully set forth in the analysis of that proposal. The Agency also asserts that it has no duty to bargain concerning Proposals 1, 3, 4, 5, 6 and 7 because they are governed by provisions in the parties' Agreement and/or by Agency regulations which have already been negotiated and incorporated into the Agreement. Because of the claimed existence of threshold issues concerning the duty to bargain the Agency contends that the Authority has no jurisdiction to decide the negotiability issues in this case. This contention cannot be sustained. Under section 7117(c) of the Statute, a union is entitled to a decision by the Authority as to whether a proposal is negotiable under the Statute, despite the existence of other issues in the case, for example, an alleged conflict between a proposal and a controlling agreement. American Federation of Government Employees, Local 2736 v. FLRA, 715 F.2d 627, 631 (D.C. Cir. 1983). Moreover, the record in this case does not provide any basis upon which to substantiate the Agency's assertions that the proposals are governed by provisions in the parties' Agreement. To the extent that there are factual issues regarding the duty to bargain in the specific circumstances of this case, such as whether the disputed proposals have already been bargained between the parties, these issues should be resolved in other appropriate proceedings. See American Federation of Government Employees, AFL-CIO, Local 2736 and Department of the Air Force, Headquarters 379th Combat Support Group (SAC), Wurtsmith Air Force Base, Michigan, 14 FLRA 302, 306 n.6 (1984). Thus, the Union's proposals in this case are properly before us under section 7105(a)(2)(E) and section 7117(c) of the Statute. III. Preliminary Discussion Concerning "Appropriate Arrangements" Under Section 7106(b)(3) In National Association of Government Employees, Local R14-87 and Kansas Army National Guard, 21 FLRA No. 4 (1986), the Authority adopted the "excessive interference" test set forth in American Federation of Government Employees, AFL-CIO, Local 2782 v. FLRA, 702 F.2d 1183 (D.C. Cir. 1983), for determining whether a proposal constitutes a negotiable "appropriate arrangement" under section 7106(b)(3) of the Statute. The Authority also stated that in order for a proposal to be considered under section 7106(b)(3) the union must first show that employees have been or will be adversely affected by an exercise of a management right and that its proposal is intended to mitigate against those adverse effects. In American Federation of State, County, and Municipal Employees, Local 3097 and Department of Justice, 24 FLRA No. 49 (1986), it was stated that in cases filed before Kansas Army National Guard, like this case, the Authority will examine the record to determine whether any adverse effects have been identified or whether such effects are reasonably foreseeable based upon the nature of the matter in dispute. We have consistently considered proposals relating to the effect of a reduction-in-force (RIF) on employees under section 7106(b)(3) because the adverse effect on employees of a RIF action is clear. See, for example, International Plate Printers, Die Stampers and Engravers Union of North America, AFL-CIO, Local 2 and Department of the Treasury, Bureau of Engraving and Printing, Washington, D.C., 25 FLRA No. 9 (1987) and National Treasury Employees Union and Department of Energy, 24 FLRA No. 52 (1986). For that reason, because the proposals at issue here concern union attempts to mitigate against the adverse effect on employees of a RIF, reorganization, or downgrading, we will consider the negotiability of these proposals under section 7106(b)(3) of the Statute, where necessary. IV. Proposal 1 Section 1: All positions throughout the National Office of the Department of Labor will be frozen pending placement of all employees at ETA adversely affected by the RIF, reorganization, downgrading (RRD). A. Position of the Agency The Agency contends that Proposal 1 is not negotiable because it conflicts with the Agency's rights under section 7106(a) and because it involves a permissive subject of bargaining under section 7106(b)(1) of the Statute concerning which the Agency has elected not to bargain. B. Analysis 1. Effect of the Proposal on Management's Rights Proposal 1 requires the imposition of a freeze on the filling of all vacancies throughout the Agency's National Office until all employees adversely affected by a RIF, reorganization, or downgrading (RRD) have been placed. It is not clear from the record whether the proposed freeze is to take effect before or after the effective date