Source: http://supreme.justia.com/cases/federal/us/472/648/case.html
Timestamp: 2013-12-10 03:11:09
Document Index: 112494193

Matched Legal Cases: ['§ 7701', '§ 7701', '§ 7701', '§ 7701', '§ 7701', '§ 7101', '§ 4303', '§ 7512', '§ 7513', '§ 4303', '§ 7512', '§ 4303', '§ 7701', '§ 7701', '§ 7106', '§ 7121', '§ 7121']

Cornelius v. Nutt - 472 U.S. 648 (1985) :: Justia US Supreme Court Center
Justia > US Law > US Case Law > US Supreme Court > Volume 472 > Cornelius v. Nutt - 472 U.S. 648 > Case	NEW - Receive Justia's FREE Daily Newsletters of Opinion Summaries for the US Supreme Court, all US Federal Appellate Courts & the 50 US State Supreme Courts and Weekly Practice Area Opinion Summaries Newsletters. Subscribe Now
Case	U.S. Supreme CourtCornelius v. Nutt, 472 U.S. 648 (1985)Cornelius, Acting Director, Office of PersonnelManagement v. NuttNo. 83-1673Argued January 7, 1985Decided June 24, 1985472 U.S. 648CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
Under the Civil Service Reform Act of 1978 (Act), a federal employee may challenge agency disciplinary action by appealing the agency's decision to the Merit Systems Protection Board (Board), or, if he is a member of a federal employees' labor union, he may, in the alternative, challenge the action through any grievance and arbitration procedure provided by the collective bargaining agreement between the agency and the union. Under 5 U.S.C. § 7701(c)(2)(A), the Board may not sustain the agency's action if the employee "shows harmful error in the application of the agency's procedures in arriving at such decision." The Act also requires an arbitrator to apply this "harmful error" rule in grievance and arbitration procedures under a bargaining agreement. Two employees of the General Services Administration (GSA), members of a union having a bargaining agreement with the GSA, were removed from their jobs for falsification of records and other reasons. When the employees were first interrogated about the wrongdoing, and later when they admitted it in sworn affidavits, they were not advised that they were entitled to have a union representative present. The employees also did not receive notices of proposed removal until almost three months after the wrongdoing. The employees challenged their removals under the bargaining agreement's grievance and arbitration procedures. The arbitrator, while finding that the wrongdoing normally would justify removal, also found that the GSA had committed procedural errors in violation of the bargaining agreement by failing to give the employees an opportunity to have a union representative present during interrogation and by unreasonably delaying issuance of the notices of proposed removal. The arbitrator concluded that, although the errors did not prejudice the employees, the removals were not for just cause. Accordingly, the arbitrator reduced the penalties to two weeks' suspension without pay. The Court of Appeals affirmed in substantial part, holding that although the employees were not prejudiced, the arbitrator, in making the ultimate award, could take into account significant violations of the bargaining agreement that were important to the union, because such violations were tantamount to "harmful error" to the union within the scope of § 7701(c)(2)(A). The Court of Appeals also ruled that the Page 472 U. S. 649 reduction of the penalties was a proper means of "penalizing the agency" for disregarding the agreement's procedural protections.
Held: Under § 7701(c)(2)(A), the employee-grievant must show error that caused substantial prejudice to his individual rights by possibly affecting the agency's decision. Pp. 472 U. S. 657-665.
(a) The Board has so interpreted § 7701(c)(2)(A) in its regulation defining "harmful error," and its interpretation is entitled to deference. To apply a different definition of "harmful error" in an arbitral context than in a Board proceeding, so as to permit an arbitrator to overturn agency disciplinary action on the basis of a violation of a bargaining agreement that is harmful only to the union, would directly contravene the Act's purpose of promoting consistency in resolving federal employee grievances and avoiding forum shopping. Pp. 472 U. S. 657-662.
(b) Moreover, the "harmful error" rule must be interpreted as the Board interprets it if the underlying purpose of the Act of maintaining an effective and efficient Government, and the particular purpose of § 7701 to give agencies greater ability to remove or discipline erring employees expeditiously, are to be carried out. The purpose of the Act of strengthening federal employee unions and making the collective bargaining process more effective is not undermined by application of the Board's interpretation of the "harmful error" rule in the arbitral context. Under any interpretation of the rule, unions are free to bargain for procedures to govern agency actions, and agencies must follow agreed-upon procedures. If the agency violates these procedures with prejudice to the individual employee's rights, any resulting agency disciplinary decision will be reversed. Whether or not there is prejudice to the individual employee, the union may file a grievance in its own behalf and, in the case of a clear breach of the agreement, may file an unfair labor practice charge with the Federal Labor Relations Authority. Thus, the union has adequate remedies of its own for enforcing agency compliance with the procedural requirements of the bargaining agreement. Pp. 472 U. S. 662-665.
