STATE OF MAINE MAINE LABOR RELATIONS BOARD Case No. 89-05 Issued: October 25, 1988 ____________________________________ ) TEAMSTERS LOCAL UNION NO. 48, ) State, County, Municipal and ) University Employees in the ) State of Maine, ) ) Complainant, ) DECISION AND ORDER ) v. ) ) CITY OF WESTBROOK, ) ) Respondent. ) ____________________________________) The question presented in this prohibited practice case is whether the City of Westbrook (hereinafter referred to as "Employer") transgressed 26 M.R.S.A. 965(1)(C)&(D), in violation of 26 M.R.S.A. 964(1)(E). The Union alleged that the Employer violated the Act through its negotiating team's failure to submit the final tentative agreement to the Westbrook City Council for ratification, until several months after said package had been reached at the bargaining table. The Union further charged that the Employer failed to negotiate in good faith because, after having discussed the tentative agreement with members of the City Council, the Employer's negotiating team reported that the agreement would probably be rejected because said team had not been authorized to negotiate a change in the area of retirement and that the Council would not accept the "2/3's retire- ment" at any cost. We hold that the Employer's actions violated the Municipal Public Employees Labor Relations Law ("Act"), 26 M.R.S.A. ch. 9-A (1974 & Pamph. 1987). We will, therefore, fashion a remedy appropriate to redress this violation and to effectuate the policies of the Act. The prohibited practice complaint was filed on August 17, 1988, pursuant to 26 M.R.S.A. 968(5)(B) (Pamph. 1987), by Teamsters Local -1- Union No. 48, State, County, Municipal and University Employees in the State of Maine ("Union"). The Union's complaint charged that the Employer violated the sections of the Act mentioned in the preceding paragraph. The Employer filed its answer on September 14, 1988 -- three business days after it was due, pursuant to Rule 4.05 of the Maine Labor Relations Board's ("Board's") Rules and Procedures. A pre-hearing conference on the case was held on September 22, 1988, Alternate Chairman Peter T. Dawson presiding. After the Complainant raised the issue of the Employer's failure to file a timely response, Alternate Chairman Dawson delivered a Preliminary Pre-Hearing Order to the parties at the pre-hearing conference. Alternate Chairman Dawson issued a Pre-Hearing Conference Memorandum and Order on September 22, 1988. The contents of both the Preliminary Pre-Hearing Order and the Pre-Hearing Conference Memorandum and Order are incorporated herein by reference. On September 27, 1988, the Employer filed a Motion for Extension of Response Filing Period and a Memorandum in support of said Motion. A hearing on the motion and, hence, on the question of whether the Employer's failure to file a timely response was due to excusable neglect was held on September 30, 1988, Alternate Chairman Peter T. Dawson presiding, with Employer Representative Thacher E. Turner and Employee Representative George W. Lambertson. The Employer was repre- sented by Michael D. Cooper, Esq., its City Solicitor, and its Staff Attorney, Richard A. Sullivan, Esq., and the Union was represented by John A. Perkins, one of its Business Agents. The parties were given full opportunity to examine and cross-examine witnesses, to introduce documentary evidence, and to make argument on the issue of excusable neglect. After hearing said evidence and argument, the Board deli- berated and decided, for the reasons set forth in the discussion por- tion of this decision, that the Employer's failure to file a timely response was not due to excusable neglect. The Board announced its entry of a default order against the Employer. The Board then gave the parties full opportunity to present evidence and argument relevant to the fashioning of appropriate relief herein. The parties' arguments and the Union's offer of proof were duly considered by the Board in reaching the decision and issuing the order reported herein. -2- JURISDICTION The Complainant, Teamsters Local Union No. 48, State, County, Municipal and University Employees in the State of Maine, is the cer- tified bargaining agent, within the definition of 26 M.R.S.A. 962(2) (1974), for the Westbrook Fire Department Bargaining Unit. The City of Westbrook is the public employer, within the definition of 26 M.R.S.A. 962(7) (Pamp. 1987), of the employees whose positions are included in the bargaining unit mentioned in the preceding sentence. The jurisdiction of the Board to hear this case and to render a decision and order herein is based upon 26 M.R.S.A. 968(5) (1974 & Pamph. 1987). FINDINGS OF FACT Upon review of the entire record, the Labor Relations Board finds: 1. The Complainant, Teamsters Local No. 48, State, County, Municipal and University Employees in the State of Maine, is the cer- tified bargaining agent, within the definition of 26 M.R.S.A. 962(2) (1974), for the Westbrook Fire Department Bargaining Unit. 2. The Respondent, City of Westbrook, is the public employer, within the definition of 26 M.R.S.A. 962(7) (Pamph. 