American Federation of State, County & Municipal Employees v. City of Phoenix

142 P.3d 234, 213 Ariz. 358, 484 Ariz. Adv. Rep. 9, 180 L.R.R.M. (BNA) 2325, 2006 Ariz. App. LEXIS 95
Court of Appeals of Arizona·Decided August 15, 2006·No. No. 1 CA-CV 04-0766·Published·Cited by 8 cases

Opinion

WINTHROP, Judge.

¶ 1 The American Federation of State, County, and Municipal Employees, AFL-CIO, Local 2384 (“the Union”) appeals from the superior court’s judgment in favor of the City of Phoenix (“the City”). The Union argues that the superior court erred in finding that the Union’s proposed mandatory deductions from non-union workers’ wages, or “fair share” proposals, are illegal under Arizona state law; violate the City’s “meet and confer” ordinance; and, even if legal, are a permissive rather than mandatory subject of collective bargaining. The City cross-appeals, arguing that the superior court erred in determining that Arizona’s wage withholding statute, Arizona Revised Statutes (“A.R.S.”) section 23-352 (1995), would not necessarily preclude an agreement involving “fair share.” After considering the arguments presented, we hold that the “fair share” proposals are impermissible under Arizona’s constitution and “right to work” statutes, and therefor affirm the trial court’s judgment.

FACTUAL AND PROCEDURAL BACKGROUND

¶ 2 The Union is an employee labor organization recognized by the City as the exclusive bargaining representative for all City employees within a designated bargaining unit (Field Unit II or Local 2384) under the “meet and confer” ordinance, Article XVII, Division 1, of the Phoenix City Code (“P.C.C.”). See generally P.C.C. §§ 2-216, - 217. As such, the Union is required by law to represent all Unit II employees without regard to union membership in negotiating, administering, and enforcing collective bargaining agreements. See P.C.C. § 2-217(E). The Union’s principal source of income is membership dues collected from Unit II employees who are Union members. However, the City also provides financial assistance to the Union to aid the Union in acting as exclusive bargaining representative for all Unit II employees, including paying the full salary and benefits of three full-time Union officials and providing the Union with another 3610 paid hours annually.

¶3 On November 30, 2001, during the compulsory “meet and confer”1 process, the Union and two other unions proposed a mandatory union contribution, or “fair share,”2 provision (in which all workers, including non-union workers, would be required to contribute to the unions for services performed for the workers’ benefit) in the unions’ original labor proposals submitted to the City. The City responded that it was “not in agreement,” but indicated it would discuss the issue during negotiations. From January through April 2002, the parties negotiated, and the unions made several proposals for achieving “fair share.”3

[360] ¶ 4 The unions maintained that non-union employees should be required to pay a pro rata share of the unions’ actual costs of negotiating and administering collective bargaining agreements. Although conceding that traditional “agency shop” agreements 4 were prohibited in Arizona, the unions argued that, unlike “right to work” provisions found in some other states’ constitutions and statutes, nothing in Arizona’s constitution or statutes specifically prohibited requiring the payment of a pro rata share of a union’s expenses, or similar fees, as a term or condition of employment. Thus, “fair share” contributions as proposed by the unions would be something less than the full equivalent of union dues.

¶ 5 The City’s ultimate position was that “fair share” was illegal and, even if legal, a permissive rather than mandatory subject of bargaining. Consequently, the City eventually requested that the unions drop then-request for the inclusion of “fair share” as a condition for reaching an agreement. The City claimed that not only is “fair share” not a subject of mandatory collective bargaining under the City’s “meet and confer” ordinance, but involuntary collection of a “fan-share” of the unions’ expenses of negotiating, administering, and enforcing collective bargaining agreements from non-union members would be in violation of Article 25 of the Arizona Constitution5 and Arizona’s “right to work” laws, A.R.S. §§ 23-1301 to -1307 (1995).6 The City also argued that including any language in a current or future Memorandum of Understanding (“MOU”)7 requiring non-union employees to pay their “fair share” of the unions’ expenses would violate A.R.S. § 23-3528 and subject the City to liability for the allegedly wrongful withholding of the payment of employees’ wages, including treble damages and attorneys’ fees under A.R.S. § 23-355 (1995).

¶ 6 The unions and the City eventually entered an MOU without a “fair share” provision for contract years 2002-2004, but included contract “re-opener” language on the subject of “fair share” in the event the unions eventually prevailed on that issue. Additionally, on April 24, 2002, the unions jointly filed an Unfair Labor Practice (“ULP”) charge, Case No. CA-180, with the City of Phoenix Employment Relations Board (“PERB”),9 ar[361] guing that the negotiations leading to the MOU constituted a violation of P.C.C. § 2-220(A)(5) (refusing to meet and confer). The unions sought a determination that “fair share” is a mandatory subject of bargaining under P.C.C. § 2-215(A)10 of the City’s “meet and confer” ordinance, and further sought an order from the PERB directing the City to “meet and confer” and bargain in good faith with the unions on that issue. On May 22, 2002, the PERB issued its Decision and Order, finding that “fair share” is a permissive rather than mandatory subject of bargaining under P.C.C. § 2-215(A), and ordering the dismissal of the ULP charge.

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American Federation of State, County & Municipal Employees v. City of Phoenix, 142 P.3d 234, 213 Ariz. 358, 484 Ariz. Adv. Rep. 9, 180 L.R.R.M. (BNA) 2325, 2006 Ariz. App. LEXIS 95 (Ark. Ct. App. 2006).

142 P.3d 234 (American Federation of State, County & Municipal Employees v. City of Phoenix) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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