10
NEW JERSEY COPS ■ DECEMBER 2014
PERC once again reverses course
and limits the subjects of bargaining
In the February 2014 issue of NJ COPS, we reported on PERC’s “Atlantic County” decision in which it
reversed more than 30 years of precedent, and concluded that public employers no longer had to pay
automatic salary increments when a contract
expired and before a new contract was negotiated.
Since that decision, PERC has again reversed course
to limit the scope of negotiations. This time, PERC
is asking the New Jersey Supreme Court to reverse its
(PERC’s) decisions which are on appeal. You read
that correctly – PERC has asked the Supreme Court
to reverse PERC.
Here are the facts: In three cases arising out of
Keyport, Belmar and Mount Laurel, involving non-law enforcement units, PERC issued decisions concluding that the municipalities’ decisions to reduce hours and compensation, through
the involuntary the furlough of employees, were negotiable subjects which the municipalities could not unilaterally implement.
In each case, the municipality unilaterally imposed involuntary
furlough days or reduced hours which necessarily reduced the
compensation and hours of work of the employees affected by
the decisions. PERC’s decisions were consistent with many years
of precedent in which those types of issues were ruled to be
mandatorily negotiable.
The municipalities appealed PERC’s decisions.
Despite the deference, which the courts usually
extend to administrative agencies such as PERC,
the Appellate Division unanimously reversed each
decision and held that the decisions to impose
involuntary furlough days and to reduce employees’ hours and compensation were not negotiable
and instead were non-negotiable policy determinations and prerogatives of management which
could not be bargained away.
The Supreme Court agreed to hear the appeals
of the unions in each case. The cases were argued
before the Supreme Court on October 20, 2014. In
an astounding change of position, PERC advised the Supreme
Court that it was reversing itself and was now asking the court to
affirm the Appellate Division’s decision. PERC effectively
renounced its prior decisions in favor of the unions. PERC advised
the court that it had come to believe that a public employer’s decision to furlough employees and reduce their hours and compensation was an “essential government policy decision” which
was not negotiable. In short, PERC inexplicably did an about face
and asked the court to rule exactly the opposite of what PERC
itself initially decided in all three cases.
The specific issue involved in these cases, the reduction of
Zazzali, Fagella, Nowak,
Kleinbaum & Friedman
Representing the New Jersey State PBA,
local PBAs, and law enforcement officers
for more than 40 years:
Contract negotiations and interest arbitration;
Contract grievances and grievance arbitration;
All disciplinary appeals and unfair practice charges;
Discrimination and whistleblower cases;
Disability pension appeals;
All aspects of State and Federal litigation;
State PBA Legal Protection Plan;
Practice before PERC, Civil Service Commission,
PFRS and other State agencies.
www.zazzali-law.com
[email protected]
Newark
One Riverfront Plaza
Suite 320
1037 Raymond Boulevard
Newark , NJ 07102
Tel: (973) 623-1822
Fax: (973) 623-2209
Trenton
150 West State Street
3rd Floor
Trenton, NJ 08608
Tel: (609) 392-8172
Fax: (609) 392-8933