1987), of the employees whose positions are included in the bargaining unit men- tioned in the preceding paragraph. 3. The most recent collective bargaining agreement between the parties for the bargaining unit mentioned in paragraph 1 hereof expired on December 31, 1986. 4. On February 4, 1987, the parties agreed to written ground rules to guide their negotiations for a successor agreement to that mentioned in the preceding paragraph. Among the ground rules were the following: 9. As each proposal is approved, it shall be re- duced to writing and initialed by the chief negotiators. 10. The negotiating teams will attempt to draft a complete contract proposal which will be sub- -3- mitted to the Union membership and the City Council for ratification after both parties have reviewed each item to be sure that no misunder- standing exist [sic]. 11. Once a tentative package agreement has been reached at the table, the negotiating team members from each side will use their best efforts to gain final ratification from their respective parties. 12. It is understood that no articles or other sub-parts of any such contract proposal are binding on either party until the entire package is agreed upon following negotiations and is ratified by both the Union and the City Council. 5. On February 26, 1988, the parties successfully concluded nego- tiations for a successor collective bargaining agreement by reaching tentative agreement on all issues. 6. Despite the provisions of ground rules numbered 9 and 10 quoted in paragraph 4 hereof, no written tentative agreements on individual proposals were ever prepared and initialed by the parties' chief nego- tiators and no complete contract proposal was drafted. 7. For a period of several months after final tentative agreement had been reached by the parties, the Employer reported that the agree- ment had not gone to the City Council for "political reasons" and that it would not be submitted to the Council until the primary elections were concluded. 8. At a meeting called by the Employer on July 12, 1988, the Employer's negotiators reported that the City Council would "probably" reject the agreement and insisted in re-negotiating it, claiming that the Employer's negotiators had had "no marching orders to negotiate a retirement package and the City would not accept the 2/3 retirement at any cost." 9. The prohibited practice complaint that is the subject of this action was filed with the Board on August 17, 1988, after having been served on the Employer on August 11, 1988. 10. On August 17, 1988, Board Counsel M. Wayne Jacobs, Esquire, sent a letter to Ms. Marti Blair, City Administrator of the City of Westbrook. This letter, which was received by the Employer, stated: -4- You are hereby notified that the City of Westbrook has been named Respondent in the above- styled [Teamsters Local Union No. 48 v. City of Westbrook, No. 89-05] prohibited act complaint, filed with this agency on August 17, 1988, pursuant to Section 968(5)(B) of Title 26 of the Maine Revised Statutes. 26 M.R.S.A. 968(5)(B) (Pamph. 1987). Rule 4.05 of the Maine Labor Relations Board's (Board's) Prohibited Practice Complaint Rules pro- vides that "[tlhe party against whom a complaint has been filed shall file a response to said complaint with the Board in original and four (4) copies and shall serve said response upon the com- plaining party, within fifteen (15) working days of the date of the filing of the complaint with the Board." Accordingly, your response is due to be filed with this agency and served upon the Complainant on or before September 9, 1988. Failure to file a timely response may result in a default judgment against you. 11. The responsibility for preparing and filing the response to the prohibited practice complaint mentioned in paragraph 9 above was assigned to a particular attorney in the Employer's legal department. 12. Upon receiving the complaint, the attorney mentioned in the preceding paragraph noted on his calendar that the Employer's response needed to be filed with the Board and served on the Complainant on or before September 9, 1988. 13. On or about the day after Labor Day, September 6, 1988, the attorney, noted in the preceding paragraph, for unknown reasons, changed the due date for the Employer's response on his calendar, from September 9 to September 15, 1988. 14. The Employer's attorney, mentioned in the preceding three paragraphs, was busy handling numerous matters, including several involving the fire department, during the period of time relevant hereto. 