LINCOLN
FIREFIGHTERS ASSOCIATION LOCAL 644, APPELLEE
V.
CITY OF LINCOLN
,
NEBRASKA
, APPELLANT
253
Neb.
837; 572 N.W.2d 369
Filed
January 23, 1998, No. S-97-310
1. Commission of Industrial Relations: Appeal
and Error. In the Nebraska Supreme Court's review of orders and decisions of the
Commission of Industrial Relations, the court is restricted to considering
whether the order of that agency is supported by substantial evidence justifying
the order made, whether it acted within the scope of its statutory authority,
and whether its action was arbitrary, capricious, or unreasonable.
2. Commission of Industrial Relations:
Evidence. As a general rule, it may be said that the factors most often used to
determine comparability as to wage rates and other benefits are geographic
proximity, population, job descriptions, job skills, and job conditions.
3. Commission of Industrial Relations: Wages.
In selecting employment units in reasonably similar labor markets for the
purpose of comparison as to wage rates and other benefits, the question is
whether, as a matter of fact, the units selected for comparison are sufficiently
similar and have enough like characteristics or qualities to make a comparison
appropriate.
4. Commission of Industrial Relations:
Evidence. Determinations made by the Commission of Industrial Relations in
accepting or rejecting claimed comparables are within the field of its expertise
and should be given due deference.
5. Commission of Industrial Relations: Wages:
Proof. Where it is alleged that economic dissimilarities exist which have a
bearing on prevalent wage rates, the burden is on the party making that
allegation to establish that such is the case.
6. Commission of Industrial Relations: Expert
Witnesses. The weight which should be given expert opinions is uniquely within
the province of the Commission of Industrial Relations.
7. Commission of Industrial Relations.
Management prerogatives include the right to hire, to maintain order and
efficiency, to schedule work, and to control transfers and assignments.
Appeal from the
Nebraska
Commission of Industrial Relations. Affirmed.
William A. Harding, Jerry L. Pigsley, and
Neal E. Stenberg, of Harding, Schultz & Downs, and Don W. Taute, Assistant
Lincoln City Attorney, for appellant.
John P. Fahey, Law Office of John P. Fahey, P.C., for appellee.
WHITE, C.J., CAPORALE, WRIGHT, CONNOLLY,
GERRARD, STEPHAN, and MCCORMACK, JJ.
CAPORALE, J.
I. STATEMENT OF CASE
In this
industrial dispute over wages and conditions of employment for fiscal year
September 1, 1995, through August 31, 1996, the respondent-appellant, City of
Lincoln
, challenges the determinations made by the Nebraska Commission of Industrial
Relations upon the petition of the appellee, Lincoln Firefighters Association
Local 644, the collective bargaining representative of certain employees of
Lincoln
's fire department. Lincoln successfully sought leave to bypass the Nebraska
Court of Appeals and assigns 11 errors which, in summary, assert that the
commission erred in (1) selecting the array of comparable cities, (2) failing to
adjust for economic variables, (3) failing to account for all fringe benefits,
(4) failing to find its health insurance benefits superior to those offered by
the array cities, (5) failing to find its pension benefits superior to those
offered by the array cities, (6) failing to properly account for fringe benefits
not provided by certain array cities, and (7) placing employees into newly
established pay lines. We affirm.
II. SCOPE OF REVIEW
In our review
of orders and decisions of the commission, we are restricted to considering
whether the order of that agency is supported by substantial evidence justifying
the order made, whether it acted within the scope of its statutory authority,
and whether its action was arbitrary, capricious, or unreasonable. Hall Cty.
Pub. Defenders v.
County
of
Hall
, ante p. 763, 571 N.W.2d 789 (1998); Douglas Cty. Health Dept. Emp.
Assn. v. Douglas Cty., 229 Neb. 301, 427 N.W.2d 28 (1988); IBEW Local
1536 v. City of
Fremont
, 216 Neb. 357, 345 N.W.2d 291 (1984); IAFF Local 831 v. City of No.
