OCTOBER TERM, 1998
Syllabus
NATIONAL FEDERATION OF FEDERAL EMPLOYEES, LOCAL 1309
v.
DEPARTMENT OF THE INTERIOR ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FOURTH
CIRCUIT
No. 97-1184. Argued November 9, 1998-Decided March 3, 1999*
As relevant here, the Federal Service Labor-Management Relations
Statute (Statute) requires federal agencies and their employees'
unions to "meet and negotiate in good faith for the purposes of
arriving at a collective bargaining agreement," 5 U. S. C. §
7114(a)(4); and creates the Federal Labor Relations Authority,
giving it broad adjudicatory, policymaking, and rulemaking powers
to implement the Statute, §§ 7104, 7105. The Authority initially
held that § 7114(a)(4)'s good-faith-bargaining requirement does not
extend to union-initiated proposals during the term of the basic
contract. The D. C. Circuit disagreed, and in response, the
Authority reversed its position. In this suit, a federal employees'
union proposed including in its basic contract with a subagency of
the Department of the Interior (Agency) a provision obligating the
Agency to negotiate, at the union's request, about midterm matters
not in the original contract. Relying on the Fourth Circuit's view
that union-initiated midterm bargaining is inconsistent with the
Statute, the Agency refused to accept, or bargain about, the
proposed clause. However, the Authority ordered the Agency to
bargain. The Fourth Circuit set aside that order, holding that the
Statute prohibits such a provision.
Held: The Statute delegates to the Authority the legal
power to determine whether parties must engage in midterm
bargaining or bargaining about midterm bargaining. Pp. 91-1Ol.
(a) The Statute itself does not resolve the midterm bargaining
question. Section 7114(a)(4)'s language is sufficiently ambiguous
or open on the point as to require judicial deference to reasonable
interpretation or elaboration by the agency charged with the
Statute's execution. Such ambiguity is inconsistent both with the
Fourth Circuit's absolute reading that the Statute prohibits
midterm bargaining and with the D. C. Circuit's similarly absolute,
but opposite, reading. It is perfectly consistent, however, with
the conclusion that Congress delegated to the
*Together with No. 97-1243, Federal Labor Relations Authority
v.
Department of the Interior et al., also on certiorari to
the same court.
87
Authority the power to determine whether, when, where, and what
sort of midterm bargaining is required. This conclusion is
supported by the Statute's delegation of rulemaking, adjudicatory,
and policymaking powers to the Authority and by precedent
recognizing the similarity of the Authority's public-sector and the
National Labor Relations Board's private-sector roles, see
Bureau of Alcohol, Tobacco and Firearms v.
FLRA,
464 U. S. 89, 97.
Pp. 91-99.
(b) For similar reasons, the Statute also grants the Authority
leeway in answering the question whether an agency must bargain
endterm about including in the basic labor contract a midterm
bargaining clause. The Authority's judgment that the parties must
bargain over such a provision was occasioned by the D. C. Circuit's
holding that the Statute imposes a duty to bargain midterm. Since
the Statute does not resolve the question of midterm bargaining,
nor the related question of bargaining about midterm bargaining,
the Authority should have the opportunity to consider these
questions aware that the Statute permits, but does not compel, the
conclusions it reached. Pp. 99-101.
132 F.3d
157, vacated and remanded.
BREYER, J., delivered the opinion of the Court, in which
STEVENS, KENNEDY, SOUTER, and GINSBURG, JJ., joined. O'CONNOR, J.,
filed a dissenting opinion, in which REHNQUIST, C. J., joined, and
in which SCALIA and THOMAS, JJ., joined as to Part I,
post,
p. 101.
Gregory O'Duden argued the cause for petitioner in No.
97-1184. With him on the briefs was
Barbara A. Atkin. David M.
Smith argued the cause for petitioner in No. 971243. With him
on the brief was
James F. Blandford.
Irving L. Gornstein argued the cause for the Department of the
Interior in both cases. On the brief were Solicitor General Waxman,
Assistant Attorney General Hunger, Deputy Solicitor General
Underwood, Jonathan E. Nuechterlein, William Kanter, Robert M.
Loeb, and Sushma Soni.t
tJonathan P. Hiatt, James B. Coppess, Marsha S.
Berzon, Laurence Gold, Mark D. Roth, and
Kevin M.
Grile filed a brief for the American Federation of Labor and
Congress of Industrial Organizations et al. as
amici curiae
urging reversal.
88
88 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
JUSTICE BREYER delivered the opinion of the Court.
The Federal Service Labor-Management Relations Statute requires
federal agencies and the unions that represent their employees to
"meet and negotiate in good faith for the purposes of arriving at a
collective bargaining agreement." 5 U. S. C. § 7114(a)(4). We here
consider whether that duty to bargain extends to a clause proposed
by a union that would bind the parties to bargain midterm-that is,
while the basic comprehensive labor contract is in effect-about
subjects not included in that basic contract. We vacate a lower
court holding that the statutory duty to bargain does not encompass
midterm bargaining (or bargaining about midterm bargaining). We
conclude that the Statute delegates to the Federal Labor Relations
Authority the legal power to determine whether the parties must
engage in midterm bargaining (or bargaining about that matter). We
remand these cases so that the Authority may exercise that
power.
I
Congress enacted the Federal Service Labor-Management Relations
Statute (Statute or FSLMRS) in 1978. See 5 U. S. C. § 7101
et
seq. Declaring that "labor organizations and collective
bargaining in the civil service are in the public interest," §
7101(a), the Statute grants federal agency employees the right to
organize, provides for collective bargaining, and defines various
unfair labor practices. See §§ 7114(a)(1), 7116. It creates the
Federal Labor Relations Authority, which it makes responsible for
implementing the Statute through the exercise of broad
adjudicatory, policymaking, and rulemaking powers. §§ 7104, 7105.
