Court of Appeals Division II
State of Washington
Opinion Information Sheet
Docket Number: |
41225-0 |
Title of Case: |
State Ferries Division, Appellant V. Marine Employees Commission, Et Al., Respondents |
File Date: |
04/18/2012 |
SOURCE OF APPEAL
----------------
Appeal from Thurston Superior Court |
Docket No: | 09-2-02409-7 |
Judgment or order under review |
Date filed: | 08/27/2010 |
Judge signing: | Honorable Wm Thomas Mcphee |
JUDGES
------
Authored by | Christine Quinn-Brintnall |
Concurring: | David H. Armstrong |
| J. Robin Hunt |
COUNSEL OF RECORD
-----------------
Counsel for Appellant(s) |
| Stewart Arthur Johnston |
| Atty General Ofc L&p Div |
| 7141 Cleanwater Dr Sw |
| Po Box 40145 |
| Olympia, WA, 98504-0145 |
|
| Kara Anne Larsen |
| Office of The Atty General |
| Po Box 40145 |
| 7141 Cleanwater Dr Sw |
| Olympia, WA, 98504-0145 |
Counsel for Respondent(s) |
| Spencer Walter Daniels |
| Office of The Attorney General |
| 7141 Cleanwater Dr Sw |
| Po Box 40108 |
| Olympia, WA, 98504-0108 |
|
| Michael R. Mccarthy |
| Attorney at Law |
| 100 W Harrison St Ste N300 |
| Seattle, WA, 98119-4143 |
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
DIVISION II
WASHINGTON STATE DEPARTMENT OF No. 41225-0-II
TRANSPORTATION, FERRIES DIVISION,
Petitioner,
v.
MARINE EMPLOYEES COMMISSION and PUBLISHED OPINION
MARINE ENGINEERS BENEFICIAL
ASSOCIATION,
Respondents.
Quinn-Brintnall, J. -- On July 24, 2009, a Marine Employees' Commission (MEC)
arbitrator issued a decision settling a long-standing grievance between the Washington State
Ferries Division of the Department of Transportation (DOT) and the Marine Engineers' Beneficial
Association (MEBA), a union representing certain ferry system employees. As part of the
decision, the arbitrator ordered the DOT to pay MEBA's attorney fees. The DOT petitioned the
MEC to reconsider that specific portion of the award, contending that the parties'
No. 41225-0-II
collective bargaining agreement (CBA)1 forbade awarding attorney fees; the MEC refused
reconsideration. The DOT then petitioned Thurston County Superior Court to review the
arbitrator's decision, again contending that the parties' CBA prohibited an attorney fees award.
The superior court upheld the arbitrator's award. The DOT now submits a petition for common
law writ of certiorari and review to this court asserting, again, that the parties' CBA does not
allow for granting attorney fees. Although Washington courts follow federal law in allowing
attorney fees when a party to arbitration commits an unfair labor practice, MEBA has never
followed the requirements for filing such a complaint as dictated by WAC 316-45-010 through
-050. Accordingly, we hold that the MEC arbitrator acted ultra vires in awarding attorney fees in
this grievance arbitration, and we vacate paragraph five of the arbitrator's decision, the attorney
fees award.
FACTS
On August 11, 2004, several MEBA members, in their individual capacities, filed a class
action lawsuit in Pierce County Superior Court seeking wages for time they spent performing
"watch turnover" before or after their assigned shifts. MEBA did not participate in this litigation.
"Watch turnover" involves the outbound crew of a seaward vessel briefly meeting with
crewmembers they are relieving to receive information about the condition of the boat, any
problems to be aware of, etc. Their employer, the DOT, argued that watch turnover, even
outside regularly scheduled shifts, was noncompensable standard practice in the maritime industry
1 This case technically involves two separate sets of employees (licensed engineer officers and
unlicensed engine room employees) and, thus, two separate CBAs. Both CBAs have identical
provisions requiring arbitration for grievances and identical provisions instructing each party to
bear their own costs during the grievance arbitration process. For the sake of clarity, we refer to
a single CBA.
