STATE OF MAINE MAINE LABOR RELATIONS BOARD Case No. 96-14 Issued: September 22, 1997 _________________________________ ) STEPHEN and GLADYS BUZZELL, ) ) and ) ) WILLIAM WASSON, ) on behalf of themselves and ) all similarly situated persons, ) ) and ) ) MAINE STATE EMPLOYEES ) INTERIM ORDER ASSOCIATION, LOCAL 1989, SEIU, ) ) Complainants, ) ) v. ) ) STATE OF MAINE, BUREAU OF ) EMPLOYEE RELATIONS, ) ) Respondent. ) _________________________________) On January 10 and 30, 1996, respectively, the Maine State Employees Association (hereinafter referred to as "Union") filed a prohibited practice complaint and an amended prohibited practice complaint. The amended complaint essentially restated and broadened the scope of the original complaint and is the basis on which the parties have gone forward in this action. On February 9, 1996, the Respondent State of Maine, Bureau of Employee Relations ("State"), filed a motion to dismiss the complaint. The parties presented written argument on the merits of the State's motion, the last of which was received on November 1, 1996. The Maine Labor Relations Board ("Board"), Alternate Chair Kathy M. Hooke presiding, with Employee Representative Gwendolyn Gatcomb and Alternate Employer Representative Karl Dornish, Jr., received oral argument from the parties on January 10, 1997. The State, the moving party on the motion, was represented by Peter H. Stewart, Esq., and the Union was represented by Timothy L. Belcher, Esq. For the reasons -1- _________________________________________________________________ stated below, the State's motion to dismiss is denied. JURISDICTION The Board's authority to consider and rule upon the State's motion lies in the State Employees Labor Relations Act ("Act"), 26 M.R.S.A. ch. 9-B, and specifically in 26 M.R.S.A. 979-H(2) (1988). DISCUSSION In considering and ruling on the State's motion to dismiss, we are guided by the principles which would control in an analogous judicial proceeding. The relevant considerations were recently set forth by the Supreme Judicial Court as follows: A motion to dismiss tests the legal sufficiency of the complaint. Plimpton v. Gerrard, 668 A.2d 882, 885 (Me. 1995). We review a judgment granting a motion to dismiss by treating the material allegations of the complaint as true and examining the complaint in the light most "favorable to the plaintiff to determine whether it alleges the elements of a cause of action against the defendant or alleges facts that could entitle the plaintiff to relief under some legal theory[.]" Id. (citing Larrabee v. Penobscot Frozen Foods, Inc., 486 A.2d 97, 99 (Me. 1984). Brown v. Maine State Employees Association, 690 A.2d 956, 958 (Me. 1997). In the circumstances and for the limited purpose of ruling on the State's motion, we incorporate herein by reference the factual allegations set forth in numbered paragraphs 1 through 56 of the amended prohibited practice complaint and assume such averments as true. Analytically, Counts I and II of the amended prohibited practice complaint are in the same procedural posture as are Counts IV and V; therefore, we will discuss Counts I and II together and Counts IV and V together in the ensuing discussion. The arguments relating to Count III are dissimilar from those concerning the other counts; hence, it will be discussed -2- _________________________________________________________________ separately. Counts I and II The State presents two major contentions in support of its motion to dismiss Counts I and II of the complaint: (1) the individuals named complainants are not state employees within the meaning of the Act; therefore, they do not have any rights under the Act, and (2) the Act does not authorize the Board to decide the issues raised in Counts I and II. State employee status. The State's first argument is that the three individual complainants are independent contractors performing work for the State pursuant to written services contracts. Collective bargaining by and for state employees is the general rule under the Act and the several exemptions contained in Section 979-A(6) were narrowly drawn by the Legislature and must, therefore, be strictly construed. State of Maine and Maine State Employees Association, No. 82-A-02, slip op. at 6, 6 NPER 20-14027, Interim Order (Me.L.R.B. June 2, 1983). On the other hand, the coverage of the Act is limited to state employees and, other than the listed exclusions, there is no definition of the term "employee" in the Act. We agree with the State's basic averment that persons who are independent contractors are not employees within the meaning of the Act. If Mr. and Ms. Buzzell and Mr. Wasson are shown to be independent contractors, they would not be "state employees" within the meaning of the Act and would have no rights thereunder. The fundamental issues now before us are whether the three named complainants are employees or are independent contractors and how one differentiates between the two types of relation- ships. The State urges that we look to and adopt the definition of "state employee" utilized by the Maine State Retirement System to determine eligibility for benefits which that agency admin- isters. We