Opinion ID: 2325323
Heading Depth: 2
Heading Rank: 1

Heading: In the Matter of Local 195

Text: From late 1978 to early 1979, the State and Local 195 were engaged in collective negotiations on a contract to run from July 1979 to June 1981. During the course of the negotiations, the negotiability of several contractual provisions came into question. The disputed clauses concerned (1) limitations on contracting and subcontracting, (2) the establishment of a workweek, and (3) transfer and reassignment determinations. Unable to reach agreement, the parties filed a joint petition for a scope of negotiations determination with the Public Employment Relations Commission (PERC) on May 31, 1979. [3] N.J.S.A. 34:13A-5.4(d). On January 4, 1980, PERC held that the disputed contracting/subcontracting and workweek provisions, and portions of the transfer and reassignment provisions, were mandatorily negotiable. In re Local 195, IFPTE, AFL-CIO, PERC No. 80-85, 6 NJPER 32 (1980). In deciding that subcontracting was a negotiable issue, PERC relied on its earlier cases, [4] arguing that subcontracting must be mandatorily subject to negotiation since a decision to subcontract would effectively terminate the employment relationship vis-a-vis the employees in a negotiations unit and would have a cataclysmic effect on wages, hours, and working conditions.... [Slip op. at 6] On October 6, 1980, the Appellate Division substantially affirmed PERC's determinations regarding the workweek and the transfer and reassignment provisions. 176 N.J. Super. 85 (1980). [5] The court divided on the negotiability of subcontracting. The majority reversed PERC and held that the determination to subcontract work is an inherent managerial prerogative. Judge Morgan dissented, arguing that the majority had failed to consider the interests of public employees in reaching its decision. Applying a balancing test, Judge Morgan would have found subcontracting to be a mandatorily negotiable issue. Because of the dissent below, this case comes before the Court on appeal as of right. R. 2:2-1(a)(2).