National Treasury Employees Union v. Federal Labor Relations Authority

452 F.3d 793, 371 U.S. App. D.C. 417, 179 L.R.R.M. (BNA) 3102, 2006 U.S. App. LEXIS 15762, 2006 WL 1715255
Court of Appeals for the D.C. Circuit·Decided June 23, 2006·No. No. 05-1230·Published·Cited by 3 cases

Opinion

GINSBURG, Chief Judge.

The National Treasury Employees Union petitions for review of a decision of the Federal Labor Relations Authority holding the Internal Revenue Service did not have a duty to bargain over the Union’s proposed “Leave Swapping Program.” Because the Authority reasonably concluded that the subject of how leave would be allocated among employees was “covered by” the pre-existing collective bargaining agreement between the Union and the IRS, we deny the Union’s petition for review.

I. Background

The Union and the IRS are parties to a national collective bargaining agreement that governs the terms and conditions of employment at, among other locations, the Service’s call site in Denver, Colorado. Article 32, Section l.C of that agreement provides:

[T]he Employer will resolve a conflict in requests by employees in the same occupation for scheduled annual leave by granting preference to the employee with the most service as determined by enter on duty (EOD) date.

U.S. Dep’t of the Treasury, Internal Revenue Serv., Denver, Colo., 60 F.L.R.A. 572 app. at 574, 2005 WL 119759 (2005) (IRS). The managers at the Denver site scheduled local employees’ annual leave in accord with their seniority, per Article 32, and with the scheduling requirements set [419]*419centrally by the business operating division of the IRS, which requirements dictated the number of employees needed to answer calls on any given day.

Employees who believed their requests for leave had been unfairly denied complained about this arrangement. Ms. Patience Ellis, the senior official at the Denver call center, created a committee of union and management representatives to consider the issue. The committee developed a consensus “Leave Swapping Program” under which one employee could transfer his approved leave to another employee with the same job skills, regardless of either employee’s seniority. Id. at 575.

Representatives of the Union took the position that the leave-swapping program was a binding collective bargaining agreement, but management refused either to implement or to bargain further over it on the ground that the subject was already covered by Article 32 of the national agreement. This prompted the Union to file a grievance claiming the IRS had violated the Federal Service Labor-Management Relations Statute, 5 U.S.C. §§ 7116(a)(1), (5), by “refusing] to consult or negotiate in good faith.” When the Union and the IRS were at an impasse over the grievance, the Union demanded arbitration.

The arbitrator concluded the national agreement “does not cover the leave swapping program”; rather, it “only governs how the agency will initially assign annual leave” and does “not speak to the situation in which an employee chooses not to use approved leave.” Unlike the national agreement, the arbitrator explained, the leave-swapping program involves only “voluntary swaps among willing employees”; seniority “is not a consideration” because “there is no conflict [when] both employees want to make the swap.” It followed that, because the leave-swapping proposal was not “covered by” the national agreement, the agency had violated 5 U.S.C. §§ 7116(a)(1) and (5) by refusing to bargain over it.

The IRS appealed to the Authority, which held “the Arbitrator erred in determining [the leave swapping program] ‘covers an entirely different subject’ ” than does the national agreement. IRS, 60 F.L.R.A. at 574. In the Authority’s view, the proposed leave-swapping program “would circumvent” the system of seniority established by the national agreement because it would “permitf ] an employee with approved annual leave ... to grant [that] annual leave to any employee, whether or not there is a more senior employee who has requested leave for that same period.” Id. Accordingly, the Authority concluded, the national agreement having “expressly addressed” the standard for determining who gets leave when not all requests can be granted, “the Union’s leave swapping proposal is covered by the agreement and the Agency has no duty to bargain” over it. Id.

The Union filed a motion for reconsideration, arguing the Authority had failed to defer to the arbitrator’s interpretation of the national agreement, as required by precedent. The Authority denied the motion, explaining that “although the Authority defers to an arbitrator’s factual findings and contract interpretations, the Authority does not defer to an arbitrator’s conclusions as to the legal effect of those findings and interpretations.” U.S. Dep’t of the Treasury, Internal Revenue Serv., Denver, Colo., 60 F.L.R.A. 893, 894 (2005). In this case, the Authority explained, it had disagreed only with the arbitrator’s application of the “covered by” doctrine, id., which application it reviews de novo, see, e.g., Nat’l Treasury Employees Union Chapter 168, 55 F.L.R.A. 237, 241-42, 1999 WL 101432 (1999). The Union peti[420]*420tions for review of both the Authority’s orders denying relief.

II. Analysis

We will not set aside an order of the Authority unless it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A); see id. § 7123(c) (adopting standard in § 706); Nat’l Treasury Employees Union v. FLRA, 414 F.3d 50, 57 (D.C.Cir.2005). The Union argues the Authority acted arbitrarily because it failed to defer to the arbitrator’s interpretation of the national agreement, even though in the past the Authority has “consistently declined to overturn arbitral interpretations of collective bargaining agreements.” As evidence of this alleged failure to defer, the Union notes the Authority (1) twice described its own decision as “contrary to the Arbitrator’s conclusion,” IRS, 60 F.L.R.A. at 574, and (2) ignored Ms. Ellis’s testimony that the national agreement did not “address” whether employees were required to consider seniority if they wanted to trade leave. In sum, the Union argues the Authority’s decision cannot stand because it is “fabricated out of whole cloth,” with “nothing in the record evidence” to support it.

The Authority argues the “Union misapprehends the issue in this case”: The Authority rejected “the arbitrator’s legal conclusion as to the interrelationship between the proposal and [the national agreement], not his interpretation of the agreement.” The Authority maintains it (1) owes no deference to the arbitrator’s application of the “covered by” doctrine, which it accordingly reviewed de novo, and (2) reasonably concluded a proposal that would allow an employee to transfer his leave to another, notwithstanding the request of a third employee with greater seniority than that of the transferee, would “effectively nullify the operation of [Article 32, Section l.C]” of the national agreement.

As we recently explained in another case brought by the same Union, an agency’s “duty to bargain [over disputes arising] mid-term derives from the ... command [of the Statute] to both labor and management to ‘meet and negotiate in good faith.’ ”

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National Treasury Employees Union v. Federal Labor Relations Authority, 452 F.3d 793, 371 U.S. App. D.C. 417, 179 L.R.R.M. (BNA) 3102, 2006 U.S. App. LEXIS 15762, 2006 WL 1715255 (D.C. Cir. 2006).

452 F.3d 793 (National Treasury Employees Union v. Federal Labor Relations Authority) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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