2
No. 41225-0-II
and that the parties never discussed or bargained for watch turnover payment in their CBA. The
superior court disagreed, awarding a judgment to the employees.
The DOT appealed the decision to this court. In Davis v. Department of Transportation,
138 Wn. App. 811, 826, 159 P.3d 427 (2007) (Davis I), review denied, 163 Wn.2d 1019 (2008),
we determined the CBA required arbitration, reversed the superior court's decision, and
remanded the case for entry of a judgment in favor of the DOT. Although we held that arbitration
was the appropriate forum for CBA disputes, we further stated, "[W]atch changes are a regular,
essential, and required work activity for which the State must compensate under the CBA. And
whether watch changes are work or whether watch changes must be compensated is not an issue
for future grievance or arbitration." Davis I, 138 Wn. App. at 825-26. Our Supreme Court
denied review of that decision. Davis, 163 Wn.2d 1019.
On June 8, 2007, MEBA filed grievances on behalf of its members explicitly referencing
our decision in Davis I. On March 14, 2008, having exhausted the CBA's grievance procedures,
MEBA requested grievance arbitration before the MEC.2 The grievance hearing took place on
April 3, 2009. MEBA argued that the arbitrator, having no authority "to disregard, [or] overrule
the opinion of the Court of Appeals," needed only to determine how much back pay the DOT
owed and provided the arbitrator with data to make that determination. Administrative Record
2 Former RCW 47.64.280(2)(a) (2006) vested the MEC with the power to "[a]djust all
complaints, grievances, and disputes between labor and management arising out of the operation
of the ferry system." On July 1, 2011, administration of chapter 47.64 RCW transferred from the
MEC to the Public Employment Relations Commission (PERC). Laws of 2011, Spec. Sess., ch.
16, §§ 19, 31. The legislature further mandated that PERC rules of procedure shall apply to
future proceedings under chapter 47.64 RCW and repealed Title 316 WAC. The arbitration that
led to this appeal occurred in 2009, however, so we address it under the then applicable RCW and
WAC provisions.
3
No. 41225-0-II
(AR) at 130. The DOT, however, asked the MEC to decide whether the CBA required additional
overtime compensation for watch turnover, arguing that the Davis I decision was either (a)
contrary to established law; or (b) our "pronouncements that watch turnover constitutes overtime
under the CBA" were "dicta" and, as a result, the substantive issue of whether watch changes
were compensable work under the CBA still needed to be determined. AR at 51. To that end,
the DOT provided no data to assist the arbitrator in calculating the amount of back pay owed to
MEBA's members.
On July 24, the arbitrator issued its decision, noting that
[t]he State's argument that presupposes the [Washington State Appellate]
Court improperly ruled in this matter is not a matter before the [MEC]. However,
the Court properly concluded that the contract requires watch turnover pay is
owed to engine room employees at [the DOT].
Decisions of the MEC are subject to appeal and modification by the
Courts. It is well understood that the MEC has no authority to hear an appeal or
overrule decisions of the Courts. While the MEC shares the concerns of the
[DOT] about the intervention of the Court into the collective-bargaining process,
the [DOT] ignored the directive of the Court at its peril. Thus, when the Court
determined watch changeover to be work and deferred the matter back to the
grievance procedure, the [DOT] should have begun a method of record keeping to
track the amount of time worked by employees. It failed to do so. It failed to take
any position on remedy.
AR at 86-87. The arbitrator also instructed the DOT to "reimburse the MEBA for attorney fees
incurred in bringing this grievance before the MEC." AR at 87.
On August 12, the DOT petitioned the MEC for reconsideration of the attorney fee
award, contending that it violated the parties' CBA. MEBA responded that the "Arbitrator's
Award is final, binding, virtually unappealable, and not subject to reconsideration," an inevitable
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No. 41225-0-II
conclusion based on the "widely-accepted doctrine of functus officio."3 AR at 98. On September
8, the MEC issued its order denying DOT's petition for reconsideration of attorney fees, explicitly
stating,
The Arbitrator acted appropriately and within his contractual authority and
obligations. The Employer was on notice from the Court of Appeals that payment
for watch changeover was a contractual obligation of [the DOT]. The Arbitrator
was put on notice by the Court that [the DOT] and the State were aware that the
Courts have spoken twice and the very language of the Court of Appeals' remand
was convincing and compelling.
