THE BOARD OF TRUSTEES OF THE
NEBRASKA STATE COLLEGES, APPELLANT
V.
STATE COLLEGE EDUCATION ASSOCIATION,
APPELLEE
280 Neb.477
Filed August 13, 2010, No. S-09-738
1. Commission of Industrial Relations: Appeal
and Error. In reviewing an appeal from the Commission of Industrial
Relations in a case involving wages and conditions of employment, an order or
decision of the commission may be modified, reversed, or set aside by the
appellate court on one or more of the following grounds and no other: (1) if
the commission acts without or in excess of its powers, (2) if the order was
procured by fraud or is contrary to law, (3) if the facts found by the
commission do not support the order, and (4) if the order is not supported by
a preponderance of the competent evidence on the record considered as a whole.
Appeal from the Commission of Industrial Relations. Affirmed
Patrick J. Barrett, of Fraser
Stryker, P.C., L.L.O., for appellant.
Mark
D. McGuire, of McGuire & Norby, for appellee.
HEAVICAN, C.J., WRIGHT, CONNOLLY,
GERRARD, STEPHAN, McCORMACK, and MILLER-LERMAN, JJ.
WRIGHT, J
I. NATURE OF CASE
The
Board of Trustees of the Nebraska State Colleges (Board) appeals the decision
of the Commission of Industrial Relations (CIR), which affirmed the Special
Master's ruling implementing the final offer of the State College Education
Association (SCEA) for salary increases for the 2009-11 biennium.
We affirm the decision of the CIR.
II. SCOPE OF REVIEW
In
reviewing an appeal from the CIR in a case involving wages and conditions of
employment, an order or decision of the CIR may be modified, reversed, or set
aside by the appellate court on one or more of the following grounds and no
other: (1) if the CIR acts without or in excess of its powers, (2) if the order
was procured by fraud or is contrary to law, (3) if the facts found by the CIR
do not support the order, and (4) if the order is not supported by a
preponderance of the competent evidence on the record considered as a whole. See
Hyannis Ed. Assn. v. Grant Cty. Sch. Dist. No.
38-0011, 269 Neb. 956, 698 N.W.2d 45 (2005).
III. FACTS
The
Board operates Nebraska's three state colleges: Chadron State College, Peru
State College, and Wayne State College. The SCEA is a bargaining agent for a
faculty bargaining unit established under Neb. Rev. Stat. §§ 81-1373(3) and
81-1379(2) (Reissue 2008) of the State Employees Collective Bargaining Act
(Bargaining Act), Neb. Rev. Stat. §§ 81-1369 to 81-1390 (Reissue 2008). The
SCEA represents approximately 265.01 full-time-equivalent faculty members who
work at the three state colleges in the ranks of professor, associate professor,
assistant professor, and instructor. The SCEA is the exclusive bargaining
representative of the employees, and the parties have bargained on a
system-wide basis for many years.
The
SCEA and the Board reached an impasse during negotiations for a new collective
bargaining agreement for the July 1, 2009, to June 30, 2011, contract year.
Pursuant to the Bargaining Act, the parties exchanged final offers on January
12, 2009, and submitted those final offers to the Special Master by January 15.
IV. SCEA's Final
Offer
The
SCEA based its final offer on an array selected in 1997 by the Nebraska
Coordinating Commission on Postsecondary Education, which included institutions
located all across the United States. It compiled a separate array for each of
the three state colleges. For Chadron State College, the SCEA proposed an
array consisting of Eastern New Mexico University, Fort Hays State University
(Kansas), Lander University (South Carolina), North Georgia College and State
University, Northern State University (South Dakota), Northwestern Oklahoma
State University, Southern Arkansas University, Southern Oregon University,
Southwest Minnesota State University, and University of North Carolina at
Pembroke.
The array for Peru State College consisted of Black Hills
State University (South Dakota), Concord University (West Virginia), Dakota
State University (South Dakota), Dickinson State University (North Dakota),
Indiana University-East, Northwestern Oklahoma State University, Southwest
Minnesota State University, University of Arkansas at Monticello, University of
South Carolina at Aiken, and Western State College of Colorado.
Wayne
State College's array consisted of Bemidji State University (Minnesota),
Eastern New Mexico University, Fort Hays State University (Kansas), Georgia
Southwestern State University, Minot State University (North Dakota), Northern
State University (South Dakota), Southeastern Oklahoma State University,
Southern Arkansas University, and Southern Oregon University. The SCEA defends
its geographically broad arrays on the ground that college and university
faculty are part of a national labor pool. It also notes that the peer schools
selected are classified as similar by the Nebraska Coordinating Commission on
Postsecondary Education, are all public institutions of comparable size, and
are located outside of metropolitan areas.