are not intimately familiar with the nuances of the -3- _________________________________________________________________ retirement laws; therefore, we are wary of adopting the defini- tion of a term which was developed under those laws and applying it to the law which we administer. We would rather look to our own case law for resolving the employee/independent contractor dichotomy. The Municipal Public Employees Labor Relations Law ("MPELRL"), 26 M.R.S.A. ch. 9-A, is similar to the Act in that it defines covered "public employee[s]" as being any employee of a public employer, except for any individual who come within one of several listed exclusions. The MPELRL goes on to define "public employer" as an entity fitting within one of several listed types of entities or "[a]ny . . . other person or body acting on behalf of" one of the listed types of public employers. 26 M.R.S.A. 962(7). Persons or entities who "act on behalf of" another are either employees of the latter or are independent contractors. Baker Bus Service, Inc. v. Keith, 416 A.2d 727, 730 (Me. 1980). If an ostensibly private employer acting on behalf of a public employer is in fact an employee of the latter, its employees are employees within the scope of the MPELRL. If, on the other hand, the person or organization acting on behalf of the public employer is an independent contractor, the firm's employees do not have any rights pursuant to the MPELRL. In differentiating between entities that are in fact employees of public employers and those which are bona fide independent contractors, we look to the common law of agency. Idem. The traditional common law test that we apply in this context is as follows: By the established law of agency, some agents are independent contractors, while there are other agents who, if natural persons, are in contrast designated as "servants." The distinction between an agent-servant and an agent-independent contractor is whether the agent's performance with respect to his physical conduct is subject to another's control or right to control. In determining whether Baker Bus was a "public employer" under the Act, the tribunals below, -4- _________________________________________________________________ in effect, applied that traditional test. By expanding the definition of "public employer" beyond the municipality itself, the clear legislative intendment was to insure that employees, such as the school bus drivers in this case, would not be denied the benefits and protections guaranteed by the Act when the municipality contracted its operations to a nominally separate, private business entity that actually was, for all practical purposes, the alter ego of the municipality. In order to effectuate the purpose of the Act, the Board, in determining the rights of employees, must treat a municipality's "servant" or alter ego the same as the municipality itself. We must therefore determine whether Baker Bus, in providing school bus operations for the city of Augusta, acted as a "servant" subject to the City's control or right to control. Id. at 730-731 (footnotes omitted). The fundamental issue in Baker Bus was whether the entity in question was an employee or an independent contractor and our application of the common law "control or right to control" test to resolve the issue was approved by the Law Court. Since the issue now before us is essentially the same as that in Baker Bus, we will rely on the traditional common law test when we ultimately resolve the question. Our decision to use the "control or right to control" test in this context is consistent with the Law Court's suggestion in Baker Bus Service v. Keith, 428 A.2d 55, 56 n. 3 (Me. 1981), that, when interpreting the various Maine public sector labor relations statutes, one should "look for guidance to parallel federal law, found in the National Labor Relations Act and decisions thereunder." Like the Act, the National Labor Relations Act, as amended, 29 U.S.C. 151 et seq., does not contain a definition of the term "employee" beyond saying that "[t]he term 'employee' shall include any employee . . . " and goes on to list several exclusions from the definition of "employee," including "any individual having the status of an independent contractor." 29 U.S.C. 152(3). Our counterpart, the National Labor Relations Board, uses the traditional common -5- _________________________________________________________________ law "right of control" test in distinguishing between employees covered by the NLRA and independent contractors, National Freight, 146 NLRB 144, 145-146, 55 LRRM 1259 (1964), and the use of the test for this purpose has been approved by the federal courts. Eastern, Inc. v. NLRB, 60 F.3d 855, 858 (D.C. Cir. 1995); Labor Relations Division of Construction Industries of Massachusetts v. International Brotherhood of Teamsters Local 379, 29 F.3d 742, 748 (1st Cir. 1994). The State sought to bolster its argument that the three named individual complainants are not state employees, within the meaning of the Act, by pointing out that the employer, the State itself, does not consider them to be employees. The State avers that the three: were not hired pursuant to the