Platte, 215 Neb. 89, 337 N.W.2d 716 (1983); AFSCME Local 2088 v. County
of Douglas, 208 Neb. 511, 304 N.W.2d 368 (1981), modified 209 Neb. 597, 309
N.W.2d 65; American Assn. of University Professors v. Board of Regents,
198 Neb. 243, 253 N.W.2d 1 (1977).
III. FACTS
The relevant
facts are presented in the course of analyzing the issues presented by
Lincoln
's assignments of error.
IV. ANALYSIS
In industrial
disputes involving governmental services, the commission, with an exception not
relevant here, is empowered to "establish rates of pay and conditions of
employment which are comparable to the prevalent wage rates paid and conditions
of employment maintained for the same or similar work of workers exhibiting like
or similar skills under the same or similar working conditions." Neb.
Rev. Stat. §§ 48-810 and 48-818 (Reissue 1993).
Each of the matters
addressed and ruled upon by the commission falls within the scope of its
statutory authority; thus, the only question before us is whether each
challenged aspect of its order is supported by substantial evidence and is not
arbitrary, capricious, or unreasonable. AFSCME Local 2088, supra (commission has
jurisdiction over public employment industrial disputes concerning such matters
as wages and fringe benefits).
1. ARRAY OF COMPARABLE CITIES
In the first
assignment of error,
Lincoln
asserts that the commission erred in selecting the array of employers to which
Lincoln
was compared.
(a) Facts
The
association proposed that
Ann Arbor
,
Michigan
;
Davenport
,
Iowa
;
Minneapolis
,
Minnesota
; and
Peoria
,
Illinois
, be included in the array.
Lincoln
proposed
Des Moines
,
Iowa
;
Springfield
,
Missouri
; and
Topeka
,
Kansas
. Both parties agreed that
Cedar Rapids
,
Iowa
, and
Sioux Falls
,
South Dakota
, were comparable. The commission included seven cities in the array:
Cedar Rapids
,
Davenport
,
Des Moines
,
Minneapolis
,
Peoria
,
Sioux Falls
, and
Topeka
. The commission thus selected three of the four cities proposed only by the
association and two of the three cities suggested only by
Lincoln
. In selecting the array, the commission focused on the department's
firefighting and emergency medical services duties and, contrary to the
association's request, discounted the department's duties in providing hazardous
materials control.
Lincoln
contends that the commission should have excluded
Davenport
,
Minneapolis
, and
Peoria
from the array and included
Springfield
.
Noting that
Davenport was excluded from two previous commission arrays involving Lincoln,
Lincoln argues that Davenport should not have been included in the present array
both because it has less than half the population of Lincoln and because it is
considered part of the "quad cities" and therefore part of an area
which has too great a population. In short, in
Lincoln
's view,
Davenport
is both too large and too small for an appropriate comparison.
Lincoln
maintains in addition that
Davenport
does not have emergency medical services similar to its own, as
Davenport
does not require the same certification and skill level as does
Lincoln
. However, there is evidence that notwithstanding some differences in the
emergency medical services provided by
Davenport
and
Lincoln
, the services are similar in some respects.
In contending
that
Minneapolis
should have been excluded,
Lincoln
points out that whereas
Minneapolis
has a metropolitan population of 2,538,834,
Lincoln
has a metropolitan population of only 213,641, less than a tenth of that of
Minneapolis
. The record further reveals, however, that the population within the city
limits of
Minneapolis
is 368,383;
Lincoln
has a population of 191,972 within the city limits. The commission was also
presented with evidence that
Minneapolis
is comparable to
Lincoln
in geographic proximity, in job descriptions and skills for firefighters, and
in job conditions.
