Negotiating Labor Agreements Under FAA Order 3710'18

1
Negotiating Labor Agreements Under FAA Order
3710.18
Briefing - FAA30200044
FAA Managers Supervisors
Mel Scott Pam Trudell
August 2007
2
Why was this Order needed?

• In 2003 the DOT IG found that the FAA had
• No procedures in place for consistency and agency
  head review of labor agreements
• No process for identifying fiscal implications of
  labor agreements

3
What Else?

• No system to track local agreements
• No requirement to include Human Resources in
  negotiating local agreements
• No standard guidance on how to negotiate

4
OVERVIEW FAA ORDER 3710.18
4
5
What does it do?

• Covers all term and mid-term negotiated
  agreements
• Requires agency head review and approval of all
  negotiated agreements
• Recognizes differences in term agreements between
  the FAA and various labor unions

6
What does it do? (cont)

• Mandates legal and budgetary review of all
  negotiated agreements
• Requires managers to coordinate all negotiated
  agreements with HR
• Does not apply to individual EEO or grievance
  settlements

7
Number of MOUs since 3710.18 Implementation
8
What do I need to Know About Collective
Bargaining?
8
9
Level of Recognition

• National level for most FAA term agreements
• Generally there is no authority to bargain over
  working conditions below the level of recognition

9
10
What is Duty to Bargain?

• When and whether the parties must negotiate
• Expiration of term agreement
• Midterm union-initiated
• Midterm in response to a management change

10
11
What Must be Negotiated?(Scope of Bargaining)

• Changes to conditions of employment of bargaining
  unit employees that result in changes to
  personnel policies, practices, and matters
  affecting working conditions
• Not already covered by the contract or MOU
• More than a de minimus impact

11
12
What is a Condition of Employment?

• Personnel policies, practices, and matters
  affecting working conditions of bargaining unit
  employees

12
13
Working Conditions

• Working environment
• Hours of work
• Break rooms
• Parking

13
14
Personnel Policies, Practices and Procedures

• Leave Request Procedures
• Travel Polices
• Vacation Bidding Procedures
• Overtime Assignment Procedures

14
15
What is covered by?

• Prevents continual bargaining over issues already
  resolved by previous bargaining
• Applies to term agreements
• and MOAs
• Seek assistance from your
• HR LR staff

15
16
So what IS de minimis?

• Based on nature and extent of the change
• Effect, or reasonably foreseeable effect of the
  change is minimal
• Must be evaluated case-by-case

16
17
What are Management Rights?

• Determine
• Mission
• Budget
• Organization
• Number of employees
• Internal security practices of the agency

17
18
Management Rights (cont.)

• In accordance with applicable laws
• (A) to hire, assign, direct, layoff, and retain
  employees in the agency, or to suspend, remove,
  reduce in grade or pay, or take other
  disciplinary action against such employees
• (B) to assign work, to make determinations with
  respect to contracting out, and to determine the
  personnel by which agency operations shall be
  conducted

18
19
Management Rights (cont.)

• (C) with respect to filling positions, to make
  selections for appointments from among properly
  ranked and certified candidates for promotion or
  from any other appropriate source
• (D) to take whatever actions may be necessary to
  carry out the agency mission during emergencies

19
20
Permissive Management Rights

• At the election of the Agency,
• Numbers, types and grades of employees or
  positions assigned to assigned to any
  organizational subdivision, work project, or tour
  of duty
• Technology, methods and means of performing work

20
21
Types of Bargaining

• Term
• Expiration of Master Labor Agreement
• National Level
• Mid-Term
• Changes occur during the life of the Master Labor
  Agreement

21
22
Mid-Term bargaining is required

• When exercising a management right, if
• Change in condition of employment
• Subject matter not already covered by CBA or MOU
• Change has greater than de minimis impact

22
23
What is negotiable when exercising a management
right?

• Procedures management will follow in implementing
  the decision
• Appropriate arrangements for employees expected
  to be adversely affected by the decision
• May limit managements rights but may not
  excessively interfere

23
24
What if its not a management right?

