We granted allocatur to consider whether an arbitration award, that failed to grant teachers credit for past years of service following a break in employment with respect to their
The Mifflinburg Area Education Association (Association) is the bargaining representative for the professional employees of the Mifflinburg Area School District (District). In 1988, the Association and the District entered into a collective bargaining agreement for the school years 1988-89 through 1992-93. The agreement contained the following salary step provision for the professional employees of the District:
Because the previous collective bargaining agreement between the Association and the District did not contain salary step increments, the 1988 agreement also included a fifteen step salary schedule, with placement on the schedule dependent upon the employee's years of service in the District.
Faced with the task of assigning approximately 140 professional employees with a range of one to twenty-nine years of service on the District's salary step schedule, the District and the Association executed a memorandum of understanding, which provided:
Step Years Bachelor Masters1 1-2 $20,575 $21,175 2 3-4 $21,175 $21,775 3 5-6 $21,875 $22,475 4 7-8 $22,675 $23,275 5 9-10 $23,275 $23,875 6 11-12 $24,275 $24,875 7 13-14 $25,125 $25,725 8 15-16 $25,925 $26,525 9 17-18 $26,875 $27,475 10 19-20 $27,675 $28,275 11 21-22 $28,475 $29,075 12 23-24 $29,275 $29,875 13 25-26 $30,075 $30,675 14 27-28 $31,175 $31,775 15 29+ $32,075 $32,675
Following the approval of the 1988-1993 collective bargaining agreement, the District and the Association jointly prepared and approved the required "master list of teachers," placing each professional employee of the District on a step in the compacted salary schedule corresponding to the professional employee's years of service in the District.
In 1994, the Association filed a grievance on behalf of eight individual teachers of the District (Grievants). The Grievants had been previously employed by the District for varying periods of time, had resigned from service, most frequently for child-rearing purposes, and were subsequently re-hired. The Association claimed that when the Grievants were placed on the compacted salary schedule following approval of the 1988-1993 collective bargaining agreement, the District had improperly failed to give the Grievants credit for each year they were employed prior to their breaks in service.
The Association thereafter filed an "Application to Vacate, Correct and Modify Arbitration Award" in the Union County Court of Common Pleas. The court found that the arbitrator's award failed to consider the mandate of the School Code with respect to salary schedule placement. The court vacated the arbitrator's award and ordered that the Grievants be placed on the appropriate step of the District's salary schedule taking into account the Grievants' prior years of service in the District.
Commonwealth Court reversed the order of the Court of Common Pleas and reinstated the arbitrator's award. This appeal followed.
This court announced the "essence" test as the standard of review for appeals of arbitrators' decisions in Community College of Beaver County v. Society of the Faculty, 473 Pa. 576, 375 A.2d 1267 (1977). Under this standard, an arbitrator's award must derive its essence from the collective bargaining agreement to pass judicial review.
Section 1121 of the School Code requires that all contracts between school districts and professional employees contain a clause stating that none of the provisions of the School Code may be waived by school district employees. In addition, Section 703 of the Public Employe Relations Act prohibits the parties from effecting or implementing a provision in a collective bargaining agreement if implementation of
The Association asserts that the failure of the District to give the Grievants credit on the salary step schedule for each year they were employed prior to their breaks in service violated Sections 1142(a) and 1149 of the School Code.
Section 1142 provides in part:
24 P.S. § 11-1142(a)(Emphasis supplied).
Section 1149 of the School Code provides:
24 P.S. § 11-1149.
The District maintains that Section 1142(a) merely provides that teachers are entitled to a minimum salary with minimum yearly increments dependent upon years of experience within the school district. However, while Section 1142(a) was intended to assure that teachers receive a certain minimum salary, this section also speaks to placement on a salary schedule that is above the minimum scale. "When a district adopts a salary scale in excess of the mandated scale, it shall not be deemed to have altered or increased the step which the employe has gained through years of service." 24 P.S. § 11-1142. We interpret this provision to require that a teacher's past years of service are to be credited upon rehire for purposes of placement on a local salary scale. The language contained in Section 1142(a) protects professional school district employees from the patent unfairness of disregarding past years of service with the same school district when the district places a rehired teacher on a salary scale and the teacher is receiving a salary in excess of the state mandated minimum. The mandates of Section 1142 and 1149 express the legislature's intent to protect valuable years of service performed by employees who sustained breaks in service for a variety of reasons.