of a RIF, reorganization, or downgrading. When the freeze takes effect, however, is irrelevant, because in either situation the proposal requires management to act in a manner inconsistent with its reserved rights under section 7106 of the Statute. As to the freeze itself, there is nothing in the express language of the proposal or in the record before us which indicates that the Agency would be able to hire an employee from outside the bargaining unit to fill a vacancy in the National Office even if none of the employees affected by the RRD qualified for that vacancy. That is, the proposal imposes an absolute and indefinite freeze on filling positions until all affected employees are in some manner placed, regardless of their qualifications or the availability of vacancies for which they would be eligible. This proposal is to the same effect, therefore, as the proposal found nonnegotiable in National Federation of Federal Employees, Local 1332 and Headquarters, U.S. Army Materiel Development Command, Alexandria, Virginia, 3 FLRA 611 (1980). The proposal in that case would have precluded the agency from hiring new employees of the requisite types, at the requisite grades, and in the necessary numbers to meet changes in the agency's mission requirements unless an exception was granted by a joint labor-management board. The Authority held that the proposal required negotiation on a matter which is directly and integrally related to the numbers and types of employees to be employed, a matter about which an agency may elect not to negotiate under section 7106(b)(1) of the Statute. Thus, based on U.S. Army Materiel Development Command, the proposal in this case also is integrally related to management's right under section 7106(b)(1) to determine the numbers, types, and grades of employees to be assigned to an organizational subdivision; that is, the National Office. Because the Agency has elected not to bargain on Proposal 1, it is outside the Agency's duty to bargain. The proposal is distinguishable from the proposal found negotiable in National Treasury Employees Union and Department of Energy, 24 FLRA No. 52 (1986) (Chairman Calhoun concurring in the result). The proposal in that case would not have prevented the agency from hiring additional employees from outside the unit when there are no eligible employees within the unit. Moreover, Proposal 1 requires that before management could even contemplate filling vacancies in the National Office, either before or after the effective date of a RRD, management would first be required to place, that is, assign, all employees affected by the RRD. By thus requiring management to place affected employees, the proposal directly interferes with management's right under section 7106(a)(2)(A) to assign employees in the agency. See American Federation of Government Employees, AFL-CIO, Local 1858 and Department of the Army, U.S. Army Missile Command, Redstone Arsenal, Alabama, 10 FLRA 440, 443-44 (1982). In this circumstance, the proposal would condition the exercise of management's right under section 7106(b)(1) to determine the numbers, types, and grades of employees assigned to an organizational subdivision on the prior exercise of its right under section 7106(a)(2)(A) to assign employees. In so doing, Proposal 1 would interfere with those rights both individually and collectively. See, for example, American Federation of Government Employees, AFL-CIO, Local 12 and Department of Labor, 18 FLRA No. 58 (1985) (Proposal 2). Finally, if the proposal is also interpreted to require that vacancies in the National Office be filled with employees affected by a RRD, either before or after the effective date of a RIF, the proposal would interfere with management's right under section 7106(a)(2)(C) of the Statute to fill or not to fill positions and to select from any appropriate source. Similarly, to the extent that the proposal would apply outside the context of a RIF, the proposal is inconsistent with Requirement 4 of Federal Personnel Manual, Chapter 335, Subchapter 1-4 because the proposal requires management to fill vacant positions through reassignment of affected employees. The proposal dictates the source from which the Agency must select candidates to fill those vacant positions, in conflict with the discretion provided management under the Government-wide regulation. Compare National Treasury Employees Union and Department of Energy, 24 FLRA No. 52 (1986), slip op. at 4, with the Decision and Order on Remand in American Federation of Government Employees, AFL-CIO, Local 2782 and Department of Commerce, Bureau of the Census, Washington, D.C., 14 FLRA 801 (1984), affirmed sub nom. AFGE, Local 2782 v. FLRA, 803 F.2d 737 (1986). 