And it establishes within the Authority a Federal Service Impasses
Panel, to which it grants the power to resolve negotiation impasses
through compulsory arbitration, § 7119, hence without the strikes
that the law forbids to federal employees, § 7116(b)(7).
89
Of particular relevance here, the Statute requires a federal
agency employer to "meet" with the employees' collectivebargaining
representative and to "negotiate in good faith for the purposes of
arriving at a collective bargaining agreement." § 7114(a)(4). The
Courts of Appeals disagree about whether, or the extent to which,
this good-faith-bargaining requirement extends to midterm
bargaining. Suppose, for example, that the federal agency and the
union negotiate a basic 5-year contract. In the third year a matter
arises that the contract does not address. If the union seeks
negotiations about the matter, does the Statute require the agency
to bargain then and there, or can the agency wait for basic
contract renewal negotiations? Does it matter whether the basic
contract itself contains a "zipper clause" expressly forbidding
such bargaining? Does it matter whether the basic contract itself
contains a clause expressly permitting midterm bargaining? Can the
parties insist upon bargaining endterm (that is, during the
negotiations over adopting or renewing a basic labor contract)
about whether to include one or the other such clauses in the basic
contract itself?
In 1985 the Authority began to answer some of these questions.
It considered a union's effort to force midterm negotiations about
a matter the basic labor contract did not address, and it held that
the Statute
did not require the agency to bargain.
Internal Revenue Service, 17 F. L. R. A. 731 (1985)
(IRS
I).
The Court of Appeals for the District of Columbia Circuit,
however, set aside the Authority's ruling. The court held that in
light of the intent and purpose of the Statute, it must be read to
require midterm bargaining, inasmuch as it did not create any
distinction between bargaining at the end of a labor contract's
term and bargaining during that term.
National Treasury
Employees Union v.
FLRA, 810 F.2d
295 (1987)
(NTEU). On remand the Authority reversed its
earlier position.
Internal Revenue Service, 29 F. L. R.
A.
90
90 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
162, 166 (1987)
(IRS II). Accepting the D. C. Circuit's
analysis, the Authority held:
"[T]he duty to bargain in good faith imposed by the Statute
requires an agency to bargain during the term of a collective
bargaining agreement on negotiable union-initiated proposals
concerning matters which are not addressed in the [basic] agreement
and were not clearly and unmistakably waived by the union during
negotiation of the agreement." Id., at 167.
The Fourth Circuit has taken a different view of the matter. It
has held that "union-initiated midterm bargaining is not required
by the statute and would undermine the congressional policies
underlying the statute."
Social Security Administration v.
FLRA, 956 F.2d
1280, 1281 (1992)
(SSA). Nor, in its view, may the basic
labor contract itself impose a midterm bargaining duty upon the
parties.
Department of Energy v.
FLRA, 106 F.3d
1158, 1163 (1997) (holding unlawful a midterm bargaining clause
that the Federal Service Impasses Panel had imposed upon the
parties' basic labor contract).
In the present suit, the National Federation of Federal
Employees, Local 1309 (Union), representing employees of the United
States Geological Survey, a subagency of the Department of the
Interior (Agency), proposed including in the basic labor contract a
midterm bargaining provision that said:
"The Union may request and the Employer will be obliged to
negotiate [midterm] on any negotiable matters not covered by the
provisions of this [basic] agreement." Department of
Interior, 52 F. L. R. A. 475, 476 (1996).
The Agency, relying on the Fourth Circuit's view that the
Statute prohibits such a provision, refused to accept, or to
bargain about, the proposed clause. The Authority, reiterating its
own (and the D. C. Circuit's) contrary view, held that the Agency's
refusal to bargain amounted to an unfair labor practice.
Id., at 479-481. The Statute itself, said the Au-
91
thority, imposes an obligation to engage in midterm
bargaining-an obligation that the proposed clause only reiterates.
I d., at 479-480. And even if such an obligation did not
exist under the Statute, the Authority added, a proposal to create
a
contractual obligation to bargain midterm is a fit subject
for endterm negotiation.
Id., at 480-481. Consequently, the
Authority ordered the Agency to bargain over the proposed
clause.
The Fourth Circuit set aside the Authority's order.
132 F.3d
157 (1997). The court reiterated its own view that the Statute
itself does not impose any midterm bargaining duty.
Id., at
161-162. That being so, it concluded, the parties should not be
required to bargain endterm about including a clause that would
require bargaining midterm. The court reasoned that once bargaining
over such a clause began, the employer would have no choice but to
accept the clause. Were the employer not to do so (by bargaining to
impasse over the proposed clause), the Federal Service Impasses
Panel would then inevitably insert the clause over the employer's
objection, as the Impasses Panel (like the D. C. Circuit) believes
that a midterm bargaining clause would merely reiterate the duty to
bargain midterm that the Statute itself imposes.
Ibid.
We granted certiorari to consider the conflicting views of the
Circuits.
II
We shall focus primarily upon the basic question that divided
the Circuits: Does the Statute itself impose a duty to bargain
during the term of an existing labor contract? The Fourth Circuit
thought that the Statute did not impose a duty to bargain midterm
and that the matter was sufficiently clear to warrant judicial
rejection of the contrary view of the agency charged with the
Statute's administration.
SSA, supra, at 1284 (stating that
"'Congress has directly spoken to the precise question at issue,'"
and quoting
Chevron U. S.