We emphasize that watch changes are a regular, essential and required
work activity for which the State must compensate under the CBA and
whether watch changes are work or whether watch changes must be
compensated is not an issue for future grievance or arbitration.
(Emphasis added.) It is only reasonable to assume that learned and esteemed
counsel exhaustively argued and presented the same rationale and advocacy to the
Courts that was advanced to the Arbitrator.
Upon receipt of the Court of Appeals' findings, [the DOT] had every
opportunity to work with the Union to pursue an appropriate remedy short of
requiring the MEBA to present their members' case to an arbitrator and require
additional attorney's fees, in spite of the direction of the Courts.
AR at 102-03.
Following this decision, the DOT submitted a petition for common law writ of certiorari
and review of arbitration decision to Thurston County Superior Court. On August 27, 2010, the
superior court affirmed the MEC decision and dismissed the DOT's petition with prejudice. The
DOT now timely appeals, requesting specifically that we vacate the arbitrator's attorney fees
award.
3 4 Am. Jur. 2d, Alternative Dispute Resolution § 151 (2011), explains,
When an arbitral board renders a final award, its powers and duties under
the submission are terminated or exhausted. The common-law doctrine of functus
officio provides that, once an arbitrator has issued a final award, having fulfilled his
or her function, he or she is without authority to . . . reexamine the final award.
(Citations omitted.)
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No. 41225-0-II
DISCUSSION
The DOT maintains that the CBA's terms are clear and that the MEC had no authority to
award attorney fees in grievance arbitration under any circumstances. Because the arbitrator
acted outside his authority by sua sponte treating this grievance arbitration as an unfair labor
practice dispute, and Washington courts have only upheld a labor arbitrator's attorney fees award
when unfair labor practices are at issue, we vacate section five of the MEC's award.
Standard of Review
The CBA provisions at issue here do not specifically provide for judicial review of an
arbitrator's decision. The CBA dictates that, in the event of grievance arbitration, the aggrieved
party "will notify the other party of [the grievance] and will refer the dispute to the [MEC] for a
final resolution." AR at 275, 294. The MEC adopted rules of procedure pursuant to the
authority granted it by the legislature in former RCW 47.64.280(3)(c) (2006) ("[t]he commission
shall adopt rules of procedure under chapter 34.05 RCW"). The MEC codified these rules in
chapter 316-65 WAC.4 Like the CBA, however, the rules are silent as to judicial review apart
from mentioning, in the last provision of the chapter, that "[n]othing in chapter 316-65 WAC is
intended to diminish the constitutional rights of any person or to limit or modify additional
requirements imposed by statute, including the Administrative Procedure Act." WAC 316-65-
600.
As we have stated in a similar context, where "such a 'statutory and contractual hiatus'
exists, judicial review is nevertheless available by petitioning the superior court for a constitutional
writ of certiorari." Clark County Pub. Util. Dist. No. 1 v. Wilkinson, 93 Wn. App. 350, 353, 967
4 The parties do not challenge the validity of the WACs.
6
No. 41225-0-II
P.2d 1270 (1998) (quoting Grays Harbor County v. Williamson, 96 Wn.2d 147, 150-53, 634
P.2d 296 (1981)), rev'd on other grounds, 139 Wn.2d 840, 850, 991 P.2d 1161 (2000). Article
IV, section 6 of the Washington State Constitution provides, in relevant part, that
[t]he superior court shall . . . have original jurisdiction in all cases and of all
proceedings in which jurisdiction shall not have been by law vested exclusively in
some other court. . . . Said courts and their judges shall have power to issue writs
of . . . certiorari.
