A recent Minnesota Court of Appeals decision offers public employers an important reminder: PELRA’s bargaining obligations are not on hold during the term of a collective bargaining agreement. In Minnesota Nurses Association v. McLeod County, McLeod County (the “County”) notified employees that it was providing an additional mid-contract wage increase beyond the 3% increase already provided by the CBA. The union alleged it had not participated in developing the additional increase and, after receiving notice, demanded bargaining. The County implemented the increase without bargaining. The County later rescinded the increase and again declined to bargain, reasoning in part that the CBA did not contain a wage reopener.
The Minnesota Public Employment Relations Board (“PERB”) found that the County violated PELRA by its refusal to bargain over both the unilateral implementation of the increase and the recission. The Court of Appeals affirmed and found the County had violated PELRA based, in part, on the following:
- PELRA’s bargaining obligation continues during the term of the CBA.
The court rejected the County’s arguments that (1) The County is not required to reopen a “closed” contract during its unexpired term to negotiate wages when the CBA expressly established wage increases; and (2) The parties had exhausted their bargaining obligation as wages had been negotiated and “fixed” for the contract term, and PERB’s imposition of an affirmative obligation or right to continuous mandatory bargaining on wages during the CBA’s term was incorrect.
The court found the duty to meet and negotiate continues during the term of an unexpired contract. In doing so the court cited PELRA (Minn. Stat. § 179A.07, subd. 2) requirements that public employers bargain terms and conditions of employment and noted there is no exception under the statutory language for a CBA currently in effect. Further, the court noted the CBA did not contain provisions allowing for a mid-term change to wages that would authorize the County’s change.
- The wage increase constituted a unilateral change.
The court relied on the Foley framework discussed last week, stating “unilateral changes to terms and conditions of employment are prima facie violations of employees’ collective-bargaining rights” regardless of whether there is subjective evidence of bad faith because such actions “circumvent the statutory obligation to bargain.”
The Foley framework of analysis includes the following:
(1) Did the union have opportunity to bargain?
(2) Did CBA authorize the change?
(3) Did union waive bargaining rights?
The court answered all three questions in the negative, finding changes to wages are a mandatory subject of bargaining, and the County’s unilateral wage increase and recission of the increase was effectively a refusal to bargain in violation of PELRA.
- A unilateral change cannot be undone – PELRA requires notice and opportunity to bargain.
The court also found a reversal of the wage increase did not remedy the initial unilateral decision to implement the increase. Instead, the recission constituted another unilateral change which the County refused to bargain in violation of PELRA.
The court found that PERB had correctly determined the County’s unilateral implementation and recission of the wage increase and its refusal to negotiate regarding the wage change were unfair labor practices. The PERB’s order directing reinstatement of the wage increase, backpay, and mandatory bargaining was upheld.
This case has been accepted on appeal to the Minnesota Supreme Court so it remains to be seen whether the decision remains intact. For now, employers should take note that even though the unilateral decision to increase wages was arguably beneficial to employees, under the current ruling, the action substantively violated PELRA, as the increase was made without bargaining with the exclusive representative. However, keep in mind PELRA also recognizes managerial rights and not every operational decision requires bargaining. If you or your organization have questions regarding managerial rights to make operational changes and obligations to bargain, contact Wiley Reber Law for legal advice that works.