National Treasury Employees Union v. FLRA

1 F.4th 1120
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 22, 2021
Docket20-1148
StatusPublished

This text of 1 F.4th 1120 (National Treasury Employees Union v. FLRA) 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
National Treasury Employees Union v. FLRA, 1 F.4th 1120 (D.C. Cir. 2021).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued February 11, 2021 Decided June 22, 2021

No. 20-1148

NATIONAL TREASURY EMPLOYEES UNION, PETITIONER

v.

FEDERAL LABOR RELATIONS AUTHORITY, RESPONDENT

On Petition for Review of an Order of the Federal Labor Relations Authority

Paras N. Shah argued the cause for petitioner. With him on the briefs were Gregory O’Duden and Julie M. Wilson.

Noah Peters, Solicitor, Federal Labor Relations Authority, argued the cause for respondent. With him on the brief were Rebecca J. Osborne, Deputy Solicitor, and Sarah C. Blackadar, Attorney.

Before: HENDERSON, PILLARD and RAO, Circuit Judges.

Opinion for the Court filed by Circuit Judge HENDERSON.

KAREN LECRAFT HENDERSON, Circuit Judge: The Federal Service Labor-Management Relations Statute (FSLMRS or Statute), 5 U.S.C. §§ 7101 et seq., requires federal agencies to 2 bargain with unions over bargaining unit employees’ conditions of employment. The duty to bargain is subject to several statutory exceptions, however, including management’s right to assign work and management’s right to direct employees. During negotiations over a new collective bargaining agreement (CBA), the United States Department of Agriculture Food and Nutrition Service (FNS) declared that the number of days that an employee was permitted to telework was non-negotiable. The National Treasury Employees Union (NTEU or Union) disagreed and filed a negotiability petition with the Federal Labor Relations Authority (FLRA). In a 2–1 decision, the FLRA found the Union’s proposed telework provision was outside the duty to bargain because it affects management’s right to assign work under § 7106(a)(2)(B) and management’s right to direct employees under § 7106(a)(2)(A).

The Union now petitions for review. Because the FLRA failed to address adequately the relevant telework-eligibility and management-discretion provisions in the proposed CBA, we grant the petition—concluding that the FLRA’s decision was arbitrary—and remand to the FLRA.

I. BACKGROUND

A. The Statute

“The FSLMRS requires a federal agency to negotiate in good faith with the chosen representative of employees covered by the Statute, 5 U.S.C. § 7114(a)(4), and makes it an unfair labor practice to refuse to do so, § 7116(a)(5).” Fort Stewart Schs. v. FLRA, 495 U.S. 641, 644 (1990). Section 7102 establishes the duty to bargain’s scope; covered employees have the right “to engage in collective bargaining with respect to conditions of employment.” 5 U.S.C. § 7102(2). The Statute in turn defines “conditions of employment” broadly as 3 “personnel policies, practices, and matters, whether established by rule, regulation, or otherwise, affecting working conditions . . . .” Id. § 7103(a)(14). Several exceptions, however, limit the “expansive duty to bargain.” Library of Congress v. FLRA, 699 F.2d 1280, 1284 n.16 (D.C. Cir. 1983). The Statute’s “management rights” provision, 5 U.S.C. § 7106, is such an exception—its applicability means that “a proposal calling for negotiation over exercise of one or more of the management rights enumerated in Section 7106(a) . . . is not within the employing agency’s duty to bargain.” Nat’l Treasury Emps. Union v. FLRA, 691 F.2d 553, 555 (D.C. Cir. 1982). As relevant here, a proposal that affects management’s right to assign work or management’s right to direct employees is non-negotiable. See 5 U.S.C. § 7106(a)(2)(A), (B).

B. Facts and Procedure

The NTEU is the exclusive representative of the FNS’s bargaining unit employees. Under the existing CBA between NTEU and FNS,1 an eligible bargaining unit employee is permitted “a maximum of six days of telework out of ten . . . where the relevant supervisor determines that telework will not interfere with the accomplishment of work.” Joint Appendix (J.A.) 58 (Agency’s Statement of Position on Petition for Review). The existing CBA includes several eligibility requirements an employee must meet in order to participate in the telework program.

During negotiations over a new CBA, the Union and the FNS exchanged several proposals regarding the CBA’s telework provision, Article 20. The FNS’s initial proposal maintained the status quo regarding the frequency of

1 Negotiations over a new CBA began on June 22, 2017. 4 telework—a maximum of six days out of ten. 2 In its proposals dated June 22 and August 16, 2017, the Union requested expanding the telework provision to allow certain eligible employees to telework up to a full-time basis. On March 6, 2018, the FNS modified its proposal, reducing the maximum number of telework days from six to two days out of ten and, on April 18, 2018, it informed the Union that it believed the frequency of telework was non-negotiable pursuant to 5 U.S.C. § 7106.3 On May 4, 2018, the Union responded that it disagreed with the FNS’s position that the frequency of telework was non-negotiable and sent a revised proposal (Proposal) that would allow an eligible employee to telework a maximum of eight days out of ten.

The Union’s Proposal provides in Article 20, Section 20.06(2):

(2) Employees must be in the office a minimum of one (1) workday each week and a minimum of eight (8) hours each work day, taking into consideration telework and alternative schedule arrangements. In order to telework more than six (6) days per pay period (i.e., expanded), an employee must proceed as follows:

2 Six days out of ten corresponds to a maximum of three days of telework per week. The ten-day timeframe refers to the standard ten- workday bi-weekly pay period. 3 The FNS asserted that U.S. Department of Agriculture Departmental Regulation 4080-811-02, which issued on January 4, 2018, limited the number of days an employee could telework to two out of ten. The FLRA did not address this argument in its decision. See Nat’l Treasury Emps. Union, 71 F.L.R.A. 703, 708 n.49 (2020). 5 (a) Regular Telework: Employees who telework six (6) days or fewer per pay period must be in the office a minimum of two (2) workdays each week and a minimum of eight (8) hours each work day, taking into consideration telework and alternative schedule arrangements. The eligibility requirements for regular telework are contained in Sections 20.02 and 20.03 above.

(b) Expanded Telework: Eligibility for expanded telework (i.e., seven (7) to eight (8) days per pay period or the equivalent for an alternate work schedule) will be based on the employee meeting the following criteria:

(i) The employee has teleworked at least six (6) days per pay period (or the equivalent for an alternate work schedule) for a year; and

(ii) The employee has not had any performance (i.e., a performance improvement plan) or disciplinary issues over the same period; 6 (d) Employee requests for expanded telework will not be unreasonably denied.

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1 F.4th 1120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-treasury-employees-union-v-flra-cadc-2021.