The present case comes before this court pursuant to this jurisdiction.5
Review of an arbitration decision under a constitutional writ of certiorari is "limited to
whether the arbitrator acted illegally by exceeding his or her authority under the contract." Clark
County Pub. Util. Dist. No. 1 v. Int'l Bhd. of Elec. Workers, 150 Wn.2d 237, 245, 76 P.3d 248
(2003) (Clark County PUD). When reviewing arbitration decisions under this "extremely limited"
standard of review, we do not reach the merits of the case. Clark County PUD, 150 Wn.2d at
245. Instead, we determine only whether the arbitrator acted outside his authority under the CBA
in awarding attorney fees to MEBA. If so, the arbitrator's actions are ultra vires and the award is
illegal. See Clark County PUD, 150 Wn.2d at 247. But so long as the arbitrator is even arguably
construing or applying the contract and acting within the scope of his authority, the fact that we
are convinced he committed serious error does not suffice to overturn his decision. E. Associated
Coal Corp. v. United Mine Workers of Am., Dist. 17, 531 U.S. 57, 62, 121 S. Ct. 462, 148 L. Ed.
5 The Administrative Procedure Act (APA), chapter 34.05 RCW, like the CBA, RCW, and WAC
relevant to this case, is similarly silent as to judicial review of an arbitrator's final decision. RCW
34.05.526 proclaims, "An aggrieved party may secure appellate review of any final judgment of
the superior court under this chapter by . . . the court of appeals. The review shall be secured in
the manner provided by law for review of superior court decisions in other civil cases." Because
case law holds that it is appropriate for superior courts to address similar labor disputes through
issuance of writs of certiorari, see Wilkinson, 93 Wn. App. at 353, it is appropriate for appellate
courts (per the APA in this instance) also to engage in such review.
7
No. 41225-0-II
2d 354 (2000). Thus, courts do not vacate binding arbitration awards except in very limited
circumstances. Clark County PUD, 150 Wn.2d at 247. Whether the arbitrator acted outside his
authority involves addressing a question of law and, as such, our review is de novo. Kitsap
County Deputy Sheriff's Guild v. Kitsap County, 167 Wn.2d 428, 434, 219 P.3d 675 (2009).
MEC Authority to Award Attorney Fees
The United States Supreme Court has held that an arbitrator must confine his or her
decision or award to interpretation and application of the parties' CBA. The Court has stated, for
instance,
When an arbitrator is commissioned to interpret and apply the collective
bargaining agreement, he is to bring his informed judgment to bear in order to
reach a fair solution of a problem. This is especially true when it comes to
formulating remedies. There the need is for flexibility in meeting a wide variety of
situations. The draftsmen may never have thought of what specific remedy should
be awarded to meet a particular contingency. Nevertheless, an arbitrator is
confined to interpretation and application of the collective bargaining agreement;
he does not sit to dispense his own brand of industrial justice. He may of course
look for guidance from many sources, yet his award is legitimate only so long as it
draws its essence from the collective bargaining agreement. When the arbitrator's
words manifest an infidelity to this obligation, courts have no choice but to refuse
enforcement of the award.
United Steelworkers of Am. v. Enter. Wheel & Car Corp., 363 U.S. 593, 597, 80 S. Ct. 1358, 4
L. Ed. 2d 1424 (1960). Washington courts consistently follow this standard. See Clark County
PUD, 150 Wn.2d at 247 ("[A]n arbitrator's award is illegal if it exceeds the authority granted to
the arbitrator by the parties' contract, here the CBA."); see also City of Yakima v. Yakima Police
Patrolman's Ass'n, 148 Wn. App. 186, 195, 199 P.3d 484 (2009) ("While an arbitrator's view of
the issues submitted to him receives great deference by the courts, an arbitrator is confined to the
interpretation and application of the parties' agreement.").
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No. 41225-0-II
The CBA between the DOT and MEBA is explicit in relation to attorney fees stating, "All
costs, fees and expenses charged by the arbitrator will be shared equally by the [parties]. All
other costs incurred by a party resulting from an arbitration hearing will be paid by the party
incurring them." AR at 275, 295. The MEC's grievance arbitration rules further provide that
"[e]ach party shall pay the expenses of presenting its own case." WAC 316-65-150. Last, the
legislature has provided that
[n]egotiated procedures may provide for binding arbitration of ferry employee
grievances and of disputes over the interpretation and application of existing
agreements. An arbitrator's decision on a grievance shall not change or amend the
terms, conditions, or applications of the collective bargaining agreement. . . . The
costs of arbitrators shall be shared equally by the parties.
