Court Opinion

ID: 9733457
Source: CourtListenerOpinion
Date Created: 2023-08-26 17:08:13.208112+00
Date Added: 2024-06-11T18:26:41.739591
License: Public Domain

OXBERGER, Chief Judge
(dissenting).
I dissent. While the list of topics described as mandatory under section 20.9 of the Code is to be interpreted strictly, I believe case law and PERB’s own rulings show payment of unused sick time and severance pay are mandatory topics. While the statute is to be restrictively construed, the words used are also to be given their general and commonly understood meaning. City of Fort Dodge v. Iowa PERB, 275 N.W.2d 393, 396-97 (Iowa 1979). Even following the mandates of City of Fort Dodge v. PERB, 275 N.W.2d 393 (Iowa 1979), and using a restrictive approach, I believe that payment of accumulated sick time falls within the definition at section 20.9.
PERB claims Bettendorf should not control since the thrust of that appeal was whether the issue was properly within the contractual authority of the school. However, both our supreme court and PERB have relied on such decisions when determining whether an item is a subject of mandatory bargaining. See Fort Dodge Community School District v. PERB, 319 N.W.2d at 184; In the Matter of City of Davenport and Davenport Association of *520Professional Firefighters, 78 PERB at 1244. The court in Bettendorf indicated paying employees unused sick time was “a reward to teachers who did not use up sick leave. Defendant’s acknowledged purpose was to discourage teacher absenteeism, which is an appropriate objective of school districts. The lump sum benefits in rule 404.1 were a form of teacher compensation like tuition reimbursement and step salary increases.” Bettendorf Education Association v. Bettendorf Community School District, 262 N.W.2d 550, 552 (Iowa 1978). (emphasis added). PERB found this holding compelling and determined in its Davenport firefighters case payment of accumulated sick leave upon retirement or death is a mandatory topic, adding, “It is our judgment that, as was suggested by the supreme court in Bettenclorf it is nothing more than an alternative form of compensation.” In the Matter of City of Davenport and Davenport Association of Professional Firefighters Association, Local 7, 78 PERB 1199. The PERB ruling is based not on a broad interpretation of the Code, but upon Bettendorf, and the board’s own conclusion that payment of unused sick leave is a method of compensation. The Association claims the service rendered is regular attendance of employees. However, I find more persuasive the reasoning of the New York court that the issue of leaves of absence, with or without pay, affects the hours of actual employment required for public service. Albany v. Helsby, 48 App.Div.2d 998, 370 N.Y.S.2d 215, aff'd 38 N.W.2d 778, 345 N.E.2d 338, 381 N.Y.S.2d 866 (1975). I agree that the “public benefit” argument of the Association must be rejected, but also agree with the supreme court’s indication in Betten-dorf, with PERB, and the New York court that payment of accumulated sick leave is another form of compensation and is a mandatory subject of bargaining.
Whether considered as supplemental pay or wages, I agree the severance pay must be for service performed. PERB has determined in prior rulings, however, that a severance benefit identical to the one proposed here is supplemental pay. In the Matter of Area IV Community College Education Association and Merged Area IV School District; Iowa Central Community College Education Association and Merged Area V School District, 76 PERB 663 & 674. PERB again claims this case came before the statute was interpreted restrictively, but I am once again unpersuaded by this claimed distinction. The board in its ruling noted that the pay could be wages under the NLRA, but did not base its decision on this. Id. Instead, it found the benefit was a supplemental payment. Id.
I find compelling the logic used by the New York court in reaching its determination that such severance benefits are mandatory subjects of bargaining. The court found the pay was based on the number of years the employee worked, and is for services actually rendered in the last year of employment. Board of Education v. Associated Teachers of Huntington, Inc., 30 N.Y.2d 122, 282 N.E.2d 109, 331 N.Y.S.2d 17 (1972) (overruled on other grounds, Syracuse Teachers Association v. Board of Education, 35 N.W.2d 743, 320 N.E.2d 646, 361 N.Y.S.2d 912 (1974)). The severance pay relates to the time served and increased skill of the employee accruing with long service.
The majority notes that classifying the proposals as permissive instead of mandatory does not preclude voluntary bargaining on the issue. However, as the majority also points out, it is vital to categorize properly these topics since only mandatory topics must be negotiated and failure to resolve such issues may lead to binding arbitration. Iowa Code § 20.9, .10 (1985).
I would hold that the severance benefits set out by the Association are mandatory topics of bargaining, and reverse the trial court.