15. On September 13, 1988, Board Counsel Jacobs telephoned the attorney assigned to prepare the Employer response herein, inquiring whether the Employer had mailed its response to the Board. The Employer's attorney stated that he thought that the response was due on September 15th, that he was working on it at that time, and that he -5- would be filing the same as soon as possible. 16. The Employer's response was filed with the Board on September 14, 1988. 17. At the hearing before the Board, the Union was not prepared to establish, by testimony or otherwise, the substance of the final tentative agreement mentioned in paragraph 4, supra. The Union was prepared to offer testimony that a final tentative agreement had been reached and that the parties had subsequently met to agree on the language of the draft final tentative agreement. DISCUSSION The first issue presented in this case is whether the Employer's failure to file a timely response was due to excusable neglect. Rule 4.05 of the Board's Rules and Procedures provides that the failure of a charged party to file a response with the Board within fifteen working days from the date on which the charging party files its pro- hibited practice complaint "shall be grounds for the Board to render a default order against the respondent unless the Board finds that the respondent's failure to answer is the result of excusable neglect." The response herein was filed eighteen days after the complaint was filed with the Board. The Board has recognized that the concept of excusable neglect incorporated in Rule 4.05 is analogous to that referred to in Rule 60(b)(1) of the Maine Rules of Civil Procedure; therefore, in interpreting Rule 4.05, the Board has adopted the excusable neglect standard set forth by the Supreme Judicial Court, Maine State Employees Ass'n v. Baxter State Park Authority, MLRB No. 84-20, Slip op. at 13, 7 NPER 20-15014 (May 16, 1984). The Law Court has described excusable neglect as follows: Failure to obtain knowledge of entry of judgment in time to file a timely notice of appeal will almost always occur as the result of some act of neglect. The essential injustice that results from such lack of knowledge is that a procedural remedy is barred before one has the information requisite to protect one's entitlement to that remedy. Where the neglect causing such lack of -6- knowledge is beyond the control of the party or counsel charged to act for that purpose, simple justice requires that the "neglect" be "excused." Where, as here, however, the neglect is that of the party charged to act, some extraordinary circumstance must be proven to justify excuse of such neglect. See Reynolds, 407 A.2d at 314; Begin, 435 A.2d at 1082; Young, 441 A.2d at 321. Maine State Employees Ass'n, supra at 13-14, quoting from State v. One 1977 Blue Ford Pick-up Truck, 447 A.2d 1226, 1230-31 (Me. 1982). The relevant facts regarding the issue of excusable neglect are: the Employer's attorney received a copy of the prohibited practice complaint, the Employer received written notice from the Board's Counsel of both the date on which the response to the complaint was due and of the sanctions contained in Rule 4.05 for a failure to file a timely response, the Employer's attorney correctly noted the due date on his calendar but later changed said date for unknown reasons, and the response was not filed until after the Board's Counsel had telephoned the Employer's attorney, informing the latter that the answer was overdue and inquiring whether it had been mailed. The neglect involved here was solely that of the Employer's attorney and did not involve any occurrence beyond the Employer's control; there- fore, some extraordinary circumstance must be established to consti- tute excusable neglect. The explanations offered for the failure to file a timely response were that, for unknown reasons, the Employer's attorney changed the due date on his calendar and that, at the time, that attorney was very busy handling numerous matters, including several involving the fire department. In Maine State Employees Ass'n, supra at 14, the party seeking to be excused claimed that its failure to attend a scheduled pre-hearing conference was, in part, due to its attorney's being heavily involved with other matters at that time. Holding that the "crush of other business" does not constitute excusable neglect, the Board cited the Law Court's opinion in Begin v. Jerry's Sunoco, Inc., 435 A.2d 1079, 1083 (Me. 1981), where the Court stated: "We do not consider the fact that an attorney is busy on other matters to fall within the definition of -7- excusable neglect. Most attorneys are busy most of the time and they must organize their work so as to be able to meet the time requirements of matters they are handling or suffer the consequences. [citation omitted.] Filing a notice of appeal does not require much time or deliberation." Pinero Schroeder v. Federal National Mortgage Association, 574 F.2d 1117, 1118 (1st Cir. 