Illinois Federation of Teachers v. Illinois Educational Labor Relations Board

664 N.E.2d 107, 278 Ill. App. 3d 954, 215 Ill. Dec. 710, 152 L.R.R.M. (BNA) 2885, 1996 Ill. App. LEXIS 203
CourtAppellate Court of Illinois
DecidedMarch 26, 1996
DocketNo. 1 — 94 — 1235
StatusPublished
Cited by3 cases

This text of 664 N.E.2d 107 (Illinois Federation of Teachers v. Illinois Educational Labor Relations Board) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Illinois Federation of Teachers v. Illinois Educational Labor Relations Board, 664 N.E.2d 107, 278 Ill. App. 3d 954, 215 Ill. Dec. 710, 152 L.R.R.M. (BNA) 2885, 1996 Ill. App. LEXIS 203 (Ill. Ct. App. 1996).

Opinion

JUSTICE SCARIANO

delivered the opinion of the court:

Nonunion members filed objections with the Illinois Educational Labor Relations Board (Board) claiming that they had been assessed fair share fees by the petitioner unions (Unions) during the 1991-92 academic year that were not chargeable to them, including internal and external organizing expenses.1

At the administrative hearing, Ed Geppert, Illinois Federation of Teachers’ assistant to the president for organizing, testified at length regarding the "direct” benefits accruing from organizing expenses: external organizing results in additional members, thus producing power, clout and the ability to better represent the members in the collective bargaining process; it helps raise industry standards, directly benefitting employees in existing organized districts; and it allows the union to provide better services to existing local units through economies of scale; and internal organizing benefits unit members by increasing the local union’s strength in negotiations.

On April 9, 1993, the administrative law judge (the ALJ) issued his recommended decision and order, wherein he relied upon Geppert’s testimony to find organizing expenses chargeable:

"The Federations have presented detailed, credible evidence that both external and internal organizing increase the unions’ ability to engage in eifective collective bargaining. The record evidence covers organizing at the national, state and local levels. That evidence further demonstrates that organizing brings direct economic benefits to nonmembers and enables the unions to provide more comprehensive service to bargaining unit members. I have concluded that organizing is therefore ' "germane” to collective bargaining activity’ as required by Lehnert.
I have further concluded that it is [cjonstitutionally permissible to charge nonmembers for such organizing. Finally, I have concluded that this result is not inconsistent with the Board’s decision in East St. Louis, since it is based on a rationale that was not at issue in that decision, and was therefore not ruled upon in that case.”

After an objector filed exceptions to the ALJ’s proposed disposition of the case, the Board issued its order, wherein it reversed that portion of the ALJ’s recommendation which had concluded that internal and external organizing expenses were properly chargeable to nonmembers. This decision was based upon Ellis, Lehnert, and comments made by a sponsor of the IELRA. (These authorities are cited in full and discussed below.)

In this case, the Unions appeal solely that portion of the Board’s order that holds that internal and external organizing expenses are not chargeable to nonmembers as part of the their "fair share fees.” Nonmembers’ obligation to pay their fair share of fees derives from the Illinois Educational Labor Relations Act as follows:

"Non-member fair share payments. When a collective bargaining agreement is entered into with an exclusive representative, it may include a provision requiring employees covered by the agreement who are not members of the organization to pay to the organization a fair share fee for services rendered. The exclusive representative shall certify to the employer an amount not to exceed the dues uniformly required of members which shall constitute each non member employee’s fair share fee. The fair share fee payment shall be deducted by the employer from the earnings of the non member employees and paid to the exclusive representative.” 115 ILCS 5/11 (West 1992).

The United States Supreme Court has addressed the chargeability of a union’s organizing expenses to nonmembers in Ellis v. Brotherhood of Ry., Airline & Steamship Clerks, Freight Handlers, Express & Station Employees, 466 U.S. 435, 80 L. Ed. 2d 428, 104 S. Ct. 1883 (1984) (finding the union’s organizing expenses not chargeable to nonmembers under the Railway Labor Act (see 45 U.S.C. § 151 et seq. (1988))). The test used in Ellis was:

"whether the challenged expenditures are necessarily or reasonably incurred for the purpose of performing the duties of an exclusive representative of the employees in dealing with the employer on labor-management issues. Under this standard, objecting employees may be compelled to pay their fair share of not only the direct costs of negotiating and administering a collective-bargaining contract and of settling grievances and disputes, but also the expenses of activities or undertakings normally or reasonably employed to implement or effectuate the duties of the union as exclusive representative of the employees in the bargaining unit.” Ellis, 466 U.S. at 448, 80 L. Ed. 2d at 442, 104 S. Ct. at 1892.

Applying this test to external organizing expenses, the Court found that "[u]sing dues exacted from an objecting employee to recruit members among workers outside the bargaining unit can afford only the most attenuated benefits to collective bargaining on behalf of the dues payer.” Ellis, 466 U.S. at 452, 80 L. Ed. 2d at 444, 104 S. Ct. at 1894. As to internal organizing expenses, the Court noted that it would be "perverse” to allow "the union to charge to objecting nonmembers part of the costs of attempting to convince them to become members.” Ellis, 466 U.S. at 452 n.13, 80 L. Ed. 2d at 444 n.13, 104 S. Ct. at 1894 n.13 (interpreting the Railway Labor Act).

In reaching these conclusions, the Court expressly rejected a court of appeals finding that such expenses were chargeable to objecting employees "because organizing efforts are aimed toward a stronger union, which in turn would be more successful at the bargaining table.” Ellis, 466 U.S. at 451, 80 L. Ed. 2d at 444, 104 S. Ct. at 1894. Notwithstanding the rationale and holding in Ellis, the unions appear to present the same argument, albeit in far greater detail (viz. Geppert’s testimony). They claim that Ellis is distinguishable because it was based upon "an ill-defined factual record on organizing”; "Geppert’s testimony is the record here”; and therefore, this court is not compelled by Ellis to find that organizing expenses offer only "attenuated benefits” to collective bargaining.

However, as the Board stated in its order: "Ellis clearly states that both external and internal organizing are not chargeable.” The Ellis court did not premise its holding on the union’s failure to present enough evidence of a "direct” benefit; in fact, it carefully considered the argument that organizing strengthened the union, and characterized that benefit as "attenuated.” Ellis, 466 U.S. at 451, 80 L. Ed. 2d at 444, 104 S. Ct. at 1894.

The Unions attempt to distinguish Ellis on the ground that it was decided under the Railway Labor Act. However, in Lehnert, the Supreme Court cited Ellis and found that it "necessarily provide[d] some guidance” for their analysis. Lehnert v. Ferris Faculty Ass’n, 500 U.S. 507, 516, 114 L. Ed. 2d 572, 587, Ill S. Ct. 1950, 1957 (1991).

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664 N.E.2d 107, 278 Ill. App. 3d 954, 215 Ill. Dec. 710, 152 L.R.R.M. (BNA) 2885, 1996 Ill. App. LEXIS 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-federation-of-teachers-v-illinois-educational-labor-relations-illappct-1996.