2. Whether the Proposal is Negotiable as An "Appropriate Arrangement" Under Section 7106(b)(3) We find that Proposal 1 does not constitute an "appropriate arrangement" within the meaning of section 7106(b)(3). To the extent that the proposal would mitigate against the adverse effect on employees of a RIF, or a reorganization or downgrading in the context of a RIF, by requiring reassignment of all affected employees, it would completely eliminate management's discretion as to whether to reassign those employees, as well as its discretion to decide how many or which employees to reassign, or whether the employees to be reassigned were qualified for the vacant positions. In essence, therefore, this proposal would completely abrogate management's right to assign employees. Proposals which totally abrogate the exercise of a management right excessively interfere with that right and do not constitute "appropriate arrangements." See American Federation of Government Employees, AFL-CIO, Local 3186 and Department of Health and Human Services, Office of Social Security Field Operations, Philadelphia Region, 23 FLRA No. 30 (1986) (Proposal 1); Federal Union of Scientists and Engineers and Department of the Navy, Naval Underwater Systems Center, 22 FLRA No. 83 (1986). To the extent that the proposal concerns a reorganization or downgrading outside the context of a RIF, even if in this respect it were found to be an "appropriate arrangement" under section 7106(b)(3), it would nevertheless be barred by an applicable Government-wide regulation. See Bureau of the Census, 14 FLRA 801 (1984). C. Conclusion For the reasons and cases discussed above, we conclude that Proposal 1 is outside the duty to bargain. V. Proposal 2 Section 8: All personnel actions (new hires, transfers, etc.) from June 30, 1983 on, shall be terminated. The employees shall be returned to their previous employment status. A. Position of the Agency The Agency argues that Proposal 2 is nonnegotiable because it interferes with management's rights to hire, assign and direct employees under section 7106(a)(2) of the Statute. B. Analysis and Conclusions 1. Effect of the Proposal on Management's Rights This proposal would require the Agency to undue all hiring and assignment actions taken after a specified date and reassign affected employees to their previous positions. The proposal is nonnegotiable. Just as management may not be prevented through negotiation from hiring persons from outside the agency or from reassigning employees to positions within the agency, National Treasury Employees Union and Department of the Treasury, 21 FLRA No. 113 (1986) (assign), management may not be required through negotiation to undo a hiring or assignment action once that action has been taken. The substantive effect on management's rights is the same in either case, namely, the negation of the exercise of the right. Compare American Federation of Government Employees, AFL-CIO, Local 1858 and Department of the Army, U.S. Army Missile Command, Redstone Arsenal, Alabama, 10 FLRA 440, 443-44 (1982) (proposal requiring management to hire or assign employees with specified qualifications held inconsistent with management's rights to hire and assign or to decide not to take such actions). By requiring the reversal of hiring and assignment actions taken after a certain date, Proposal 2 directly interferes with management's rights under section 7106(a)(2)(A) to hire persons from outside the Agency and to assign employees within the Agency. 2. Whether the Proposal is Negotiable as An Appropriate Arrangement Under Section 7106(b)(3) When read in conjunction with Proposal 1, Proposal 2 appears to be intended to free up positions which had been filled after the specified date so as to make them available during the proposed freeze for reassignment of employees adversely affected by a RIF, reorganization or downgrading. That is, the proposal seeks to mitigate against foreseeable adverse effects on employees by creating vacant positions. We find, therefore, that it is intended to be an "arrangement" for employees adversely affected by management's decision to conduct a RIF, to reorganize, or to downgrade employees. As to whether Proposal 2 is an "appropriate" arrangement, in attempting to undo previous management actions, it has an effect similar to the proposal at issue in National Federation of Federal Employees, Local 1945 and U.S. Department of the Interior, Bureau of Land Management, 25 FLRA No. 55 (1987). In that case, the