The Commonwealth Court in Centennial School District v. Centennial Education Association, 133 Pa.Cmwlth. 382, 576 A.2d 99 (1990) reached a similar decision. In Centennial, four professional employees who had resigned their positions were later rehired by the school district. At the time of rehiring, the employees were placed on the salary schedule at the same level as newly hired teachers. The Association filed grievances on behalf of the four teachers alleging that they had been placed on the salary schedule at a level lower than that required by the collective bargaining agreement. The arbitrator concluded that the collective bargaining agreement required that rehired teachers were entitled to credit for the prior years of teaching within the District under Sections 1142
The District instead relies on Wildrick v. Board of Directors of Sayre Area School District, 491 Pa. 25, 417 A.2d 617 (1980). The District's reliance on Wildrick is misplaced as it has no relevance to the present dispute. Wildrick addressed the issue of whether the minimum salaries set forth in the School Code must be used in calculating salaries under a local salary schedule, even though the local salary schedule paid salaries above the state mandated minimum. In an assumpsit action against the district, the teachers claimed that they were entitled to placement on the local salary schedules at the corresponding step in the School Code commensurate with their salaries. The Wildrick court properly rejected the teachers' argument, finding that the district was not required to apply to its local salary schedule that step in the statutory schedule which was intended by the Legislature to determine the minimum pay for teachers.
Wildrick is inapplicable to the present matter because the professional employees in this case are not claiming that their placement on the salary schedule is determined by the salary steps in the School Code, irrespective of the employees' years of experience within that district. Instead, the Association is arguing only that Sections 1142 and 1149 require the District to credit the teachers for years of past service within the District. Thus, the Wildrick court's discussion of a district's
In the present case, the Grievants are statutorily protected against losing credit for previous service under Section 1142 of the School Code, a protection that is incorporated into the collective bargaining agreement. The arbitrator's award denying credit for past service is violative of the School Code, and thus, violative of the agreement. Thus, the award does not derive its essence from the collective bargaining agreement. We hereby reverse the order of Commonwealth Court and reinstate the order of the Court of Common Pleas of Union County.
Justice ZAPPALA files a dissenting opinion in which Chief Justice FLAHERTY joins.
ZAPPALA, Justice, dissenting.
Because I cannot agree with the majority's expansive reading of Section 1142(a) of the Pennsylvania School Code (Code),
Section 1142 provides:
24 P.S. § 11-1142(a)
The majority interprets the above emphasized sentence from Section 1142(a) to require that a professional employee's
The language of a statute must be read in a sense which harmonizes with the subject matter and its general purpose and object. Swartley v. Harris, 351 Pa. 116, 40 A.2d 409 (1945). The sole subject matter of Section 1142, as reflected in the title, "Minimum Salaries and Increments," is the establishment and preservation of minimum salaries for professional school district employees based on years of service.
When a school district adopts a local salary step schedule, Section 1142(a)'s lone requirement is that the salary corresponding to the step on the local scale which a professional employee is placed be equal to or greater than the salary corresponding to the step on the state mandated minimum scale the employee has gained through years of service in the school district.
As "[t]he sole limitation the Legislature has imposed is the requirement that a school district comply with the applicable statewide minimum salary schedule," Wildrick v. Board of Directors of Sayre Area School District, 491 Pa. 25, 31, 417 A.2d 617, 619-620 (1980), the mere fact that in this case the District adopted a salary scale in excess of the statewide
The arbitrator's decision denying the grievance thus represents a legitimate, reasonable interpretation of the collective bargaining agreement between the Association and the District, which is not in violation of, or inconsistent with statutory law.
Chief Justice FLAHERTY joins in this Dissenting Opinion.