RCW 47.64.150. Whether, despite the clear language in the CBA, WAC, and RCW, an MEC
arbitrator may grant attorney fees6 as part of a grievance arbitration is an issue of first impression.
A. Attorney Fees for Unfair Labor Practices
Washington courts have upheld an arbitrator's attorney fees award when a disputant
alleges an unfair labor practice. In State ex. rel. Washington Federation of State Employees, AFL-
CIO v. Board of Trustees of Central Washington University, 93 Wn.2d 60, 605 P.2d 1252
(1980), our Supreme Court addressed whether the Higher Education Personnel Board (HEPB)
had authority, pursuant to RCW 41.56.160, an unfair labor practices provision, to award attorney
fees as part of an arbitration award. The court concluded that
the legislature has "empowered and directed" the HEPB to prevent unfair labor
practices. We believe "remedial" action encompasses the power to award attorney
6 MEBA argued at the grievance arbitration that it was entitled to double damages and attorney
fees pursuant to RCW 49.52.050(2), a wage recovery statute. In Hitter v. Bellevue School
District No. 405, 66 Wn. App. 391, 397-98, 832 P.2d 130, review denied, 120 Wn.2d 1013
(1992), Division One of this court, however, clearly held that statutory rights to attorney fees can
be bargained away in a CBA. We see no reason to disagree with this determination.
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No. 41225-0-II
fees under appropriate circumstances. We hold that RCW 41.56.160 is broad
enough to permit a remedial order containing an award of litigation expenses when
that is necessary to make the order effective. Such an allowance is not automatic,
but should be reserved for cases in which a defense to the unfair labor practice
charge can be characterized as frivolous or meritless. . . . Awards should not be
permitted routinely, simply because the charging party prevails.
Fed'n of State Emps., AFL-CIO, 93 Wn.2d at 69 (emphasis added).7 In a later HEPB case, our
Supreme Court again upheld an arbitrator's attorney fees award in an unfair labor practice case
noting, "[t]he remedy is proper to curtail the college's arbitrary behavior and to prevent its
reoccurrence, and is necessary to make the order to negotiate in good faith at reasonable times
effective." Green River Cmty. Coll., Dist. No. 10 v. Higher Educ. Pers. Bd., 107 Wn.2d 427,
442, 730 P.2d 653 (1986). Similarly, we have held that the Public Employment Relations
Commission (PERC) has the authority to award attorney fees in disputes over unfair labor
practices. Lewis County v. Pub. Emp't Relations Comm'n, 31 Wn. App. 853, 866-67, 644 P.2d
1231, review denied, 97 Wn.2d 1034 (1982).
Federal law also provides guidance. See Clark County PUD, 150 Wn.2d at 246 n.7 ("Our
state courts have often looked to federal case law for guidance in analyzing labor disputes.").
Here, former RCW 47.64.130 (2006), addressing unfair labor practices, is substantially similar to
29 U.S.C. § 158 of the National Labor Relations Act (NLRA). Both state that it is an unfair labor
practice of an employer organization to "refuse to bargain collectively with the representatives" of
its employees. 29 U.S.C. § 158(a)(5); former RCW 47.64.130(1)(e).
7 The court also explicitly stated that, "[u]nder the general rule followed in this state, recovery of
attorney fees is permitted 'only when authorized by a private agreement of the parties, a statute,
or a recognized ground of equity.'" Fed'n of State Emps., AFL-CIO, 93 Wn.2d at 67 (quoting
Crane Towing, Inc. v. Gorton, 89 Wn.2d 161, 176, 570 P.2d 428 (1977)). This is the so-called
"American rule" for attorney fees in arbitration.
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No. 41225-0-II
In International Union of Electrical, Radio & Machine Workers v. N.L.R.B., 138 U.S.
