Internal Revenue Service v. Federal Labor Relations Authority, National Treasury Employees Union, Intervenor

963 F.2d 429, 295 U.S. App. D.C. 326, 140 L.R.R.M. (BNA) 2219, 1992 U.S. App. LEXIS 8828
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 5, 1992
Docket91-1247
StatusPublished
Cited by16 cases

This text of 963 F.2d 429 (Internal Revenue Service v. Federal Labor Relations Authority, National Treasury Employees Union, Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Internal Revenue Service v. Federal Labor Relations Authority, National Treasury Employees Union, Intervenor, 963 F.2d 429, 295 U.S. App. D.C. 326, 140 L.R.R.M. (BNA) 2219, 1992 U.S. App. LEXIS 8828 (D.C. Cir. 1992).

Opinion

Opinion for the Court filed by Circuit Judge EDWARDS.

HARRY T. EDWARDS, Circuit Judge:

This case presents for review a decision rendered by the Federal Labor Relations Authority (“Authority” or “FLRA”) pursuant to the Federal Service Labor-Management Relations Statute, 5 U.S.C. §§ 7101-7135 (1988) (“FSLMRS” or “Statute”). The dispute in this case arose when the Internal Revenue Service (“IRS”) refused to recog *431 nize a steward designated by the union representing certain of its employees. The union filed an unfair labor practice charge, alleging that the agency had interfered with its statutory right to choose its own bargaining representatives; the IRS defended on the ground that the individual designated by the union was precluded by the terms of the parties’ collective bargaining agreement from serving as a steward.

Neither the parties nor the FLRA doubts that the union and the agency may lawfully agree to limit the class of individuals eligible to be designated as stewards, as was purportedly done here. The FLRA also acknowledged that the agency’s refusal to recognize the designated individual was based on an interpretation of the parties’ contract that was at least arguably correct. However, without ever deciding whether the contract actually justified the agency’s action, the Authority held against the agency because the union had not “clearly and unmistakably waived” its statutory right to choose its bargaining representatives. Internal Revenue Serv., Wash., D.C., 39 F.L.R.A. 1568 (1991) (“IRS”).

The Authority’s decision in this case is quite bizarre; it constitutes an unexplained departure from the Authority’s prior cases, produces results at odds with the policies of the FSLMRS and defies common sense as well. Under the approach followed in this case, the FLRA never resolves the one issue it concedes to be dispositive — what the language of the contract means. That is, all agree that there can be no unfair labor practice if the contract supports the agency’s position; but the FLRA never decides the issue, nor does it allow the matter to be resolved pursuant to the parties’ contractual grievance procedures. This result is indefensible. Accordingly, we vacate the Authority’s decision in IRS and remand for further proceedings consistent with this opinion.

I. Background

The FSLMRS, as interpreted by the Authority, grants to both agencies and recognized unions the right to designate their own bargaining representatives. See American Fed’n of Gov’t Employees, Local 1738, 29 F.L.R.A. 178, 188 (1987). It is an unfair labor practice for an agency to interfere with a union’s right to designate representatives of its own choosing. See 5 U.S.C. § 7116(a)(1), (5) (1988).

At issue in this case is an unfair labor practice charge asserted against the IRS by the National Treasury Employees Union (“NTEU”), which represents certain of the agency’s employees. The relationship between the IRS and the NTEU is governed by a collective bargaining agreement known as “NORD II” (hereinafter, “Agreement”). The Agreement contains, inter alia, certain rules regarding who can represent bargaining unit employees on behalf of the union in grievance proceedings and other matters. Article 9, section 1 of the Agreement provides, in part, as follows:

A. Unless otherwise expressly stated, wherever in this article the term “steward” is used, it shall include assistant chief stewards, chief stewards, chapter presidents, joint council chairpersons, and any other individuals authorized by the Union in advance to act on its behalf.
B. The union may designate stewards to act on its behalf in accordance with the following:
* * # * * #
2. all stewards, except chapter presidents and chief stewards, must be bargaining unit employees of the appointing office in which they serve....

Agreement at 8 (emphasis added), reprinted in Joint Appendix (“J.A.”) 1. Disputes arising under Article 9 are subject to the grievance and arbitration provisions contained in the Agreement.

In 1986, Cleveland Harris, the President of NTEU Chapter 198, informed the IRS that he was designating himself “as Steward for ... [a]ll organizational segments within Chapter 198 ... per the provisions of NORD II, Article 9.” 1 Harris was an *432 IRS employee and bargaining unit member at the time he designated himself as a steward. Harris subsequently left the employ of the IRS, but he remained President of Chapter 198.

On October 19, 1987, Harris wrote to the IRS, informing the agency that he “remain[ed] the Steward At Large-EEO of the Los Angeles Joint Council” 2 and demanding access to employee worksites for purposes of carrying on his representational activities. 3 The IRS responded on November 5, 1987, and rejected Harris’ request; relying on the fact that Harris was no longer employed by the agency, the IRS refused to recognize him “in any capacity as a steward-at-large” or “as a steward for any organizational segment.” 4 The IRS’s action was based upon its interpretation of Article 9, section 1(B)(2) of the Agreement, which, in its view, required stewards to be bargaining unit employees. Although the IRS refused to recognize Harris as a steward, it continued to recognize his status as President of Chapter 198 and agreed to permit him limited access to IRS facilities for purposes of discharging his duties in that capacity.

The NTEU took a different view of section 1(B)(2) of Article 9 of the Agreement. It read the phrase “except chapter presidents and chief stewards” as a limiting clause, exempting persons in those positions from the general rule that stewards must be bargaining unit employees. Unable to persuade the IRS that its reading of the collective bargaining agreement was correct, the union filed an unfair labor practice charge with the Authority, asserting that the IRS had interfered with its right under the FSLMRS to select its own bargaining representatives.

An Administrative Law Judge (“AU”) dismissed the unfair labor practice charge in a decision dated December 29, 1988. See IRS, 39 F.L.R.A. at 1578 (ALJ Decision). The ALJ reached this result by applying a “differing and arguable interpretations” analysis drawn from the Authority’s prior cases. He began by noting that the parties’ dispute centered upon the interpretation of Article 9 of the Agreement; thus, in the ALJ’s view, the case primarily involved “matters of contractual rights and responsibilities rather than of statutory rights.” Id. at 1584.

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963 F.2d 429, 295 U.S. App. D.C. 326, 140 L.R.R.M. (BNA) 2219, 1992 U.S. App. LEXIS 8828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/internal-revenue-service-v-federal-labor-relations-authority-national-cadc-1992.