proposal required the agency to reverse its decision to operate only one shift. We held that because the proposal in that case would completely reverse the substantive effect of a management decision under section 7106 it did not constitute an appropriate arrangement under section 7106(b)(3). See also National Association of Government Employees, Local R7-23 and Department of the Air Force, Scott Air Force Base, Illinois, 23 FLRA No. 97 (1986) (Proposal 3). Similarly, because Proposal 2 here would completely reverse management's actions in hiring and assigning it is not an "appropriate" arrangement within the meaning of section 7106(b))3) of the Statute. Proposal 2, therefore, is outside the Agency's duty to bargain. VI. Proposal 3 Section 9: Part-time positions shall be impacted at a percentage rate equal to full time permanent positions. A. Position of the Agency The Agency asserts that Proposal 3 is nonnegotiable because it conflicts with 5 C.F.R. Section 351.403(b)(4). The Agency also contends that the proposal is nonnegotiable because it would affect the numbers and types of positions assigned to an organizational unit and therefore concerns a permissive subject of bargaining under section 7106(b)(1) of the Statute, over which the Agency has elected not to bargain. B. Analysis and Conclusions 1. Effect of the Proposal on Management's Rights We find Proposal 3 to be nonnegotiable on a different ground from those alleged by the Agency. Specifically, this proposal would require the Agency to layoff a certain number of employees in order to assure that, in the event of a RIF, reorganization or employee downgrading, full-time positions are affected at a percentage rate equal to part-time positions. This proposal is to the same effect as Proposal 8 in American Federation of Government Employees, AFL-CIO, Local 12 and Department of Labor, 18 FLRA No. 58 (1985), requiring that "the employee-supervisory ratio before the RIF will be maintained during and following the RIF." In that case, the Authority held that the proposal violated management's right under section 7106(a)(2)(A) of the Statute to "layoff" employees because it would interfere with the agency's discretion to determine which positions to abolish and which employees to layoff. Proposal 3 in this case would, in like manner, interfere with the Agency's discretion to determine which positions to abolish and which employees to layoff. 2. Whether the Proposal is Negotiable as An "Appropriate Arrangement" Under Section 7106(b) (3) We find that Proposal 3 is intended to be an "arrangement" for part-time employees who would be adversely affected, perhaps disproportionately, by management's decision to conduct a RIF, to reorganize, or to downgrade employees. The proposal would lessen the impact of those actions on part-time employees by making them proportional to the actions taken against full-time employees. The proposal is not, however, an "appropriate" arrangement under section 7106(b)(3) because it would totally abrogate management's discretion as to the elimination of part-time positions. We find, therefore, that Proposal 3 excessively interferes with management's right to layoff employees under section 7106(a)(2)(A) and is outside the Agency's duty to bargain. Accordingly, we do not reach other arguments as to the nonnegotiability of the proposal. VII. Proposal 4 The FLRA Members disagree over the negotiability of this proposal. The majority opinion on Proposal 4 is on page 13 of this decision; Chairman Calhoun's dissent is on page 15. VIII. Proposal 5 Section 11: The RRD shall not be run until at least 120 days after providing Local 12 with the information request accompanying these proposals. A. Position of the Agency The Agency argues that this proposal, by restricting the Agency's ability to conduct a RIF and any subsequent organizational changes, conflicts with management's right, under 7106(a)(2)(A) of the Statute, to layoff and/or assign employees. B. Analysis Proposal 5 provides for a delay in implementing an RRD -- a RIF, reorganization or employee downgrade -- until at least 120 days after the Union is provided with "the information request accompanying these proposals." The Union has not provided the Authority with a copy of, or any information concerning, its "information request." Thus, we cannot assess whether it is possible for the Agency to provide the information sought. If the Union's request is for information which does not exist, the RRD would be delayed indefinitely. It is well established that the parties bear the burden of creating a record upon which the Authority can make