Nuclear Regulatory Commission v. Federal Labor Relations Authority, National Treasury Employees Union, Intervenor

879 F.2d 1225, 131 L.R.R.M. (BNA) 3033, 1989 U.S. App. LEXIS 10179
Court of Appeals for the Fourth Circuit·Decided July 14, 1989·No. 87-3182·Published·Cited by 9 cases

Opinions

WILKINSON, Circuit Judge:

The Nuclear Regulatory Commission (NRC) petitions for review of an order of the Federal Labor Relations Authority (FLRA) directing the NRC to bargain in good faith over a salary proposal advanced during collective bargaining by the National Treasury Employees Union. See National Treasury Employees Union & Nuclear Regulatory Comm’n, 29 FLRA (No. 19) 217 (September 29, 1987). The FLRA cross-petitioned for enforcement of its order and this court granted the union’s motion for leave to intervene in these proceedings. We hold that the NRC is not obligated to bargain over the union’s salary proposal and therefore grant the NRC’s petition for review. The FLRA’s decision is reversed and enforcement of its bargaining order is denied.

I.

A.

Title VII of the Civil Service Reform Act of 1978, 5 U.S.C. §§ 7101-7135, recognizes the right of federal employees to belong to unions and establishes a collective bargaining system for the federal sector. Although Title VII provides for employee and union participation in the public sector, it is not simply an “employees’ rights statute.” United States Department of Health & Human Services v. FLRA, 844 F.2d 1087, 1089 (4th Cir.1988). Rather, Congress expressly recognized in Title VII “the special requirements and needs of the Government,” and sought to balance these interests against the rights of employees to participate in labor organizations. See 5 U.S.C. § 7101(b). Public sector labor relations differ therefore in important respects from those of the private sector. See 124 Cong. Rec. S14,281 (daily ed. Aug. 24, 1978) (remarks of Sen. Sasser), reprinted in Subcommittee on Postal Personnel and Modernization of the House Committee on Post Office and Civil Service, 96th Cong., 1st Sess., Legislative History of the Federal Service Labor-Management Relations Statute, Title VII of the Civil Service Reform Act of 1978, 1014 (1979) [hereinafter Legislative History ]. While salaries and benefits are often the central subject of private-sector collective bargaining, most wages in the public sector are set by statute. Also, unlike private-sector bar[1227]*1227gaining, many matters in the public sector are not negotiable because agencies and unions are not free to contravene standards which have been enacted into law.

In general, Title YII obligates federal employers and employee unions to engage in collective bargaining over “conditions of employment.” See 5 U.S.C. §§ 7114(a)(4), 7103(a)(12) & 7103(a)(14). The duty to bargain does not extend, however, to contract proposals which are “inconsistent with any Federal law or any Gcivemment-wide rule or regulation,” 5 U.S.C. § 7117(a)(1), or which interfere with certain prerogatives reserved by statute to agency management. See 5 U.S.C. § 7106. Federal agencies and employee organizations must make good faith efforts to reach agreement on conditions of employment not excluded from the bargaining process. See 5 U.S.C. § 7114(a)(4). But, again unlike private-sector bargaining, the public sector provides a mechanism that can compel the adoption of a negotiable proposal. If the parties fail to agree on a negotiable contract proposal, Title YII provides for third-party resolution of the dispute. See 5 U.S. C. §§ 7119(b), 7119(c)(5)(B) & 7119(c)(5)(C). Title VII’s duty to bargain over a contract proposal subjects the agency to the possibility that the Federal Service Impasses Panel will resolve the dispute by imposing a binding proposal upon the agency. See 5 U.S.C. §§ 7119(b), 7119(c)(5)(B) & 7119(c)(5)(C).

B.

The Nuclear Regulatory Commission administers the Atomic Energy Act of 1954, see 42 U.S.C. §§ 2011 et seq., and is charged with overseeing the development, utilization, and control of nuclear technology so as to promote the general welfare and security of the United States. See 42 U.S.C. §§ 2011-2013 & 2201. The National Treasury Employees Union is the exclusive representative of a bargaining unit comprising all professional, nonprofessional, and wage-earning employees of the NRC, with the exception of managers, supervisors, or “confidential employees” as defined in 5 U.S.C. § 7103(a)(13).

In October of 1984, during the course of collective bargaining, the union submitted a proposal to the NRC which included a periodic cost-of-living adjustment. The proposal provided in pertinent part that:

[t]he salary structure, that is the grade and steps of the pay schedule, being used by the NRC will be maintained. Hereafter, all employees will have their current salaries adjusted for the cost of living/comparability factor. The adjustment will be equal to the statistical adjustment recommended to the President by the [Advisory Committee on Federal Pay, see 5 U.S.C. § 5306]. This adjustment will become effective at the announcement of it by the [Committee] or other appropriate sources. It will be unaffected by Presidential or Congressional actions.

The NRC refused to bargain, finding the contract proposal nonnegotiable. The agency objected, inter alia, to the fact that the Advisory Committee’s recommendations would be “unaffected by Presidential or Congressional actions,” noting that the Committee frequently recommends increases well above those passed by Congress and signed by the President. The agency determined that the union’s proposal would violate Title VII’s “management rights clause” by affecting management decisions to determine the agency’s budget. See 5 U.S.C. § 7106(a)(1). The NRC also believed the Salary proposal to be inconsistent with the statutory requirements of the Atomic Energy Act, see 42 U.S.C. § 2201(d), and therefore nonnegotiable pursuant to § 7117 of Title VII.

On March 20, 1986, the union petitioned the FLRA for review of the NRC’s nonne-gotiability determination. The FLRA ordered the NRC to negotiate with the union, finding the salary proposal within the agency’s duty to bargain. National Treasury Employees Union & Nuclear Regulatory Comm’n, 29 FLRA (No. 19) 217 (September 29, 1987). According to the FLRA, the union’s proposal was a negotiable “condition of employment,” 5 U.S.C. §

Nuclear Regulatory Commission v. Federal Labor Relations Authority, National Treasury Employees Union, Intervenor, 879 F.2d 1225, 131 L.R.R.M. (BNA) 3033, 1989 U.S. App. LEXIS 10179 (4th Cir. 1989).

879 F.2d 1225 (Nuclear Regulatory Commission v. Federal Labor Relations Authority, National Treasury Employees Union, Intervenor) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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