Natl Treas Empl v. FLRA

414 F.3d 50
Court of Appeals for the D.C. Circuit·Decided July 8, 2005·No. 04-1137·Published·Cited by 4 cases

Opinion

414 F.3d 50

NATIONAL TREASURY EMPLOYEES UNION, Petitioner
v.
FEDERAL LABOR RELATIONS AUTHORITY, Respondent
United States Customs and Border Protection, United States Department of Homeland Security Intervenor.

No. 04-1137.

United States Court of Appeals, District of Columbia Circuit.

Argued February 7, 2005.

Decided July 8, 2005.

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

Elaine D. Kaplan argued the cause for the petitioner. Gregory O'Duden and Larry J. Adkins were on brief.

James F. Blandford, Attorney, Federal Labor Relations Authority, argued the cause for the respondent. David M. Smith, Solicitor, Federal Labor Relations Authority, and William R. Tobey, Deputy Solicitor, Federal Labor Relations Authority, were on brief.

Peter D. Keisler, Assistant Attorney General, United States Department of Justice, William G. Kanter, Deputy Director, and Sandra W. Simon, Attorney, were on brief for the intervenor. E. Roy Hawkens, Attorney, entered an appearance.

Before: GINSBURG, Chief Judge, and HENDERSON and RANDOLPH, Circuit Judges.

Opinion for the court filed by Circuit Judge HENDERSON.

KAREN LECRAFT HENDERSON, Circuit Judge.

Granting the exceptions taken by the United States Department of the Treasury's Customs Service1 (Customs), the Federal Labor Relations Authority set aside an arbitration award in favor of the National Treasury Employees Union (NTEU). See United States Dep't of the Treasury Customs Serv., Washington, D.C. (Agency) & Nat'l Treasury Employees Union (Union), 59 FLRA 703 (2004) (Customs Order), reprinted in Joint Appendix (J.A.) at 271-96. The NTEU now petitions for review of the Authority's order, alleging that the Authority erred twice: initially, by concluding that Customs exercised statutorily protected management rights when it implemented a revised National Inspectional Assignment Policy (NIAP); and, again, by concluding that, assuming arguendo that Customs in fact exercised its managements right in implementing the revised NIAP, Customs was not obligated to bargain over the NTEU's ground rule proposal. Because the Authority erred in neither respect, we deny the NTEU's petition.

I.

The Federal Service Labor-Management Relations Statute (FSLMRS or Statute), 5 U.S.C. §§ 7101-7135, "establishes a collective bargaining regime in the federal public sector." Ass'n of Civilian Technicians v. FLRA, 353 F.3d 46, 49 (D.C.Cir.2004) (citing United States Dep't of the Navy v. FLRA, 952 F.2d 1434, 1438 (D.C.Cir.1992)). This controversy involves the Statute's management rights doctrine codified in section 7106. See 5 U.S.C. § 7106. While the Statute generally obligates an agency to negotiate with its employees' bargaining representative over "conditions of employment," id. § 7103(a)(12)—i.e., "personnel policies, practices, and matters . . . affecting working conditions," id. § 7103(a)(14)—section 7106 "reserv[es] to management officials the authority to, inter alia, make budget, organization, and work assignments."2 FLRA v. United States Dep't of Justice, 994 F.2d 868, 871-72 (D.C.Cir.1993). Nonetheless, these rights of unilateral action, which are permissive subjects of bargaining, see Nat'l Treasury Employees Union v. FLRA, 399 F.3d 334, 340 & n. 5 (D.C.Cir.2005), are not unqualified. An agency exercises management rights subject to bargaining over the "impact and implementation" of the rights. Dep't of the Navy v. FLRA, 962 F.2d 48, 50 (D.C.Cir.1992). "Nothing in this section," the Statute says, "shall preclude any agency and any labor organization from negotiating" over either "procedures which management officials of the agency will observe in exercising any authority under this section . . . or appropriate arrangements for employees adversely affected by the exercise of any authority under this section by such management officials." 5 U.S.C. § 7106(b)(2)-(3). Thus, "although an agency is not required to bargain with respect to its management rights per se, it is required to negotiate about the impact and implementation of those rights." Dep't of the Navy, 962 F.2d at 50 (internal quotation marks omitted & emphasis in original). Under the Statute, all bargaining must be carried out in "good faith." Id. § 7114(a)(4), (b).

The distinction between an agency's exercise of management rights and its obligation to engage in impact and implementation bargaining is the crux of this controversy, which has its genesis in Customs' revised policy governing the assignment of Customs inspectors to tours of duty and overtime work known as the National Inspection Assignment Policy (NAIP). Customs and the NTEU, which represents "a nationwide unit" of Customs Service employees, including Customs inspectors, have negotiated a series of national level collective bargaining agreements (NLAs). The most recent NLA (and the one the parties were abiding by when this dispute arose) expired in 1999.

In 1993, the Congress passed the Customs Officers Pay Reform Act (COPRA), which overhauled the overtime system applicable to Customs inspectors. See Pub.L. No. 103-66, § 13811(a), 107 Stat. 312 (1993) (codified at 19 U.S.C. § 267). To implement COPRA, that same year Customs and the NTEU formed a joint labor-management committee, whose work culminated, two years later, with the NIAP. See J.A. 272. The NIAP was developed independently of the 1999 NLA.

At the time the NIAP was formulated, Customs, along with all other federal agencies, was required under Executive Order 12871 to negotiate over the permissive subjects of bargaining set forth in section 7106(b)(1) of the FSLMRS. See 58 Fed.Reg. 52,201 (Oct. 1, 1993). Section 7106 identifies the subjects as "the numbers, types, and grades of employees or positions assigned to any organizational subdivision, work project, or tour of duty, or on the technology, methods, and means of performing work." 5 U.S.C. § 7106(b)(1). In 2001, however, President George W. Bush revoked Executive Order 12871 by issuing Executive Order 13203. See 66 Fed.Reg. 11,227 (Feb. 17, 2001).

Following Executive Order 13203, Customs advised the NTEU that it no longer intended to negotiate over permissive subjects of bargaining as previously required by article 5, section 2, of the NLA. In that section of the NLA, Customs agreed, "[i]n the interest of partnership, . . .

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