The Supreme Court Hands Down An Unexpected Public Sector Union Victory

An evenly divided Supreme Court upheld a ruling from the Ninth Circuit Court of Appeals ruling supporting the right of public sector unions to collect fair share fees from employees they represent who are not members of the union. Friedrichs v. California Teachers Association. The result leaves intact a near 40 year old precedent in Abood v. Detroit Board of Education. Abood held that the First Amendment only applies to forced contributions to the union’s political activities. Public sector unions are the exclusive representative and are bound by a duty of fair representation to all bargaining unit members without regard to their union membership. Accordingly, the Court in Abood held that non-members should be required to pay their fair share of the costs of negotiating and administering the contract on their behalf.

Conservative antiunion organizations have been trying to get the Court to overturn Abood since it issued in 1977, whittling down it principles by imposing increasing burdens on unions seeking to collect fair share fees from non-members. When Friedrichs was argued on January 11th the Court seemed poised to overrule precedent. The conservative Justices expressed skepticism about virtually all of the major arguments proffered in support of fair share fees. It seemed almost certain that the high court would rule 5-4 that fair share fees are unconstitutional. But with Justice Scalia’s death there were no longer five justices to do so.

The result of the ruling is a victory for unions. But the decision was a one sentence opinion affirming the 9th Circuit “by an equally divided Court.” It does not set precedent at the Supreme Court level. The next appointment to the Court will have considerable power over this critical issue which undoubtedly will be raised again.

Appeals Court Upholds Arbitrator’s Award Reinstating Employee, Even Where Arbitrator Found He Sexually Harassed A Co-Worker

The Massachusetts Appeals Court today upheld an arbitrator’s reinstatement of a City of Springfield employee who was found to have sexually harassed a co-worker. The case is City of Springfield v. United Public Service Employees Unions, No. 15-P-742. The three judge panel, adhering to the high deference afforded an arbitrator’s decision, refused to find that the award violated public policy. The court found that while there is certainly a strong public policy against sexual harassment, the reinstatement of the grievant did not violate that public policy as he was still subject to remedial action for his behavior.

The grievant, a twenty-two year employee of the Springfield housing office with an “unblemished” record, was a messenger for the office. He suffers from “significant physical and mental health problems” and has a “mildly impaired overall [IQ] of 74.” He was fired over one incident, in which he made lewd statements and gestures toward a female employee, causing her significant upset. His union filed a grievance, and following a two day hearing, an arbitrator found that there was not just cause for the termination, and ordered him “reinstated to his position without loss of compensation or other rights.” The arbitrator found that the grievant’s conduct did amount to sexual harassment, but that termination was not justified. The arbitrator based her decision on the grievant’s work history, his physical and mental limitations, and also on the fact that another employee “engaged in a six-month course of sexual harassment directed at a co-worker” and received only a reprimand.

The City first claimed that the failure to uphold termination violates public policy. The court quickly rejected this, pointing out that employers are not required to terminate an employee who sexually harasses another employee, as long as other “appropriate remedial action” is taken. The City next claimed that the award violated public policy in that it ordered the grievant reinstated with no loss of compensation. The City argued that public policy required a sexual harasser to be punished in some way. The Court rejected this argument, noting that “counseling and training” are appropriate remedial responses to sexual harassment, and that the arbitrator’s award did not impede the employer’s right to require such. Again properly noting its limited role in review of an arbitrator, the panel noted that upholding the award “does not suggest that we agree with the arbitrator’s resolution of the matter without loss of compensation or other employment rights, as ‘even our strong disagreement with the result [would] not provide sufficient grounds for vacating the arbitrator’s award.”

The Court’s decision in this case again demonstrates that arbitrator’s awards are subject to great deference on review. Judges properly uphold such awards, even when they disagree with them, as the parties to an arbitration agreement have submitted to the “final and binding” nature of the process.

Read the decision.

