Interest arbitration held to contravene public policy insofar as a public entity's being bound to nonmandatory subjects of collective bargaining in negotiating a new agreement

Interest arbitration held to contravene public policy insofar as a public entity's being bound to nonmandatory subjects of collective bargaining in negotiating a new agreement

Niagara Frontier Tr. Metro Sys., Inc. v Amalgamated Tr. Union Local Union 1342,2013 NY Slip Op 00622, Appellate Division, Fourth Department

Supreme Court denied Niagara Frontier Transit Metro System’s petition to stay arbitration in case that involved a labor dispute arising from a collective bargaining agreement [CBA] between the System, a public benefit corporation that provides bus and light rail transit service, and the Amalgamated Transit Union Local Union 1342 (Local 1342), which represents a unit of System’s employees.

Local 1342 had demanded that the terms and conditions of a new CBA be determined by compulsory "interest arbitration." 

The Appellate Division reversed the lower court’s decision and granted the System’s petition.

The Appellate Division explained that “even assuming, arguendo, that the [Collective Bargaining] Agreement entitles Local 1342 to interest arbitration over [the System’s] objection, we would conclude, as we did in ATU,* that such a result ‘contravenes public policy, both by compelling a public entity, which has broad responsibilities to the entire population of the State, to be bound forever to nonmandatory subjects of bargaining, i.e., interest arbitration, and by encumbering its ability to negotiate an entirely new collective bargaining agreement which reflects the changing requirements and mandates of the public interest’"

* Matter of Local Union 1342 of Amalgamated Tr. Union v Niagara Frontier Tr. Metro Sys, 183 AD2d 355, leave to appeal denied, 81 NY2d 710.

The decision is posted on the Internet at: 

http://www.courts.state.ny.us/reporter/3dseries/2013/2013_00622.htm

A court’s power to vacate an arbitration award is limited

A court’s power to vacate an arbitration award is limited
Professional, Clerical, Tech., Employees Assn. (Board of Educ. for Buffalo City Sch. Dist.), 2013 NY Slip Op 00612, Appellate Division, Fourth Department

The issue before the arbitrator was whether the Board of Education’s selection process used in its filling two vacancies of a newly created title, Assistant Management Analyst, violated the collective bargaining agreement between the parties. The arbitrator concluded that it had not.

Essentially the arbitrator rejected the Association’s argument that the collective bargaining agreement provided that seniority "trumps" a supervisor's discretion in selecting the individual to fill the vacancies in question.

Supreme Court granted the Professional, Clerical, Tech., Employees Assn.’s application to vacate an arbitration award.

The Appellate Division unanimously reversed the lower court’s ruling and granted the Board of Education’s the cross petition seeking to confirm the arbitration award, explaining that Supreme Court erred in vacating the award as the award was not irrational and the arbitrator did not exceed a specific limitation on her authority.*  

Noting that “It is well established that "an arbitrator's rulings, unlike a trial court's, are largely unreviewable," citing Matter of Falzone, 15 NY3d 530, the Appellate Division said that "a court may vacate an arbitration award only if it violates a strong public policy, is irrational, or clearly exceeds a specifically enumerated limitation on the arbitrator's power."

As the Court of Appeals held in New York State Correctional Officers & Police Benevolent Assn. v State of New York, 94 NY2d 321, 326), "Courts are bound by an arbitrator's factual findings, interpretation of the contract and judgment concerning remedies. A court cannot examine the merits of an arbitration award and substitute its judgment for that of the arbitrator simply because it believes its interpretation would be the better one. Indeed, even in circumstances where an arbitrator makes errors of law or fact, courts will not assume the role of overseers to conform the award to their sense of justice."

* The Appellate Division also held that Supreme Court erred in determining that the arbitrator impermissibly modified the collective bargaining agreement.

The decision is posted on the Internet at:

http://www.courts.state.ny.us/reporter/3dseries/2013/2013_00612.htm

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Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli

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