civil service system, were in neither the classified nor the unclassified service, and did not occupy legislatively authorized positions. While these facts may have some relevance to whether the three individual complainants are state employees, as determined by the traditional common law test, both the Law Court, Wone v. City of Portland, 466 A.2d 1256, 1257 (Me. 1983), and our Board have held that we are not bound by the employer's determination of employee status in determining whether an individual is an employee, within the meaning of the several Maine labor relations statutes. AFSCME Council #93 and State of Maine, No. 89-UC-07, slip op. at 38 (Me.L.R.B. Aug. 10, 1990), aff'd, State of Maine v. AFSCME Council 93, 91-UCA-02, 13 NPER ME-22005 (Me.L.R.B. Feb. 12, 1991), aff'd on other grounds sub nom., Bureau of Employee Relations v. Maine Labor Relations Board, 611 A.2d 59 (Me. 1992); Portland Administrative Employee Association and Portland Superintending School Committee, No. 86-UD-14, slip op. at 19-21 (Me.L.R.B. Oct. 27, 1986), aff'd on other grounds, Portland Superintending School Committee v. Portland Administrative Employee Association, No. 87-A-03 (Me.L.R.B. May 29, 1987). Given the comprehensive scope of the coverage of the Act, State of Maine and Maine State Employees Association, No. 82-A-02, -6- _________________________________________________________________ supra, any individual who is an employee of a public employer is a covered public employee, unless they fall within one of the limited statutory exclusions. It would be inconsistent with the legislative intent embodied in the definitional section of the Act for us to hold that the public employer could circumvent the duties and responsibilities of the Act through the simple expedient of declaring that its employees are not employees and have some other relationship with the employer. When we apply the traditional common law right to control test, we will look at and balance all of the factors that bear on the nature of the relationship between each of the individual complainants and the State. National Freight, supra, 146 NLRB at 146; see, Lee Academy Education Association v. Lee Academy, 556 A.2d 218, 221-222 (Me. 1989). The following factual allegations were contained in the amended complaint: 1. The classification of Baxter Park Campground Ranger is included in the State employee Operations, Maintenance and Support Services bargaining unit. [Paragraph 6]. 2. From 1991 to December 20, 1995, the Buzzells performed work that was, for all relevant purposes, identical to work performed by Baxter Park Campground Rangers elsewhere in Baxter Park. [Paragraph 10]. 3. During the term of their employment at Baxter Park, the Buzzells worked under the control of managerial personnel of Baxter Park and were State employees as generally defined by law, and as specifically defined in 26 M.R.S.A. 979-A(6). [Paragraph 11]. 4. The classification of Ferry Service Captain is included in the State employee Supervisory Services bargaining unit. [Paragraph 20]. 5. From August 1, 1991, to January 26, 1996, William Wasson was employed as a Ferry Captain by the State of Maine, and performed all tasks required of persons employed in that classification. [Paragraph 22]. 6. During his employment, Mr. Wasson performed work that was, for all relevant purposes, identical to the work performed by Ferry Service Captains elsewhere in the Ferry Service. [Paragraph 24]. -7- _________________________________________________________________ 7. During the term of his employment, Mr. Wasson worked under the control of managerial personnel of the Ferry Service and was a State employee as generally defined by law, and as specifically defined in 26 M.R.S.A. 979-A(6). [Paragraph 25]. Assuming, as we must, that the above factual allegations are true, we could conclude that, during the time periods mentioned above, the three individual complainants, Stephen Buzzell, Gladys Buzzell and William Wasson, performed work for the State of Maine under the control of state managerial personnel; therefore, the three were employees of the State of Maine within the meaning of the Act. The State's final argument is that, if we determine that Mr. and Ms. Buzzell were employees of the state and not independent contractors, they did not have any rights under the Act because they were seasonal employees, excluded by virtue of 979-A(6)(F). This section of the Act exempts from the definition of state employees those who are temporary, seasonal or on-call employees. The Union counters that, since their inception, state employee bargaining units have included "Campground Rangers and hundreds of other permanent seasonal employees." Brief on behalf of Complainants, at 15. The State Bureau of Human Resources has developed and maintains a comprehensive classification plan for employees in state service. 