Opinion ID: 186611
Heading Depth: 2
Heading Rank: 2

Heading: Congressional Restructuring of the FAA in the 1990s

Text: 13 The FAA argues here, as before the Panel, that legislation passed by Congress in the mid-1990s withdrew the FSIP's jurisdiction as the final arbiter over disputes that arise between the FAA and its employees over compensation and benefits. First, with the enactment of the 1996 Department of Transportation and Related Agencies Appropriations Act (1996 DOT Act), Congress directed the FAA to establish its own personnel management system, exempt from many of the provisions of federal personnel laws. See 49 U.S.C. § 40122(g) (2000). Section 40122(g) is derived from § 347 of the 1996 DOT Act, Pub.L. No. 104-50, § 347, 109 Stat. 436, 460 (1995), and it now provides in relevant part that, 14 [i]n consultation with the employees of the Administration and such non-governmental experts in personnel management systems as he may employ, and notwithstanding the provisions of title 5 and other Federal personnel laws, the Administrator [of the FAA] shall develop and implement, not later than January 1, 1996, a personnel management system for the Administration that addresses the unique demands on the agency's workforce. Such a new system shall, at a minimum, provide for greater flexibility in the hiring, training, compensation, and location of personnel. 15 49 U.S.C. § 40122(g)(1). 16 On March 28, 1996, the FAA issued its new Personnel Management System. The new system extended Chapter 71 protections to FAA employees: 17 The FAA, all FAA employees, and all labor organizations representing FAA employees shall have the same rights, and be subject to the same responsibilities and limitations, as are available to all Federal agencies, employees, and labor organizations under 5 U.S.C. Chapter 71. 18 FAA Personnel Management System (Mar. 28, 1996) at 35, reprinted in Joint Appendix (J.A.) 84. The FAA explained that, while Congress did not require that the new system conform to Chapter 71, [t]he FAA has elected to continue the rights and benefits of union representation to our employees. Id. at ii, reprinted in J.A. 44. It is undisputed that the current version of the FAA Personnel Management System contains this same provision extending Chapter 71 protections to FAA employees. 19 On March 29, 1996, Congress amended § 347 to codify the agency's choice to extend Chapter 71 protections to FAA employees. H.R.J. Res. 170, Pub.L. No. 104-122, 110 Stat. 876 (1996) (codified as amended at 49 U.S.C. § 40122(g) (2000)). Section 347 now provides: The provisions of title 5 shall not apply to the [FAA's] new personnel management system ... with the exception of ... chapter 71, relating to labor-management relations. 49 U.S.C. § 40122(g)(2)(C). The parties agree that none of these acts altered the Panel's jurisdiction to address collective bargaining impasses between the FAA and the Unions. 20 According to the FAA, business as usual changed when Congress enacted 49 U.S.C. § 106( l ) in October 1996. The FAA argues that, [u]nder 49 U.S.C. § 106( l ), the FAA has the power to fix compensation for officers and employees, but its power to bargain over compensation and benefits is strictly limited. Br. for FAA as Amicus Curiae at 2. Section 106( l ) states in relevant part: 21 Except as provided in subsections (a) and (g) of section 40122, the Administrator is authorized, in the performance of the functions of the Administrator, to appoint, transfer, and fix the compensation of such officers and employees, including attorneys, as may be necessary to carry out the functions of the Administrator and the Administration. In fixing compensation and benefits of officers and employees, the Administrator shall not engage in any type of bargaining, except to the extent provided for in section 40122(a), nor shall the Administrator be bound by any requirement to establish such compensation or benefits at particular levels. 22 49 U.S.C. § 106( l )(1). This provision was added as § 225 of the Air Traffic Management System Performance Improvement Act of 1996 (1996 FAA Act), enacted as Title II of the Federal Aviation Reauthorization Act of 1996, Pub.L. No. 104-264, tit. II, 110 Stat. 3213, 3232. The provision originally referred in its text to the uncodified version of § 40122(g), but was put in its current form in the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century, Pub.L. No. 106-181, § 307(a), (c), 114 Stat. 61, 124-26 (2000). 23 The FAA points out that § 106( l )'s invocation of section 40122(a) of title 49 incorporates a special process involving consultation, negotiation, mediation, and notification. If the parties cannot agree on compensation and benefits after consulting and negotiating, the Federal Mediation and Conciliation Service is brought in to help [the parties] reach an agreement. Then, if the parties still cannot agree, the FAA is authorized to implement its proposed changes if it follows a procedure of notifying Congress and waiting a period of 60 days. Br. for FAA as Amicus Curiae at 3. 24 The parties disagree over the import of 49 U.S.C. § 106( l ). The FAA argues that § 106( l ) divests the FSIP of jurisdiction over bargaining impasses between the FAA and union bargaining agents with respect to compensation and benefits. In other words, the agency claims that it is only required to bargain to the extent provided for in section 40122(a). And under § 40122(a)(2), the FAA cannot be required to use the services of the FSIP. The Unions disagree, pointing out that the first line of § 106( l ) says [e]xcept as provided in subsection[] ... (g) of section 40122, and that § 40122(g) in turn expressly incorporates Chapter 71 bargaining rights. Neither the Panel nor the Authority has taken a position on the matter. 25