City of Farrell v. Fraternal Order of Police

645 A.2d 1294, 538 Pa. 75, 1994 Pa. LEXIS 354
CourtSupreme Court of Pennsylvania
DecidedAugust 8, 1994
StatusPublished
Cited by12 cases

This text of 645 A.2d 1294 (City of Farrell v. Fraternal Order of Police) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Farrell v. Fraternal Order of Police, 645 A.2d 1294, 538 Pa. 75, 1994 Pa. LEXIS 354 (Pa. 1994).

Opinions

OPINION

NIX, Chief Justice.

The Fraternal Order of Police, Lodge No. 34 (FOP), appeals from the Order of the Commonwealth Court, which reversed and remanded the Order of the Court of Common Pleas, which vacated in part an Act 1111 arbitration award.

This case arises from an arbitration award due to the failure of the City of Farrell (Farrell) and the FOP to successfully renegotiate a collective bargaining agreement after the prior agreement expired on December 31, 1988. Pursuant to 43 P.S. § 217.4, the matter was submitted to a board of arbitration which issued a decision and award on February 13, 1989. The award spanned a three year period from January 1, 1989, [77]*77to December 31, 1991, and provided, inter alia, that for each of those three years “the base annual salary rate for each bargaining unit job shall be re-established and increased to levels equal to $1000.00 above the salary rates in effect for those jobs during each preceding Calendar year....” Record at 11a. This increase applied to the positions of senior patrolman and sergeant. Id. The award also provided that the base annual salary of employees below the rank of senior patrolman was to be determined on the basis of a percentage of the senior patrolman’s salary rate in relation to the employee’s number of years of service until the rate equalled that of the senior patrolman. Id. at 12a, 14a-15a.

Prior to the time that this matter was submitted for arbitration, Farrell had been declared a financially distressed municipality pursuant to the Financially Distressed Municipalities Act (Act 47).2 In accordance with Act 47, a coordinator was appointed by the Secretary of Community Affairs to prepare a recovery plan for Farrell. The plan was promulgated on April 12, 1988, revised on May 11, 1988, and adopted by the city council on May 19, 1988. The recovery plan was to be in effect through 1990.

Due to its status as a financially distressed municipality, Farrell appealed the award by the board of arbitration to the Court of Common Pleas. It alleged that the portion of the award which provided a $1,000.00 salary increase for each year of the bargaining agreement violated certain provisions of the Act 47 recovery plan. Specifically, Farrell alleged that the increase violated Article IV, Item 8 of the plan which stated “[ljabor costs will increase approximately 2'/¿% each year.” Record at 32a. Farrell also argued that if the arbitration award was forced upon the city, it would be in violation of section 264 of Act 47, which would result in a loss of funding from the Commonwealth.3

[78]*78The FOP responded that Article IV, Item 8 of the recovery plan was purely an assumption and not a binding recommendation on Farrell. In support of this contention, the FOP relied on prefatory language in Article IV of the plan which stated “[i]t is necessary to make a number of assumptions----” Record at 31a. The FOP therefore argued that the statement concerning the 2}f¿% labor cost increase was not a mandatory or binding recommendation on Farrell to restrict labor costs to that percentage each year.

In its attempt to determine the validity of the arbitration award, the trial court acknowledged the interrelationship of the two primary legislative acts involved in this case. City of Farrell v. Fraternal Order of Police, Lodge No. 34, No. 293 C.D.1989, slip op. at 3 (C.P. Mercer County filed March 15, 1990). First, the legislature provided for collective bargaining and arbitration between policemen and their public employers in Act 111, 43 P.S. §§ 217.1-217.10. Id. Second, the court observed that section 252 of Act 47 provides that “[a] collective bargaining agreement or arbitration settlement executed after the adoption of the plan shall not in any manner violate, expand or diminish its provisions.” Id. at 3-4. The court then looked to Wilkinsburg Police Officers Ass’n v. Commonwealth, 129 Pa.Commw. 47, 564 A.2d 1015 (1989), aff'd, 535 Pa. 425, 636 A.2d 134 (1993), which held that section 252 of Act 47 was a constitutional limitation on the right to collective bargaining under Act 111. Id. at 4. The trial court therefore concluded that “the limitation upon collective bargaining agreements and arbitration awards contained in Section 252, is a constitutional limitation upon the rights of the FOP to collectively bargain with a financially distressed municipality under Act 111.” Id. at 4-5 (citations omitted).

In addressing the argument advanced by Farrell, the trial court agreed with the FOP that the 2f¿% labor cost increase [79]*79contained in Article IV, Item 8 of the recovery plan was only an assumption, not a binding recommendation. Id. at 5-6. However, the court then looked to specific language located in Article V of the recovery plan under the subheading titled “Collective Bargaining Agreements” which stated “[t]here do not appear to be the resources for increases in either base pay or fringes, however, they are expressed, in the near future. This will be a harsh reality at the bargaining table for the foreseeable future.” Id. at 6. The court concluded from this language that “this recommendation [was] a binding obligation upon the City that there be no increases in either base pay or fringe benefits for the years 1989 or 1990.” Id. It reasoned that although the language was classified as a recommendation, it was a binding obligation on Farrell in light of section 264(a) of Act 47, 53 P.S. § 11701.264(a), which provides that a financially distressed municipality is subject to suspension of Commonwealth funding for failure to follow a recommendation of a coordinator.4 Id. at 6-7. Thus, the court held that the arbitrators’ award of a $1,000.00 salary increase in the years 1989 and 1990 was illegal and declared that portion of the award null and void.5 Id. at 7.

The FOP filed a timely appeal with the Commonwealth Court alleging that the trial court erred when it determined that the statement in the recovery plan, upon which it relied, constituted a directive or mandate to Farrell to preclude the salary increases awarded by the arbitrators. The Commonwealth Court noted that the FOP could not claim that it was unaware of the content section 252 of Act 476 “as well as the continued authority of the elected officials under Act 47 to establish priorities ‘for and the manner of expenditures based on available revenues.’ ” Fraternal Order of Police, Lodge [80]*80No. 34 v. City of Farrell, 139 Pa.Commw. 397, 407, 590 A.2d 1327, 1332 (1991). By relying upon the Statutory Construction Act, 1 Pa.C.S. § 1921, and applying the plain meaning and common usage of language of section 252, the court found that “there is nothing in Section 252 which per se prohibits salary increases during the period of the recovery plan. What it mandates is that any arbitration award executed after the adoption of a recovery plan shall not in any manner violate, expand or diminish any provisions of the plan.” Id. (footnotes omitted).

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City of Farrell v. Fraternal Order of Police
645 A.2d 1294 (Supreme Court of Pennsylvania, 1994)

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Bluebook (online)
645 A.2d 1294, 538 Pa. 75, 1994 Pa. LEXIS 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-farrell-v-fraternal-order-of-police-pa-1994.