Termination Upheld When Safety Violation Was Intentional And There Were Prior Disciplines

The Labor Arbitration Institute have arbitrators discuss hypothetical employment arbitration scenarios and state how he/she would have ruled. These “decisions” by arbitrators can be helpful in assessing how an arbitrator would rule in real world cases. In this scenario, a two-year employee rigged one of the two handles/levers on a press machine so that the machine would go faster and to alleviate some pain in his left arm that was hurting due to carpal tunnel syndrome. All five arbitrators on the panel would have upheld the discharge because the two levers were specifically there for safety reasons, the conduct was intentional, there was no prior request for an accommodation for carpel tunnel, he had prior discipline for other types of non-safety incidents, and the fact that the Company’s investigation may not have been 100% thorough was adequate enough.

What we can learn from the conclusions these arbitrators came to is that prior disciplines, even if they are for dissimilar conduct, can be used against you as progressive discipline, especially if it’s within a short span of time, and that relying on incomplete training or investigation as a basis for turning over a discipline/discharge comes up short in the face of other factors such as the ones discussed above.

Below is the complete discussion as issued by the Labor Arbitration Institute.

Conference Reporter – Labor Arbitration Institute

Safety Violation with a Poor Record

At this month’s program in Miami, the arbitrators on the panel discussed a case of a 2-year employee. He was a press operator. He had two years with the company, but had bid into a press operator position only 4 days earlier.

The press has two handles or levers. The reason for this is to ensure that the operator does not have either hand near the pinch point. In other words, the operator must use both hands at the same time in order for the press to work.

Four days into the job, the employee is discovered to have tied up the left-hand lever to a post. This allowed him to operate the press with just the right-hand lever. The supervisor asked him why he did this, and he gave two reasons. 1) he could work faster and thus, earn more incentive pay (true); and 2) his left arm was hurting due to carpal tunnel syndrome.

He was discharged for reasons which the panelists address below.

Decision

All five arbitrators on the panel would have upheld the discharge. What is interesting about this is how strongly they all felt, that:

1. There may not be a rule which specifically covers two levers, but the employer can rely upon its general safety rules.
The company went to the expense of providing two levers. These safety devices are there for a reason. The purpose of the device is to keep the employee out of harm’s way. The employee is jeopardizing his own safety.

2. It was intentional.
The union cited two prior cases in which employees were given a written warning. But in each case, the employees committed a one-time mistake. Both were the result of not thinking, and it doesn’t appear that either employee acted deliberately. On the other hand, the grievant did this for 3 days and it was intentional. In fact, is he cheating the other employees by gaining incentive pay that they cannot obtain the same way?

3. He didn’t ask for an accommodation.
He could have asked for an accommodation based on the carpal tunnel, but he didn’t.

4. He had a poor record.
He is a two-year employee, and he has this record: written warning for graphic statements to a supervisor and two written warnings & a 3-day suspension for attendance violations.

5. The Company investigation was adequate enough.
The union argued that the investigation should have included an interview of the trainer. Then, management would have learned that his training lasted only 15 minutes. The company counter-argued that the co-worker who trained him was only a few feet away on each of the 4 days that he worked, and thus available for any retraining. All of the arbitrators on the panel felt that an investigation does not have to be 100 percent. A lesser investigation will not nullify the discipline when the employer’s reasons for the discharge (#1-#4) are as strong as they are here.

Workers’ Compensation Recipients Not Required To Reimburse Employer From Settlement Proceeds Allocated To Pain And Suffering

Employees who receive workers’ compensation benefits may not sue their employers in tort.  G.L. c. 152 Sec. 24.  Employees may, however, file claims against third parties.  G.L. c. 152 Sec. 15.  If the employee recovers damages from the third party, the employer is entitled to a statutory lien on the recovery, unless the recovery is greater than the amount the insurer paid the employee.  In that case, the employee may keep the “excess,” which is defined as “the amount by which the gross sum received in payment for the injury exceeds the compensation paid under this chapter.”

In DiCarlo v. Suffolk Construction Co., decided by the SJC on Friday, an employer who had paid out workers’ compensation benefits to an injured employee was seeking a portion of the “pain and suffering” damages the employee received from a subcontractor whom the employee had sued in tort.  The damages arose from a settlement agreement.  The employee agreed to accept less money from the third party than he had received in total from the employer in workers’ compensation benefits, but the agreement specifically allocated a percentage of the payout to pain and suffering.  The employer argued that pain and suffering damages should be included in its lien.  The employer took the position that the “gross sum received in payment for the injury” included pain and suffering.

