In the Matter of County of Atlantic In the Matter of Township of Bridgewater (077447) (Statewide)

166 A.3d 1112, 230 N.J. 237
CourtSupreme Court of New Jersey
DecidedAugust 2, 2017
DocketA-98/99/100-15
StatusPublished
Cited by77 cases

This text of 166 A.3d 1112 (In the Matter of County of Atlantic In the Matter of Township of Bridgewater (077447) (Statewide)) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In the Matter of County of Atlantic In the Matter of Township of Bridgewater (077447) (Statewide), 166 A.3d 1112, 230 N.J. 237 (N.J. 2017).

Opinion

JUSTICE SOLOMON

delivered the opinion of the Court.

We are called upon to determine whether the parties to the specific collective negotiations agreements (CNAs) at issue in this case were required to continue scheduled salary increases during the period between the expiration of those contracts and the formation of their successor agreements.

This appeal involves the CNAs between (1) Atlantic County and the Fraternal Order of Police, Atlantic Lodge # 34 (FOP Lodge 34); (2) Atlantic County and the Atlantic County Prosecutor’s Office, P.B.A. Local #77 (PBA Local 77); and (3) Bridgewater Township and the Policemen’s Benevolent Association, Local # 174 (PBA Local 174).

Atlantic County informed FOP Lodge 34 and PBA Local 77 that when their respective CNAs expired the County would no longer implement the incremental salary scheme provided for in those contracts. Both unions filed charges with the Public Employment Relations Commission (PERC or the Commission), claiming that Atlantic County had engaged in an unfair labor practice, contrary to the Employer-Employee Relations Act (EERA), N.J.S.A. 34:13A-1 to -43.

The hearing examiner agreed with the unions and found that Atlantic County’s “departure from the dynamic status quo — in this case, the refusal to pay automatic increments — constitute^] a unilateral change in a mandatory subject of negotiations in violation of the [EERA].” Atlantic County petitioned PERC for review, and the Commission came to the opposite conclusion. It found that in light of economic conditions and legislative changes since the recession, the dynamic status quo doctrine, which would have required the continuance of the step increment system, was impractical and burdensome. Accordingly, PERC abandoned the dynamic status quo doctrine and found that Atlantic County was *243 within its authority to stop applying the salary increment systems in the expired CNAs.

Subsequently, Bridgewater Township informed PBA Local 174 that it too would cease the salary step increments once the current CNA expired. PBA Local 174 filed for grievance arbitration. The Commission, citing its Atlantic County decision, found for Bridge-water Township. Because the dynamic status quo doctrine had been abandoned, PERC found that salary step increases beyond the contract’s expiration were not a term and condition of employment that mandated negotiation or arbitration.

All three unions appealed. 1 The Appellate Division consolidated the cases and reversed the Commission. In re County of Atlantic and PBA Local 243 and FOP Lodge 34 and PBA Local 77; In re Township of Bridgewater and PBA Local 174, 445 N.J.Super. 1, 135 A.3d 968 (App. Div. 2016). The panel ruled that the Commission adopted the dynamic status quo doctrine decades ago and could not simply abandon it now “as an act of mere policymaking.” Id. at 16, 19, 22, 135 A.3d 968. Applying that doctrine, the Appellate Division found that the salary increment system was a term and condition of employment that could not be unilaterally terminated during negotiations for a successor CNA Id. at 16-18, 135 A.3d 968.

We need not determine whether, as a general rule, an employer must maintain the status quo while negotiating a successor agreement. In these eases, the governing contract language requires that the terms and conditions of the respective agreements, including the salary step increases, remain in place until a new CNA is reached. Therefore, the judgment of the Appellate Division is affirmed on other grounds.

*244 I.

A.

We glean the following facts from the record. We begin with the dispute between Atlantic County and the two unions with which it contracted.

POP Lodge 34 represents all full-time, Atlantic County employees who are classified as “Corrections Officers”; it excludes Captains, Lieutenants, Sergeants, and temporary employees. PBA Local 77 represents the “Sergeants, Detective I, and Detectives” working for the Atlantic County Prosecutor’s Office. Both of those unions had CNAs with Atlantic County that expired on December 31, 2010.

While the contracts were in effect, covered individuals would receive annual salary increases in accordance with an increment system. Each contract contained a grid that set forth this payment scheme. 2 The columns in the grid represented a year of the contract, and the rows (steps) represented an employee’s year(s) of service. An individual’s salary could be found at the intersection of the column and row that matched the year in question and the total number of years the specific employee had served up to that point, Under both grid systems, an officer was advanced horizontally by one column at the end of each contract year and vertically by one step on the anniversary of his or her hire date. The employee’s new, increased salaxy would match the amount provided at that intersecting point.

Each contract contained language that touched on the continuation of benefits. PBA Local 77’s most recent contract, and the three that preceded it, stated that “[a]ll provisions of this Agreement will continue in effect until a successor Agreement is negotiated.” PBA Local 34’s CNA provided that “[a]ll terms and conditions of employment, including any past or present benefits, practices or privileges which are enjoyed by the employees eov- *245 ered by this Agreement that have not been included in this Agreement shall not be reduced or eliminated and shall be continued in full force and effect.”

Typically, as the Atlantic County Department of Law explained, after a CNA expires, “the officers who remain on the salary guide continue to move through the guide of the expired contracts and then salaries are adjusted retroactively when a successor agreement is reached.” Indeed, every CNA entered into between Atlantic County and PBA Local 77 since 1996 expired before a successor agreement was executed. During the interim periods between CNAs, Atlantic County adhered to the terms and conditions of the most recently expired CNA, including the step-increment system. Similarly, Atlantic County continued to pay step increments to employees on their anniversary dates from 2007 through 2010 in accordance with their CNA, which expired on December 31, 2006. The successor agreement, which covered the period from January 1, 2007 through December 31, 2010, was not executed until October 2011.

On December 22, 2010, however, Atlantic County informed FOP Lodge 34 and PBA Local 77 that the officers’ movement through the salary guides would cease nine days later, when their respective CNAs expired on December 31.

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Cite This Page — Counsel Stack

Bluebook (online)
166 A.3d 1112, 230 N.J. 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-county-of-atlantic-in-the-matter-of-township-of-nj-2017.