Opinion ID: 173022
Heading Depth: 2
Heading Rank: 2

Heading: Certification of 13(c) Agreements

Text: Each time a governmental body seeks financial assistance from the FTA under UMTA, the DOL must certify to the FTA that § 13(c) is satisfied. Effective January 8, 1996, the DOL implemented the current administrative guidelines for issuing such certifications (the Guidelines). See 29 C.F.R. §§ 215.1-215.8 (2007); 60 Fed.Reg. 62964-69 (Dec. 7, 1995). Where employees are represented by a labor organization, as in this case, 29 C.F.R. § 215.3 controls. Once the DOL receives an application for FTA assistance and a request for certification of employee protective arrangements, it refers the application to the labor organization and notifies the applicant of the referral. Id. § 215.3(b). For applicants with previously certified arrangements, the referral will be based on those terms and conditions. Id. § 215.3(b)(2). Following referral and notification ... parties will be expected to engage in good faith efforts to reach mutually acceptable protective arrangements through negotiation/discussion within the [regulatory] timeframes. Id. § 215.3(c). Within fifteen days of the referral and notification, parties may submit objections to the referred terms. Id. § 215.3(d)(1). The parties are encouraged to engage in negotiations/discussions during this period with the aim of arriving at a mutually agreeable solution to objections any party has to the terms and conditions of the referral. Id. If a party objects, the DOL has ten days from the response deadline to determine whether the objection is sufficient. Id. § 215.3(d)(2)(i). Under the regulations, the DOL will consider an objection to be sufficient when: (i) The objection raises material issues that may require alternative employee protections under 49 U.S.C. § 5333(b); or (ii) The objection concerns changes in legal or factual circumstances that may materially affect the rights or interests of employees. Id. § 215.3(d)(3). If the DOL determines that there are no sufficient objections, it will issue a certification. Id. § 215.3(d)(5). But if the DOL determines that an objection is sufficient, it will direct the parties to engage in negotiations regarding the issue. Id. § 215.3(d)(6). If such negotiations produce an agreement that, in the DOL's view, satisfies § 13(c), then the certification will be based on the terms of the parties' agreement. Id. § 215.3(d)(7). If the negotiations are not successful, the DOL will issue an interim certification based on terms and conditions that it has set which are no less protective than the terms and conditions included in the referral. Id. Even after issuing an interim certification, however, the DOL will oversee further proceedings to resolve the dispute. Id. § 215.3(e). Ultimately the DOL will issue a final determination, based either on an agreement by the parties or the DOL's resolution of the dispute. Id. § 215.3(g). In adopting the Guidelines, the DOL departed from its previous practice. The prior guidelines did not require objections to be sufficient for the DOL to oversee negotiations of a new 13(c) agreement. See 43 Fed.Reg. 13558-13560 (Mar. 31, 1978) (discussing guidelines effective May 1, 1978). Instead, we are informed, any objection would trigger renegotiations.