In
arriving at its final offer, the SCEA relied on data indicating that state
college faculty salaries as a whole were below market by 4.17 percent for the
2007-08 academic year. The SCEA calculated annual
average increases for the past decade and predicted 4.22-percent increases for
each of the next 2 years. It proposed a 7-percent across-the-board increase for
2009-10 and a 4-percent across-the-board increase for 2010-11 to maintain
comparability. The offer provided for a 6-percent increase in the minimum
promotion base salary and minimum new-hire base salary of each academic rank
for 2009-10 and a 3-percent increase in minimum base salary for each rank for
2010-11. It also proposed a $3, 000 increase to
faculty members who are promoted to a new rank.
The
SCEA justifies its offer for an 11-percent increase over 2 years on the grounds
that faculty members were 5.02 percent below market for 2007-08 and that the
average annual faculty increase for 1996-97 through 2006-07 as calculated by
the American Association of University Professors is 4.22 percent.
The
SCEA argues for across-the-board increases, because prior CIR wage
comparability cases involving institutions of higher education measured the
amount by which all bargaining unit members were below comparability and then
ordered across-the-board increases for the unit. See, Metropolitan
Tech. Comm. College Educ. Ass'n v. Metropolitan Comm.
College Area, 14 C.I.R. 127 (2003); Board of Regents of the University
of Nebraska v. American Association of University Professors, 7 C.I.R. 1 (1983).
It claims that any attempt to differentiate salary raises by faculty rank is
not consistent with CIR precedent.
V. Board's Final Offer
In
calculating its final offer, the Board used an array of nine colleges and
universities located within 500 air miles of the nearest Nebraska state
college. The array consisted of Black Hills State University (South Dakota),
Dakota State University (South Dakota), Fort Hays State University (Kansas),
Minot State University (North Dakota), Northern State University (South
Dakota), Northwestern Oklahoma State University, Southeastern Oklahoma State
University, Southwest Minnesota State University, and Western State College of
Colorado. The proposed array members were located in rural, nonmetropolitan
areas and had student enrollment similar to the Nebraska state colleges. All of
these institutions were also included in the SCEAs array.
From this array, the Board proposed salary increases based
on academic rank. It performed comparability analyses on a system-wide basis
using data from the "Integrated Postsecondary Education Data System"
for the most recent academic year available, 2007-08, for each rank. The Board
concluded that for 2007-08, professors were above market by .73 percent, associate
professors were below market by 6.78 percent, assistant professors were below
market by 11.73 percent, and instructors were below market by 4.36 percent.
Relying on Douglas County Health Department Employees Association v. County
of Douglas, 8 C.I.R. 208 (1986), affirmed 229 Neb. 301, 427 N.W.2d
28 (1988), the Board claimed that salaries of job classifications above
comparability need not be increased.
Accordingly, the Board proposed raises as follows:
Professors receive no increase in their base salary in either year, associate
professors receive a 3.39-percent increase in each year, assistant professors
receive a 5.87-percent increase for 2009-10 and a 5.86-percent increase for
2010-11, and instructors receive a 2.18-percent increase for both years. The
Board also proposed eliminating sections appearing in the 2007-09 contract that provided for increases in minimum promotion
base salaries and minimum new-hire base salaries of each academic rank.
VI. Special Master
Hearing
The
Special Master held a hearing on January 20, 2009, at which time both parties
presented evidence. The SCEA and the Board also filed posthearing
briefs. The Special Master issued his ruling on February 27. The Special Master
made clear that he was required to choose between two "decidedly unattractive"
final offers. He observed that each party submitted an "in your face"
salary offer that was "highly unpalatable" to the other party but
that he was nonetheless required to select one of the final offers as
presented.
Reviewing
the proposed arrays, the Special Master found that both arrays were reasonable.
He compiled an array consisting of 12 Midwestern schools located in states
adjacent to Nebraska or in a state adjacent to those adjacent states. The
resulting array consisted of the nine schools proposed by the Board plus
Bemidji State University in Minnesota, Dickinson State University in North
Dakota, and Eastern New Mexico State University.
The
Special Master used this array and calculated comparability figures similar to
those reached by both the Board and the SCEA. He found that for 2007-08,
professor salaries were approximately even with the market, associate professor
salaries were almost 5 percent below market, assistant professor salaries were
almost 13 percent below market, instructor salaries were about 2 percent below
market, and the entire bargaining unit as a whole was 4.5 percent below market.
The Special Master also determined that based on these parties' past practices
and negotiating history, faculty ranks did not constitute separate job classifications.
Noting
the inherent timelag in calculating comparability
with data from 2007-08, the Special Master projected salary increases for
2008-09, 2009-10, and 2010-11. He used the Board's 2008-09 salary increase data
from eight of the schools in the Board's proposed array. These eight schools
reported mean, median, and midpoint salary increases of 3.75 percent, 4
percent, and 3.88 percent, respectively. The mean is the arithmetic average of
the salaries in the array. The median is the middle value in the array. The
midpoint is calculated by taking the average of the mean and median figures. As
these figures were actual salary increases, the Special Master found the data
superior to the projections proposed by the SCEA. As Nebraska state college faculty
received a 4-percent increase in 2008-09, the Special Master found that the
comparability results from 2007-08 did not change in any meaningful way in
2008-09.
