Dallas Area Rapid Transit v. Amalgamated Transit Union Local No. 1338

273 S.W.3d 659, 52 Tex. Sup. Ct. J. 208, 2008 Tex. LEXIS 1140, 185 L.R.R.M. (BNA) 3039, 2008 WL 5266379
CourtTexas Supreme Court
DecidedDecember 19, 2008
Docket06-0034
StatusPublished
Cited by51 cases

This text of 273 S.W.3d 659 (Dallas Area Rapid Transit v. Amalgamated Transit Union Local No. 1338) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dallas Area Rapid Transit v. Amalgamated Transit Union Local No. 1338, 273 S.W.3d 659, 52 Tex. Sup. Ct. J. 208, 2008 Tex. LEXIS 1140, 185 L.R.R.M. (BNA) 3039, 2008 WL 5266379 (Tex. 2008).

Opinion

Justice HECHT

delivered the opinion of the Court.

Section 13(c) of the federal Urban Mass Transit Act of 1964 (the “UMTA”, now the Federal Transit Act) conditions a public transportation authority’s receipt of federal financial assistance on “arrangements the Secretary of Labor concludes are fair and equitable” to protect “the interests of employees affected by the assistance”. 1 Such arrangements “shall include provisions that may be necessary for ... the preservation of rights, privileges, and benefits ... [and] the protection of individual employees against a worsening of their positions related to employment”. 2

In this case, a public transportation authority and its employees’ union, operating under a 13(c) arrangement, resolved a general grievance over wages and benefits. The authority did not adhere to the resolution, and the union sued for breach of contract. The lower courts concluded that *661 the authority is not immune from suit. 3 The issue before us is whether section 18(c) preempts an authority’s immunity from suit under state law. We hold that immunity is not preempted and that the union’s recourse is to the procedures approved in the 13(c) arrangement. Accordingly, we reverse the judgment of the court of appeals and dismiss the case.

I

Petitioner Dallas Area Rapid Transit is a regional public transportation authority 4 that performs only governmental functions 5 and is immune from suit under Texas law. 6 Created in 1983 and funded with a one-cent sales tax, 7 DART assumed the operations of the Dallas Transit System, which the City of Dallas had acquired in 1963 from the privately owned Dallas Transit Company. 8 Company employees, and later System employees, were represented by Amalgamated Transit Union Local No. 1338, which now represents DART employees. ATU 1338 engaged in collective bargaining with the Company, 9 but Texas law prohibits a state political subdivision from collective bargaining with public employees. 10 This prohibition has been held to apply to the System, 11 DART, 12 and their employees, and ATU 1338 does not challenge its application here. 13 But public *662 employees may “present grievances concerning their wages, hours of employment, or conditions of work either individually or through a representative that does not claim the right to strike,” 14 and ATU 1338 has presented grievances for DART employees.

DART receives federal financial assistance conditioned on a 13(c) Arrangement that was negotiated with ATU 1338 and approved by the Secretary of Labor on September 30, 1991. Attachment B to the 1991 Arrangement sets out “general grievance procedures ... for the purpose of giving an employee, individually or through such employee’s representative, the opportunity to present grievances and appeals regarding establishment of, or failure to establish, specified wages, hours or conditions of work”. For our purposes, those procedures may be summarized as follows:

• General grievances must be presented in writing to the human resources department head, who must meet with the employee or representative, provide a full hearing and review, and issue a written decision.

• The employee or representative may appeal to the executive director or invoke a fact-finding process.

• The fact-finding process is conducted by a three-member panel. One member is selected by each side, and the third is selected from a list of neutrals. After gathering facts, conducting hearings, and considering the opposing positions, the panel must issue a written report, making recommendations on unresolved issues.

• If the panel is unanimous, “the recommendations shall be deemed agreed upon as a final resolution of the issues submitted, except as otherwise modified by the parties’ mutual agreement.” But either partisan member of the panel may dissent. The panel must publish its findings and recommendations, and any dissents, in the local media.

• “[T]he fact-finding report and recommendations shall be advisory only” and shall not be binding on either party. 15

The provisions of Attachment B, with minor changes, were included as section 8.10 of DART’s Hourly Employment Manual.

In April 2001, ATU 1338 filed a general group grievance on behalf of DART employees seeking wage increases and better benefits. The grievance did not result in a fact-finding panel report under the Attachment B procedures; instead, DART and ATU 1338 signed a “General Grievance Resolution” in June 2002. The Resolution provided, among other things, that hourly employees would receive three annual 4% pay increases effective October 2001, October 2002, and October 2003. The Resolution stated that it “constitute[d] a final resolution to the issues raised in the General Grievance”, barred ATU 1338 from filing another general grievance “concerning terms and conditions of employment, specified wages, hours, and conditions of work” for three years, and stated that “DART agrees that for the three year period it will not make any unilateral changes to DART’s Hourly Employment Manual except for those issues remaining open herein.” But the Resolution also contained important reservations under the heading, “Management Rights”:

1. DART, at its sole discretion, possesses the right in accordance with applicable laws, to manage all operations, including the direction of the working force and the right to plan, direct and control the operation of all equipment *663 and other property of DART, except as modified by Section 8.10 of the DART Hourly Employment Manual and Section 617.005 of the Texas Government Code and DART’s 13(c) Capital Arrangement certified by the Department of Labor on September 30, 1991 pursuant to USC § 5333(b), if applicable.... [N]othing herein changes DART’s position that it has a unilateral right to establish employment conditions, set wages, hours of employment or conditions of work. In the event that DART makes any unilateral change except for issues remaining open herein during the term of this Resolution, such change relieves Local 1338 of its commitment not to file a General Grievance from October 1, 2001 to September 30, 2004.
2. Matters of inherent managerial policy are reserved exclusively to DART under law.

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273 S.W.3d 659, 52 Tex. Sup. Ct. J. 208, 2008 Tex. LEXIS 1140, 185 L.R.R.M. (BNA) 3039, 2008 WL 5266379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dallas-area-rapid-transit-v-amalgamated-transit-union-local-no-1338-tex-2008.