Court Opinion

ID: 9715702
Source: CourtListenerOpinion
Date Created: 2023-08-26 06:12:24.645767+00
Date Added: 2024-06-11T18:23:37.274241
License: Public Domain

SCHREIBER, J.,
dissenting.
No exercise of judicial power is more suspect than the Court’s substitution of its judgment for that of the Legislature on a *57matter that is inherently legislative. When the Court engages in that exercise, it places the judiciary in the paradoxical position of violating the constitutional safeguard of separation of powers. Judicial activism that operates to subvert that principle serves to undermine the confidence of the public in the entire judicial process. Because today’s decision does just that, I am impelled to dissent.' My colleagues ignore the plain legislative intent and substitute their wisdom for that of the Legislature.
Courts should adhere to the Legislature’s language when it is plain, unambiguous and uncontrolled by other statutory provisions, when that reading is not absurd and when it is in conformity with the purposes of the legislation. See Renz v. Penn Central Corp., 87 N.J. 437, 440 (1981); In re Jamesburg High School Closing, 83 N.J. 540, 547 (1980); 2A Sands, Sutherland Statutory Construction § 46.01 (4th ed. 1973). It is this interpretative guide with its constitutional underpinning that is to be applied in this case. First, then, the language of the statute must be examined. The pertinent provision reads as-follows:
Prior to the arbitration proceedings the parties shall submit to the arbitrator ... their final offers in two separate parts: (a) a single package containing all the economic issues in dispute and (b) the individual issues in dispute not included in the economic package, each set forth separately by issue. [N.J.S.A. 34:13A-16(f)(1) (emphasis supplied)]
This language strongly suggests, indeed compels the thought, that before the arbitration proceedings begin, the parties must submit their last offers. Nothing in the statute or in its history indicates that the Legislature had any other idea in mind. The draft of proposed legislation submitted by the Public Employer-Employee Relations Study Commission contained language identical to N.J.S.A. 34:13A-16(f)(1). Report to the Governor and the Legislature Pursuant to L.1974, c. 124 (1976) at 37, Appendix B at 97. The Report does not suggest that this language means anything other than what it states.
Subdivision 16(c) of N.J.S.A. 34:13A supports the proposition that the Legislature intended “final offers” to be submitted *58“[p]rior to the arbitration proceedings.” That provision encourages the parties to voluntarily adopt some procedure that would lead to a resolution of the impasse. To that end the Legislature suggested six possible schemes, ranging from conventional arbitration on all unsettled items to “last offer” arbitration on a single package including economic and non-economic issues. Five suggestions involved variations of “last offer” arbitrations, none of which required that the “final offers” be submitted “[pjrior to the arbitration proceedings” as required in N.J.S.A. 34:13A-16(f). For example, one proposed method was:
Arbitration under which the award by an arbitrator or panel of arbitrators is confined to a choice between (a) the last offer of the employer and (b) the last offer of the employee’s representative, as a single package. [N.J.S.A. 34.-13A-16(c)(2)]
In that situation offers might properly be made throughout the arbitration proceeding. This is to be contrasted with the requirement in subsection 16(f) that final offers must be made “[p]rior to the arbitration proceedings.” The Study Commission, which, as noted above, had drafted subsection (f), also drafted and recommended subsection 16(c). The Commission members included some leading members of the labor-management bar, unquestionably knowledgeable in this field. I submit they wrote what they intended.
Since the statutory language is quite unambiguous and plain, attention must then be directed to whether such a reading is sensible and in harmony with the legislative purposes. It is certainly arguable that compelling the parties to make their final offers prior to the commencement of the arbitration proceeding accords with the legislative policy evidenced in N.J.S.A. 34:13A-14 of furthering expeditious and effective resolutions of labor disputes involving public employees. With this sword hanging over their heads parties will be encouraged to strive desperately to settle before arbitration proceedings begin, rather than risk total loss under final-offer arbitration. Proponents of final-offer arbitration contend that it expedites settlement of labor disputes and avoids long, costly and dragged out arbitration hearings. See Nelson, “Final-Offer Arbitration: Some *59Problems,” 30 Arb. J. 50, 51 (1975); Long and Feuille, “Final Offer Arbitration: ‘Sudden Death’ in Eugene,” 27 Indus. & Lab. Rel. Rev. 186, 190 (1974); Grodin, “Either-Or Arbitration for Public Employee Disputes,” 11 Indus. Rel. 260, 263 (1972). See generally Note, “Final Offer Arbitration: The Last Word in Public Sector Labor Disputes,” 10 Colum. J. L. & Soc. Prob. 525 (1974).
Requiring an early submission of final offers creates a meaningful deadline for reaching agreement prior to using the impasse process. As Professor Stevens notes, deadline pressures tend to reduce the amount of bluffing in negotiations and tend to alter the least favorable terms each side is willing to accept. See C. M. Stevens, Strategy and Collective Bargaining Negotiations 100 (1963). As one writer in the field explains:
As the parties move closer and closer together, It would be highly likely that they would be able to reach agreement rather than submit the issues to arbitration. Thus, the primary goal of assuring that the parties reach agreement through negotiations would be achieved. [Garber, “Compulsory Arbitration in the Public Sector: A Proposed Alternative,” 26 Arb. J. 226, 232]
It is interesting that the PERC methodology of permitting modification of offers during the arbitration process has been counter-productive in that the parties have not engaged in meaningful negotiation prior to initiation of the arbitration. See Weitzman and Stochaj, “Attitudes of Arbitrators Toward Final-Offer Arbitration in New Jersey,” 35 Arb. J. 25, 34 (1980). Moreover, there is no uniformity in practice as to when final offers may be submitted. The Weitzman-Stochaj study reveals that every conceivable variation has been used: before the start of the hearing, at the outset of the hearing, during the hearing, at the close of the hearing, and after the close of the hearing. Id. at 30. Thus the PERC experience has not been evenhanded and has postponed pressure on both parties, delaying rather than expediting settlement.
Professor Feuille suggests that where a binding outcome is deemed necessary, it is advisable to require the final offer at an “early last possible moment.” He argues:
*60A crucial requirement is that the selection decision shall be between the two final offers originally submitted and shall not be based on any movement that occurred during mediation. Once the impasse moves to arbitration the arbitrator shall have no authority to remand the dispute back to the parties for additional bargaining. [Feuille, “Final-Offer Arbitration and Negotiating Incentives,” 32 Arb. J. 203, 216 (1977)]
Moreover, the possibility of the parties maintaining unreasonable positions as a final offer before arbitration begins is remote, given the fact that this procedure essentially rewards the party being reasonable and punishes the party being extreme. This concept of making final offers before the arbitration proceedings start is not unique. It is a method that has been used successfully. The labor contract of the City of Eugene, Oregon fixes the submission deadline five days before the arbitration process begins. This plan has worked well in expediting settlements.1 It has also been adopted in major league baseball *61collective bargaining agreements. See J. B. Dworkin, “The Impact of Final Offer Interest Arbitration on Bargaining: The Case of Major League Baseball,” (Purdue University, Krannert Graduate School of Industrial Administration, Working Paper No. 554, June 1976), discussed in Feuille, “Final-Offer Arbitration,” supra, 32 Arb. J. at 209. The majority claims that the public will suffer if the parties cannot amend their offers until an arbitration award is made. This claim impliedly assumes that if final offers must be made before the arbitration proceeding begins, hard negotiations will not have occurred. Industrial management experts question this assumption. Moreover, some experience has disproved it. Whether these proponents or the majority are correct is a matter of judgment.
The majority also asserts that the plain and unambiguous language of the statute should not be interpreted as it reads because of the provision in N.J.S.A. 34:13A-16(f)(3) that during the arbitration proceedings the arbitrator “may mandate or assist the parties in reaching a mutually agreeable settlement.” That section does not conflict with final-offer pre-arbitration proceedings. The parties, of course, may continue to attempt to settle the matter during arbitration. In fact, the alternative that faces them is such that they both should more readily reach agreement. In other words, the impetus for settlement exists, and, if their last offers before the proceedings commenced were substantially divergent, the compulsion to settle would be even greater than if the parties were allowed to amend their offers during the arbitration proceedings.
The bottom line of my difference with the majority is that the statute as worded does make sense. The arguments advanced *62by the majority are thoughts that the Legislature may properly consider, and presumably did, but did not find persuasive. This is not to say that the Legislature could not reconsider and modify the final-offer plan in such manner as it deems fit. That is a legislative and not a judicial choice.
Lastly, PERC’s expertise as an administrative agency is not at all compelling under these circumstances. We are concerned with a matter of law involving a new statute. No amount of expertise can justify promulgation of a regulation in conflict with the statute. PERC only has the authority to make regulations that implement the provisions of that statute. See Abelson’s, Inc. v. N. J. State Board of Optometrists, 5 N.J. 412, 423-24 (1975).
I would reverse and enter judgment for the defendant.
Justice CLIFFORD joins in this opinion.
For affirmance—Chief Justice WILENTZ and Justices PASHMAN, HANDLER, POLLOCK and O’HERN—5.
For reversal—Justices CLIFFORD and SCHREIBER—2.