App. D.C. 249, 426 F.2d 1243 (D.C. Cir.), cert. denied, 400 U.S. 950 (1970), the D.C. Circuit
held that section 160(c) of the NLRA authorized the National Labor Relations Board (NLRB) to
award litigation expenses and remanded the case to the NLRB for that determination. Int'l Union
of Elec., Radio & Mach. Workers, 138 U.S. App. D.C. at 259 n.15 ("The scope of the Board's
consideration on remand, if it is deemed that the Union's proposal goes too far, would include
consideration of such lesser, alternative remedies as an award to the Union for excess
organization costs caused by the Company's behavior, or for the costs of having to litigate a
frivolous case, or for a combination of these.") (emphasis added). On remand, the NLRB stated,
We agree with the court . . . that frivolous litigation such as this is clearly
unwarranted and should be kept from the nation's already crowded court dockets,
as well as our own. While we do not seek to foreclose access to the Board and
courts for meritorious cases, we likewise do not want to encourage frivolous
proceedings. The policy of the Act to insure industrial peace through collective
bargaining can only be effectuated when speedy access to uncrowded Board and
court dockets is available. Accordingly, in order to discourage future frivolous
litigation, to effectuate the policies of the Act, and to serve the public interest we
find that it would be just and proper to order Respondent to reimburse the Board
and the Union for their expenses incurred in the investigation, preparation,
presentation, and conduct of these cases, including . . . reasonable counsel fees,
salaries, witness fees, transcript and record costs, printing costs, travel expenses
and per diem, and other reasonable costs and expenses.
Tiidee Prods., Inc. (I), 194 N.L.R.B. 1234, 1236-37 (1972).
Thus, both state and federal law provide persuasive support that an MEC arbitrator could
award attorney fees when a party to collective bargaining commits an unfair labor practice by
refusing to collectively bargain in good faith. Such is not the case here, however.
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No. 41225-0-II
B. Grievance Arbitration Attorney Fees
Although our Supreme Court has held that a labor arbitrator is authorized to award
attorney fees in unfair labor practice disputes, here the parties were engaged in grievance
arbitration under their CBA -- an agreement explicitly providing that the parties pay their own
attorney fees. Accordingly, we must vacate paragraph five of the arbitrator's award granting
attorney fees to MEBA.
As both parties note, this is the first time in MEC's history that an arbitrator has awarded
attorney fees in the context of grievance arbitration. Even assuming arguendo that the DOT's
refusal to pay for watch changes or to keep track of money owed its employees for these duties
constituted an unfair labor practice, following our explicit mandate to pay for such activity in our
2007 Davis I opinion, MEBA has never explicitly argued that this was an unfair labor practice to
this court, the superior court, or the MEC. The MEC adopted clear procedures for bringing
unfair labor practice claims. See WAC 316-45-001 through -050. As WAC 316-45-050, entitled
"Contents of complaint charging unfair labor practice," states, "Each complaint must contain . . .
(4) [a] listing of the subsections of RCW 47.64.130 and/or WAC 316-45-003 alleged to have
been violated, along with a statement of which alleged facts provide evidence of that alleged
violation of the identified subsections."
Although refusal "to bargain collectively with the representatives of its employees" is an
unfair labor practice under either former RCW 47.64.130 or WAC 316-45-003(1)(e), MEBA has
never alleged that a refusal to bargain occurred here. Indeed, its response at oral
argument -- stating, in effect, that MEBA expected to attend grievance arbitration over the
amount of back pay owed by the DOT for watch turnover -- belies its assertions that DOT's
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No. 41225-0-II
frivolous conduct necessitated (unnecessary) grievance arbitration.8
We are aware that the legislature failed to define "grievance" in chapter 47.64 RCW and,
further, that WAC 316-65-005 defines a grievance as
[a] formal statement alleging injury, injustice, or violation of rights granted by rule,
statute, collective bargaining agreement, or past practice: Provided, That any
grievance involving alleged violations of rights protected by chapter 47.64 RCW
may also be termed "unfair labor practices" and may also be filed and processed
under chapter 316-45 WAC: And Provided Further, That when the commission is
requested to provide grievance arbitration in a dispute where there is an unfair
labor practice issue brought, which in the judgment of the commission raises the
same or a closely related subject, and it would further the economy and efficiency
of operations, the commission may consolidate such issues for hearing and
decision.