A. Inc. v.
Natural
Resources Defense Council, Inc.,
92
467 U. S. 837,
842 (1984)). We do not agree with the Fourth Circuit, for we find
the Statute's language sufficiently ambiguous or open on the point
as to require judicial deference to reasonable interpretation or
elaboration by the agency charged with its execution. See
id., at 842-845;
Fort Stewart Schools v.
FLRA,
495 U. S. 641,
644-645 (1990).
The D. C. Circuit, the Fourth Circuit, and the Authority all
agree that the Statute itself does not expressly address
union-initiated midterm bargaining. See
NTE U, supra, at
298; SSA, supra, at 1284; Brief for Petitioner FLRA in No.
97-1243, p. 18. The Statute's relevant language simply says that
federal agency employer and union representative "shall meet and
negotiate in good faith for the purposes of arriving at a
collective bargaining agreement." 5 U. S. C. § 7114(a)(4). It
defines the key term "collective bargaining agreement" as an
"agreement entered into as a result of collective bargaining." §
7103(a)(8). And it goes on to define "collective bargaining" as
involving the meeting of employer and employee representatives "at
reasonable times" to "consult" and to "bargain in a good-faith
effort to reach agreement with respect to the conditions of
employment," incorporating "any collective bargaining agreement
reached" as a result of these negotiations in "a written document."
§ 7103(a)(12). This language, taken literally, mayor may not
include a duty to bargain collectively midterm.
The Agency, here represented by the Solicitor General, argues
that in context, this language
must exclude midterm
bargaining. We shall explain why we do not agree with each of the
Agency's basic arguments.
First, the Agency makes a variety of linguistic arguments.
As an initial matter, it emphasizes the words "arriving at" in
the Statute's general statement that the parties must bargain "for
the purposes of
arriving at a collective bargaining
agreement." This statement tends to exclude midterm bargaining, the
Agency contends, because parties engage in midterm bargaining, not
for the purpose of
arriving at, but
93
for the purpose of
supplementing, their basic,
comprehensive labor contract. In other words, the basic
collectivebargaining agreement is the only appropriate destination
at which negotiations might "arriv[e]." The Agency adds that
"collective bargaining agreement" is a term of art, which only and
always refers to basic labor contracts, not to midterm
agreements.
Further, while the Agency acknowledges that there is a duty to
bargain midterm in the private sector, see
NLRB v.
Jacobs
Manufacturing Co., 196 F.2d
680 (CA2 1952), it argues that this private-sector duty
is based upon language in the National Labor Relations Act (NLRA)
that is different in significant respects from the language in the
Statute here. The Agency explains that the NLRA defines
private-sector collective bargaining to include (1) negotiation
"with respect to wages, hours, and other terms and conditions of
employment,
or [(2)] the negotiation of an agreement, or any
question arising thereunder." 29 U. S. C. § 158(d) (emphasis
added). The "or," under this view, indicates that privatesector
employers have a comprehensive duty to "bargain collectively"
whether or not such bargaining is part of "the negotiation of an
agreement" leading to "written contract."
In our view, these linguistic arguments, while logical, make too
much of too little. One can easily read "arriving at
a
collective bargaining agreement" as including an agreement
reached at the conclusion of midterm bargaining, particularly
because the Statute itself does no more than define the relevant
term "collective bargaining agreement" in a circular way-as "an
agreement entered into as a result of collective bargaining." 5 U.
S. C. § 7103(a)(8). Nor have we found any statute, judicial
opinion, agency document, or treatise that says whether the words
"collective bargaining agreement" are words of art that must
necessarily exclude midterm agreements. Finally, the linguistic
differences between the NLRA and the FSLMRS tell us little,
particularly given the fact that the two labor statutes, like
collective bar-
94
94 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
gaining itself, are not otherwise identical in the two sectors.
For all these reasons, we find in the relevant statutory language
ambiguity, not certainty.
Second, the Agency-like the Fourth Circuit-contends that the
Statute's policies demand a reading of the statutory language that
would exclude midterm bargaining from its definition of "collective
bargaining." The availability of midterm bargaining, the Agency
argues, might lead unions to withhold certain subjects from
ordinary endterm negotiations and then to raise them during the
term, under more favorable bargaining conditions. A union might
conclude, for example, that it is more likely to get what it wants
by presenting a proposal during the term (when no other issues are
on the table and a compromise is less likely) and then negotiating
to impasse, thus leaving the matter for the Federal Service
Impasses Panel to resolve. The Agency also points out that
public-sector and private-sector bargaining differ in this respect.
Private-sector unions enforce their views through strikes, and
because they hesitate to strike midterm, they also have no
particular incentive to bargain midterm. But public-sector unions
enforce their views through compulsory arbitration, not strikes.
Hence, the argument goes, public-sector unions have a unique
incentive to bargain midterm on a piecemeal basis, thereby
threatening to undermine the basic collective-bargaining process.
See,
Other policy concerns, however, argue for a different reading of
the Statute. Without midterm bargaining, for example, will it prove
possible to find a collective solution to a workplace problem, say,
a health or safety hazard, that first appeared midterm? The
Statute's emphasis upon collective bargaining as "contribut[ing] to
the effective conduct of public business," 5 U. S. C. §
7101(a)(1)(B), suggests that it would favor joint, not unilateral,
solutions to such midterm problems.
95
The Authority would seem better suited than a court to make the
workplace-related empirical judgments that would help properly
balance these, and other, policy-related considerations. The
Statute does not indicate that Congress itself decided to make
these specific policy judgments. Hence the Agency's policy
arguments illustrate the need for the Authority's elaboration or
refinement of the basic statutory collective-bargaining obligation;
they illustrate the appropriateness of judicial deference to
considered Authority views on the matter; and, most importantly,
they do not narrow the scope of a statutory provision the language
of which is consistent with a variety of interpretations.