However, the SJC allowed the settlement agreement to carve out pain and suffering damages for the benefit of the employee.  The court held that the workers’ compensation statute does not allow an employer to be “reimbursed” for pain and suffering damages, because an employee cannot recover for pain and suffering under the workers’ compensation statute – only for wages.  The court clarified that an insurer “cannot be reimbursed for something that it did not pay.”  The decision can be read here.

Department Cannot Refuse To Reinstate Officer After Arbitrator Determines Shooting Was Justified

Late last year the Oregon Court of Appeals upheld the reinstatement of a Portland Police Officer, rejecting the city’s attempt to negate an arbitrator’s order under the guise of “public policy.” The case Portland Police Ass’n v. City of Portland arose out of the 2010 shooting death of a man named Aaron Campbell by an Officer Frashour. While responding to a disturbance at Mr. Campbell’s house, Officer Frashour fatally wounded the man, mistakenly believing the decedent was reaching for a gun in his waistband.

Portland’s police chief fired the officer in response to the incident after determining Officer Frashour had violated the city’s physical and deadly force policies. The Portland Police Association grieved the termination and, after a 16 day hearing, an arbitrator found Officer Frashour’s actions to be reasonable and ordered his reinstatement to the force. Despite this exoneration, the city refused to reinstate the officer. At the union’s appeal to the Employment Relations Board, the City contended that the award was unenforceable under ORS 243.706(1), which reads, in relevant parts; “as a condition of enforceability, any arbitration award that orders the reinstatement of a public employee . . . shall comply with public policy requirements . . . including but not limited to policies respecting . . . unjustified and egregious use of physical or deadly force.” In short, it was Portland’s position that the arbitrator did not have the authority to reinstate an officer who had violated the city’s stated public policy goal of preventing the unnecessary use of force by police.

The Board rejected the city’s position, finding that, because the arbitrator determined Officer Frashour was not guilty of the conduct for which he was disciplined, the statute was inapplicable. The Court of Appeals agreed with the Board’s determination that the statute only applies when an arbitrator finds an officer violated the city’s use of force policy, but nonetheless elects to alter the employer’s disciplinary decision. Essentially, because the city agreed to resolve certain labor disputes through binding arbitration, it could not overturn the arbitrator’s findings of fact regarding just cause simply because it disagreed with the arbitrator. Ultimately, the Court of Appeals’ decision supports the sanctity of arbitrator’s findings and emphasizes to public employers that they cannot play judge, jury, and executioner when it comes to employee discipline.

The full text of the case can be read here: http://cases.justia.com/oregon/court-of-appeals/2015-a152657.pdf?ts=1451492107

Sandulli Grace And The Massachusetts Coalition Of Police Win Night Shift Differential Pay For The Community Service Officers In The Braintree Police Officers Association

In contract negotiations between the Town of Braintree and the Braintree Police Officers Association, MCOP Local 365, the Town proposed the new position of Community Service Officer (CSO).  The Town proposed the CSO as a specialty position that could be filled without regard to seniority, an exception to the usual practice. The Town also proposed to “flex” the officers’ schedules, which meant that the officers would only receive overtime if they actually worked more than eight hours in a day – not if they were required to work an entirely different shift because of the needs of the job.

The contract language did not specify how the CSOs would be compensated.   However, the Town agreed that the CSOs would work a flexible schedule “in the same fashion as currently worked by the Narcotics Unit.” This was sufficient to convince the union to agree to the proposal, because the narcotics detectives worked a flexible schedule, and were paid the night shift differential all the time. The night shift differential made up for the negative aspects of the position, and “sold” the proposal to the union.

Once the position was filled, however, the Town refused to pay the CSOs the night shift differential, taking the position that it was not required to do so because the pay rate was not stated in the contract. The union filed for arbitration. On January 20, 2016, the arbitrator issued his award, agreeing with the Union and ordering the Town to pay CSOs the nights shift differential. (The award can be viewed here.)

This is an important victory for the Massachusetts Coalition of Police and the Braintree Police Officers Association. The arbitrator acknowledged that, by agreeing to a specialty position which the Chief could fill without regard to seniority, the union was obviously making a concession, and it would not be reasonable to expect the union to do so without getting something in return. In this case, what the union expected to get in return was the night shift differential. The arbitrator, Timothy Buckalew, showed great respect for the challenges of police collective bargaining. It was a hard-fought and well deserved victory, and I congratulate the Braintree Police Officers Association!