In maintaining
that Peoria should have been excluded, Lincoln points to testimony that
"Peoria is not a mirror image of" Lincoln, that Peoria has a much
larger manufacturing base and a smaller governmental employment base than does
Lincoln, and that Peoria does not require its firefighters to be certified in
the manner Lincoln requires. Again, however, the evidence as to the quality of
the emergency medical services provided by Peoria is in conflict, as there is
evidence that Peoria provides emergency medical services similar to that
provided by Lincoln.
Finally,
Lincoln
urges that the commission erred in excluding
Springfield
from the array.
Lincoln
cites the commission's order, which acknowledges that
Springfield
is both geographically proximate and meets the size criteria and that its fire
department also provides significant emergency medical services. However, the
association presented evidence that Springfield's emergency medical services
personnel lack equipment for bleeding control, splinting, spinal immobilization,
and medical assessment and that its emergency medical services personnel
function at a lower basic life support level than do Lincoln's emergency medical
services personnel.
(b) Application of Law to Facts
The basis for
selecting an array is set forth in § 48-818, as noted earlier. Simply put, §
48-818 requires that the employers selected for the comparative array must be
demonstrated to be similar.
As a general
rule, it may be said that the factors most often used to determine comparability
are geographic proximity, population, job descriptions, job skills, and job
conditions. Douglas Cty. Health Dept. Emp. Assn. v. Douglas Cty., 229
neb. 301, 427 N.W.2d 28 (1988); AFSCME Local 2088 v. County of Douglas,
208 Neb. 511, 304 N.W.2d 368 (1981), modified 209 Neb. 597, 309 N.W.2d 65. In
selecting employment units in reasonably similar labor markets for the purpose
of comparison as to wage rates and other benefits, the question is whether, as a
matter of fact, the units selected for comparison are sufficiently similar and
have enough like characteristics or qualities to make a comparison appropriate. Lincoln
Co. Sheriff's Emp. Assn. v. Co. of Lincoln, 216 Neb. 274, 343 N.W.2d 735
(1984).
Lincoln
first rests its conclusion that the populations of
Davenport
and
Minneapolis
are too dissimilar to make appropriate comparisons on the claim that the
commission has long considered only array members with populations that are not
less than half or more than twice the population of the compared-to employer.
Lincoln
further notes that after the present case was decided, the commission rejected
cities from an array because they were part of a metropolitan statistical area
that was not comparable to the compared-to community.
Lincoln
concludes from the foregoing that by failing to reject
Davenport
and
Minneapolis
in the present case, the commission was acting in an arbitrary, capricious, and
unreasonable manner.
But the
commission noted that it here declined to eliminate cities through reliance on
metropolitan statistical area data "as there was no evidence presented to
support the contention that a city's presence in a larger metropolitan area
directly affected wages or work, skills and working conditions." While
Lincoln
presented expert testimony that cities in metropolitan statistical areas are
entwined in that area's economy, it provided no evidence as to how wages or
working conditions were affected or why a city in a larger metropolitan
statistical area should be automatically excluded from the array. The
association countered with an expert's testimony that a fire department's
location in a larger metropolitan statistical area does not necessarily make a
difference. The expert also testified that a fire department is somewhat
different from other employers, even from police departments, because the
operations of a fire department generally stay within city limits.
The
commission's determination in this regard is a factual one; thus, it could
reasonably place greater reliance on that factor in one case and less reliance
on it in another case. As we have observed in the past,
We must not lose sight that the "guidelines" used by the [commission]
are not statutory requirements, and the failure of the evidence to strictly
comply with the guidelines does not require us to find that the action of the
[commission] . . . was arbitrary and capricious. Guidelines are nothing more
than . . . a framework . . . .
AFSCME Local 2088, 208 Neb. at 523,
304 N.W.2d at 375.
Finally,
Lincoln
argues that since
Springfield
was included in the array during both of its two previous disputes with its
firefighters, it is arbitrary for the commission to exclude
Springfield
from the present array. But again, which employers should be included in an
array is dependent upon the issues in the case in question, for it does not
necessarily follow that the use of an array in a particular case requires that
it be used in a subsequent case involving the same parties. See AFSCME Local
2088, supra.
