Opinion ID: 1998526
Heading Depth: 1
Heading Rank: 3

Heading: Arbitrability of the Grievance.

Text: The threshold question determining whether the grievance is subject to arbitration is whether the parties agreed to settle the disputed issue by arbitration. Iowa City Community Sch. Dist. v. Iowa City Educ. Ass'n, 343 N.W.2d 139, 141 (Iowa 1983). The arbitrability of a dispute is a legal issue to be determined by interpretation and construction of the parties' agreement. Id.; Atlantic Educ. Ass'n v. Atlantic Community Sch. Dist., 469 N.W.2d 689, 691 (Iowa 1991). The threshold issue of whether the parties agreed to arbitrate is to be determined by the court. AT & T Technologies, Inc. v. Communications Workers, 475 U.S. 643, 649, 106 S.Ct. 1415, 1418, 89 L.Ed.2d 648, 656 (1986). The State argues the grievance challenges supervisors' bumping rights. The State therefore claims that the parties did not agree to arbitrate the issue because supervisors are specifically excluded from the agreement. The State mischaracterizes the grievance. The grievance filed by SPOC stated: Troopers, Todd Olmstead and Milan James, and Special Agent Craig Mackaman, were notified on or about August 19, 1991, that they were to be laid off September 17, 1991. The layoffs occurred as a result of the State's contention that supervisory employees who are laid off may bump back into the bargaining unit and displace current bargaining unit members. The State's action in allowing laid off supervisory employees to bump current members of the bargaining unit includes, but is not limited to, the following violations of the Collective Bargaining Agreement: Article II, Recognition and Union Security, Article V, Seniority, and Article VI, Layoff Procedure. (Emphasis added.) SPOC challenges the displacement of current members of the bargaining unit. Because current members of the bargaining unit are clearly covered by the agreement, questions relating to their seniority and the procedures for their layoff are part of what the State agreed to arbitrate. Although arbitrability is for the courts to decide, judicial determination of arbitrability is limited to (1) whether the agreement contains a grievance procedure providing for compulsory arbitration of contractual disputes and (2) whether the grievance alleges a violation of a provision of the agreement. Ottumwa Educ. Ass'n v. Ottumwa Community Sch. Dist., 297 N.W.2d 228, 231 (Iowa App.1980). The court may not consider the merits of the underlying claim in analyzing arbitrability. Id.; AT & T Technologies, Inc., 475 U.S. at 649, 106 S.Ct. at 1419, 89 L.Ed.2d at 656. There is a presumption of arbitrability when the agreement contains an arbitration clause unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubts should be resolved in favor of coverage. AT & T Technologies, Inc., 475 U.S. at 650, 106 S.Ct. at 1419, 89 L.Ed.2d at 656 (quoting United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582-83, 80 S.Ct. 1347, 1352-53, 4 L.Ed.2d 1409, 1417-18 (1960)); Iowa City Community Sch. Dist., 343 N.W.2d at 141; Sergeant Bluff-Luton Educ. Ass'n v. Sergeant Bluff-Luton Community Sch. Dist., 282 N.W.2d 144, 147-48 (Iowa 1979). Here the agreement provides for compulsory arbitration of grievances involving disputes over a specific provision or term of the agreement. The grievance alleges a violation of the recognition, seniority and layoff terms of the agreement. See Iowa City Community Sch. Dist., 343 N.W.2d at 141 (grievance based on complaint the school district misinterpreted and misapplied a specific provision of the contract was arbitrable). Laying off current members of the bargaining unit pursuant to the seniority and layoff procedure clearly involves these terms of the agreement. Also, there is no provision in the agreement specifically excluding the dispute at issue from arbitration. See id.; see also Council Bluffs Ass'n of Professional Firefighters, 497 N.W.2d at 177 (holding disputes about firefighters' health care benefits not arbitrable because the agreement clearly stipulates the terms of any policy issued by an insurance carrier are controlling in all matters pertaining to benefits). Both parties cite Marshalltown Education Ass'n v. Public Employment Relations Board, 299 N.W.2d 469 (Iowa 1980), in support of their case. In Marshalltown the school proposed a contract term which would allow its administrative employees to retain and accumulate seniority for use if they were ever reassigned to the bargaining unit. The issue was whether such a provision constituted a mandatory bargaining subject. We held it did not. The State argues that Marshalltown stands for the proposition that it would be impermissible to include a provision granting supervisors bumping rights in the agreement. It claims this supports its argument that supervisors' bumping rights are outside the scope of the agreement. We disagree. The fact that the topic is not a mandatory subject for bargaining does not preclude the parties from voluntarily agreeing upon such a provision. See Iowa City Community Sch. Dist., 343 N.W.2d at 141. Here the agreement contains no supervisors' bumping rights provision; but its absence is not relevant to the arbitrability of the dispute at issue, which deals with the rights of the displaced members of the bargaining unit. SPOC argues that Marshalltown suggests it would be illegal to allow supervisors to bump into the bargaining unit. We refuse to give Marshalltown such an expansive reading. The case merely stands for the proposition that the issue is not a mandatory subject for bargaining. Our Marshalltown decision has no bearing on the arbitrability of this dispute. We hold the agreement made the issue of supervisors' displacement of current bargaining unit members arbitrable. It is for the arbitrator to interpret the relevant provisions of the agreement and determine the merits of the dispute. Iowa City Community Sch. Dist., 343 N.W.2d at 142; Iowa Code § 20.18.