(Emphasis added.) But even if this definition conflates the fine distinction between "unfair labor
practices" and "grievances," the only grievance MEBA alleged to the MEC was that the Davis I
decision required the DOT to pay for watch turnover and that the MEC needed to determine the
amount the DOT owed. Further, WAC 316-45-020(2) expressly provides for procedures when a
party brings both grievance and unfair labor practice issues before the MEC:
Where an alleged violation of RCW 47.64.130, or the regulations implementing
that statute, is also alleged to be a violation of a collective bargaining agreement
and the matter is being actively pursued through the grievance and arbitration
procedure of the collective bargaining agreement, the commission may hold the
8 At oral argument before this court, MEBA conceded that the DOT had the right to proceed to
grievance arbitration:
The Court: But how could it be frivolous for [the DOT] to come in and litigate
[the Davis I decision]?
MEBA: . . . They were welcome to come to arbitration . . . arbitration was going
to happen; what matters is what they did once they were there; they established
that they failed to keep any records, to document the extent of their liability under
the first Davis decision. They refused to take any position with respect to the
amount of money owed under the first Davis decision.
Wash. Court of Appeals, oral argument, State Ferries Division v. Marine Employees'
Commission, No. 41225-0-II (Oct. 18, 2011), at 26 min., 30 sec. -- 27 min., 10 sec. (on file with
the court).
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No. 41225-0-II
unfair labor practice in abeyance pending the outcome of the grievance and
arbitration procedure. If the commission then determines that the grievance and
arbitration procedure has satisfactorily resolved the entire matter or any portion of
it, the commission may defer to that decision and dismiss the entire unfair labor
practice complaint or that portion of it that has been resolved to the satisfaction of
the commission. Otherwise, the commission will resume processing the unfair
labor practice complaint or any portion of it that has not been resolved to the
satisfaction of the commission.
Again, however, MEBA has never alleged that an unfair labor practice occurred. Thus,
although WAC 316-45-020(2) provides for judicial economy when both an unfair labor practice
and a CBA grievance require attention, it does not give an MEC arbitrator authority to address as
an unfair labor practice claims the parties did not present. These are sophisticated parties adept at
asserting their rights.9 We are confident that, had MEBA reason to believe the DOT was
committing an unfair labor practice, it would have brought the matter before the MEC.
By refusing to comply with our Davis I decision by adjusting schedules or even keeping
time records for the disputed watch turnovers, the DOT came to grievance arbitration unprepared
to discuss settlement terms. Thus, the MEC arbitrator determined the back pay calculation based
solely on MEBA's figures.10 Although MEBA makes a compelling argument that the DOT was
inexcusably recalcitrant in addressing shift change wages and that the sanction of awarding
attorney fees was appropriate, the parties' CBA expressly deprives the MEC arbitrator of
authority to do this. Further, nothing in case law or our review of applicable statutes and
administrative rules leads us to conclude that an MEC arbitrator may sua sponte address an unfair
9 For instance, the MEC asserts that, in January 2011, it heard 18 active disputes, "eight unfair
labor practice complaints, one unit clarification petition, and nine grievance arbitrations." Resp't
MEC Br. at 6.
10 Although ignoring our Davis I decision negatively affected DOT's position on the back pay it
owed MEBA, the arbitrator was well within his powers to determine the back pay calculation
using only MEBA's figures.
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No. 41225-0-II
labor practice in a grievance arbitration. Accordingly, we hold that the DOT and MEBA were
bound to their bargained agreement and the MEC arbitrator acted ultra vires in awarding attorney
fees in paragraph five of his award; we vacate paragraph five of the arbitrator's award. RCW
34.05.574(1).
QUINN-BRINTNALL, J.
We concur:
ARMSTRONG, P.J.
HUNT, J.
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