1978)(per curiam); see Maryland Casualty Co. v. Conner, 382 F.2d 13, 17 (10th Cir. 1967); Stern, [Changes in the Federal Appellate Rules, 41 F.R.D. 297]. Nor does a mere palpable mistake by counsel or by counsel's staff constitute excusable neglect. Such an interpretation would render the requirement meaningless. Spound, 534 F.2d at 411 (counsel); Airline Pilots in the Service of Executive Airlines, Inc. v. Executive Airlines, Inc., 569 F.2d 1174, 1175 (1st Cir. 1978)(staff) (per curiam). Counsel here allege merely that due to the press of other business they failed to timely file a notice of appeal. Thus, they failed to allege grounds upon which the trial court could base a finding of excusable neglect. Maine State Employees Ass'n, supra at 15. As was the case in Maine State Employees Assn, the failure to take a required action due to an attorney's heavy caseload does not constitute excusable neglect. Finally, the Employer has argued, in its Memorandum in Support of Respondent's Motion to Extend Period for Filing Response filed together with said motion on September 27, 1988, that the situation here is analogous to that in Kittery Teachers Ass'n v. School Committee of the Town of Kittery, MLRB No. 75-21, Slip op. (June 26, 1975). In that case, relying on the language of 968(5)(B) of the Act that the "party complained of shall have the right to file a writ- ten answer to the complaint" and unaware that Rule 4.05 made such an answer mandatory, the respondent did not file a response until twenty- eight working days after the filing of the complaint and only after having been served with complainant's motion for default. The Board held that the respondent's neglect was excusable. Unlike the respon- dent in Kittery Teachers Ass'n, the Employer was placed on notice by the Board Counsel's letter that the response was due on September 9, 1988, and that, under Rule 4.05, failure to file a timely response could result in a default judgment. In the circumstances, we hold -8- that the Employer's failure to file a response within the time required by Rule 4.05 of our Rules and Procedures was not due to excusable neglect; therefore, we enter a default order against the Employer in this matter. The Union has averred, in paragraph 5 of its complaint, that the Employer's conduct cited in the complaint constitutes violation of 965(1)(C) and (D) of the Act. The effect of the default order entered herein is that the allegations of fact contained in the Union's complaint are deemed to have been established and, in effect, become findings of fact. Forbes v. Wells Beach Casino, Inc., 409 A.2d 646, 652 (Me. 1979). We will proceed to examine the Union's allegations of violations of the Act. Title 26 M.R.S.A. 965(1)(D) (Pamph. 1987) requires, as a com- ponent of the duty to bargain collectively, that parties "execute in writing any agreements arrived at, the term of any such agreement to be subject to negotiation but shall not exceed 3 years." The Board has held that the obligation to reduce agreements to writing and to sign the same only applies to the negotiated collective bargaining agreement concluded between parties vested with authority to reach final binding agreement. Saco Valley Teachers Ass'n v. Maine School Administrative District No. 6 Board of Directors, MLRB Nos. 85-07 and 85-09, Slip op. at 18, 8 NPER ME-17002 (Mar. 14, 1985). In the instant case, the negotiating teams explicitly reserved, in paragraphs 10, 11 and 12 of their negotiating ground rules, the right of their respective principal parties -- the Union membership and the Westbrook City Council -- to ratify the final tentative agreement reached at the table. In an analogous case, the Board discussed the requirements of 965(1)(D) as follows: Once a principal party has reserved the right ratify, any agreement reached by the negotiators will not be concluded or binding until it is rati- fied by the principal. Arundel Teachers Association v. Majercik, PELRB No. 73-08 at 15 (May 22, 1973). Implicit in the right to ratify is the right to reject. Biddeford Unit of Local 1828 v. City of Biddeford, PELRB No. 75-33 at 3 (Dec. 10, 1975). In particular, if the right to ratify is to mean anything, the principal party must be able to reject tentative agreements erroneously agreed to -9- by its negotiators. See Westbrook Police Unit v. City of Westbrook, MLRB No. 78-25 (Sept. 5, 1978). The fact that the Directors' negotiators erro- neously agreed to the 13-step salary scale there- fore in no sense precludes the Directors from deciding whether to ratify or reject the tentative agreement. Since the Directors properly reserved the right to ratify and since the necessity for ratification was clearly disclosed to the Association, the Directors' refusal to ratify the July 2nd tentative agreement was proper. The Directors cannot be required to sign the tentative agreement. Fox Island Teachers Ass'n v. M.S.A.D. No. 8 Board of Directors, MLRB No. 81-28, Slip op. at 6-7, 4 NPER 20-12020 (Apr. 22, 1981). We hold that, since the right of ratification of the principals was explicitly reserved and since the City Council has not ratified the final ten- tative agreement reached at the table, no binding successor collective bargaining agreement has been concluded; therefore, the Employer has not violated 964(1)(D) of the Act. The Union also alleged that the Employer's conduct violated 965(1)(C) (Pamph. 