Looking
forward to the 2009-11 contract term, the Special Master took judicial notice
of the worsening national economy and concluded that there was no basis for the
SCEA's assumption that wages in peer institutions would increase by 4.22
percent in 2008-09, 2009-10, and again in 2010-11. Instead, the Special Master
forecast average salary increases of 2.5 to 3 percent. He based this prediction
on the fact that eight state government bargaining units represented by the
Nebraska Association of Public Employees/AFSCME Local 61 agreed to increases of
2.9 percent and 2.5 percent for the next 2 years— equivalent to a 5.47-percent
compounded increase. Therefore, the Special Master assumed a 2-year market
increase figure of 5.5 percent for comparability purposes.
The
Special Master noted that faculty salaries were 4.5 percent below market in
2007-08 and had remained at the same rate below market in 2008-09. He then
predicted a 5.5-percent increase among comparable institutions during the next
2 years and determined that the salary increase needed to maintain
comparability during the 2009-11 contract term was
about 10 percent. He noted that although the Board's offer moved some faculty
(assistant professors and associate professors) closer to comparability than
they are now, professors and instructors would fall below comparability over
the next 2 years.
For
the 2009-11 contract, the Special Master concluded that the SCEA's final offer
of 11 percent did a better job of moving all unit members toward comparability
and keeping them comparable for the duration of the contract than did the
Board's offer of 4.33 percent. He also noted that the Board provided no
rationale for removing provisions appearing in the 2007-09 contract regarding
rank base minima. The Special Master selected the SCEA's offer as being the
most reasonable.
VII. CIR Hearing
The
Board appealed the Special Master's decision to the CIR. Before the hearing,
the SCEA filed a motion in limine to prevent the
Board from offering new evidence or new witness testimony for the CIR to
consider. The Board opposed the motion and indicated it wished to submit
evidence refuting the Special Master's conclusions. The CIR granted the motion
in limine, noting that the further introduction of
additional evidence was "in conflict with the intent of the Legislature in
providing a speedy and inexpensive resolution to an appeal filed" to the
CIR. It also noted that the CIR is required to show significant deference to
the Special Master's ruling and set the ruling aside only if it finds the
ruling is significantly disparate from prevalent rates of pay or conditions of
employment as determined by the CIR pursuant to Neb. Rev. Stat. § 48-818
(Reissue 2004). The Board submitted an offer of proof for the record.
After
a May 20, 2009, hearing, the CIR issued its "Opinion and Order on Appeal, " affirming the Special Master's order. It found that
"[effective changes in the salary structure are not achieved by having the
Special Master impose substantial structural changes requested by one party
over the vehement objections of the other party." Accordingly, it found
that the Special Master's selection of the SCEA's proposal instituting
across-the-board increases over the Board's faculty rank increases was not
disparate pursuant to § 48-818.
The
CIR also determined that the Bargaining Act required parties to negotiate a 2-year
contract despite the fact that accurate data for § 48-818 did not exist. It
concluded that the Special Master's consideration of speculative data for the
purpose of determining future comparability for the 2-year contract was not
disparate pursuant to a § 48-818 analysis.
Finally,
the CIR reviewed the Special Master's numbers and calculations and concluded
that the comparability analysis was correct. Accordingly, the comparability
figure of 10 percent fell between the Board's offer of 4.33 percent and the
SCEA's offer of 11 percent. Giving the Special Master significant deference,
the CIR concluded that the ruling was not significantly disparate from
prevalent rates of pay or conditions of employment. The CIR affirmed the
Special Master's ruling implementing the SCEA's final offer.
The
Board appealed, and we granted its petition to bypass the Court of Appeals.
VIII. ASSIGNMENTS OF
ERROR
The
Board alleges, combined and restated, that the CIR
erred in (1) granting the SCEA's motion in limine and
refusing supplemental evidence and (2) affirming the Special Master's order.
IX. ANALYSIS
Motion in Limine
and Denial of Additional Evidence
The
first issue is whether pursuant to the Bargaining Act, parties can present
additional evidence to the CIR after the Special Master hearing. We recently
addressed this issue in State v. State Code Agencies Teachers Assn., ante p.
459, _____ N.W.2d_____(2010), and we adopt the
reasoning set forth therein. We conclude that pursuant to the Bargaining Act,
the CIR's review of a Special Master's ruling is an appeal and that the CIR did
not err in granting the motion in limine and denying
the Board's request to offer new evidence.
