Opinion ID: 479022
Heading Depth: 2
Heading Rank: 1

Heading: Denial of Within-Grade Increase

Text: 16 In general, if an employee is covered by a collective bargaining agreement, matters that customarily would be within the board's jurisdiction are deemed to be covered by the negotiated grievance procedure and thus beyond the board's jurisdiction, unless the collective bargaining agreement specifically excludes a matter from application of the grievance procedure. 5 U.S.C. Sec. 7121(a); 5 C.F.R. Sec. 1201.3(b)(1); Bonner v. Merit Systems Protection Board, 781 F.2d 202, 204 (Fed.Cir.1986); see Moreno v. Merit Systems Protection Board, 728 F.2d 499 (Fed.Cir.1984). For certain matters, however, employees have an option of either using the negotiated grievance procedure or appealing to the board. 5 U.S.C. Sec. 7121(e); 5 C.F.R. Sec. 1201.3(b)(1). The question presented here is whether a denial of a within-grade increase is a matter for which employees have that option. The board held that it was not. We agree. 17 The statutory section stating the general prohibition against board review of matters covered under a negotiated grievance procedure is 5 U.S.C. Sec. 7121(a)(1): 18 ... any collective bargaining agreement shall provide procedures for the settlement of grievances, including questions of arbitrability. Except as provided in subsections (d) and (e) of this section, the procedures shall be the exclusive procedures for resolving grievances which fall within its coverage. 19 Subsection (e) (5 U.S.C. Sec. 7121(e)) states exceptions to the general prohibition: 20 (1) Matters covered under sections 4303 and 7512 of this title which also fall within the coverage of the negotiated grievance procedure may, in the discretion of the aggrieved employee, be raised either under the [MSPB] appellate procedures of section 7701 of this title or under the negotiated grievance procedure, but not both.... 21 The regulation on which the board relied in dismissing Espenschied's WGI appeal, 5 C.F.R. Sec. 1201.3(b)(1), incorporates the statutory jurisdictional limitations: 22 Where an employee is covered by a collective bargaining agreement which provides for an exclusive negotiated grievance procedure for actions involving discrimination under 5 U.S.C. 7702, reduction in grade or adverse actions under either 5 U.S.C. 4303 or 7512, the employee may raise the matter under either the negotiated grievance procedure or under the Board's appellate procedures but not both. Other matters which are covered by a negotiated grievance procedure under 5 U.S.C. 7121 may not be appealed to the Board. 23 Espenschied argues that WGI denials are matters covered under 5 U.S.C. Sec. 4303, and thus, under 5 U.S.C. Sec. 7121(e) and 5 C.F.R. Sec. 1201.3(b)(1), they may be raised to the board despite the availability of a negotiated grievance procedure. Section 4303 sets out the procedures an agency must follow to reduce in grade or remove an employee for unacceptable performance. Although section 4303 does not mention performance-based denials of salary increases with no reduction in grade, Espenschied argues that, under Meyer v. Department of Health and Human Services, 666 F.2d 540 (Ct.Cl.1981), WGI denials arise under Sec. 4303. 24 In Meyer, one of our predecessor courts held that the standard of review in WGI appeals before the MSPB should be substantial evidence under 5 U.S.C. Sec. 7701(c)(1)(A). 666 F.2d at 545. To reach that holding, the court reasoned that, in section 7701(c)(1), Congress intended WGI denials to be included within the clause an action based on unacceptable performance described in section 4303 of this title. 666 F.2d at 544. This court has recently reaffirmed the holding in Meyer. Romane v. Defense Contract Audit Agency, 760 F.2d 1286, 1288 (Fed.Cir.1985). 25 There is no indication that a negotiated grievance procedure was available to the employee in Meyer. Because the board has jurisdiction to review WGI denials where no grievance procedure exists, the board's jurisdiction was not at issue in Meyer. The Meyer court did not construe 5 U.S.C. Sec. 7121, the section at issue here. Hence, Meyer does not apply in this case. 26 Our analysis of Sec. 7121 begins with the assumption that, Where Congress explicitly enumerates certain exceptions to a general prohibition, additional exceptions are not to be implied in the absence of evidence of a contrary legislative intent. Andrus v. Glover Construction Co., 446 U.S. 608, 100 S.Ct. 1905, 64 L.Ed.2d 548 (1980). Espenschied cites nothing in the legislative history of Sec. 7121 suggesting that Congress intended to except WGI denials from the general prohibition against board jurisdiction where a negotiated grievance procedure is available. The Conference Report suggests the contrary; [E]xcept for certain specified exceptions, an employee covered by a collective bargaining agreement must follow the negotiated grievance procedures rather than the agency procedures available to other employees not covered by an agreement. H.R.Conf.Rep. No. 1717, 95th Cong., 2d Sess. 157, reprinted in 1978 U.S.Code Cong. & Ad.News 2723, 2860, 2891 (emphasis added). The Senate Report sheds light on those specified exceptions: Subsection (e) provides employees with an option, in appealing matters covered under 5 U.S.C. section 4303 (demotion or removal for unacceptable performance) ..., of using the statutory appeal procedure under 5 U.S.C. section 7701 or the negotiated grievance procedure if such matters have been negotiated into coverage under the grievance procedure. S.Rep. No. 969, 95th Cong., 2d Sess. 110, reprinted in 1978 U.S.Code Cong. & Ad.News 2723, 2832 (emphasis added). 27 Espenschied argues that, because the statutory section governing WGI appeals (5 U.S.C. Sec. 5335(c)) does not limit an employee's right to appeal to the board, section 7121 cannot. That argument fails because the legislative history of section 7121 plainly indicates that Congress intended negotiated grievance procedures, where available, to override statutory appeal procedures. National Treasury Employees Union v. Cornelius, 617 F.Supp. 365, 370 (D.C.D.C.1985); see Bonner, 781 F.2d at 204. The Senate report states: 28 [I]f the parties choose to do so, they may negotiate into coverage under their grievance procedure many of the matters that are covered by statutory appeal procedures, such as appeal from the withholding of within-grade salary increases and appeal from reduction-in-force actions. With the exception of adverse actions and discrimination complaints, where a grievance falls within the coverage of the negotiated grievance procedure, both union and nonunion members of the bargaining unit must use the negotiated procedure to resolve the grievance. 29 S.Rep. No. 969, 95th Cong., 2d Sess. 109-10, reprinted in U.S.Code Cong. & Ad.News 2723, 2831-32. 30 Espenschied argues that the board erred in retroactively applying OPM's October 31, 1985 regulation to Espenschied's August 22, 1985 appeal. However, the regulation on the books at the time Espenschied filed his appeal, and which Espenschied would have the board apply, was declared invalid before the agency issued its reconsideration decision denying Espenschied's within-grade salary increase. National Treasury Employees Union, 617 F.Supp. at 372. That the agency relied on an invalid regulation in advising Espenschied of his appeal rights is unfortunate, but does not invoke the board's jurisdiction. An invalid regulation cannot confer jurisdiction.