Office of Admin. v. LABOR REL. BD.

598 A.2d 1274, 528 Pa. 472
CourtSupreme Court of Pennsylvania
DecidedOctober 31, 1991
StatusPublished
Cited by17 cases

This text of 598 A.2d 1274 (Office of Admin. v. LABOR REL. BD.) 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
Office of Admin. v. LABOR REL. BD., 598 A.2d 1274, 528 Pa. 472 (Pa. 1991).

Opinion

528 Pa. 472 (1991)
598 A.2d 1274

COMMONWEALTH of Pennsylvania, OFFICE OF ADMINISTRATION
v.
COMMONWEALTH of Pennsylvania, PENNSYLVANIA LABOR RELATIONS BOARD, Appellants at No. 34, American Federation of State, County and Municipal Employees, Council 13, AFL-CIO, Intervenors-Appellants at No. 33.

Supreme Court of Pennsylvania.

Argued May 11, 1990.
Decided October 31, 1991.

*473 Stuart E. Davidson, Charles T. Joyce, Philadelphia, for appellant.

James L. Crawford, Chief Counsel, for Labor Relations Bd.

Frank A. Fisher, Chief Counsel, for Office of Adm.

Before NIX, C.J., and LARSEN, FLAHERTY, McDERMOTT, ZAPPALA, PAPADAKOS and CAPPY, JJ.

OPINION

NIX, Chief Justice.

In this case, Appellant, Pennsylvania Labor Relations Board ("PLRB" or "Board"), and Intervenor-Appellants, Council 13 of the American Federation of State, County and Municipal Employees, AFL-CIO ("AFSCME"), appeal from an Order of the Commonwealth Court. Therein, the Commonwealth *474 Court reversed the decision of the Pennsylvania Labor Relations Board, 120 Pa.Cmwlth. 336, 549 A.2d 240, in which the Board held that the Public Employee Relations Act ("PERA"), the Act of July 23, 1970, P.L. 563, No. 195, 43 P.S. § 1101.101, et seq., mandated that any unresolved collective bargaining impasses of prison guards were to be initially submitted to interest arbitration for resolution. The core of the impasse concerns whether certain matters raised were properly the subject of bargaining or whether those items were excluded as falling within the managerial prerogative of the public employer.

The Commonwealth of Pennsylvania, Appellee, and AFSCME (Intervenors) were parties to a collective bargaining agreement covering terms and conditions of employment for prison guards which agreement contained an expiration date of June 30, 1985. In May, 1984 the parties commenced negotiations in an effort to renew the existing collective bargaining agreement. Included among AFSCME's original list of demands as well as subsequent modifications and additional demands were eight additional matters which the Commonwealth considered to be matters of "inherent managerial policy" and, as such, non-bargainable.[1]

After considerable negotiations the parties reached an impasse, and AFSCME, after seeking the involvement of the Pennsylvania Bureau of Mediation, evidenced its desire to proceed to binding interest arbitration pursuant to Section 805 of the PERA.[2] On June 6, 1985, the Commonwealth *475 declined to appoint an arbitrator and refused to proceed to arbitration expressly because AFSCME had failed to withdraw those bargaining demands which the Commonwealth determined to be "non-mandatory subjects of bargaining." Joint Reproduced Record at 19a. On June 21, 1985, AFSCME filed a charge of unfair labor practice with the PLRB. In this charge AFSCME alleged that the Commonwealth violated Section 1201(a)(5)[3] and Sections 805, supra, and 806[4] of Act 195 by virtue of failing to enter the arbitration process.

Subsequent discussions by and between AFSCME and Commonwealth representatives resulted in an agreement between the parties to proceed without delay to arbitration regarding those issues which both parties agreed were mandatory subjects for bargaining. The parties further *476 agreed to submit to the PLRB for resolution the contested issue of whether the new demands made by AFSCME, claimed to be non-bargainable by the Commonwealth, should be submitted to the arbitration panel for preliminary consideration.

The matter was brought before a hearing examiner on July 10, 1985, and again on September 18, 1985. The examiner issued a Proposed Decision and Order in which he concluded that the Commonwealth had violated Sections 1201(a)(1) and (5) of the Act by refusing to proceed to arbitration regarding the items it contended were non-mandatory subjects of bargaining. The examiner concluded further that those issues should be submitted to the interest arbitration panel convened under Section 805 to fashion an award. An award issued pursuant to Section 805 could then be reviewed by the Board to determine whether the award was a proper exercise of the arbitrator's authority. See infra note 7. The Commonwealth filed Exceptions to the Proposed Decision and Order of the Hearing Examiner. The Board issued its Final Order on November 17, 1986, dismissing the Commonwealth's Exceptions and making the Proposed Decision and Order of the Hearing Examiner absolute and final.

By order dated October 12, 1988, in response to a Petition for Review of the Order filed by the Commonwealth on December 17, 1986, the Commonwealth Court reversed the PLRB. We granted the petitions for allowance of appeal filed by both the Board and by AFSCME on May 26, 1989, to review this matter which presents a question of first impression. The issue presented is whether authority rests in the Board or in an arbitrator to determine the validity of a claim that a bargaining demand falls within the category of inherent managerial policy.

Appellants, the Board and AFSCME, contend that the Board correctly determined that the question of arbitrability is one for the arbitrator. Appellants argue that the Board's decision is consistent with prior Commonwealth *477 Court decisions which held that the Commonwealth will have the right to appeal any award by the arbitrator.

Appellee, the Commonwealth, maintains that under Sections 701 and 702 of PERA,[5] the public employer expressly has the right to decline to bargain over certain issues. It argues, in the alternative, that any disputes concerning whether or not issues deal with inherent managerial policy are exclusively within the jurisdiction of the Pennsylvania Labor Relations Board to resolve, and that an arbitrator or an arbitration panel are without jurisdiction to make such a determination. Thus, the Commonwealth argues that the conclusion reached by the Board, vesting in an arbitration panel the power to determine whether the issues involved are matters of inherent managerial policy, is necessarily an error of law. For the reasons that follow, we are constrained to disagree with this argument and must reverse the Commonwealth Court which agreed with the Commonwealth.

*478 Section 805 of Act 195 states, in relevant part, that when an impasse is reached between the Commonwealth and "representative of units of guards at prisons or mental hospitals" (AFSCME) "the impasse shall be submitted to a panel of arbitrators whose decision shall be final and binding upon both parties . . ." (emphasis added). See supra note 2. Clearly, the event which triggers the provision of this Section is the arrival at an "impasse" between the parties attempting to negotiate conditions of their collective bargaining agreement. An "impasse" has been defined as "[a] situation offering no escape, difficulty without solution or an argument where no agreement is possible; deadlock." Webster's New World Dictionary, 703 (Second College Edition, 1982). In the present matter, the Commonwealth on June 6, 1985, declined to appoint an arbitrator and unequivocally refused to proceed to arbitration.

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598 A.2d 1274, 528 Pa. 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/office-of-admin-v-labor-rel-bd-pa-1991.