Opinion ID: 513340
Heading Depth: 3
Heading Rank: 1

Heading: Congressional Intent: FSLMRA's Language and Legislative History

Text: 14 Relying on prior decisions, the FLRA determined that the FSLMRA does not prohibit bargaining over compensation and fringe benefits under the following conditions: the agency has discretion over such matters; Congress has not specifically provided for these matters; and the proposals do not conflict with law, government-wide rule or regulation, or an agency regulation for which a compelling need exists. Fort Knox Teachers Assoc. and Fort Knox Dependents Schools, 28 F.L.R.A. (No. 29) 179 (1987) (WESTLAW, FLB-FLRA Database). Because this FLRA decision is within its authority, we must defer to its conclusion unless it is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 5 U.S.C. Sec. 706(2) (1977); West Point Elementary School Teachers Assoc. v. FLRA, 855 F.2d 936, 939-40 (2d Cir.1988); see Library of Congress v. FLRA, 699 F.2d 1280, 1289 (D.C.Cir.1983) (Congress has specifically entrusted the [FLRA] with the responsibility to define the proper subjects for collective bargaining [under the FSLMRA], drawing upon its expertise and understanding of the special needs of the public sector labor relations.) 15 Our examination of the FSLMRA and its legislative history supports the FLRA's conclusion. The FSLMRA defines conditions of employment as personnel policies, practices and matters ... affecting working conditions.... 5 U.S.C. Sec. 7103(a)(14) (1980). This definition alone does not exclude compensation and fringe benefits. 16 The Army, however, argues that a comparison between the FSLMRA and the National Labor Relations Act (NLRA) reveals that conditions of employment do not include wages and fringe benefits. The NLRA allows bargaining over wages, hours and other terms and conditions of employment. 29 U.S.C. Sec. 158(d) (Supp.1988) (emphasis added). The Army urges that conditions of employment in the FSLMRA encompasses a narrower range of bargainable matters than the NLRA terminology because the FSLMRA did not specifically list wages and hours as bargainable matters. In contrast to the Army's position, the absence of the terms wages and hours from the FSLMRA does not prove that Congress intended to exclude them from negotiations. Rather, the NLRA's description of bargainable matters supports the FLRA's position. By using the word other, Congress included wages and hours in the general category of conditions of employment. Congress likely specified wages and hours in the NLRA merely to illustrate the meaning of the new term conditions of employment. In the FSLMRA, Congress simply used the general term conditions of employment, which encompasses wages, to define the scope of negotiable matters. 17 The Army further argues that another section of the FSLMRA demonstrates that Congress did not intend conditions of employment to include wages. The Civil Service Reform Act of 1978, which includes the FSLMRA, specifically provides that the FSLMRA does not apply to prevailing rate employees who had negotiated over pay prior to August 19, 1972, to the extent that any of the FSLMRA's provisions conflict with their negotiation practices. The Army contends that this section serves no purpose if the FSLMRA authorizes employees, whose wages Congress did not set, to bargain for wages. The legislative history demonstrates that this section serves a purpose even if the FSLMRA allows bargaining over wages. Congressman Ford stated this section's purpose: This provision is required because of two recent rulings by the Comptroller General which ... held that specific legislative authorization was necessary for these employees to continue to negotiate such provisions in accordance with prevailing private industry practice. 124 Cong.Rec. H8468 (daily ed. Aug. 11, 1978) (remarks of Rep. Ford). Thus, this provision clarifies and extends the exemption from the prevailing rate act for such employees. American Federal of Government Employees, 24 F.L.R.A. at 380. 18 Turning from the FSLMRA's language to its legislative history, the Army argues, citing the Third Circuit, that Congress did not intend to allow bargaining over compensation. The Third Circuit recently held that Congress did not intend the FSLMRA to allow bargaining over the Navy's pay practices for the Military Sealift Command's (MSC) civilian mariners. Dep't. of the Navy, Military Sealift Command v. FLRA, 836 F.2d 1409 (3d Cir.1988). The court found that section 5348 of the prevailing rate system specifically gives the Navy limited discretion over the MSC's pay practices. Dep't. of the Navy, 836 F.2d at 1410. Because bargaining over such pay practices is outside the Navy's discretion, such negotiation would conflict with law, excluding these matters from the duty to bargain. The court examined the FSLMRA's legislative history to determine if Congress intended the FSLMRA to supersede section 5348 and subject the MSC's pay practices to collective bargaining. Dep't. of the Navy, 836 F.2d at 1417. The court concluded that Congress did not intend the FSLMRA to allow federal employees to negotiate over compensation. Dep't. of the Navy, 836 F.2d at 1419. 19 In contrast, the Second Circuit implicitly adopted the FLRA's conclusion that the FSLMRA does not bar negotiation of proposals involving compensation and fringe benefits. See West Point Elementary School Teachers Assoc., at 942. The court concluded that conditions of employment in the FSLMRA included wage and fringe benefit proposals when the federal government did not specifically provide for such matters. West Point Elementary School Teachers Assoc., at 942. 