BLACKMUN, J., delivered the opinion of the Court, in which BURGER, C.J., and WHITE, REHNQUIST, STEVENS, and O'CONNOR, JJ., joined. MARSHALL, J., filed a dissenting opinion, in which BRENNAN, J., joined, post, p. 472 U. S. 666. POWELL, J., took no part in the decision of the case. Page 472 U. S. 650
Bureau of Alcohol, Tobacco and Firearms v. FLRA, 464 U. S. 89, 464 U. S. 91 (1983). Among the major purposes of the Act were the "preser[vation of] the ability of federal managers to maintain an effective and efficient Government,'" ibid., quoting 5 U.S.C. § 7101(b), and the
"strengthen[ing of] the position of Page 472 U. S. 651 federal unions and [making] the collective bargaining process a more effective instrument of the public interest,"
464 U.S. at 464 U. S. 107.
To promote the first of these purposes, the Act provides that a federal employee may be removed or otherwise disciplined for unacceptable performance or for misconduct. Specifically, § 4303 establishes procedures by which an agency may remove or demote an employee whose performance is unacceptable. In addition, § 7512 provides that an agency may take adverse action against an employee, including removal, suspension for more than 14 days, reduction in grade or pay, or a furlough of 30 days or less, for, as § 7513 states, "such cause as will promote the efficiency of the service," including misconduct. A federal employee subjected to agency disciplinary action taken pursuant to § 4303 or § 7512 may appeal the agency's decision to the Board. §§ 4303(e), 7513(d), and 7701. The Board must sustain the agency's decision if it is supported by appropriate evidence. § 7701(c)(1). [Footnote 1] The agency's decision may not be sustained, however, if the employee "shows harmful error in the application of the agency's procedures in arriving at such decision." § 7701(c)(2)(A). [Footnote 2]
"to strengthen the position of federal unions and to make the Page 472 U. S. 652 collective bargaining process a more effective instrument of the public interest"
Bureau of Alcohol, Tobacco and Firearms v. FLRA, 464 U.S. at 464 U. S. 92. Even matters reserved to agency-management discretion, such as discipline, are subject to negotiation concerning the procedures that management officials will observe in exercising their authority. § 7106(b)(2).
§ 7121(e)(2). Section 7701(c)(1) incorporates by reference the provisions of subsection (c)(2), including the harmful error rule. Thus, the statutory scheme mandates that the harmful error rule is to apply whether the employee challenges the agency action through the Board or through binding arbitration. [Footnote 3] Page 472 U. S. 653
Subsequently, an FPS official monitoring the tapes for an unrelated reason noted irregularities in them and concluded that they had been edited. GSA's Inspector General initiated an investigation. Two special agents went to Rogers' home and asked him to accompany them to the local police station for a "noncustodial" interrogation. The agents made Page 472 U. S. 654 detailed notes of the interview. Wilson was interviewed in the same manner. Neither was advised that he was entitled to have a union representative present at the interview, and neither requested the presence of a representative.
On April 2, 1982, almost three months after the incidents, GSA formally advised the grievants that it proposed to remove them from federal service. Upon receiving written responses to the charges, GSA informed Wilson that he would be removed on grounds of falsification of records and of attempting to conceal activities of record. Similarly, GSA informed Rogers that he would be removed on grounds of falsification of records, failure to report irregularities, and use of a Government vehicle for a nonofficial purpose. [Footnote 4]
Both grievants elected to challenge their removal under the grievance and arbitration procedures established by the collective bargaining agreement between GSA and their union, respondent American Federation of Government Employees. The union then invoked binding arbitration pursuant to § 7121(b)(3)(C). The arbitrator, respondent Nutt, found that the grievants had committed the alleged acts of wrongdoing and that this misconduct normally would justify the penalty of removal from Government service. The arbitrator also found, however, that GSA on its part had committed two procedural errors in violation of provisions Page 472 U. S. 655 of the collective bargaining agreement. First, GSA had failed to give the grievants an opportunity to have a union representative present during interroga