a negotiability determination. National Federation of Federal Employees, Local 1167 v. Federal Labor Relations Authority, 681 F.2d 886, 891 (D.C. Cir. 1982), aff'g National Federation of Federal Employees, Local 1167 and Department of the Air Force, Headquarters, 31st Combat Support Group (TAC), Homestead Air Force Base, Florida, 6 FLRA 574 (1981). See also American Federation of Government Employees, Local 12, AFL-CIO and Department of Labor, 17 FLRA 550 (1985). The Union in this case has not satisfied its burden of creating a record upon which the Authority can make a negotiability determination with respect to Proposal 5. C. Conclusion Because this proposal does not set forth sufficient information to enable us to determine whether it is within the duty to bargain, the petition for review as to the proposal must be dismissed. Accordingly, it is unnecessary to consider the Agency's argument that Proposal 5 conflicts with management's right to assign or layoff employees under section 7106(a)(2)(A) of the Statute. Nor do we need to consider whether the proposal constitutes an "appropriate arrangement" within the meaning of section 7106(b)(3). IX. Proposal 6 Section 12: Employees accepting a lower-graded position in the DOL, prior to, and after the effective date of the RRD, shall have pay retention for 2 years. A. Position of the Agency The Agency argues that it does not have a duty to bargain over Proposal 6 because grade and pay retention are covered by FPM Chapter 536, which was incorporated into the parties' collective bargaining agreement. B. Analysis and Conclusion Proposal 6 would require the Agency to provide pay retention for 2 years to employees who, either before or after the RRD, voluntarily accept a lower-graded position. By its terms, the proposal therefore would require the Agency to provide pay retention in all circumstances where an employee voluntarily accepts a lower graded position. In this regard, we note that 5 U.S.C. Section 5363(c), which governs pay retention in the Federal service, sets out several exceptions to the blanket granting of pay retention to Federal employees. /1/ There is no indication in the record, nor is it otherwise apparent, that the Union intended to incorporate by reference the statutory exceptions. Consequently, by requiring pay retention for employees in all circumstances where the employee voluntarily accepts a lower-graded position, including circumstances specifically prohibited by statute, Proposal 6 conflicts with 5 U.S.C. Section 5363(c) and is outside the duty to bargain under section 7117(a)(1) of the Statute. Moreover, because we find that Proposal 6 is inconsistent with law, we do not need to decide whether it would constitute an "appropriate arrangement" within the meaning of section 7106(b)(3) of the Statute. See National Federation of Federal Employees, Local 29 and Department of the Army, Kansas City District, Corps of Engineers, 21 FLRA No. 31 (1986). X. Proposal 7 Section 13: Employees receiving specific RIF notices will not be separated or downgraded for at least 30 work days from the date or receipt of the specific notice. A. Position of the Agency According to the Agency, Proposal 7 directly conflicts with the notice provision of an Agency regulation, DOL Supplement to FPM 351, Appendix F, which had been bargained on and incorporated into the parties' Agreement. B. Analysis The Agency contends that Proposal 7 concerns matters relating to notice periods in a RIF which are covered by the parties' Agreement and that management has proposed no mid-term changes which exceed the scope of the Agreement. As stated in section II of this decision, the record does not substantiate the Agency's assertions. To the extent that there are factual issues in dispute between the parties concerning the duty to bargain in the specific circumstances of this case, such issues should be resolved in other appropriate proceedings. Although the Agency references its own regulation in its Statement of Position at page 6, that reference does not appear to include a claim that there is a compelling need for that regulation. Rather, the Agency simply uses the reference to support its contention that the subject matter of this proposal has already been bargained and incorporated into the parties' Agreement. Therefore, since the Agency has made no claim that Proposal 7 is inconsistent with law -- including the management rights provisions of the Statute -- or applicable rule or regulation, and no such inconsistency is otherwise apparent, the proposal is negotiable. Because there is no basis for finding that the proposal