5 M.R.S.A. 7061 (1989 & Supp. 1996). Each separate classification reflects the type of work being performed; the duties of the employees in the classification; the nature and degree of responsibility such employees exercise; the classification's location within the employer's organizational structure, including the classification to whom the employees report and any classifications that the employees supervise; and the entrance and full performance knowledge, skills and abilities required of employees in the classification. State of Maine, Civil Service Rules, 18-389 CMR ch. 4, 2. The duties and responsibilities of each classification are unique to that -8- _________________________________________________________________ classification and, together with the other elements mentioned above, define that classification and distinguish it from all other classifications in state service. Given the limitations inherent when considering motions to dismiss and given the averments contained in numbered paragraphs 1, 2 and 3 of page 7 hereof, we are unable at this juncture to conclude whether the Buzzells are seasonal employees excluded from the coverage of the Act. Were we to ultimately conclude that Mr. and Ms. Buzzell are state employees, based on their performing work that is identical with, and that they were subject to the same sort and degree of supervision as, Baxter Park Campground Rangers, the Buzzells would be classified as Baxter Park Campground Rangers within the state's classification plan. [1] It is unclear when or how the classification of Baxter Park Campground Ranger became part of the state employee Operations, Maintenance and Support Services bargaining unit; however, since it is so included and were we to conclude that the Buzzells are state employees, such inclusion of identically situated individuals in the bargaining unit may well estop the State from challenging the Buzzells' status as state employees on the grounds that they are exempt "seasonal" employees. Second, in the event that we conclude that the Buzzells are employees of the state performing work identical to that of Baxter Park Campground Rangers and subject to the same degree of state managerial control as the latter, the State may be estopped from challenging the Buzzells' inclusion in the Operations, Maintenance and Support Services bargaining unit on the grounds that they are seasonal employees by the terms of the parties' bargaining agree- ____________________ 1While the analysis contained in this paragraph is based on our understanding of the theory of job classification plans, as embodied in the statute cited and in the State Civil Service Rules, and in our previous exposure to the State's plan in particular, Maine State Employees Association v. State of Maine, Nos. 81-44 & 81-56, 4 NPER 20-12043 (Me.L.R.B. Sept. 21, 1981), rev'd sub nom. State of Maine v. Maine State Employees Association, 443 A.2d 948 (Me. 1982), and we believe our understanding to be accurate, the parties should be prepared to present evidence and argument relevant to this analysis, during presentation of their respective cases on the merits. -9- __________________________________________________________________ ment for that unit. Article I of the parties' 1993-1995 collective bargaining agreement states, in relevant part: Employees who are employed on a seasonal basis, i.e., for regularly recurring seasonal periods of three (3) months or more, shall be covered by the provisions of this Agreement upon the completion of six (6) months employment, subject to any special provisions relating to their employment. In order to qualify, such six (6) months must be worked in not more than three (3) consecutive years and only time in pay status during such seasons shall count. Employment time of persons outside State service who are on acting capacity assignment to a seasonal position, and employment time of persons holding a seasonal intermittent position shall not count towards the completion of such six (6) months. In any event, should we determine that the Buzzells are employees rather than independent contractors, this case may present us with the opportunity of considering whether the "seasonal" exclusion contained in 979-A(6)(F) was intended to apply to permanent seasonal employees who work in a particular job during the same season each year. A consideration relevant to such an inquiry would be whether, in the totality of the attendant circumstances, the individuals involved have a reasonable expectation of continued employment from year to year. Council 93, AFSCME v. Town of Sanford, No. 90-07, slip op. at 14, 13 NPER ME-21008 (Me.L.R.B. June 15, 1990). The Board's authority to act. The State's second major contention in support of its motion to dismiss Counts I and II is that the Act does not authorize the Board to decide the issues raised in those Counts. The thrust of the State's position is that 979-E(1) requires the executive director or the director's designee, rather than the Board, to determine "whether a supervisory or other position is included in the bargaining unit." In addition, the executive director or the director's designee is authorized by 979-E(3) to modify existing bargaining units in situations where the circumstances surrounding the formation of an existing unit have changed -10- _________________________________________________________________ sufficiently to warrant a change in the composition of the bargaining unit. The appropriate bargaining unit is the