20 Despite the Third Circuit's holding that Congress did not intend the FSLMRA to allow federal employees to bargain over wages, we agree with the FLRA and the Second Circuit that Congress did not intend to preclude all bargaining over compensation. The legislative history indicates that Congress intended to treat wages and fringe benefits as other conditions of employment; the parties must bargain over them unless a federal statute specifically provides for them or the proposed matters would conflict with law. See 5 U.S.C. Secs. 7103(a)(14)(C) and 7117(a)(1) (1980). Because federal law dictates nearly all federal employees' wages, the legislative history contains many general statements claiming that the FSLMRA does not make wages negotiable. See 5 U.S.C. Secs. 5341-5349 (1980 & Supp.1988). 21 A close examination of the congressional reports and debates reveals that the FSLMRA's supporters made these statements with the understanding that Congress generally regulates such matters through its prevailing rate acts, not with the understanding that the FSLMRA barred all wage negotiations. The House Report on the Committee's bill provides: Federal pay will continue to be set in accordance with the pay provisions of title 5, and fringe benefits, including retirement, insurance, and leave, will continue to be set by Congress. H.R.Rep. No. 95-1403, 95th Cong., 2d Sess. 12 (1978). Congressman Udall, the sponsor of the amended version which Congress ultimately enacted into law stated, [t]here is not really any argument in this bill or in this title about federal collective bargaining for wages and fringe benefits and retirement.... All these major regulations about wages and hours and retirement and benefits will continue to be established by law through congressional action. 124 Cong.Rec. H9633 (daily ed. Sept. 13, 1978) (remarks of Rep. Udall); reprinted in Subcomm. on Postal Personnel and Modernization of the House Comm. on Post Office and Civil Service, 96th Cong., 1st Sess., Legislative History of the Federal Service Labor-Management Relations Statute, Title VII of the Civil Service Reform Act of 1978, at 923 (1979) [hereinafter Legislative History ]. Moreover, Congressman Ford who strenuously advocated the bill's adoption stated: [N]o matters that are governed by statute (such as pay, money-related fringe benefits, retirement and so forth) could be altered by a negotiated agreement. 124 Cong.Rec. H8468 (daily ed. Aug. 11, 1978) (remarks of Rep. Ford); Legislative History at 855-56 (emphasis added). Finally, Congressman Clay, supporting Congressman Udall's substitute legislation, stated: 22 Section 7103(a)(14)(D), removing from subjects of bargaining those matters specifically provided for by Federal statute, was adopted by the committee and retained in the Udall substitute with the clear understanding that only matters specifically provided for by statute would be excluded under this subsection. Thus, where a statute merely vests authority over a particular subject with an agency official with the official given discretion in exercising that authority, the particular subject is not excluded by this subsection from the duty to bargain over conditions of employment. 23 124 Cong.Rec. H9638 (daily ed. Sept. 13, 1978) (remarks of Rep. Clay); Legislative History at 933. Thus, although some legislators' remarks baldly assert that wages are not negotiable, the above comments indicate that the legislators merely were assuring their peers that the FSLMRA would not supplant specific laws which set wages and benefits. 24 The legislative history additionally demonstrates that Congress intended the FSLMRA to continue the existing practices regarding the negotiation of wages. Congressman Clay stated that employees still ... cannot bargain over pay. 124 Cong.Rec. E4293 (daily ed. Aug. 3, 1978) (remarks of Rep. Clay); Legislative History at 839 (emphasis added). Similarly, Congressman Devinski stated that wages and fringe benefits remained beyond the scope of collective bargaining. 124 Cong.Rec. H9639 (daily ed. Sept. 13, 1978) (remarks of Rep. Devinski); Legislative History at 935. 25 One such existing practice allowed federal employees to negotiate wages in the rare instances where Congress did not specifically establish wages and fringe benefits. American Fed'n of Gov't Employees, 24 F.L.R.A. at 381; see United Fed'n of College Teachers, Local 1460 and U.S. Merchant Marine Academy, 1 FLRC 211 (1972) (Federal Labor Relations Council (FLRC) held that the academy's teachers could bargain for their wages because their proposals did not violate the laws giving the Secretary of Commerce discretion to set their salaries); Overseas Educ. Assoc., Inc. and Dept. of Defense, Office of Dependents Schools, 6 FLRC 231 (1978) (the duty to bargain encompassed proposals involving procedures and formulas for setting teacher compensation because the federal act governing these teachers' pay did not bar negotiation on the proposals). Congress should have known of this practice because the FSLMRA specifically mandates that decisions under Executive Order 11491 continue in effect unless superceded; the FLRC administered the above decisions under this executive order. 5 U.S.C. Sec. 7135(b) (1980). Consequently, we agree with the FLRA that Congress did not intend to preclude bargaining over wages and related benefits. 26