1987). The relevant portion of this section of the Act requires the parties to "negotiate in good faith with respect to wages, hours, working conditions and contract grievance arbitration." The thrust of the Union's charge is that the Employer violated 965(1)(C) by failing to submit the final tentative agreement to the City Council for ratification for a period of several months and, after having discussed the same with members of the City Council, reporting to the Union that the Council "probably" would reject the agreement and insisting on re-negotiating the agreement, claiming that the Employer's negotiating team had had "no marching orders to nego- tiate a different retirement package and the City would not accept the 2/3 retirement at any cost." Turning to the Union's first averment, we have held that a bargaining team's failure to submit the final tentative agreement to its principal party for ratification for an unreasonable length of time constitutes evidence of a failure to bargain in good faith. Union River Valley Teachers Ass'n v. Trenton School Committee, MLRB Nos. 80-28 and 80-32, Slip op. at 4, 2 NPER 20-11020 (May 30, 1980). Such -10- conduct evidences a lack of intention to reach a final binding agreement and frustrates the bargaining process. In the instant case, the prompt submission of the proposed settlement for ratification, even if said proposal had been rejected, would have facilitated the parties' return to the table for further negotiations. Second, the Employer's comments that the final tentative agreement would "probably" be rejected, that the Employer team had had no authority to negotiate changes in the employees' retirement package, and that the City Council would not accept the "two-thirds retirement" at any cost also constitute evidence of a failure to negotiate in good faith. While the principal parties to negotiations may lawfully retain the right to ratify the final tentative agreement reached by their negotiators, they must, consistent with the duty to negotiate in good faith, clothe their negotiators with sufficient knowledge, guide- lines, and authority to reach tentative agreements. Kittery Employees Ass'n v Eric Strahl, MLRB No. 86-23, Slip op. at 13, 9 NPER ME-18002 (Jan. 27, 1987); City of Westbrook v. Westbrook Police Unit of Local 1828, Council 74, AFSCME, AFL-CIO, MLRB No. 81-50, Slip op. at 6, 4 NPER 20-12044 (Sept. 24, 1981). Once conferred on the nego- tiating team, bargaining authority may not be changed by the principal party without prior notice to the other parties to the negotiations. Westbrook Police Unit of Local 1828, Council 74, AFSCME, AFL-CIO, v. City of Westbrook, MLRB No. 78-25, Slip op. at 5 (Sept. 5, 1978). At the hearing before the Board, both parties indicated that the retirement issue had been the major stumbling block in their nego- tiations for a period of several months. It was only after the Employer bargaining team indicated that it would consider adopting significant changes in the employees' retirement package, within the context of an overall settlement, that meaningful progress was achieved. The Employer's statement, cited in the preceding paragraph, indicates that its negotiators bargained beyond the scope of their negotiating authority or that authority, once conferred by the City Council, had later been withdrawn. In either event, the Employer's statement constitutes evidence of a failure to negotiate in good faith. Teamsters Local Union No. 48 v. Town of Bar Harbor, MLRB No. 82-35, Slip op. at 9, 5 NPER 20-14004 (Nov. 2, 1982). In the cir- -11- cumstances, we hold that the Employer has violated the statutory obli- gation to negotiate in good faith and we will provide remedies appropriate to effectuate the policies of the Act. The prayer for relief in the Union's complaint seeks the following: A. An order directing the City to honor the ground rules and complete the draft agreement and submit same to council for ratification. B. An order directing the City to sign the contract. C. An order directing the City to confer and negotiate in good faith with respect to wages, hours, working con- ditions, and contract grievance arbitration in the future. D. Any other remedy the Board deems appropriate. We note, at the outset, that we are unable to grant the second remedy sought for the same reasons that we held that the Employer had not