United States Department of the Treasury, United States Customs Service v. Federal Labor Relations Authority

43 F.3d 682, 310 U.S. App. D.C. 31, 1994 WL 717792
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 30, 1994
DocketNo. 93-1388
StatusPublished
Cited by12 cases

This text of 43 F.3d 682 (United States Department of the Treasury, United States Customs Service v. Federal Labor Relations Authority) 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
United States Department of the Treasury, United States Customs Service v. Federal Labor Relations Authority, 43 F.3d 682, 310 U.S. App. D.C. 31, 1994 WL 717792 (D.C. Cir. 1994).

Opinion

Opinion for the Court filed by Circuit Judge SILBERMAN.

SILBERMAN, Circuit Judge:

The government appeals the Federal Labor Relations Authority’s affirmance of an arbitrator’s award that held a regulation is[684]*684sued by the Customs Service in violation of a statute regulating coastwise trade. The Authority challenges our jurisdiction to review its order. We hold instead that the arbitrator and the FLRA exceeded their own jurisdiction.

I.

At the time this case arose, § 1448(a) of the federal customs laws required ships originating from “a foreign port or place” to make “formal entry” with United States customs officials before unloading any goods or passengers at a United States port. 19 U.S.C. § 1448(a) (1988) (superseded). Formal entry entails the presentation of the ship’s manifest and other documentation at the port customshouse and was required of such vessels at all U.S. ports of call. Id. Since ships often arrive when customshouses are closed and formal entry impossible, Congress also provided for “preliminary entry” to enable unloading prior to formal entry. A ship’s captain could make preliminary entry “by making oath or affirmation to the truth of the statements contained in the vessel’s manifest and delivering the manifest to the customs officer who boards such vessel.” Id. When preliminary entry was requested, the Customs Service would arrange to have customs personnel available to meet an incoming vessel and receive the manifest, after which cargo could be unloaded to approved warehouses or container yards pending formal entry. See id. The costs of this special attention were borne by the shipper. See 19 U.S.C. § 261 (1988) (repealed 1993).

In 1990, the Customs Service adopted the Coastwise Advanced Preliminary Entry (CAPE) program for its operations in the Southeastern United States. The program streamlined preliminary entry for so-called “coastwise vessels” — those ships originating from a foreign port that have already made a formal entry with U.S. customs. Technological innovations such as the capacity to transmit manifests electronically in advance of arriving vessels had made unnecessary the actual physical transfer of manifests to waiting customs officials. Accordingly, the CAPE program effectively eliminated boarding as a routine aspect of preliminary entry.

An expected consequence of the change in policy — and one highly disagreeable to the National Treasury Employees Union (NTEU), which represents the customs employees affected by the CAPE program — was a diminution in the amount of lucrative overtime work assigned to customs agents, who were no longer needed to meet arriving vessels at odd hours of the day or night. Although not required to do so, the Service offered to negotiate over “appropriate arrangements” for employees adversely affected by the new program.1 The union rejected this proposal, however, and instead filed a grievance under the collective bargaining agreement.

Under the Federal Service Labor-Management Relations Statute (FSLMRS or Statute), 5 U.S.C. § 7121 (1988), collective bargaining agreements between federal agencies and unions representing their employees must “provide procedures for the settlement of grievances.” The Statute defines “grievances” to comprise any complaint concerning

(i) the effect or interpretation, or a claim of breach, of a collective bargaining agreement; or
(ii) any claimed violation, misinterpretation, or misapplication of any law, rule, or regulation affecting conditions of employment. ...

Id. § 7103(a)(9)(C). Parties are not required to adopt a grievance procedure coextensive with the Statute’s provision, see id. § 7121(a)(2) (the parties’ contract “may exclude any matter from the application of the grievance procedures”), but the collective bargaining agreement between the Customs Service and the NTEU defines “grievance” in language identical to that of § 7103(a)(9)(C).

[685]*685The union’s grievance alleged that the Service’s decision not to require actual boarding as a component of preliminary entry under the CAPE program violated § 1448(a) as well as its primary implementing regulations. The union argued that since the customs law requires delivery of “the manifest to the customs officer who boards such vessel,” 19 U.S.C. § 1448(a) (emphasis added), the Customs Service could not legally dispense with boarding.

Initially, the arbitrator dismissed the union’s complaint. “The statutory and regulatory provisions upon which the union relies,” he decided, “do not fall within the contractual category” of grievance. Although the CAPE program could be thought to “affect conditions of employment,” the arbitrator reasoned that “every law-related action of the Agency has some impact on its employees” (emphasis added), and therefore a mere effect was an “insufficient nexus” to establish an arbitrable grievance. He thought that whether a particular “law, rule, or regulation” provided a cognizable basis for grievances should be answered by drawing upon a “zone of interest” analysis — ie., by determining whether the law was intended to benefit the employees on whose behalf the grievance was brought. Persuaded that § 1448(a) was not enacted with the interests of Customs officers in mind, he concluded that the dispute was not arbitrable.

The union appealed his decision to the FLRA, which has authority to review arbitration awards under 5 U.S.C. § 7122.2 The Authority determined that the arbitrator had too narrowly construed the term “grievance” as used in the Statute. United States Dep’t of Treasury, United States Customs Serv. v. NTEU (Customs I), 43 F.L.R.A. No. 72, at 4-6 (1992). The Authority reasoned that “law” as used in § 7103(a)(9)(C)(ii) had the same scope as the term “applicable law” under § 7106(a), the section of the Statute that sets forth the management prerogatives of covered federal agencies.3 Id. at 4. Under that latter section, an agency acting “in accordance with applicable laws” is guaranteed authority, notwithstanding any provision of the FSLMRS, to make all major personnel decisions. Since the Authority had previously interpreted “applicable law” to “include[ ] provisions of the U.S.Code, the U.S. Constitution, controlling judicial decisions, and Presidential Executive Orders,” so long as they “relate to the conditions of employment of unit employees,” National Treasury Employees Union & U.S. Dep’t of Treasury, Bureau of Pub. Debt, 42 F.L.R.A. 1333, 1337, 1338 (1991) (Bureau Pub. Debt), it read “law” under § 7103(a)(9)(C)(ii) to have the same broad meaning. Nor was the term limited to “statutes that prescribe employee rights and benefits.” Customs I, 43 F.L.R.A. No. 72, at 4 (quoting Bureau Pub. Debt, 42 F.L.R.A. at 1338). In short, there are no definitional constraints on the available grounds for grievances under § 7103(a)(9)(C)(ii) other than that the law in

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43 F.3d 682, 310 U.S. App. D.C. 31, 1994 WL 717792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-department-of-the-treasury-united-states-customs-service-v-cadc-1994.