• Substance Bargaining
• Decision to make the change is negotiable
• Change has greater than de minimis impact
• Union may propose no change

24
25
When can I negotiate at the local level?

• When the term agreement specifically allows
  bargaining on an issue
• When a matter is specifically designated by
  Headquarters for negotiation at a lower level

26
MAKING CHANGES
26
27
What information is required for a proposed
change?

• Subject
• Purpose
• Scope (who is/will be affected)
• Desired implementation date
• Supporting documents or materials
• Budget/cost analysis

27
28
Initial Considerations

• Is this a local issue, or one that has regional
  or national level implications?
• Does the CBA allow bargaining on the issue at the
  local level?

29
Initial Considerations (cont.)

• Is there a change to conditions of employment?
• Is the change already covered by the CBA or an
  MOA?
• Is the change more than de minimis?

30
Budget/Cost Analysis what/why?

• Completed throughout bargaining process
• Captures the fiscal implications of collective
  bargaining

31
Now what?

• Local HR will review the proposal, perform
  necessary coordination and advise you of the
  outcome

32
What if the union initiates a change?

• Forward the union-initiated proposals and
  supporting documentation to the local HR LR
  office
• Local HR will review the proposal, perform
  necessary coordination and advise you of the
  outcome

33
THE PROCESS
33
34
General Information

• Unions are entitled to reasonable advance notice
  of a proposed change
• The governing CBA contains specific timeframes
• HR LR prepares notices for local level issues
• HR or local management may issue notice

34
35
More General Information

• No unofficial or handshake agreements
• All agreements must be reduced to writing
• HR will designate the Chief Negotiator

36
What is the role of the Chief Negotiator?

• Serves as the exclusive representative for the
  agency during the negotiations
• Empowered to legally bind the agency
• Coordinates all proposed agreements with HR,
  Legal, Budget, etc.

36
37
Whats the plan?

• LR rep will meet with the Chief Negotiator to
  discuss proposals and strategy
• Know the issues and anticipate the unions
  counter proposals
• Consider peripheral issues and current LR climate

38
Informational Briefings

• In most cases the union may request a briefing
  over proposed changes
• Briefings are informational only - we are not
  bargaining
• Union may ask questions or seek clarification
  before submitting proposals

39
Get ready to bargain

• Most labor agreements require unions to submit
  proposals, not merely questions or concerns
• Meet with your LR rep to assess unions proposals
  and develop counter proposals before negotiations
  begin

40
At the table

• Anticipate robust discussion from union
  negotiators normally protected under the Labor
  Statute
• Do not give away the farm
• Remember management has rights and taxpayers want
  efficiency
• Both parties may offer counter-proposals

40
41
Agreement Reached!

• All local agreements are
• Reviewed at next higher organizational level
  before signature by the Parties
• Submitted to HR LR for Agency Head Review

42
Agency Head Review

• After the agreement has been signed, forward the
  original to the local HR office
• Local HR office (or Chief Negotiator as
  appropriate) will provide a copy of the agreement
  to regional legal counsel for review
• Legal ensures consistency with applicable law,
  rule or government-wide regulation

43
Agency Head Review (cont.)

• The agencys Human Resource Directors have been
  delegated agency head review authority for all
  local agreements
• Review and approval (or denial) must be done
  within 30 days

44
After Agency Head Review

• If the agreement is disapproved
• HR will prepare and issue appropriate notice to
  the Parties Chief Negotiators
• The Agencys Chief Negotiator will coordinate the
  Parties return to bargaining

45
After Agency Head Review (cont.)

• If the agreement is approved HR will
• Maintain the original agreement
• Enter the MOA into the FAAs MOA database
• Distribute copies to the Chief Negotiators

46
Not to Worry!!

• Your local HR LR Staff will guide you through the
  process

46
47
References

• https//employees.faa.gov/org/staffoffices/ahr/lab
  or_relations/pol_guidance/
• Guide to Labor Relations for Managers
• 5 USC Chapter 71, the Statute
• FAA Order 3710.18
• FAA Order 3710.18 Standard Operating Procedures
• LMR Bulletins
• LMR Quick References

47