violated 965(1)(D) of the Act. In short, since no final binding agreement was agreed to by the parties, 965(1)(D) was not violated and there is nothing for us to order the Employer to sign. Second, within the context of the default order, the Board found as a matter of fact that the parties had reached a final tentative agreement on February 26, 1988, and that said agreement had not been submitted to the City Council for ratification for a period of several months. The Union was unable to establish the details of the final tentative agreements through written tentative agreements, oral testi- mony, or otherwise, at the hearing before the Board. This situation illustrates the value of adhering to the practice embodied in paragraph 9 of the parties' negotiating ground rules. Had the parties reduced their individual tentative agreements to writing and ini- tialed the same, the constituent elements of the final tentative agreement could have been readily established and, in the Board's view, the entire controversy might well have been averted. While it might seem expedient to reach agreement on the gist of individual agreement articles and leave the documentation of such agreement to a later time, the shortcomings of such practice become apparent in cir- cumstances like those now before us. Since the substantive provisions of the final tentative agreement are open to conjecture, an order requiring the Employer to reduce said agreement to writing and to sub- mit it to the City Council for ratification would be speculative and -12- unenforceable; therefore, we decline to issue such an order. We believe that, in the circumstances, the interests of both par- ties, as well as the policies underlying the Act, will best be served by the parties' returning to the bargaining table and resuming nego- tiations, while strictly adhering to the established negotiating ground rules. We will issue an order designed to facilitate such return to the bargaining table as well as to assist the parties in resolving their negotiating controversy. ORDER On the basis of the foregoing findings of fact and discussion and by virture of and pursuant to the powers granted to the Maine Labor Relations Board by the provisions of 26 M.R.S.A. 968(5) (1974 & Pamph. 1987), it is hereby ORDERED: 1. That the Respondent, City of Westbrook, and its representatives and agents shall: A. Cease and desist from failing to negotiate in good faith as required by 26 M.R.S.A. S 965(1)(C) and, in particular, cease and desist: from fail- ing to submit such final tentative agreement as may be concluded at the bargaining table to the Westbrook City Council for ratification within a reasonable time of the conclusion of such agree- ment; from failing to provide its negotiators with sufficient knowledge, guidelines, and author- ity to reach tentative agreements; and, once said bargaining authority is conferred, from changing the same, without first notifying the Union; and B. Take the following affirmative action, necessary to effectuate the policies of the Act: (1) Provide its negotiators with sufficient knowledge, guidelines, and authority to reach tentative agreements. (2) Within 10 days receipt of written notice from the Union requesting a meeting for collective bargaining purposes, meet with the Union; review, reduce to writing and initial tentative agreements previously reached; and negotiate in good faith with the Union over all issues that remain unresolved. (3) Adhere to the established negotiating ground rules, especially the rule requiring that -13- tentative agreements be reduced to writing and initialed by the chief negotiators as they are reached. (4) Promptly submit the final tentative agreement, once reached, to the Westbrook City Council for ratification. 2. The parties will each report in writing to the Executive Director of the steps taken in compliance with this order, within 30 days of the date hereof. In the event that the parties are unable to reach final tentative agreement within 45 days of the date hereof, they shall each report said failure to the Executive Director in writing, in- cluding in said report discussion concerning the progress of their negotiations. The Executive Director will then determine the steps that may be required to assist the parties in their negotiations. Dated at Augusta, Maine this 25th day of October, 1988. MAINE LABOR RELATIONS BOARD /s/___________________________ Peter T. Dawson The parties are advised Alternate Chairman of their right pursuant to 26 M.R.S.A. 968(5)(F) (Pamph. 1987) to seek review of this decision /s/___________________________ and order by the Superior Thacher E. Turner Court by filing a com- Employer Representative plaint in accordance with Rule 80B of the Rules of Civil Procedure within 15 days of the /s/___________________________ date of this decision. George W. Lambertson Employee Representative -14-