STATE OF MAINE MAINE LABOR RELATIONS BOARD Case No. 81-55 Issued: October 7, 1981 _____________________________ ) MAINE TEACHERS ASSOCIATION, ) ) Complainant, ) ) v. ) ) SANFORD SCHOOL COMMITTEE ) ) and ) DECISION AND ORDER ) CHARLES ACKERMAN, Labor ) Consultant for the Sanford ) School Committee, ) ) Respondents. ) _____________________________) This is a prohibited practices case, filed pursuant to 26 M.R.S.A. 968(5)(B) on May 15, 1981 by the Maine Teachers Association (Association). The Association alleges in its complaint that the Sanford School Committee and Charles Ackerman (Committee) violated 26 M.R.S.A. 964(l)(E) by refusing to implement the salary and insurance portions of an interest arbitration award. The Committee filed a response to the complaint on June 9, 1981, denying that its refusal to implement ehe entire arbitration award is a prohibited practice. A pre-hearing conference on the case was held on-June 29, 1981, Alternate Chairman Donald W.. Webber presiding. On July 1, 1981 Alternate Chairman Webber issued a Pre-Hearing Conference Memorandum and Order, the contents of which are incorporated herein by reference. A hearing on the case was held on August 5, 1981, Chairman Edward H. Keith presiding, with Employer Representative Don R. Ziegenbein and Alternate Employee Representative Harold S. Noddin. The Association was represented by Roger Kelley and the Committee by James J. Shirley, Esq. The parties were given full opportunity to examine and cross-examine witnesses, introduce evidence, and make argument. Both parties filed post-hearing briefs, which have been considered by the Board. -1- ______________________________________________________________________________ JURISDICTION The Association is the bargaining agent within the meaning of 26 M.R.S.A. 968(5)(B) for a bargaining unit of school nurses employed by the Committee. The Committee is a public employer as defined by 26 M.R.S.A. 962(7), and Charles Ackerman is a labor consultant and negotiator acting on behalf of the Committee within the meaning of Section 962(7). The jurisdiction of the Maine Labor Relations Board to hear this case and render a decision and order lies in Section 968(5). FINDINGS OF FACT Upon review of the entire record, the Board finds: 1. In the fall of 1979, the Association and Committee commenced negotia- tions for a successor collective bargaining agreement for the school nurses bargaining unit. By November, 1980, three issues - salaries, health insurance, and course credit reimbursement - remained unresolved. The parties agreed to waive fact-finding and to proceed directly to interest arbitration on these issues. 2. In early December, 1980, the Association's negotiator telephoned Ackerman, the Committee's negotiator, to ask if he would agree to have a single arbitrator do the interest arbitration. The parties had scheduled for January 21, 1981 a grievance arbitration with a single arbitrator assigned by the American Arbitration Association, and the Association's negotiator proposed that this arbitrator also do the interest arbitration on January 21st. Ackerman agreed that the arbitrator could also do the interest arbitration. The Association's negotiator and Ackerman had gone to interest arbitration together a number of times before, but this was the first time that Ackerman had voluntarily agreed to an interest arbitration procedure. The Association negotiator did not propose that the interest arbitration award be binding on all issues, and Ackerman did not understand that by agreeing to an interest arbitration procedure he was also agreeing that the award would be binding with respect to the salaries and health insurance issues. 3. The arbitrator agreed to do the grievance arbitration in the morning and the interest arbitration during the afternoon of January 21st. At the -2- ______________________________________________________________________________ beginning of the afternoon session, the arbitrator asked whether his interest arbitration award would be binding on money issues. The Association negotia- tor stated that she thought the award would be binding on all issues because the parties had voluntarily agreed to the interest arbitration procedure. Ackerman disagreed, stating that he did not understand that his agreement to use a single arbitrator meant that the award would be binding on the salary and insurance issues. Ackerman had agreed to go to interest arbitration on the two money issues with the hope that an arbitrator's award might provide a basis upon which the School Committee could reach agreement on the issues. The arbitrator proceeded to hear the parties' positions with regard to the three unresolved issues, and on March 26, 1981 rendered his award. The award determines specific salary increases for the nurses, the Committee's share of the cost of medical insurance, and a course credit reimbursement provision. No ruling was made by the arbitrator as to whether the salary and insurance determinations were binding on the parties. 4. In April and May, 1981, Association and Committee representatives met to discuss the award. The Committee agreed to incorporate the credit reim- bursement portion of the award in collective bargaining agreement, but refused to include the salary or insurance portions of the award on the ground that those determinations were not binding on the Committee. DECISION This case presents the questions whether public employers subject to the Municipal Public Employees Labor Relations Act (Act) may lawfully agree to binding interest arbitration over salaries, pensions and insurance, and, if so, whether the Committee made such an agreement. We hold that public employers are authorized by the Act to agree to binding arbitration on all issues, but that the Committee did not agree to be so bound by the interest arbitration award in this case. The Committee accordingly is not obligated to incorporate the salary and insurance portions of the award in a collective bargaining agreement, and the Association's complaint must be dismissed. 