Third, the Agency argues that the Statute's history and prior
administrative practice support its view that federal agencies have
no duty to bargain midterm. The Statute grew out of an Executive
Order that previously had governed federal-sector labor relations.
See Exec. Order No. 11491, 3 CFR 861 (1966-1970 Comp.), as amended
by Exec. Order Nos. 11616, 11636, and 11838, 3 CFR 605, 634, 957
(1971-1975 Comp.). In support, the Agency cites a case in which an
Assistant Secretary of Labor, applying that Executive Order,
dismissed an unfair labor practice complaint on the ground, among
others, that a federal agency need not bargain over midterm union
proposals.
Army and Air Force Exchange Serv., Capital Exchange
Region Headquarters, Case No. 22-6657(CA), 2 Rulings on
Requests for Review of Assistant Secretary of Labor for
Labor-Management Relations 561-562 (1976) (not reviewed by the
Federal Labor Relations Council, predecessor to the Authority); see
IRS I, 17 F. L. R. A., at 736-737, n. 7 (finding, based upon
this decision, that there was no obligation to bargain over midterm
union proposals under the Executive Order). A single alternative
ground, however-in a single, unreviewed decision from before the
Statute was enacted-does not demonstrate the kind of historical
practice that one might assume would
96
96 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
be reflected in the Statute, particularly when at least one
treatise suggested at the time that federal labor relations
practice was to the contrary. See H. Robinson, N egotiability in
the Federal Sector 10-11, and n. 9 (1981) (stating that under the
Executive Order both unions and agencies had a continuing duty to
bargain through the term of a basic labor contract).
The Agency also points to a Senate Report in support of its
interpretation of the Statute. That Report speaks of the parties'
"mutual duty to bargain" with respect to (1) "changes in
established personnel policies proposed by management," and (2)
"negotiable proposals initiated by either the agency or [the union]
... in the context of negotiations
leading to a basic collective
bargaining agreement." S. Rep. No. 95-969, p. 104 (1978)
(emphasis added). This Report, however, concerns a bill that
contains language similar to the language before us but was not
enacted into law. According to the D. C. Circuit, at least, any
distinction between basic and midterm bargaining that is indicated
by this passage "did not survive the rejection by Congress of the
Senate's restrictive view of the rights of labor and the importance
of collective bargaining."
NTEU, 810 F. 2d, at 298. In any
event, the Report's list of possible occasions for collective
bargaining does not purport to be an exclusive list; it does not
say that the Statute was understood to exclude midterm bargaining;
and any such implication is simply too distant to control our
reading of the Statute.
Fourth, the Agency and the Fourth Circuit contend that the
"management rights" provision of the Statute, 5 U. S. C. § 7106,
does authorize limited midterm bargaining in respect to
certain matters (not here at issue), and that by negative
implication it denies permission to bargain midterm in respect to
any others. See,
e. g., SSA, supra, at 1284 ("The inclusion
of a specific duty of midterm effects bargaining ... suggests the
inadvisability of reading a more general duty into the statute").
Our examination of that provision,
97
however, finds little support for such a strong negative
implication.
Subsection (a) of the management rights provision withdraws from
collective bargaining certain subjects that it reserves exclusively
for decision by management. It specifies, for example, that federal
agency "management official[s]" will retain their authority to
hire, fire, promote, and assign work, and also to determine the
agency's "mission, budget, organization, number of employees, and
internal security practices." § 7106(a).
Subsection (b), however, permits a certain amount of collective
bargaining in respect to the very subjects that subsection (a)
withdrew. Subsection (b) states:
"Nothing in this section shall preclude any agency and
any labor organization from negotiating-
"(1) at the election of the agency, on the numbers, types, and
grades of employees or positions assigned to any organizational
subdivision, work project, or tour of duty, or on the technology,
methods, and means of performing work;
"(2) procedures which management officials ... will observe in
exercising any authority under this section; or
"(3) appropriate arrangements for employees adversely affected
by the exercise of any authority under this section by such
management officials." § 7106(b) (emphasis added).
The two subsections of the management rights provision, taken
together, do not help the Agency. While the provision contemplates
that bargaining over the impact and implementation of management
changes may take place during the term of the basic labor contract,
subsection (b) need not be read to actually impose a duty to
bargain midterm. The italicized clause, "[n]othing in this section
shall preclude," indicates only that the delegation of certain
rights to man-
98
agement
(e. g., promotions) shall not
preclude
negotiations about certain related matters (e. g., promotion
procedures). By its terms, then, subsection (b) does nothing more
than create an exception to subsection (a), preserving the duty to
bargain with respect to certain matters otherwise committed to the
discretion of management. Because § 7106(b) chiefly addresses the
subject matter of bargaining and not the timing, one could
reasonably conclude that while that subsection contemplates midterm
bargaining in the circumstances there specified, the duty to
bargain midterm finds its source elsewhere in the Statute. Hence,
the management rights provision seems to hurt, as much as to help,
the Agency's basic argument.
The upshot of this analysis is that where the Agency and the
Fourth Circuit find a clear statutory denial of any midterm
bargaining obligation, we find ambiguity created by the Statute's
use of general language that might, or might not, encompass various
forms of midterm bargaining. That kind of statutory ambiguity is
inconsistent both with the Fourth Circuit's absolute reading of the
Statute and also with the D. C. Circuit's similarly absolute, but
opposite, reading. Compare
SSA, 956 F. 2d, at 1284, with
NTEU, 810 F. 2d, at 301 (rejecting the Authority's position
that there is no duty to bargain midterm on the ground that it is
"contrary to the intent of the legislature and the guiding purpose
of the statute"). Indeed, the D. C. Circuit's analysis implicitly
concedes the need to make at least
some midterm bargaining
distinctions, when it assumes that the midterm bargaining
obligation does not extend to matters that are covered by the basic
contract. See id., at 296.