cornerstone of the labor relations process. Lewiston Firefighters Association v. City of Lewiston, 354 A.2d 154, 160-161 (Me. 1976). We agree with the State's general contention that the executive director has the primary responsibility under the Act for determining bargaining unit status, when units are being created initially or are being modified. The executive director and the Board's legal staff, serving in the capacity as the director's designee, have developed considerable expertise in fashioning and modifying appropriate bargaining units, applying the standards which we have promulgated, in the statutory representation process. On the other hand, as a quasi-judicial body with original jurisdiction to adjudicate prohibited practice charges, 26 M.R.S.A. 979-H(1), we have the authority and the responsi- bility to resolve issues concerning the standing of parties to pursue such complaints. The issues before us are not whether the Baxter Park Campground Ranger and Ferry Service Captain classifi- cations should be assigned to bargaining units and, if so, to which units they should be assigned. Those issues--matters of unit determination--were properly decided by the executive director years ago with both classifications being assigned to appropriate bargaining units. Were we to ultimately conclude that the Buzzells and Mr. Wasson were state employees, within the meaning of the Act, we must assume at this stage of the proceeding that they would be classified as Baxter Park Campground Rangers and Ferry Service Captain, respectively. Their bargaining unit assignment would automatically flow from such classifications; therefore, we are not intruding into the executive director's area of statutory jurisdiction by ruling on the individual complainants' standing to pursue Counts I and II. There is no question that we can enforce representation decisions through the prohibited practice complaint process. City of -11- _________________________________________________________________ Bangor v. AFSCME, Council 74, 449 A.2d 1129, 1136 (Me. 1982); Town of Sanford, supra. The thrust of the bargaining agent's position is that the public employer has violated the duty to bargain collectively established by 979-C(1)(E) and engaged in unlawful interfer- ence, restraint or coercion in violation of 979-C(1)(A) by failing to treat employees as members of the appropriate bargaining unit as previously determined by the executive director. The executive director or the director's designee has no authority under the Act to hear and decide charges that anyone has engaged in any of the prohibited acts enumerated in 979-C--that authority is vested exclusively in this Board. Were we to agree with the State's argument that only the executive director may determine whether particular individuals are state employees, since representation decisions have only prospective effect, the public employer would be insulated from being found in violation of 979-C for any conduct preceding the executive director's decision. Count III--The Class Action The State objects to our considering Count III of the amended complaint on the grounds that class actions are neither contemplated in the Act nor are there any provisions for such actions in the Board's rules. The fact that class actions are not explicitly mentioned in the Act is not significant. Nevertheless, class actions are procedural mechanisms through which the interests of similarly situated individuals may be litigated, without the necessity of joining all such individuals in the action, subject to certain enumerated conditions. Generally, class actions may be maintained pursuant to the tribunal's procedural rules, which set forth the conditions necessary for initiating, maintaining and prosecuting the actions. See, e.g., Maine Rules of Civil Procedure, Rule 23. These rules are detailed and reasonably complex. In the absence -12- _________________________________________________________________ of such a rule, we believe that class actions may not be maintained before this agency; therefore, we will grant the State's motion as it relates to Count III of the complaint. The next time we engage in rule-making, the Union may wish to propose that we consider adopting a class action rule and we will evaluate the merits of such a proposal at that time. Counts IV and V As noted above, Counts IV and V are in a similar posture, procedurally. In each count, the Union is charging that the named individual complainants challenged the State's treatment of them as independent contractors, asserted that they were state employees within the meaning of the Act and attempted to secure the rights provided by the Act, and that, because of such actions by the named complainants, the State terminated its agency relationship with them. During the oral argument, the Union went on to assert that other individuals, who had enjoyed relation- ships with the State similar to those of the three named complainants and who had not challenged their treatment as independent contractors, were retained by the State and became regular employees. The Union urges that the State's actions in severing the agency relationship with the three