1. The Act authorizes public employers to agree to binding arbitration on all issues. We reject the Committee's argument that public employers can- not under the Act lawfully agree to be bound on all issues by an interest arbitration -3- ______________________________________________________________________________ award. Title 26 M.R.S.A. 965(4) states in pertinent part: "If the parties have not resolved their controversy by the end of said 45-day period, they may jointly agree to an arbitration procedure which will result in a binding determination of their controversy. Such determinations will be subject to review by the Superior Court in the manner specified by section 972. "If they do not jointly agree to such an arbitration procedure within 10 days after the end of such 45-day period, then either party may, by written notice to the other, request that their dif- ferences be submitted to a board of 3 arbitrators . . . "If the controversy is not resolved by the parties themselves, the arbitrators shall proceed as follows: With respect to a con- troversy over salaries, pensions and insurance, the arbitrators will recommend terms of settlement and may make findings of fact; such recommendations and findings will be advisory only . . . with respect to a controversy over subjects other than salaries, pensions and insurance, the arbitrators shall make determinations . . . and if made by a majority of the arbitrators, such determina- tions will be binding on both parties and the parties will enter an agreement . . ." By providing that the parties may jointly agree to an arbitration procedure "which will result in a binding determination of their controversy," Section 965(4) plainly authorizes public employers to agree to binding arbi- tration on all issues. If the parties do not jointly agree to a binding arbitration procedure, Section 965(4) authorizes either party to compel the other party to submit their controversy to a panel of arbitrators, whose determinations with regard to salaries, pensions and insurance are not binding. The plain language of Section 965(4) thus shows that the legislature intended to provide two general procedures for invoking interest arbitration; a compulsory procedure which results in non-binding recommendations with regard to salaries, pensions and insurance, and a voluntary.procedure by which the parties may jointly agree to binding arbitration on all issues. Another indication of the legislature's intent is that the purpose of the Act - stated in Section 961 to be to promote the improvement of the relation- ship between public employers and their employees - is furthered by allowing parties to agree to binding interest arbitration on all issues. Such an option allows parties to agree to a procedure which will result in final resolution of all unresolved bargaining issues, thereby reducing the potential for conflicts and acrimony which frequently occur when parties are unable after lengthy negotiations -4- ______________________________________________________________________________ to resolve their differences. Finality in the collective bargaining process is a worthy option for which the legislature has wisely provided. Contrary to the Committee's argument, then, we find no statutory language or policy considerations which prohibit a public employer from voluntarily agreeing to binding interest arbitration on all issues. We do not see that anything said in Superintending School Committee of Bangor v. Bangor Education Association, A.2d (Me. Aug. 7, 1981) mandates the conclusion that a public employer cannot voluntarily agree to binding interest arbitration on salaries, pensions, and insurance. Moreover, the Committee's argument would nullify the plain language of the second paragraph of Section 965(4), contrary to the rule of statutory construction that every word and phrase in a statutory provision should be given effect if possible. See, e.g., Camp Walden v. Johnson, 156 Me. 160, 163 A.2d 356, 358 (Me. 1960). In short, we conclude that had the Committee so desired, it could have lawfully agreed that the arbitrator's award would be binding on the salary and insurance issues. 2. There is no evidence that the Committee agreed that the award would be binding on all issues. The record contains no evidence that the Committee ever agreed that the arbitrator's decision would be binding on the salary and insurance issues, however.[fn]1 The Association's negotiator did not mention the issue when she telephoned Ackerman to ask if he would agree to a single interest arbitrator, and Ackerman did not understand that by agreeing to a single arbitrator he was also agreeing that the award would be binding on all issues. When the arbitrator raised the issue at the beginning of the interest arbitration hearing, Ackerman clearly stated the Committee's position that the award would not be binding on the salary and insurance issues. It thus is clear that there was no meeting of minds by Ackerman and the Association's negotiator on the question whether the award would be binding on all issues. The Association argues that Ackerman agreed by implication that the award would be binding on all issues when he agreed to use a single interest arbi- trator. According to the Association, voluntary agreement to go to interest arbitration under Section 965(4) means, in the absence of any declaration to the contrary, _______________ 1. The Association does not dispute that the salary and insurance issues determined by the arbitrator fall within the meaning of the phrase "salaries, pensions and insurance" contained in Section 965(4). -5- ______________________________________________________________________________ agreement that the award will be binding on all issues. We do not so read Section 965(4). By providing that parties "may jointly agree to an arbitra- tion procedure which will result in a binding determination," Section 965(4) implies that there must be a meeting of minds on two matters; first, that a particular arbitration procedure will be used, and second, that the procedure will result in a binding determination on all issues. In the absence of an express agreement on the second point, the award remains advisory with respect to salaries, pensions and insurance, as stated in Section 965(4). We reject the Association's argument that an implied agreement existed, and find that since there was no express agreement that the award would be binding on all issues, the award is advisory only with respect to the salary and insurance determinations. The Committee accordingly was not obligated to implement the arbitrator's salary and insurance determinations, and the Association's complaint must be dismissed. ORDER On the basis of the foregoing findings of fact and discussion, and by virtue of and pursuant to the powers granted to the Maine Labor Relations Board by 26 M.R.S.A. 968(5)(C), it is ORDERED: The Maine Teachers Association's complaint filed on May 15, 1981 in Case No. 81-55 is dismissed. Dated at Augusta, Maine this 7th day of October, 1981 . The parties are advised of MAINE LABOR RELATIONS BOARD their right pursuant to 26 M.R.S.A. 968(5)(F) to seek a review by the /s/____________________________________ Superior Court of this Edward H. Keith decision by filing a com- Chairman plaint in accordance with Rule 80B of the Rules of Civil Procedure /s/____________________________________ within 15 days after Don R. Ziegenbein receipt of this decision. Employer Representative Employer Regresentative @'bddin /s/____________________________________ Harold S. Noddin Alternate Employee Representative -6-