The statutory ambiguity is perfectly consistent, however, with
the conclusion that Congress delegated to the Authority the power
to determine-within appropriate legal bounds, see,
e. g., 5
U. S. C. § 706 (Administrative Procedure Act);
Chevron U. S.
A. Inc. v.
Natural Resources Defense Council,
99
Inc., 467
U. S. 837 (1984)-whether, when, where, and what sort of midterm
bargaining is required. The Statute's delegation of rulemaking,
adjudicatory, and policymaking powers to the Authority supports
this conclusion. See 5 U. S. C. § 7105(a)(1) ("Authority shall
provide leadership in establishing policies and guidance"); §
7105(a)(2)(E) (Authority "resolves issues relating to the duty to
bargain in good faith"); § 7117(c) (Authority resolves disputes
about whether the duty to bargain in good faith extends to a
particular matter); accord,
American Federation of Govt.
Employees, Local 2986, AFL-CIO v.
FLRA, 775 F.2d
1022, 1027 (CA9 1985);
American Federation of Govt.
Employees, AFL-CIO, Council of Soc. Sec. Dist. Office Locals, San
Francisco Region v.
FLRA, 716 F.2d
47, 50 (CADC 1983). This conclusion is also supported by
precedent recognizing the similarity of the Authority's
public-sector and the National Labor Relations Board's
private-sector roles. As we have recognized, the Authority's
function is "to develop specialized expertise in its field of labor
relations and to use that expertise to give content to the
principles and goals set forth in the Act," and it "is entitled to
considerable deference when it exercises its 'special function of
applying the general provisions of the Act to the complexities' of
federal labor relations."
Bureau of Alcohol, Tobacco and
Firearms v.
FLRA, 464 U. S. 89, 97 (1983)
(quoting
NLRB v.
Erie Resistor Corp., 373 U. S. 221, 236
(1963)).
We conclude that Congress "left" the matters of whether, when,
and where midterm bargaining is required "to be resolved by the
agency charged with the administration of the statute in light of
everyday realities."
Chevron, supra, at 865-866.
III
The specific question before us is whether an agency must
bargain endterm about including in the basic labor contract a
clause that would require certain forms of midterm bar-
100
100 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
gammg. As is true of midterm bargaining itself, and for similar
reasons, the Statute grants the Authority leeway (within ordinary
legal limits) in answering that question as well.
The Authority says that it has determined, as a matter of its
own judgment, that the parties must bargain over such a provision.
Our reading of its relevant administrative determinations, however,
leads us to conclude that its judgment on the matter was occasioned
by the D. C. Circuit's holding that the Statute must be read to
impose on agencies a duty to bargain midterm. See,
e. g., Merit
Systems Protection Bd. Professional Assn., 30 F. L. R. A. 852,
859-860 (1988) (midterm bargaining clause is negotiable because it
"reiterates a right the Union has under the Statute"); 52 F. L. R.
A., at 479 (in the instant suit, restating that same conclusion).
The Authority did indicate below that even if it agreed with the
Fourth Circuit's position that the Statute does not impose a duty
to bargain midterm, the outcome in this litigation would be no
different, as the Authority" 'has previously upheld the
negotiability of proposals despite the absence of a statutory right
concerning the matter in question.'"
Id., at 480 (quoting
Department of Energy, 51 F. L. R. A. 124, 127 (1995), enf.
denied,
Department of Energy v.
FLRA, 106 F. 3d 1158
(CA4 1997)). This explanation, however, seems more an effort to
respond to, and to distinguish, a contrary judicial authority,
rather than an independently reasoned effort to develop complex
labor policies. Regardless, the Authority's conclusion would seem
linked to the D. C. Circuit's basic understanding about the
statutory requirements.
In light of our determination that the Statute does not resolve
the question of midterm bargaining, nor the related question of
bargaining about midterm bargaining, we believe the Authority
should have the opportunity to consider these questions aware that
the Statute permits, but does not compel, the conclusions it
reached.
101
The judgment of the Fourth Circuit is vacated, and the cases are
remanded for further proceedings consistent with this opinion.
It is so ordered.
JUSTICE O'CONNOR, with whom THE CHIEF JUSTICE joins, and with
whom JUSTICE SCALIA and JUSTICE THOMAS join as to Part I,
dissenting.
The Court today ignores the plain meaning of the Federal Service
Labor-Management Relations Statute (Federal Labor Statute or
Statute) and erroneously concludes that when an agency responds to
a judicial decision by abandoning its own interpretation of a
statute and adopting that of the judicial forum this Court should
defer to the agency's revised position, rather than evaluate
whether the revised interpretation renders, in fact, the most
plausible reading of the statute. I respectfully dissent.
I
The Federal Labor Statute plainly does not impose a general duty
on agencies to bargain midterm. See
Social Security
Administration v.
FLRA, 956 F.2d
1280, 1281
(CA4 1992). Whether the language of a statute
is plain or ambiguous is determined "by reference to the language
itself, the specific context in which that language is used, and
the broader context of the statute as a whole."
Robinson v.
Shell Oil Co., 519 U. S. 337, 341
(1997).