The dissent relies upon Pennsylvania Labor Relations Board v. Bald Eagle Area School District, 499 Pa. 62, 451 A.2d 671 (1982). Reliance by the dissent on this case is misplaced for a number of reasons. First, Bald Eagle is not a case involving this court's review of an arbitrator's award. Rather, it involves an unfair labor practice proceeding regarding whether a dispute was arbitrable at all. Second, the court in Bald Eagle did not set forth a standard of review to be used when an arbitrator's award is against the law. Instead, in obiter dicta, the court merely noted that judicial relief was available if an award was in conflict with statutory law. Finally, and most importantly, the Bald Eagle court did indicate that the judiciary had the right to correct or modify an arbitration award contrary to law in the same manner as jury verdicts on a motion for judgment n.o.v., citing the Uniform Arbitration Act, 42 Pa.C.S.A. § 7302(d)(2). In fact, this very language served as the basis for this court's creation of the essence test. Community College of Beaver County, 473 Pa. 576, 589-90, 375 A.2d 1267, 1273 (Pa.1977)("[w]hile the introduction of the `n.o.v.' concept into the field of arbitration may have been a new departure, it is hardly a radical change, nor does it dictate that a much closer or different scrutiny of an arbitration award will be available than under the [essence test]"). Thus, this court has made clear that when reviewing an arbitration award under the Pennsylvania Employe Relations Act, the standard of review is the essence test.
Pennsylvania State Education Association, 505 Pa. at 4-6, 476 A.2d at 362-63 (Zappala, J.)(emphasis supplied). See also, County of Centre v. Musser, 519 Pa. 380, 392-93, 548 A.2d 1194, 1200 (1988)(Arbitration Act of 1927 provisions relative to judicial review of arbitral awards retained in Uniform Arbitration Act, thus, it is clear that the "essence" test remains the standard of judicial review for arbitration awards which, are subject to section 7302(d)(2) of the Uniform Arbitration Act); Austin Area Education Association v. Austin Area School District, 159 Pa.Cmwlth. 640, 644 n. 6, 634 A.2d 276, 278 n. 6 (Pa.Cmwlth.1993)(The essence test is the equivalent of the judgment n.o.v. standard provided by section 7302(d)(2) of the Uniform Arbitration Act).
Indeed, this court has reviewed an arbitrator's interpretation of, and reliance upon, statutory law, as part of our review under the essence test, rather than a distinct analysis under plenary review. Greater Johnstown Area Vocational-Technical School v. Greater Johnstown Area Vocational-Technical Education Association, 520 Pa. 197, 553 A.2d 913 (Pa.1989); See also, Pennsylvania State Education Association, 505 Pa. at 7, 476 A.2d at 363(awarding compound interest contrary to existing status of law, if award made by a jury, it would have resulted in judgment n.o.v. It cannot rationally be derived from the collective bargaining agreement). Finally, it would be unwise as a practical matter to inject a second standard of review in an area already fraught with confusion, especially where, as a general proposition, an award that is contrary to law will not satisfy the essence test. For all of the above-stated reasons, the dissent's suggestion that our standard of review in this case is plenary is simply without merit.
499 Pa. at 67, 451 A.2d at 673 (footnote omitted).
I note with interest the majority's lengthy response criticizing this reference to Bald Eagle. (Majority Op. at 344 n.6). I must point out, however, that I deliberately used as an introductory signal a term of art which I believed to be easily recognizable. See The University of Chicago Manual of Legal Citation 12 (1989) ("An authority may be introduced . . . by an ordinary English phrase explaining its force and or purpose." Rule 3.1(b)); The Bluebook: A Uniform System of Citation 23 (16th ed. 1996) ("See generally" defined as: "Cited authority presents helpful background material related to the proposition." Rule 1.2(d)).
My position as it relates to the proper standard of review in this case remains intact. The majority finds, as a matter of law, that the arbitrator's decision is violative of the Code. By definition, the majority has conducted plenary review of the arbitrator's interpretation of statutory law incorporated into a collective bargaining agreement, and has not deferred to the arbitrator's analysis as the essence test mandates.