The Bargaining Act clearly defines the CIR's role in state
employee cases to be an appellate body and not a redundant finder of fact. §
81-1383. The CIR is to show significant deference to the Special Master's
ruling and is to set the ruling aside only upon a finding pursuant to § 48-818
that the ruling is significantly disparate. § 81-1383(2). The Special Master's
decision is not significantly disparate if the prevalent rates of pay
fall between the final offers of the parties. Id.
For these reasons, the CIR did not err in granting the
SCEA's motion in limine and disallowing additional
evidence to be submitted for its consideration.
X. Affirming
Special Master's Order
The
Board next claims that the CIR erred in affirming the Special Master's order
because the order was significantly disparate. Its contention is based on the
CIR's exclusion of additional evidence and the Special Master's classification
of the four faculty ranks as a single job classification. The Board also claims
that second-year wages were based on speculative data. The Board argues that
the CIR should have found that the Special Master's order was significantly
disparate and implemented the Board's final offer.
We
may modify, reverse, or set aside an order of the CIR on one or more of the
following grounds and no other: (1) if the CIR acts without or in excess of its
powers, (2) if the order was procured by fraud or is contrary to law, (3) if
the facts found by the CIR do not support the order, and (4) if the order is
not supported by a preponderance of the competent evidence on the record
considered as a whole. See Hyannis Ed. Assn. v. Grant Cty. Sch. Dist. No. 38-0011, 269 Neb. 956, 698 N.W.2d 45 (2005). There is no
evidence that the CIR acted without or in excess of its powers or that the
order was procured by fraud or is contrary to law.
In
reviewing the CIR's order, we note that pursuant to § 81-1383(2), the CIR
cannot find the Special Master's ruling to be significantly disparate from
prevalent rates of pay when the prevalent rates of pay and conditions of
employment, as determined by the CIR pursuant to § 48-818, fall between the
final offers of the parties. Therefore, our review is limited to whether the
facts found by the CIR support the CIR's conclusion that the prevalent rates
of pay and conditions of employment fall between the final offers of the
parties and whether the order is supported by a preponderance of the competent
evidence on the record considered as a whole.
The
Board's claim that the prevalent rates of pay were not between the final offers
of the parties is based on the exhibits the Board submitted as an offer of
proof in response to the SCEA's motion in limine. As
discussed above, the CIR properly declined to consider the supplemental evidence
when determining the prevalent rates of pay. See State v. State Code
Agencies Teachers Assn., ante p. 459, ____ N.W.2d____(2010).
In viewing the facts considered by the CIR, the evidence supports the CIR's
conclusion that the prevalent rates of pay fell between the final offers of the
parties.
The Board also argues that the CIR erred in affirming the
Special Master's order on the ground that it found that the faculty ranks of
professor, associate professor, assistant professor, and instructor constitute
a single job classification. In its analysis, the Board overlooks or ignores
the reasoning stated by the Special Master and the CIR for that decision. As
noted by the CIR, the parties' past practice has been to impose
across-the-board salary increases. The Board did not offer any evidence in
support of changing this practice. We agree with the CIR that substantial
changes in salary structure are not achieved by imposition over the
"vehement objections of the other party." Indeed, this decision is in
line with the CIR's history of leaving changes in salary structure to
collective bargaining. See, Board of Regents of the University of
Nebraska v. American Association of University Professors, 7 C.I.R. 1
(1983) (citing West Holt Faculty Ass'n v. School
District Number 25 of Holt County, 5 C.I.R. 301 (1981), and Omaha
Association of Firefighters, Local 385 v. City of Omaha, Nebraska, 2
C.I.R. 117 (1975), affirmed 194 Neb. 436, 231 N.W.2d 710 (1975)). We
likewise conclude that the facts support the CIR's determination that the
Special Master's refusal to unilaterally impose salary structure changes was
not disparate when reviewed pursuant to § 48-818. The order is supported by a
preponderance of the competent evidence on the record considered as a whole.
Finally, the Board claims that the CIR erred in giving
deference to the Special Master's order, because it was based on speculative
evidence for future wage increases. We also addressed this issue in State v.
State Code Agencies Teachers Assn., supra, concluding that the Bargaining
Act requires 2-year contracts. And, as second-year comparability data are not
always available at the time of negotiations, we observed that failing to
predict salary increases for future years would result in bargaining unit members'
salaries constantly being significantly below actual comparability and in a
constant catchup status. Id. Accordingly, the
CIR did not err in deferring to the Special Master on this issue, and this
assignment of error is without merit.
XI. CONCLUSION
The
Bargaining Act does not permit additional evidence to be submitted to the CIR
after the order is issued by the Special Master, and therefore, the CIR
properly granted the SCEA's motion in limine.
Furthermore, the CIR did not err in finding that the Special Master's order was
not significantly disparate. We affirm the decision of the CIR.
AFFIRMED.