Here, the language of the Federal Labor Statute, as well as the
specific and broader contexts in which that language is used,
demonstrates that the Statute is unambiguous. The Federal Labor
Statute specifies a few instances where midterm bargaining is
required, see 5 U. S. C. § 7106(b), but it contains no provision
that expressly or implicitly imposes a
general duty on
agencies to bargain during the term of a collective bargaining
agreement. Rather, Congress defined
102
102 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
the general duty to bargain to include only a duty to "meet and
negotiate in good faith for the purposes of
arriving at a
collective bargaining agreement," § 7114(a)(4) (emphasis
added), and obligated agencies to negotiate "with a sincere resolve
to reach
a collective bargaining agreement," § 7114(b)(1)
(emphasis added); see also § 7114(b)(5) (requiring parties "to take
such steps as are necessary to implement such agreement"). The term
"arrive" is commonly understood to mean "to reach a destination" or
"to gain or achieve an end." See Webster's Third New International
Dictionary 121 (1976). Thus, by its terms, the Federal Labor
Statute requires an agency to "meet and negotiate in good faith"
with unions only "for the purposes of" achieving an end: a
comprehensive collective bargaining agreement. See also §
7103(a)(8) (defining "collective bargaining agreement" as "an
agreement" reached through collective bargaining); § 7103(a)(12)
(defining "collective bargaining," in part, as "to reach [an]
agreement with respect to the conditions of employment") .
The Court suggests that, because a midterm bargaining agreement
is an end agreement of negotiation, the duty to bargain may
encompass midterm agreements as well. See
ante, at 93. As
the word "midterm" suggests, however, such agreements are only a
"midpoint" in the term of the underlying collective bargaining
agreement. Because such agreements do not stand alone but relate
back to the primary collective bargaining agreement, a midterm
agreement is most appropriately regarded as a modification of, or a
supplement to, the primary agreement reached pursuant to the
Federal Labor Statute. See,
e. g., 29 U. S. C. § 158(d)
(describing midterm bargaining agreements in private sector as
"modification[s]" to the primary agreement). The Federal Labor
Statute expresses no
general duty on the part of agencies to
negotiate modifications or supplements to an existing collective
bargaining agreement. With respect to modifications and
supplements, the Statute requires only that agen-
103
cies bargain over a few specified topics. See 5 U. S. C. §
7106(b).
Section 7106(b)
obligates an agency to bargain midterm
over specified agency initiatives, such as the creation of
"procedures which management officials of the agency will observe
in exercising any authority" under the Federal Labor Statute. §
7106(b)(2); see also § 7106(b)(3) (providing for bargaining over
"appropriate arrangements for employees adversely affected by the
exercise of any authority under this section by such management
officials");
American Federation of Government Employees,
AFL-CIO, Local 2782 v.
FLRA, 702 F.2d
1183, 1186-1187
(CADC 1983). Because the Statute
specifies a few, limited topics that are subject to midterm
bargaining, it cannot be construed to require midterm bargaining
generally. Such a construction, indeed, renders the specific and
general obligations redundant. See,
e. g., United States v.
Nordic Village, Inc., 503 U. S. 30, 36
(1992).
The Court reasons that § 7106(b) does not define a limited duty
to bargain midterm because it merely defines exceptions to §
7106(a), which, in turn, defines managerial rights that are
themselves exceptions to the duties outlined in the Statute.
Moreover, because the section's introductory language "indicates
only that the delegation of certain rights to management ... shall
not
preclude negotiations about certain related matters,"
see
ante, at 97-98, the Court suggests that § 7106(b)
defines a permissive exception to an exception rather than an
obligation. It thus follows from the structure and text of §
7106(b) that "the duty to bargain midterm finds its source
elsewhere in the Statute."
Ante, at 98.
The Court's reliance on § 7106(b)'s introductory language is
misplaced because the subparts of § 7106(b) indicate that this
section defines an obligation, not a permissive exception.
Specifically, although § 7106(b)(1) provides that an agency at its
election can initiate bargaining on working conditions, §§
7106(b)(2) and (b)(3) are mandatory,
requiring that
agen-
104
104 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
cies bargain midterm over the matters specified. At the very
least, §§ 7106(b)(2) and (b)(3) demonstrate that Congress intended
to impose only a limited duty on agencies to bargain midterm. Even
assuming § 7106(b) is permissive, there is no basis for the Court's
conclusion that this section demonstrates that a generalized duty
to bargain midterm emanates from another statutory source; indeed,
there is no other provision of the Statute from which such a duty
could emanate. See
ante, at 98. Accordingly, it is plain
from its language and structure that a general duty to engage in
midterm bargaining is not prescribed by the Federal Labor
Statute.
That the Federal Labor Statute contemplates a single end
agreement, and not supplementary agreements or modifications, is
also demonstrated by a comparison of it to the N ational Labor
Relations Act (NLRA), the Statute's privatesector counterpart. The
duty to bargain, as defined in the NLRA, includes "the negotiation
of an agreement,
or any question arising thereunder." 29 U.
S. C. § 158(d) (emphasis added). This broad definition of the duty,
which clearly contemplates negotiation of midterm agreements,
stands in stark contrast to the duty defined in the Federal Labor
Statute, to "arriv[e] at a collective bargaining agreement." 5 U.
S. C. § 7114(a)(4). The NLRA also contains a proviso limiting this
broad duty to negotiate when there is "in effect a
collective-bargaining contract covering employees in an industry"
and a party desires to "modify" that contract. 29 U. S. C. §
158(d). For example, there is no duty to engage in midterm
bargaining over matters already "contained in" the existing
collective bargaining agreement.