interferes with management's rights, we do not reach the question of whether it would constitute an "appropriate arrangement" under section 7106(b)(3). C. Conclusion For the reasons stated in the foregoing analysis, Proposal 7 is within the duty to bargain. XI. Order The Union's petition for review as it relates to Proposals 1, 2, 3, 5 and 6 is dismissed. The Agency must upon request (or as otherwise agreed to by the parties) bargain concerning Proposal 7. /2/ Issued, Washington, D.C., February 27, 1987. /s/ Jerry L. Calhoun, Chairman /s/ Henry B. Frazier III, Member /s/ Jean McKee, Member FEDERAL LABOR RELATIONS AUTHORITY DECISION AND ORDER ON PROPOSAL 4 Proposal 4 Section 10: DOL shall not contract out any current or future ETA functions, where positions in those functions are to be abolished or downgraded, for one year after the effective date of the RRD. A. Position of the Agency The Agency contends that Proposal 4 is nonnegotiable because it directly conflicts with management's right under section 7106(a)(2)(B) of the Statute to make determinations with respect to contracting out. B. Analysis and Conclusions Proposal 4 reflects the Union's attempt to negotiate for a delay in the Agency's implementation of certain contracting out actions. The Union seeks to delay the actual contracting out of functions affected by a RIF, reorganization, or downgrading. The Agency has not presented anything to indicate the nature of the proposal's effect on the Agency's operations. This proposal does not impose any substantive criteria on management's exercise of its rights to contract out, nor does it prevent the Agency from contracting out. The Agency retains full discretion to take any actions it deems necessary in connection with a determination to contract out under section 7106(a)(2)(B), and to implement such a determination once the negotiated delay period has passed. Consistent with established Authority precedent, such a proposal is negotiable under section 7106(b)(2) because it delays but does not prevent management from acting at all to exercise its rights. See, for example, National Treasury Employees Union and Department of Energy, 24 FLRA No. 52 (1986); American Federation of Government Employees, AFL-CIO, Local 2736 and Department of the Air Force, Headquarters 379th Combat Support Group (SAC), Wurtsmith Air Force Base, Michigan, 14 FLRA 302 (1984) (Proposal 3); National Treasury Employees Union and U.S. Customs Service, Region VIII, San Francisco, California, 2 FLRA 255, 261-62 (1979), and cases cited therein. Consequently, we do not need to reach the question of whether this proposal constitutes an "appropriate arrangement" within the meaning of section 7106(b)(3) of the Statute. C. Order The Agency must upon request, or as otherwise agreed to by the parties, bargain on Proposal 4. /3/ Issued, Washington, D.C., February 27, 1987. /s/ Henry B. Frazier III, Member /s/ Jean McKee, Member FEDERAL LABOR RELATIONS AUTHORITY --------------- FOOTNOTES$ --------------- (1) 5 U.S.C. Section 5363(c) provides, in pertinent part, as follows: (c) The preceding provisions of this section shall cease to apply to an employee who -- (1) has a break in service of one workday or more; (2) is entitled by operation of this subchapter or chapter 51, 53, or 54 of this title to a rate of basic pay which is equal to or higher than, or declines a reasonable offer of a position the rate of basic pay for which is equal to or higher than, the rate to which the employee is entitled under this section; or (3) is demoted for personal cause or at the employee's request. (2) In deciding that Proposal 7 is within the duty to bargain, we make no judgment as to its merits. (3) In finding the proposal to be within the duty to bargain, we make no judgment as to its merits. Dissenting Opinion of Chairman Calhoun For the reasons set forth in my dissenting opinion in National Treasury Employees Union and Department of the Treasury, 24 FLRA No. 54 (1986), I would find that Proposal 4 substantively infringes on management's right to contract out because it precludes management from determining when it must contract out in order to be able to function in an efficient and effective manner. Moreover, I would not find this proposal to be an "appropriate arrangement" under section 7106(b)(3) of the Statute because the burden imposed on management by the year-long suspension of its right to contract out outweighs any benefits to employees provided by this proposal. In my view, Proposal 4 is outside the Agency's duty to bargain. Issued, Washington, D.C., February 27, 1987. /s/ Jerry L. Calhoun, Chairman