Massachusetts Bay Transportation Authority v. Local 589, Amalgamated Transit Union

32 Mass. L. Rptr. 82
CourtMassachusetts Superior Court
DecidedDecember 19, 2013
DocketNo. SUCV201303409
StatusPublished

This text of 32 Mass. L. Rptr. 82 (Massachusetts Bay Transportation Authority v. Local 589, Amalgamated Transit Union) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts Bay Transportation Authority v. Local 589, Amalgamated Transit Union, 32 Mass. L. Rptr. 82 (Mass. Ct. App. 2013).

Opinion

Sanders, Janet L., J.

Having reached an impasse in negotiating the terms of their collective bargaining agreement, plaintiff Massachusetts Bay Transportation Authority (MBTA) and defendant Local 589, Amalgamated Transit Union, AFL-CIO, CLC (Union) submitted their disputes to interest arbitration as required by G.L.c. 161A, §29. An Award issued on [83]*83August 26, 2013. The parties are now before the Court seeking judicial review of that Award. Significantly, the parties agree that the issues were within the arbitrator’s powers to decide. Calling the award “irresponsible” and “unjustifiably rich,” however, the MBTA argues that the Award must be vacated because it was not supported by “substantial evidence” and because the arbitrator misapplied certain statutory factors which she was required to consider. The Union has responded with a request to enforce the award or in the alternative for an injunction. After hearing and careful consideration of the party’s submissions, this Court concludes that the Union’s Motion to Confirm the Award must be Allowed.

The Court does so keeping in mind the narrow scope of judicial review that is appropriate for such matters. Certainly, courts have no power at all to review the results of collective bargaining. To the extent that interest arbitration is a substitute for such bargaining, undertaken only after the parties have reached an impasse, then my power to review the results of that process is quite limited. That is in part because the purpose of interest arbitration is to resolve a particular dispute, not to develop a body of precedent binding on future adjudications. More important, this Court has neither the expertise nor the experience necessary to resolve the complex and difficult financial and policy questions that an interest arbitrator must decide. Accordingly, this Court’s decision to enforce the Award says nothing about its wisdom or its substantive fairness. I affirm it because it complies with the law.

BACKGROUND

The events leading up to this lawsuit span several years and provide some context for the issues raised by this action. The Union and the MBTA are parties to a collective bargaining agreement (CBA) that became effective July 1, 2006 and was due to expire June 30, 2010. In the event the expiration date was reached without a new agreement, the CBA contained a standard “Rollover Clause” which provided that the terms of the CBA would remain in effect from year to year until the parties amended them. In late 2009 as the parties were preparing to negotiate the terms of a new collective bargaining agreement, the Commonwealth enacted comprehensive transportation reform. One piece of that statutory reform package had a direct impact on the collective bargaining: Section 140 of Chapter 25 of the Acts of 2009 (Section 140).

Section 140 provided in relevant part that all employees, retirees or surviving spouses and dependents of such who are currently insured or eligible to be insured by a group insurance plan offered by the MBTA shall have their eligibility and coverage transferred to the Group Insurance Commission (GIC). Enacted on an emergency basis, Section 140 stated that the transfer shall take place by January 1, 2010, unless the employee benefits were, as of that date, provided under an existing CBA. If there were such an existing agreement, the employees “shall be transferred upon the expiration date of that agreement.” The statute concluded by stating that all coverage shall be provided exclusively through the GIC and “shall not be subject to collective bargaining, and no other reimbursements or other contractual obligations shall be paid by the [MBTA] for health care benefits not provided through the [GIC].”

The Union, along with seven other unions, was of the view that this sentence of Section 140 unconstitutionally deprived them of important collective bargaining rights. In January 2011, they filed suit in Suffolk Superior Court claiming among other things a violation of the Contract Clause. See Local 589, Amalgamated Transit Union et al. v. MBTA et al., Civ. No. 13-3409 (Suffolk Superior Court). A Superior Court judge (Giles, J.), rejected that claim and allowed summary judgment for the MBTA in April 2011. The Union appealed and also utilized an administrative procedure available through the United States Department of Labor to ensure that federal funding was offered only to entities that were sufficiently protective of labor interests.1 In June 2011, the Secretary of Labor determined that the Union’s objection was “sufficient” and encouraged the parties to find an alternative arrangement before further federal grants were certified.

With federal funding in jeopardy, the MBTA and the Union agreed to petition the Legislature to amend Section 140 so as to allow bargaining over supplementary health care benefits. In November 2011, the Legislature added language to Section 140 stating that:

Nothing in this section shall restrict the authority of the [MBTA] to bargain collectively with the authorized collective bargaining representatives of its employees over the establishment of a Health and Welfare Trust Plan [the Trust] or to pay the cost, in whole or in part, as determined by collective bargaining, of any supplementary benefits or coverages provided under such a trust plan.

St. 2011 c. 189 (the Amendment). This Amendment went on to describe generally what payments and benefits the Trust could provide without duplicating GIC benefits and coverage. It also permitted the MBTA and the Union to bargain over how to fund the Trust. In other words, although migration of MBTA employees to the GIC remained mandatory, the Union and the MBTA were now free to bargain over its consequences.

In the months following this Amendment, the MBTA and the Union bargained in good faith, attempted to resolve their differences through mediation, and reached an impasse which ultimately led them to interest arbitration. In accordance with Chapter 161A (discussed below), the parties exchanged “Last Best Offers,” and Sarah Kerr Garraty was selected by the [84]*84parties from a list of potential arbitrators provided by the American Arbitration Association. Hearings commenced on September 10, 2012 and concluded, after 22 days of testimony, on May 6, 2013. Each party submitted a lengthy post-hearing brief that addressed, among other things, the same issues raised by this lawsuit. On August 26, 2013, Garraiy issued a comprehensive written opinion 115 pages in length. This Court has thoroughly reviewed that opinion, since it figures prominently in my conclusions.

DISCUSSION

Not surprisingly, much of the Award did not accept either the Union’s or the MBTA’s Last Best Offer but came up with a compromise somewhere between the two. Only three of the arbitrator’s decisions are challenged by the MBTA in these proceedings. They are: 1) the wage award; 2) the rulings with respect to the Trust; and 3) the arbitrator’s rejection of the MBTA’s proposal to eliminate a rollover clause in the new agreement. The parties stipulated that the Award (if upheld) would constitute a four-year agreement covering the period from July 1, 2010 through June 30, 2014. In other words, the collective bargaining process ■will begin anew in just six months.

A. The Statutory Framework and the Scope of Judicial Review

Before this Court turns to the merits of the arguments, it is important to understand the limits on my power to second-guess an arbitrator’s decision.

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Bluebook (online)
32 Mass. L. Rptr. 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-bay-transportation-authority-v-local-589-amalgamated-masssuperct-2013.