Ibid. As noted above, the
Federal Labor Statute lacks any comparable language. Because, at
the time it drafted the Statute, Congress knew that the NLRA
defined a duty to bargain midterm, see
NLRB v.
Jacobs
Mfg. Co., 196 F.2d
680, 684
(CA2 1952), this omission indicates that
Congress did not intend to include a similar duty in the Federal
Labor Statute.
105
The Court concludes, nevertheless, that this omission is
irrelevant because the Federal Labor Statute and the NLRA, as well
as collective bargaining in the public and private sectors, are
different. See
ante, at 93; see also
Fort Stewart
Schools v.
FLRA, 495 U. S. 641, 648 (1990)
(observing that the Federal Labor Statute and the NLRA should not
be read
in pari materia). To be sure, there are differences
between the Acts, but that fact does not render a comparison of
them irrelevant. It is well established that "the interpretation of
a doubtful statute may be influenced by language of other statutes
which are not specifically related, but which apply to similar
persons, things, or relationships." 2B N. Singer, Sutherland on
Statutory Construction § 53.03, p. 233 (rev. 5th ed. 1992).
Employing this principle, the Court has previously compared
nonanalogous statutes to aid its interpretation of them. See
Overstreet v.
North Shore Corp., 318 U. S. 125, 131-132
(1943) (using Federal Employers' Liability Act to aid
interpretation of Fair Labor Standards Act of 1938 even though the
two Acts were
not strictly analogous). In light of these
principles of construction, the NLRA may be used to aid our
interpretation of the Federal Labor Statute. See also
Bureau of
Alcohol, Tobacco and Firearms v.
FLRA, 464 U. S. 89, 92-93, 96-97
(1983) (analogizing the Federal Labor Relations Authority (FLRA) to
the National Labor Relations Board).
A comparison of the two statutes explains why a duty to bargain
midterm was included in the NLRA but omitted from the Federal Labor
Statute. Under the Statute, but not the NLRA, the Government must
subsidize union negotiators. See 5 U. S. C. § 7131(a).
Consequently, there is little incentive for union negotiators to
streamline their bargaining positions or to avoid extended midterm
bargaining. Given this incentive structure, it is difficult to
imagine that Congress would obligate Government agencies to bargain
midterm, for such an obligation would likely cause perpetual
collective bargaining. Continuous bargaining, however, is
106
106 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
contrary to the goal of the FLRA: to promote "effective and
efficient" Government, not Government stymied by perpetual
bargaining. § 7101(b). Indeed, it was this realization that
initially motivated the FLRA to reject the contention that the
Federal Labor Statute contained a duty to bargain midterm. See
Internal Revenue Service, 17 F. L. R. A. 731, 736-737 (1985)
(observing that midterm bargaining would cause continuous
bargaining on an issue-by-issue basis).
A duty to bargain midterm was also excluded from the Statute
because, in the context of the no-strike regime of federal labor
relations, it would leave the agency-employer at an unfair
disadvantage. In the NLRA context, the union that wants to obtain a
midterm modification or supplement from an employer who is dead set
against it must pay the price of a strike that is costly to it and
its members. In the context of the Federal Labor Statute, the union
that wants to obtain a midterm modification or supplement need only
bargain to an impasse and then hope that the Federal Service
Impasses Panel will give it all (or at least some) of what it has
requested. Demanding unreciprocated additional benefits is cost
free. Thus, a midterm bargaining requirement might motivate a union
to "hold [a] matter off until the term agreement is donee,] ...
initiate the proposal as part of a single-issue negotiation," and,
if an impasse results, force the agency to arbitrate. Ferris,
Union-Initiated Mid-Term Bargaining: A Catalyst in Reshaping
Conflict Patterns, 5 Negotiation J. 407, 411-412 (Oct. 1989).
Again, it is obvious that this incentive structure does not promote
"effective and efficient" Government. § 7101(b). Given the language
and structure of the Federal Labor Statute, the context in which
this language is used and the differences between the Statute and
the NLRA, I would hold that the Federal Labor Statute plainly, and
justifiably, does not impose a general duty to bargain midterm.
The FLRA argues, in the alternative, that even if the Federal
Labor Statute does not impose a general obligation to
107
bargain midterm, agencies nevertheless must bargain over
union-initiated proposals to include in term agreements midterm
bargaining provisions. In other words, unions may propose that
agency-employers agree to obligate themselves contractually to
bargain midterm. In the private sector, the duty to bargain means
only that the employer and the exclusive representative bargain
over something in good faith. In the public sector, however, the
duty to bargain over a proposal can have very different
consequences: Unions may force an agency into binding arbitration
by bargaining to impasse. § 7119(c)(5)(B)(iii). Therefore, by
imposing a duty to bargain over midterm bargaining clauses, the
FLRA is, at the very least, taking the choice of whether to bargain
midterm out of a reluctant federal employer's hands, and placing it
into the hands of the Federal Service Impasses Panel, a result that
seems inconsistent with the Federal Labor Statute's goals of
promoting "effective and efficient Government." § 7101(b).
There is, moreover, no statutory source for a duty to bargain
over contractual requirements to bargain midterm. Section
7117(a)(1) directs an agency to bargain over "matters which are the
subject of any rule or regulation only if the rule or regulation is
not a Government-wide rule or regulation" but only "to the extent
not inconsistent with any Federallaw." The FLRA has interpreted
this section to impose a duty on agencies to bargain over only
proposals relating to conditions of employment. See Brief for
Petitioner FLRA in No. 97-1243, p. 37. It is not apparent, however,
how bargaining over a contractual requirement to bargain midterm is
a "matte[r] ... affecting working conditions." See 5 U. S. C. §
7103(a)(14) (defining "conditions of employment"). More important,
because Congress, through the Federal Labor Statute, chose not to
require agencies to bargain midterm, it is "inconsistent with ...