 

Affordable Care Act’s Cadillac Tax on High Cost Health Plans has been Delayed Two Years

The Affordable Care Act (ACA) (a/k/a “Obama Care”) contains a provision that would impose a 40% non-deductible tax on higher cost health plans. The tax was scheduled to go into effect in 2018 on plans whose total annual cost exceeds $10,200 for individual and $27,500 for family coverage. Insurances carriers would be responsible for paying the tax but the burden ultimately would fall on employers and individuals with high cost plans. The Kaiser Foundation predicts that by 2018 26% of employers would be assessed the Cadillac Tax on at least one of their health plans if plan design remains the same. This is why many employers have indicated a reluctance to agree to any collective bargaining agreement beyond 2018.

In December, the U.S. House of Representatives released a tax bill entitled “Protecting Americans from Tax Hikes Act of 2015.” The bill was ultimately passed by Congress and signed into law by the President. It delays implementation of the Cadillac Tax until 2020. Analysts speculate whether the tax will ultimately be repealed before it goes into effect.

Accordingly, employers may no longer rely on the Cadillac Tax to avoid negotiating agreements that extend beyond 2018. It is likely that they will continue to be reluctant to any agreements extending beyond 2020 when the tax currently is due to take effect.

Anonymous Secret Santa Thank You Left on Patrol Car

As a former SWAT team member, this police officer approached the small white package left on his police vehicle cautiously. It turned out to be a sweet “survival kit” of candies left by an anonymous Secret Santa thanking law enforcement officers like him for his service. For example, Lifesavers to “remind you of the many times you have been one.” A nice gesture of appreciation to those who keep us and our families safe.

The full article can be found here: http://patch.com/california/sanjuancapistrano/anonymous-thank-you-makes-deputys-day

Managers Will Suffer Pay Cuts if a Union Organizes Employees

Menards, a massive home improvement chain store, has an employment agreement for managers which imposes a substantial pay cut if the workers under their supervision organize a union. A section in the employment agreement titled “Union Activity” provides that a manager’s income “shall be automatically reduced by sixty percent (60%)” of what it would have been if any union is recognized in the manager’s operation. The manager’s pay is likewise reduced by sixty percent (60%) if a union files a petition and wins an election.

The clause providing that managers are to be punished if a union succeeds appears in the employment agreement that all managers must sign as a condition of employment. One employee stated that “The mere mention of the word “union” is a workplace taboo.” Menards, funded and headquartered in Eau Claire, Wisconsin has more than 280 stores in fourteen states according to its website. The company’s owner, John Menard Jr. secretly funneled more than 1.5 million to a political advocacy group to support Wisconsin Governor Scott Walker.

Carin Clauss, an emeritus professor of law at University of Wisconsin-Madison believes the company might be vulnerable if a complaint is filed with the NLRB. The National Labor Relations Act prohibits employers from interfering with, restraining or coercing employees in the exercise of their rights to join a union. In Clauss’ opinion “You interfere with employees by threatening a third party.” Clauss suggested that an agreement that threatens managers with consequences if they don’t do something to interfere with employees organizing rights could be contrary to public policy and thereby void and unenforceable.

Stephanie Bloomingdale, Secretary-Treasurer of Wisconsin AFL-CIO said: “Shame on Menards. How are working people supposed to get ahead in this economy and work for a strong America when billionaires like John Menard are rigging the deck before working people even have a chance?”

Police Officer Pays for Kid’s Birthday Cake Ingredients Mom Had Shoplifted

A Portsmouth, New Hampshire police officer pays for kid’s birthday cake ingredients that mom had stolen. This police officer was dispatched to an Ocean State Job Lot to investigate shoplifting charges. When he found out that it was a mom who had stolen items to bake her child a birthday cake, he decided to pay for the items himself. He did not tell anyone about it, but a store employee, touched by his kindness, called in the story. See full story here:

http://www.boston.com/news/2015/12/03/this-portsmouth-cop-saved-child-birthday-cake-footing-the-bill-for-stolen-ingredients/kX4uXjqbsPjZlt7PufkUUO/story.html