Portland Fire Fighters' Ass'n v. City of Portland

341 P.3d 770, 267 Or. App. 491, 2014 Ore. App. LEXIS 1724
CourtCourt of Appeals of Oregon
DecidedDecember 10, 2014
DocketUP1310; A150768
StatusPublished
Cited by5 cases

This text of 341 P.3d 770 (Portland Fire Fighters' Ass'n v. City of Portland) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Portland Fire Fighters' Ass'n v. City of Portland, 341 P.3d 770, 267 Or. App. 491, 2014 Ore. App. LEXIS 1724 (Or. Ct. App. 2014).

Opinion

DEVORE, J.

Petitioner City of Portland (city) seeks judicial review of an order of the Employment Relations Board (ERB) that declared that the city committed an unfair labor practice (ULP) by failing to accept the terms of an arbitration award. In an earlier proceeding, an arbitrator had determined that, without just cause, the city had discharged a disabled firefighter on injury leave. In order to make him whole, the arbitrator had ordered the city to reinstate him to leave status and to pay him the equivalent of the disability benefits that he had lost some months before the discharge. Although the city reinstated him, it refused to pay the sum equivalent to lost disability benefits. On his behalf, the Portland Fire Fighters’ Association (association) filed a ULP complaint against the city for failing to comply with an arbitration award. ORS 243.672(l)(g).1 The city contends that, in the earlier proceeding, the arbitrator had exceeded the scope of his authority to arbitrate. ERB found otherwise and ordered compliance. The city seeks review of that order. We affirm.

I. BACKGROUND

The facts are largely undisputed but layered in proceedings. Tom Hurley is a former city firefighter who injured his knee in 1983 and his back in 1992. Since 1993 or 1994, he had been on disability status and receiving disability benefits from the city’s Fire and Police Disability and Retirement Fund (fund). Hurley received training through the fund’s vocational rehabilitation program to become a chef. His wages in that occupation have the effect of reducing disability benefits, but benefits can be reduced no lower than a minimum of 25 percent of his base rate of pay at the time of disability.

[493]*493In 2006, the city implemented a return-to-work program, which required certain injured fund members to resume work in restricted-duty positions. Hurley was notified that he was a potential participant in the program. The city directed him to attend a mandatory five-week training session beginning in November 2006. He was told that, if he failed to attend training, the fund would suspend or terminate his disability benefits. He did not attend the training because it conflicted with his duties as a chef at restaurants in Seattle and Portland. In December, the fund sent Hurley a letter asking him to explain his absence. In response, Hurley’s attorney asserted, among other things, that, after vocational rehabilitation, a disabled firefighter should not be required to retrain for a restricted-duty job. Although the city conceded Hurley’s scheduling conflicts, the city still asked him to reschedule training by March 9, 2007. The city followed with a notice directing Hurley to report for work as an inspector on April 5, 2007. Hurley did not reschedule training, and he did not report for work in the restricted-duty job.

On April 13, 2007, the fund notified Hurley that it terminated his disability benefits because he had failed to attend training. The fund advised Hurley that he had 14 days to respond and 60 days to appeal the decision within the fund’s administrative process.2 His attorney responded, asking for reconsideration of the benefit termination, but the fund did not reply or reconsider. Hurley did not pursue the administrative appeal.

Coincidentally, on April 25, 2007, the association filed a separate ULP complaint with ERB regarding the city’s implementation of the return-to-work program. Although Hurley was not involved in that proceeding, the complaint concerned the same program that sought to retrain and reassign him. The association charged, among other things, that the city unilaterally implemented the program while refusing to engage in mandatory bargaining over the program’s impacts.

[494]*494On April 26, 2007, the city again directed Hurley to report for work as an inspector, setting a date in May 2007, and warning that his failure to report would be deemed an abandonment of his job and a reason to terminate his disabled employment status. In June 2007, the city notified Hurley that it was proposing to discharge him, and on October 7, 2007, the city discharged him for abandoning his job since April 5.

The association challenged Hurley’s discharge by filing a grievance pursuant to the parties’ collective bargaining agreement (CBA).3 The association alleged that the discharge lacked just cause. As remedies, the association sought rescission of Hurley’s discharge and “reinstatement to status as [a] disabled employee receiving benefits through FPD&R [Fund].” (Emphasis added.) The parties submitted the dispute to arbitration. After conferring, the arbitrator recorded that the parties agreed that the two arbitration issues were:

“Did the City have just cause to terminate Grievant under the City’s ‘return-to-work program’ in light of the ERB’s ruling in Case No. UP-14-07?
“If so, does the arbitrator have authority to issue the remedy sought by the Association?”

(Emphasis added.) At that time, the thrust of the city’s argument was that the arbitrator lacked authority over benefits because (a) the fund had exclusive authority over benefits, (b) by reason of city charter and the city’s home rule status, the fund was not subject to the CBA or the Public Employee Collective Bargaining Act (PECBA), ORS 243.650 to 243.782, and (c) Hurley had failed to pursue an appeal within the fund’s administrative process.

The city was making a similar argument about the nature of the fund in its defense against the separate ULP complaint about the return-to-work program. Its defense presented a similar question about the independence of the program or fund from duties under labor law. At the city’s [495]*495request, the Hurley arbitration was postponed until ERB ruled on that ULP complaint.

In that separate proceeding, ERB answered the question about the independence of the program, ruling that the duty to bargain did extend to the fund’s benefits and the city’s return-to-work program. ERB explained:

“The [fund] is, in fact, a creation of the City. The [fund], the Fire Bureau, the Police Bureau, and the Bureau of Human Resources are all departments within the City, created by the City, funded by the City, staffed in accordance with City policies, and advised by the City Attorney’s Office. The City Fire Bureau, the [fund], and Human Resources department worked together to implement the return-to-work program. In effect, the Fire Bureau and the [fund] are two parts of the City’s governmental structure.”

ERB concluded that the city had unlawfully implemented the return-to-work program because, in a number of ways, the city failed to give notice and to bargain the program’s impacts that are subject to mandatory bargaining. The city sought judicial review of ERB’s decision. Although our opinion did not issue in time for the Hurley arbitration, we rejected without discussion the city’s argument that the city’s structure meant that the duties of collective bargaining did not extend to the fund’s disability benefits or the return-to-work program. Portland Fire Fighters’ Assoc. v. City of Portland, 245 Or App 255, 263 n 3, 263 P3d 1041 (2011).4

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Bluebook (online)
341 P.3d 770, 267 Or. App. 491, 2014 Ore. App. LEXIS 1724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/portland-fire-fighters-assn-v-city-of-portland-orctapp-2014.