Federal law" for the FLRA to require bargaining over a contractual
requirement to bar-
108
108 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
gain midterm. As I read the Statute, Congress has clearly
rejected such a requirement.
II
Even if I agreed with the Court that the Federal Labor Statute
is ambiguous with respect to the duty to bargain midterm, I would
not defer in this suit to the FLRA's interpretation of the Statute
pursuant to
Chevron U. S.
A. Inc. v.
Natural
Resources Defense Council, Inc., 467 U. S. 837, 842-843
(1984).
We observed in
Good Samaritan Hospital v.
Shalala,
508 U. S. 402 (1993), that when an agency alters its
interpretation of a statute, its revised interpretation may be
entitled to less deference than a position consistently held. We
explained:
"The Secretary is not estopped from changing a view she believes
to have been grounded upon a mistaken legal interpretation. Indeed,
an administrative agency is not disqualified from changing its
mind; and when it does, the courts still sit in review of the
administrative decision and should not approach the statutory
construction issue de novo and without regard to the
administrative understanding of the statutes. On the other hand,
the consistency of an agency's position is a factor in assessing
the weight that position is due. As we have stated: 'An agency
interpretation of a relevant provision which conflicts with the
agency's earlier interpretation is "entitled to considerably less
deference" than a consistently held agency view.' INS v.
Cardoza-Fonseca, 480 U. S. 421, 446, n. 30
(1987). How much weight should be given to the agency's views in
such a situation, and in particular where its shifts might have
resulted from intervening and possibly erroneous judicial decisions
and its current position from one of our own rulings, will depend
on the facts of individual cases." I d., at 417 (some
citations and internal quotation marks omitted).
109
See also
INS v.
Cardoza-Fonseca, 480 U. S. 421, 446-447,
and n. 30 (1987) (rejecting agency interpretation of statute on
ground that interpretation was not consistent with congressional
intent, and agency's interpretation was not entitled to heightened
deference because it had been inconsistent over time);
Federal
Election Comm'n v.
Democratic Senatorial Campaign Comm.,
454 U. S. 27, 37
(1981) (observing that the "thoroughness, validity, and consistency
of an agency's reasoning are factors that bear upon the amount of
deference to be given an agency's ruling," but ultimately deferring
to inconsistent agency position); see also
Watt v.
Alaska, 451 U. S. 259, 272-273 (1981) (holding that agency's
interpretation of amendment that was contemporaneous with
amendment's passage was entitled to considerably more deference
than agency's current, inconsistent interpretation).
Here, the FLRA changed its position on the precise matter that
we have been asked to consider-whether agencies have a duty to
bargain midterm under the Federal Labor Statute-and did so in
response to a judicial decision. Initially, the FLRA determined
that the Statute did not impose a duty to bargain midterm, see
Internal Revenue Service, 17 F. L. R. A. 731 (1985), but it
came to the opposite conclusion after the D. C. Circuit rejected
this reading of the Statute, see
National Treasury Employees
Union v.
FLRA, 810 F. 2d 295 (1987) (holding the Statute
required midterm bargaining);
Internal Revenue Service, 29
F. L. R. A. 162, 166 (1987) (adopting D. C. Circuit's reading of
the Statute). At the time it reversed course, the FLRA offered only
a scant explanation for its sudden interpretive shift. It merely
stated that it agreed with the D. C. Circuit's holdings and
concluded, "based on the court's decision and in agreement with the
Administrative Law Judge," that the IRS had impermissibly refused
to bargain over a midterm proposal.
Id., at 165-166, 168.
The only apparent reason for the agency's shift in interpretation
was the D. C. Circuit's decision. In this circumstance, the
agency's interpretation of
110
110 FEDERAL EMPLOYEES
v. DEPARTMENT OF INTERIOR
the Statute is entitled to less deference. See
Good Samaritan
Hospital v.
Shalala, supra, at 417. This lesser standard
of deference seems particularly appropriate here because we have
recognized some limits on the FLRA's interpretive powers. See
Bureau of Alcohol, Tobacco and Firearms v.
FLRA, 464
U. S., at 108. Accordingly, we should endeavor to find the most
plausible construction of the Federal Labor Statute and examine the
Secretary's current interpretation in light of this
construction.
The FLRA currently interprets the Federal Labor Statute to
impose a duty on federal agencies to negotiate midterm those
union-initiated proposals that are not covered in the term
agreement unless the union has clearly waived its right to bargain
midterm. See Brief for Petitioner FLRA in No. 97-1243, at 18-20;
see
Department of Navy, Marine Corps Logistics Base v.
FLRA, 962 F.2d
48, 56 (CADC
1992) (outlining FLRA position). This is
not, however, the most plausible construction of the Statute. For
the reasons previously discussed, there is no language in the
Statute expressing a general duty to bargain midterm. Moreover, to
the extent that the FLRA has codified exceptions to a generalized
duty to bargain midterm, those exceptions are defined out of whole
cloth; there is nothing in the text of the Federal Labor Statute
that suggests limits on a duty to bargain midterm. For these
reasons, even if there were some ambiguity in the Federal Labor
Statute, I would hold that the agency's interpretation of the
Federal Labor Statute is inferior to the natural, and most
plausible, reading of that Statute-that there is no general duty to
bargain midterm. See
Good Samaritan Hospital v.
Shalala,
supra, at 417;
INS v.
Cardoza-Fonseca, supra, at
446-447, and n. 30. I respectfully dissent and would affirm the
decision of the Fourth Circuit.
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