PERC Denies Applications for Interim Relief Regarding Furloughs

 

On May 16, 2009, the Public Employment Relations Commission (“PERC”) issued a decision in response to certain unfair practice charges and requests for interim relief filed against the State of New Jersey regarding the imposition of unpaid, “furlough” days. 

By way of background, on April 14, 2009, the Communications Workers of America, AFL-CIO (“CWA”), filed an unfair practice charge and a request for interim relief against the State of New Jersey. CWA alleged that the State committed unfair practices proscribed by the New Jersey Employer-Employee Relations Act by: (1) unilaterally imposing a reduction in the work year and compensation of employees represented by CWA by requiring them to take unpaid leave days; (2) failing to negotiate over the effects of the decision to impose involuntary unpaid leave days; and (3) conspiring with the Civil Service Commission to enact temporary layoff rules for the purpose of circumventing the State’s obligation to negotiate over staggered unpaid leave days. The charges alleged that, through these actions, the State repudiated various sections of the collective negotiations agreements it has entered into with CWA and breached its duty to negotiate over terms and conditions of employment in violation of the Employer-Employee Relations Act. Additional charges and requests for interim relief were filed between April 14 and April 29 by other employee organizations representing units of various State employees, including P.B.A. 105.

An order to show cause was executed and the return date was ultimately scheduled on May 14. Once numerous briefs, certifications, and exhibits were filed, all parties appeared on the return date.  After entertaining argument, the Commission Designee Stuart Reichman, in an extensive written opinion, denied the applications for interim relief. The Designee found that where a monetary remedy could normally be issued by the Commission in the event the furloughs were found to constitute an unfair practice, as is the case here, an injunction to prevent the institution of the furloughs is not appropriate because monetary loss does not constitute irreparable harm. As a result, the unfair practice charges will proceed in the normal course. To read the decision in its entirety, download the same from the PERC website.

Oral Argument on Furlough Rule Conducted

Yesterday, April 16, 2009, the Appellate Division conducted oral argument on the Emergency Temporary Layoff Rule. Specifically, the Appellate Division heard argument on the four appeals from the Civil Service Commission’s emergency rule authorizing temporary layoffs, also known as mandatory furloughs. The argument was conducted in the Morris County Courthouse in Morristown, New Jersey, with dozens of union members packing the courtroom. 

Lawyers arguing for the public employee unions said the State did not prove it was in “imminent peril,” a requirement to pass the emergency rule that authorizes the furloughs. Moreover, it was asserted that the furloughs are a clear breach of contract in violating numerous collective bargaining agreements.

The Assistant Attorney General, who represented the State, said the Civil Service Commission followed all the rules when it authorized furloughs. He further contended that public employees were risking layoffs by protesting furloughs.

The Appellate Division did not make a ruling on the case, but said to expect one soon. Therefore, please continue to check this blog periodically for updates as further information becomes available.  

 

Governor Corzine Announces State Departments and Agencies Furlough Plans

Yesterday, April 15, 2009, Governor Corzine issued a press release announcing plans by the State department and agencies to implement one-day furloughs of state employees in May and June as a cost-saving measure.

Plans for implementing two furlough days in the current 2009 Fiscal Year were developed by the departments and submitted to the Governor’s Office for approval. Additional furlough days in the 2010 Fiscal Year that begins July 1 remain in the department planning process and have not yet been finalized. 

As stated in previous entries to this blog, late last year, Governor Corzine proposed the furloughs, a one-day layoff for state employees, along with a wage freeze in response to the steep decline in state revenues as a result of the national economic crisis.  According to Corzine, it was preferable to achieve the same payroll savings through furloughs and wage freezes rather than through permanent layoffs.

Specific information as to when the various state departments and agencies will implement the furloughs in May and June is available on the Civil Service Commission website. 

Please check this blog periodically for updates regarding the mandatory furloughs as more information becomes available.