(c) Conclusion
Of necessity,
determining comparables requires the granting of some discretion to the
commission, and unless there is no substantial evidence upon which the
commission could have concluded that the factors it used resulted in an
appropriate array, we may not as a matter of law disallow the commission's
determination. See, Douglas Cty. Health Dept. Emp. Assn. v. Douglas Cty.,
229 Neb. 301, 427 N.W.2d 28 (1988); AFSCME Local 2088 v. County of Douglas,
208 Neb. 511, 304 N.W.2d 368 (1981), modified 209 Neb. 597, 309 N.W.2d 65.
Stated another way, determinations made by the commission in accepting or
rejecting claimed comparables are within the field of its expertise and should
be given due deference. AFSCME Local 2088, supra; Fraternal Order of
Police v.
County
of
Adams
, 205 Neb. 682, 289 N.W.2d 535 (1980). The commission's determination here
is supported by substantial evidence and is neither arbitrary, capricious, nor
unreasonable; as a consequence, there is no merit to the first assignment of
error.
2. ADJUSTMENT FOR ECONOMIC VARIABLES
As noted in
part I, in the second assignment of error Lincoln contends that the commission
erred by failing to adjust for economic variables, and argues specifically that
the commission's failure to adequately account for differences in the degree of
unionization in Lincoln and the degree of unionization in the array cities led
the commission to set improperly high rates of pay for its firefighters.
(a) Facts
Relying upon
the degree of unionization for the states in which the array cities were located
and the degree of unionization in
Nebraska
,
Lincoln
's expert concluded that there is a high degree of correlation between wages
paid to firefighters and the degree of unionization in the labor market. It was
the expert's personal view that there was no reason to suspect that
"Lincoln is all that dissimilar from the rest of the state," but the
expert admitted that if the degree of unionization in Lincoln was not the same
as for the state as a whole, the calculations relating to Lincoln's variation
within the array cities would change.
Lincoln
's expert testified that the probabilities for chance correlations between
maximum wage rates were low, 4.28 percent for public sector unionization and a
very low .97 percent for private sector unionization. However, the probability
for chance correlations between minimum wage rates and unionization were higher,
9.20 percent for both public and private sector unionization. The expert
considered such degrees of chance correlations to be acceptable.
The
association's expert found the correlation of unionization with minimum wage
rates not to be statistically significant. In the association's expert's view,
the probability of a chance correlation should not exceed 5 percent, a claim
which
Lincoln
's expert specifically disputed. The association's expert was of the further
view that the study made by
Lincoln
's expert was flawed in that the number of observations were too small to permit
the use of the regression analysis relied upon by
Lincoln
's expert.
(b) Application of Law to Facts
We have held
that where it is alleged that economic dissimilarities exist which have a
bearing on prevalent wage rates, the burden is on the party making that
allegation to establish that such is the case. See Douglas Cty. Health Dept.
Emp. Assn. v. Douglas Cty., supra. The commission found that the use by
Lincoln
's expert of statewide unionization data rather than city data, together with
the high probability of a chance correlation between minimum wage rates and
degree of unionization, made his opinions unreliable. Under the record
presented, we cannot say that the commission's conclusion that
Lincoln
failed to prove that the degree of unionization in the array cities affected
the result to
Lincoln
's detriment is not supported by substantial evidence or that it is arbitrary,
capricious, or unreasonable. The assignment of error is therefore without merit.
3. MOOTNESS OF CERTAIN FRINGE BENEFITS
In the third
assignment of error,
Lincoln
maintains that the commission wrongly considered certain fringe benefits
provided by
Lincoln
to be moot.
Lincoln takes
specific issue with respect to 7 of the 21 fringe benefits the commission
treated as moot, namely, the use of sick leave for funeral leave, sick leave
accumulation rate, vacation accumulation rates, funeral leave, number of
employees paid to attend negotiations, amount of life insurance coverage, and
personal leave.
