Office of Personnel Management v. Federal Labor Relations Authority, American Federation of Government Employees, Afl-Cio, Intervenor

864 F.2d 165, 274 U.S. App. D.C. 362, 130 L.R.R.M. (BNA) 2172, 1988 U.S. App. LEXIS 17146, 1988 WL 135726
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 20, 1988
Docket87-1726
StatusPublished
Cited by24 cases

This text of 864 F.2d 165 (Office of Personnel Management v. Federal Labor Relations Authority, American Federation of Government Employees, Afl-Cio, Intervenor) 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
Office of Personnel Management v. Federal Labor Relations Authority, American Federation of Government Employees, Afl-Cio, Intervenor, 864 F.2d 165, 274 U.S. App. D.C. 362, 130 L.R.R.M. (BNA) 2172, 1988 U.S. App. LEXIS 17146, 1988 WL 135726 (D.C. Cir. 1988).

Opinions

[166]*166Opinion for the Court filed by Circuit Judge MIKVA.

Dissenting Opinion filed by Circuit Judge SENTELLE.

MIKVA, Circuit Judge:

This case reviews a determination by the Federal Labor Relations Authority (“FLRA” or “Authority”) that a union proposal is negotiable. AFGE, AFL-CIO, Local 32 and Office of Personnel Management, 29 F.L.R.A. (No. 40) 380 (1987). The case presents the question whether a government-wide regulation that is a mere restatement of management prerogatives established by the Federal Labor-Management Relations statute, 5 U.S.C. §§ 7101-7135 (1982 & Supp.1988) (“statute”), can serve as a greater bar to bargaining than the statutory prerogatives themselves. This case, in other words, is the “anomalous situation” that we left “for another day” in AFGE, Local 2782 v. FLRA, 803 F.2d 737, 742 (D.C.Cir.1986) (“Local 2782”). We now hold that a government-wide rule or regulation that merely restates a statutorily guaranteed prerogative of management cannot render a bargaining proposal nonnegotiable where the underlying statutory prerogative does not do so.

I. Introduction

The American Federation of Government Employees, AFL-CIO, Local 32 (“union”) made a proposal (“Proposal 2”) which provided:

Reemployment eligibles (employees who are separated through reduction in force [RIF]) will be reemployed at former or lower grades in positions for which they qualify by being selected in preference to applicants from all other sources.

29 F.L.R.A. at 389. The Office of Personnel Management (“OPM” or “agency”) refused to bargain, arguing that Proposal 2 interfered with its right to fill positions from “any * * * appropriate source” under section 7106(a)(2)(C) of the statute. OPM also pointed to Requirement 4 of subchapter 1-4, chapter 335 of the Federal Personnel Manual (“FPM”), which lists merit promotion requirements for federal employees covered by the FPM:

Selection procedures will provide for management’s right to select or not select from among a group of best qualified candidates. They will also provide for management’s right to select from other appropriate sources, such as reemployment priority lists, reinstatement, transfer, handicapped, or Veterans Readjustment eligibles or those within reach on an appropriate OPM certificate. In deciding which source or sources to use, agencies have an obligation to determine which is most likely to best meet the agency mission objectives, contribute fresh ideas and new viewpoints, and meet the agency’s affirmative action goals.

29 F.L.R.A. at 393.

The union filed a negotiability appeal with the Authority, and, in a split decision, the Authority found Proposal 2 negotiable. The majority decision consists of Parts II and IV of Chairman Calhoun’s opinion, in which Member McKee joined. Id. at 403. Chairman Calhoun concluded that although Proposal 2 does interfere with an agency’s right to select employees for vacancies from any appropriate source under section 7106(a)(2)(C), it is an “appropriate arrangement” under section 7106(b)(3) because it does not “excessively interfere[] with the exercise of the management right.” Id. at 399. He argued that Requirement 4 is essentially a restatement of the management rights under section 7106(a)(2)(C), and should not be construed as a greater bar to bargaining than the statutory right itself. Id. at 399-402. Chairman Calhoun, in a section not joined by Member McKee, found that Proposal 2 was negotiable even under the agency’s view of the statute because subchapter l-5(c) of chapter 335 provides discretion for the agency to exempt reemployment eligibles from coverage of the merit promotion plan. Id. at 393-99. Member Frazier, in a vociferous dissent on the Proposal 2 issue, argued that Requirement 4 is a government-wide regulation which, under section 7117(a)(1) of the statute, renders the proposal nonnegotiable. Id. at 405-13. In addition, he disputed [167]*167Chairman Calhoun’s characterization of the FPM, contending that it did not create a zone of discretion over which the agency could bargain. Id. at 414-20.

This petition for review followed. Because we hold that section 7117(a)(1) does not render Proposal 2 nonnegotiable, we need not decide whether subchapter l-5(c) of chapter 335 provides discretion over which bargaining could take place.

II. DISCUSSION

A. Section 7117(a)(1)

It is undisputed that Proposal 2, at least to some extent, interferes with management rights under section 7106(a)(2)(C) “to make selections” to fill vacancies from “among properly ranked and certified candidates for promotion” or from “any other appropriate source.” The proposal would require an agency to select qualified RIF’d employees in preference to applicants from other sources. Nevertheless, were section 7106 the only relevant provision in the statute, Proposal 2 would be negotiable because it is an “appropriate arrangement” under section 7106(b)(3).

Requirement 4, however, is a “government-wide rule or regulation,” within the meaning of section 7117(a). See Local 2782, 803 F.2d at 741-42 & n. 2; 29 F.L.R.A. at 391. OPM maintains that section 7117(a)(1), which provides that the duty to bargain does not extend to matters that are the subject of any such regulation, operates as an independent bar to negotiability in this instance. The first issue for decision is whether section 7117(a)(1) renders nonnegotiable proposals that conflict with any kind of government-wide rules, as OPM contends, or whether that section applies only to government-wide rules that do more than merely restate management rights codified in the statute, as the FLRA maintains.

We agree with FLRA’s interpretation. Because section 7117(a)(1) is part of the Authority’s enabling legislation, and not OPM’s, we owe deference primarily to the FLRA’s construction of that section. While we defer to OPM’s construction of Requirement 4, the meaning of the regulation is not determinative of the scope of negotiability established by section 7117(a)(1). We uphold the FLRA’s determination that section 7117(a)(1) renders nonnegotiable only those regulations that amount to more than a restatement of management’s statutory rights because it is a “reasonable and defensible” construction of the statute. Bureau of Alcohol, Tobacco, & Firearms v. FLRA, 464 U.S. 89, 97, 104 S.Ct. 439, 444, 78 L.Ed.2d 195 (1983).

When presented with “a pure question of statutory construction,” a court’s “first job is to try to determine congressional intent using ‘traditional tools of statutory construction.’ ” NLRB v. United Food & Commercial Workers Union, Local 23, 484 U.S. 112, 108 S.Ct. 413, 421, 98 L.Ed.2d 429 (1987) (quoting INS v. Cardoza-Fonseca, 480 U.S. 421, 107 S.Ct.

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864 F.2d 165, 274 U.S. App. D.C. 362, 130 L.R.R.M. (BNA) 2172, 1988 U.S. App. LEXIS 17146, 1988 WL 135726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/office-of-personnel-management-v-federal-labor-relations-authority-cadc-1988.