The following table reflects the success of this plan:
Eugene Negotiation-Arbitration Experience (1971-76)
Employee Group Arbitration Invoked? Outcome
1971- 72 negotiations:
Fire Fighters Yes City first offer selected
Police Patrolmen Yes Agreement negotiated during arbitration proceedings
AFSCME Yes (binding fact-finding) Union position selected
1972- 73 negotiations:
Fire Fighters Yes City alternate offer selected
Police Patrolmen No Negotiated agreement
AFSCME Yes Agreement negotiated during arbitration proceedings
1974- 75 negotiations:
Fire Fighters No Negotiated agreement
Police Patrolmen No Negotiated agreement
AFSCME (salary reopener) No Negotiated agreement
1975- 76 negotiations:
Fire Fighters (salary reopener) No Negotiated agreement
Police Patrolmen (salary reopener) No Negotiated agreement
AFSCME Yes Agreement negotiated during arbitration proceedings
*61SOURCE: Peter Feuille, Final Offer Arbitration: Concepts, Development, Techniques, Public Employee Relations Library, series no. 50 (Chicago: International Personnel Management Association, 1975), p. 17; and Gary Long, Personnel Director, City of Eugene, telephone conversation, October 11, 1976. [Reprinted in Feuille, “Final-Offer Arbitration,” supra, 32 Arb. J. at 208]