We have
previously held that in establishing wage rates under § 48-818, the commission
is required to take into consideration the overall compensation received by the
employees, including all fringe benefits.
Lincoln
Fire Fighters Assn. v. City of
Lincoln
, 198 Neb. 174, 252 N.W.2d 607 (1977). However, this does not require a
dollar-for-dollar costing out of each benefit when, as here, the contract year
in dispute is already past. Section 48-818 requires only that the "overall
compensation" be addressed. We recognize the impossibility or
impracticality of retroactively changing fringe benefits for an expired contract
year, and we question the practicality of assigning a monetary value to a fringe
benefit such as the number of employees allowed to participate in negotiations.
Of the 21 items
mooted by the commission,
Lincoln
was below the prevalent in 8 of them, above the prevalent in 6 of them, and
comparable in 7 of them. Under that circumstance, we cannot say the mooting of
these fringe benefits when the contract year in dispute is over is arbitrary,
capricious, or unreasonable. We thus find no merit to this assignment of error.
4. HEALTH INSURANCE BENEFITS
In the fourth
assignment of error,
Lincoln
claims the commission erred in comparing its health insurance benefits to those
of the array cities by considering the percentage of the premium paid by the
respective employers.
Lincoln
urges that the comparison should be made by calculating the midpoint of the
employers' monthly costs for providing health insurance. It thus computed the
composite cost per month representing single, employee-spouse, and family
coverage, and weighted the average based upon the number of employees enrolled
in each type of plan, preferred provider and health maintenance organizations
and indemnity. In general,
Lincoln
wished to compare employers' costs while the association wanted to compare
benefits.
Lincoln
's method would result in a minimum economic offset of $663.72 per employee per
year because it would result in a determination that
Lincoln
was paying that much more than the prevalent amount for health, dental, and
life insurance.
Lincoln
argues that the method chosen by the commission to determine comparability is
misleading, pointing out that "[u]nder the percentage of premium method, an
employer paying 100% of a significantly lower value medical plan would be
determined to be providing a better medical plan than an employer paying 99% of
a significantly higher value medical plan." Brief for appellant at 37.
However, the same criticism can be made of an analysis based solely on the
amount of premiums paid. Under that approach, a city paying $1,000 a month for a
health plan would be credited with more economic offset than a city paying $950
a month for a health plan, even if the $950 plan offered significantly better
medical coverage to employees.
Lincoln
does not maintain that its insurance coverage exceeds the prevalent in quality,
only that its expense exceeds the prevalent in expense. Indeed, each party's
health insurance expert opined that
Lincoln
's benefits were comparable to those provided by the array cities.
As the
commission's determination, based on the benefits received by the employees, is
supported by substantial evidence and is not arbitrary, capricious, or
unreasonable, there is no merit to this assignment.
5. RETIREMENT BENEFITS
In the fifth
assignment of error,
Lincoln
asserts that the commission erred in concluding that the difference between
Lincoln
's pension benefits and those of the array cities was so insignificant as to be
comparable.
(a) Facts
The commission
was presented with two markedly different opinions.
Lincoln
's expert concluded that
Lincoln
was providing $1,298 annually above the prevalent level for pension benefits,
which would place
Lincoln
4 percent of the gross wage above the prevalent. The association's expert also
found
Lincoln
's pension benefits to be above prevalent, but only by seven one-hundredths of 1
percent of payroll.
Given these
contrasting analyses, the commission held that the association's analysis was
more credible and that the difference between
Lincoln
's pension benefits and those provided by the array cities was so small as to
make those of the array cities comparable.
The commission
gave several reasons for its holding that the association's analysis was more
credible. The association's analysis is based on a weighted average of the two
pension plans currently used by
Lincoln
's fire department, basing the weight given each plan upon the number of
employees currently enrolled in each plan.
