Midland Borough School District v. Midland Education Ass'n

616 A.2d 633, 532 Pa. 530, 1992 Pa. LEXIS 528, 141 L.R.R.M. (BNA) 3022
CourtSupreme Court of Pennsylvania
DecidedNovember 13, 1992
Docket27 W.D. Appeal Docket 1989
StatusPublished
Cited by24 cases

This text of 616 A.2d 633 (Midland Borough School District v. Midland Education Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midland Borough School District v. Midland Education Ass'n, 616 A.2d 633, 532 Pa. 530, 1992 Pa. LEXIS 528, 141 L.R.R.M. (BNA) 3022 (Pa. 1992).

Opinions

OPINION

NIX, Chief Justice.

The present appeal concerns the propriety of the Commonwealth Court’s decision 116 Pa.Cmwlth. 191, 541 A.2d 428 affirming the Order of the Beaver County Court of Common Pleas which, sua sponte, reversed, in part, an arbitrator’s award providing for a remedy in favor of Midland Education Association which was to continue in effect well beyond the expiration date of the collective bargaining agreement between the two parties.

The specific facts surrounding the immediate controversy are as follows. Appellant, Midland Education Association, is the exclusive bargaining representative for purposes of collective bargaining on behalf of a bargaining unit comprised of the professional employees of Midland Borough School District, appellee herein. Appellant and appellee were parties to a two year collective bargaining agreement effective September 1, 1984, through August 31, 1986. On April 9, 1986, Appellee School District announced that it had entered into an agreement with the Beaver Area School District to send its seventh through twelfth grade students to the Beaver Area School District on a tuition basis. This agreement eliminated all teaching positions in grades seven through twelve in the Midland School District and transferred the students in those grades to the Beaver Area School District.

[533]*533On April 14, 1986, Appellant filed a grievance challenging the District’s decision to “tuition out” the students, and alleged that such action constituted “subcontracting out of bargaining unit work” and thus violative of the collective bargaining agreement. While the grievance was pending, the District implemented its decision to tuition out grades seven through twelve beginning August 26, 1986.

After an evidentiary hearing on August 25, 1986, the arbitrator selected by the parties sustained the grievance. The arbitrator ordered the Appellee to rescind its contract with the Beaver Area School District, ordered the Appellee to bargain in good faith with Appellant, and to make the affected teachers whole by returning the teachers to work no later than the 1987-88 school year.

Appellee then filed a Petition to Vacate, Modify or Correct the Arbitrator’s Award with the Court of Common Pleas of Beaver County. The Court of Common Pleas held that the issue of subcontracting constituted “allocation of bargaining unit work” and was thus encompassed by the terms of the collective bargaining agreement; however, the court limited its affirmance of the arbitrator’s award to the period from August 26, 1986, to August 31, 1986. The lower court vacated the arbitrator’s rescission of the subcontracting agreement, the requirement that the appellee resume bargaining in good faith, and the order that appellee rehire and make whole the affected teachers no later than the 1987-88 school year. The Commonwealth Court affirmed the decision of the Court of Common Pleas and concluded that the arbitrator exceeded his authority in ordering post-expiration relief. Midland Education Assoc, v. Midland Borough Sch. Dist., 116 Pa.Commw. 191, 541 A.2d 428 (1988).

Accordingly, we are now called upon to address the following two issues: first, whether the award of the arbitrator concluding that subcontracting out students constituted “allocation of bargaining unit work” was a proper exercise of his authority to resolve conflicts under a collective bargaining agreement that is silent on the issue of subcontracting; second, whether the arbitrator properly awarded a remedy which [534]*534extended beyond the expiration date of the collective bargaining agreement.

On the issue of whether an arbitrator may resolve an issue not expressly covered by the collective bargaining agreement, the appellant, Midland Education Association, maintains that the role of the judiciary in reviewing such an award is limited to determining whether the subject matter may in any rational way be seen as encompassed by the terms of the agreement. Once such a determination has been favorably made, appellant argues, judicial scrutiny of the resulting award must cease. Maintaining that this principle fosters the well-established policy favoring the resolution of labor disputes and questions of arbitrability by the arbitration process itself, appellant argues that deference must be given to the conclusions and awards of arbitrators in observance of the restrictions upon judicial scrutiny.

Conversely, the appellee, Midland Borough School District, argues that an arbitrator is limited to addressing those matters which are expressly encompassed in or contemplated by the collective bargaining agreement. Because the agreement at issue is silent with respect to the issue of subcontracting, appellee argues that an award based on such an issue must fail for not having been derived from the agreement.

On the matter of the first issue, whether the arbitrator had the authority to address the issue of subcontracting students, we find that the arbitrator’s authority to address that issue drew its essence from the collective bargaining agreement, and therefore was a proper exercise of the arbitrator’s authority.

In United Steelworkers of America v. Enterprise Wheel and Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960), one of the now famous Steelworkers Trilogy cases, the United States Supreme Court first enunciated the “essence test” as .the appropriate standard of judicial review of labor arbitration awards. The Court, in arriving at this test, stated:

When an arbitrator is commissioned to interpret and apply the collective bargaining agreement, he is to bring his [535]*535informed judgment to bear in order to reach a fair solution of a problem. This is especially true when it comes to formulating remedies. There the need is for flexibility in meeting a wide variety of situations. The draftsmen may never have thought of what specific remedy should be awarded to meet a particular contingency. Nevertheless, an arbitrator is confined to interpretation and application of the collective bargaining agreement; he does not sit to dispense his own brand of industrial justice. He may of course look for guidance from many sources, yet his award is legitimate only so long as it draws its essence from the collective bargaining agreement. When the arbitrator’s words manifest an infidelity to this obligation, courts have no choice but to refuse enforcement of the award.

Id. at 597, 80 S.Ct. at 1361, 4 L.Ed.2d at 1428 (emphasis added). This Court expressly adopted the “essence test” in Community College of Beaver County v. Community College of Beaver County, Soc’y of the Faculty (PSEAJNEA), 473 Pa. 576, 594, 375 A.2d 1267, 1275 (1977). In Leechburg Area Sch. Dist. v. Dale, 492 Pa. 515, 424 A.2d 1309 (1981), we reinstated an arbitrator’s decision to award full-time benefits to teachers who were laid off and then returned as substitutes. The Court applied the “essence test” in the following manner:

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Bluebook (online)
616 A.2d 633, 532 Pa. 530, 1992 Pa. LEXIS 528, 141 L.R.R.M. (BNA) 3022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-borough-school-district-v-midland-education-assn-pa-1992.