named complainants violated 979-C(1)(A) and (B), regardless of whether such individuals are State employees within the meaning of the Act. The State argues in response to Count IV that, regardless of the ruling in connection with the motion to dismiss Count I, the complainants Stephen and Gladys Buzzell would not be eligible for state employee status because they are seasonal employees, within the meaning of 979-A(6)(F), and are thus excluded from the coverage of the Act. The State's response to Count V is similar. Regardless of the result of the motion to dismiss in connection with Count II, Complainant William Wasson could not be a state employee entitled to any relief pursuant to the Act because he had been employed for less than six months at the time of his -13- _________________________________________________________________ termination and was excluded from the coverage of the Act pursuant to 979-A(6)(E). The State urges that these arguments militate the dismissal of Counts IV and V. The State's arguments are unpersuasive. At least some provisions of the Act provide protection to persons who are not state employees, within the meaning of 979-A(6). We have long suggested that employees exempt from the coverage of the Act are, nevertheless, protected by 979-C(1)(D), if the employer retaliates against them for giving testimony adverse to the employer in a proceeding before the Board or during the processing of a grievance. Sewall v. Portland Water District, No. 86-17, 9 NPER ME-18003, slip op. at 8 (Me.L.R.B. Aug. 19, 1986). The rationale for Board action in such cases is that the integrity of the Board's own process as well as that of the grievance-arbitration procedure depends on the availability of such protection. If we were unable to protect exempt employees such as department heads or confidential employees who give testimony in prohibited practice or grievance cases from employer retaliation for their testimony, such individuals would be reluctant to testify and the best relevant evidence might be unavailable. The Supreme Court of the United States has held that 8(a)(3) of the National Labor Relations Act, the provision of that act that is parallel with 979-C(1)(B) and after which the latter was patterned, extends to applicants for employment as well as persons who are already employed. NLRB v. Town and Country Electric, Inc., ___U.S. ___, 116 S.Ct. 450, 452, 133 L.Ed.2d 371 (1995), citing Phelps Dodge Corp. v. NLRB, 313 US 177, 185-186, 61 S.Ct. 845, 848-849, 85 L.Ed. 1271 (1941). This conclusion is consistent with the plain meaning of the language in 979-C(1)(B) which states: 1. Public Employer Prohibitions. The public employer, its representatives and agents are prohibited from: . . . -14- _________________________________________________________________ B. Encouraging or discouraging membership in any employee organization by discrimination in regard to hire or tenure of employment or any term or condition of employment; (Emphasis added.) If this section did not extend to job appli- cants, the word "hire" in the statute would have no effect; therefore, we hold that the protections embodied in this provision of the Act do extend to job applicants--individuals who may or may not be state employees, within the meaning of the Act. Finally, we have noted that the law is well settled that, in some circumstances, a public employer can violate the rights of its organized employees through actions taken in connection with exempt individuals. Maine State Employees Association v. State of Maine, No. 81-06, 4 NPER 20-12021, slip op. at 8 (Me.L.R.B. Apr. 28, 1981). As discussed in connection with Counts I and II above, we are unable to conclude whether Mr. and Ms. Buzzell and Mr. Wasson are State employees at this juncture of the proceeding, and both parties will be permitted to develop a factual record on this issue. Moreover, since the employer can violate 979-C(1)(A) and (B) through actions directed against persons who are not State Employees, within the meaning of the Act, we would be unable to dismiss Counts IV and V, even were we to conclude that Mr. and Ms. Buzzell and Mr. Wasson are not State employees. For all of the reasons stated above, we deny the State's motion to dismiss and we will direct the executive director to schedule a prehearing conference and a hearing on the merits of the Union's complaint in the normal course of business. ORDER On the basis of the foregoing assumptions of fact and discussion and pursuant to the provisions of 26 M.R.S.A. 979-H(2) (1988), it is hereby ORDERED: -15- _________________________________________________________________ 1. That the motion to dismiss filed by the State on February 9, 1996, is denied, except as to Count III. 2. The executive director shall, in the normal course of business, schedule a prehearing conference and evidentiary hearing on the merits of the Union's complaint. Issued at Augusta, Maine, this 22nd day of September, 1997. MAINE LABOR RELATIONS BOARD /s/________________________ Kathy M. Hooke Neutral Chair /s/________________________ Gwendolyn Gatcomb Employee Representative /s/________________________ Karl Dornish, Jr. Employer Representative -16-