Lincoln
's analysis is based only on the first of these two plans, notwithstanding that
93 percent of the firefighters in the contract year in question belonged to the
second plan.
(b) Application of Law to Facts
The key
difference between
Lincoln
's analysis and the association's analysis is accounted for by the fact that
Lincoln
's expert assumed the "average" firefighter would retire at age 50.
According to the association's expert, this assumption about retirement age
constitutes over 75 percent of the difference between the opinion of
Lincoln
's expert and that of the association's expert.
Lincoln
's expert made this assumption because of the "intent of the City to
encourage its uniformed employees to retire at age 50." However,
Lincoln
's own actuarial assumptions for its firefighter plans predict only a 25-percent
retirement at age 50, with 30 percent not retiring until after age 64. The
assumption of retirement age is crucial because, as
Lincoln
itself noted, the difference between it and the array cities "becomes less
significant as retirement is delayed (and might reverse if retirement is delayed
long enough)." The commission noted that
Lincoln
's use of a retirement age of 50 as an underlying assumption in its analysis is
"[o]f major concern."
Also
influencing the commission's decision was
Lincoln
's use of the cost of living adjustment as part of the retirement benefit. It
was uncontested that there is a pool of approximately $2 million dedicated
toward this adjustment. However, the association's analysis did not use that
money to increase the value of the pension for three reasons. First, it was not
a guaranteed benefit and so it was not included in
Lincoln
's actuarial valuation report. Second, while the current fund will probably
cover the current retirees, an investment return of over 7 percent is necessary
in order to fund adjustments for the active members of the plan. Third, if a
return of over 7 percent were assumed, then such a return would affect the other
cities in the array, canceling out, or at least reducing,
Lincoln
's advantage over the array pension plans.
The commission
was also critical of
Lincoln
's choice to increase the present value of the pension benefits because they are
tax deferred. The commission considered that it was not appropriate to adjust
for differing tax treatment because the benefits were tax deferred, not tax
exempt.
The general
rule is that the weight which should be given expert opinions is uniquely within
the province of the fact finder. See, Vredeveld v. Clark, 244 Neb. 46,
504 N.W.2d 292 (1993) (civil action). See, also, Toombs v. Driver Mgmt., Inc.,
248 Neb. 1016, 540 N.W.2d 592 (1995) (workers' compensation action); State v.
Kells, 199 Neb. 374, 259 N.W.2d 19 (1977) (criminal action). We discern no
reason that the rule should be otherwise with respect to the commission.
(c) Conclusion
As the
commission's decision that
Lincoln
's pension benefits are comparable to those provided by the array cities is
supported by substantial evidence and is not arbitrary, capricious, or
unreasonable, there is no merit to this assignment of error.
6. ACCOUNTING FOR UNOFFERED FRINGE BENEFITS
In the sixth
assignment of error,
Lincoln
urges that the commission failed to properly account for fringe benefits not
provided by some array cities.
While
Lincoln
argued that where an array city did not provide a benefit, a zero should be
used in calculating the prevalent wage rate, the association successfully
contended that those cities not providing a benefit should be eliminated from
the calculations, and the midpoint should be determined using only those array
cities that provided the benefit.
The commission
ascertained whether a specific benefit is widely or generally offered within the
array, that is, whether it is "prevalent." In doing so, the commission
concluded that if a majority of the array does not offer a benefit, it is not
prevalent, even if
Lincoln
offers such a benefit. The commission gave no value for a benefit offered by
only a minority of cities in the array and concluded that no value should be
given to the minority of cities not offering a prevalent benefit.
We cannot say
that the matching of similar fringe benefits provided in order to determine a
prevalent level for each separate benefit is not supported by substantial
evidence or is arbitrary, capricious, or unreasonable; thus, there is no merit
to this assignment of error.
7. PLACEMENT OF EMPLOYEES INTO PAY LINES
In the seventh
and final assignment of error, Lincoln complains that the commission usurped a
management prerogative by placing covered employees into newly established
"pay lines," which we understand to be nothing more than graded
wage-step progression schedules for particular job classifications.
(a) Facts
The commission
ordered the initial placement of all covered employees into pay lines based upon
their years of service in their particular classification at the beginning of
the fiscal year in question, provided the employee had not received an
unsatisfactory job performance evaluation while in that job classification.
(b) Application of Law to Facts
We have not
previously addressed this precise issue. However, we did observe in School
Dist. of Seward Education Assn. v. School Dist. of Seward, 188 Neb. 772,
784, 199 N.W.2d 752, 759 (1972), that [w]ithout attempting in any way to be
specific, or to limit the foregoing, we would consider the following to be
exclusively within the management prerogative: The right to hire; to maintain
order and efficiency; to schedule work; to control transfers and assignments; to
determine what extracurricular activities may be supported or sponsored; and to
determine the curriculum, class size, and types of specialists to be employed.
Lincoln
argues that while it conducts ongoing job evaluations of firefighters, there is
no reasonable method of determining past performance for the purpose of
progression on the pay lines. One of
Lincoln
's expert witnesses testified that "grade creep" can occur when very
little is at stake in an evaluation system such as that used by the fire
department. A commission member who dissented on this issue observed that as the
evaluation system was implemented solely for job retention and disciplinary
purposes, it would be inappropriate to use it for placement and progression of
employees on a pay line. However, the majority of the commission concluded:
It is not credible to argue that past job performance evaluations do not provide
an adequate basis for determining satisfactory job performance for initial
placement of bargaining unit members on pay lines in this case when [Lincoln]
deems them valid for job retention and disciplinary purposes as well as for
advancement of police and civilian bargaining unit members along their pay
lines.
The
association asked Lincoln's compensation manager several times how the current
evaluation system would have to be changed in order for it to be valid to use
for progression on a pay line, but the manager could not suggest any changes; in
his answer he commented only that he had not looked at it and that the
evaluation system might change and it might not change. As the commission noted,
"[
Lincoln
] has indicated no desire or intention to eliminate or modify such
requirements."
Nonetheless,
Lincoln
further argues that there is no substantial evidence that initial placement on
a pay line based on seniority is the prevalent practice. However, this argument
not so subtly shifts the focus from placement of employees on a pay line that
has been established by prevalent practice to the question of what is the
prevalent practice for initial placement in a pay line.
Lincoln
is correct in concluding that there was no evidence submitted about the
prevalent practice on the question of initial placement on a pay line. But there
was evidence as to how cities within the array determined progression on their
pay lines.
Lincoln
does not contest that in the comparable cities the great majority of pay
progression is done automatically either by anniversary hire date or by
anniversary hire date plus an acceptable evaluation.
There is no
question that the commission has the statutory authority to establish wage-step
progression schedules.
Nebraska
Pub. Emp. v. City of
Omaha
, 247 Neb. 468, 528 N.W.2d 297 (1995) (wage-step progression schedule is
condition of employment which commission has been given statutory authority to
establish); Douglas Cty. Health Dept. Emp. Assn v. Douglas Cty., 229 Neb.
301, 427 N.W.2d 28 (1988). Section 48-818 provides that "the findings and
order or orders [of the commission] may establish or alter the scale of wages .
. . ." It is logical to conclude that a prevalent practice can be
established on progression within a pay line and that this practice can then be
applied to determine the placement on a pay line.
(c) Conclusion
The evidence
submitted here shows both the pay plans and the means used for progression by
other cities in the array. Therefore, there was substantial evidence to support
the commission's decision, and the decision cannot be said to be arbitrary,
capricious, or unreasonable. As a consequence, this assignment of error also
fails.
V. JUDGMENT
The record
failing to sustain
Lincoln
's assignments of error, the decision of the commission is affirmed.
AFFIRMED.