1998 -NMSC- 20, Regents of University of New Mexico v. New Mexico Federation of Teachers

• Decision Date: 23 June 1998
• Docket Number: No. 24716,24716
• Citation: 1998 NMSC 20,962 P.2d 1236,125 N.M. 401
• Parties: , 159 L.R.R.M. (BNA) 2535, 129 Ed. Law Rep. 468, 1998 -NMSC- 20 The REGENTS OF THE UNIVERSITY OF NEW MEXICO, Plaintiff-Appellant, v. NEW MEXICO FEDERATION OF TEACHERS and American Association of University Professors, Gallup Campus, Defendants-Appellees.
• Court: New Mexico Supreme Court

Page 1236

962 P.2d 1236

125 N.M. 401, 159 L.R.R.M. (BNA) 2535,

129 Ed. Law Rep. 468,

1998 -NMSC- 20

The REGENTS OF THE UNIVERSITY OF NEW MEXICO, Plaintiff-Appellant, v. NEW MEXICO FEDERATION OF TEACHERS and American Association

of University Professors, Gallup Campus,

Defendants-Appellees.

No. 24716.

Supreme Court of New Mexico.

June 23, 1998.

Simons, Cuddy & Friedman, L.L.P., John F. Kennedy, Santa Fe, Charles N. Estes, Jr., Albuquerque, for Plaintiff-Appellant.

K. Lee Peifer, Albuquerque, Simon & Oppenheimer, Morton S. Simon, Linda M. Vanzi, Santa Fe, for Defendants-Appellees.

OPINION

FRANCHINI, Chief Justice.

¶1 The Board of Regents of the University of New Mexico (UNM) appeals a determination by the Public Employee Labor Relations Board (PELRB) that invalidated portions of the university's labor-management relations policy. The PELRB held that the Public Employee Bargaining Act, NMSA 1978, §§ 10-7D-1 to -26 (1992, prior to 1997 amendment, effective Apr. 1, 1993) [hereinafter PEBA], requires all public employers, like UNM, to open the collective-bargaining process to all public employees except management employees, supervisors, and confidential employees. The PELRB held UNM's labor policy invalid because it excludes many categories of employees that PEBA includes. The PELRB's determination was affirmed by the district court. On appeal, UNM raises two arguments: (1) that its labor policy is exempt from PEBA under the Act's "grandfather clause," under which public employers whose labor policies were established prior to October 1, 1991 are released from the requirements of the Act; and (2) that PEBA conflicts with the Regents' constitutionally mandated autonomy in its governance of the university. We conclude that those portions of UNM's labor relations policy that exclude categories of employees in violation of PEBA are not grandfathered, and that PEBA does not conflict with the New Mexico Constitution. We affirm.

I. FACTS AND PROCEEDINGS

¶2 The University of New Mexico is a state institution whose management and control are placed by the New Mexico Constitution into the hands of a seven-member Board of Regents. See N.M. Const. art. XII, § 13 (as amended 1994). In May 1970, the UNM Board of Regents adopted a labor-management relations policy which authorized collective bargaining for several categories of UNM employees. See University of New Mexico, Labor-Management Relations (as revised April 16, 1979) [hereinafter Policy ]. This Policy was revised in April 1979 and again in 1980. (The record in this case included only the text of the 1979 version of the Policy; there is no suggestion that pertinent sections of the 1980 version were materially different.) The Policy expressly excluded certain categories of employees from the bargaining process including "administrative, faculty and supervisory personnel" and "professional and technical personnel." UNM, Policy p B, at 3-4. By the time of the first hearing in this matter, UNM had recognized and negotiated collective-bargaining agreements with four bargaining units representing approximately 1800 employees.

¶3 Twenty-two years after UNM first adopted its collective-bargaining Policy, the New Mexico Legislature enacted the Public Employee Bargaining Act. See §§ 10-7D-1 to -26 (enacted by 1992 N.M.Laws, ch. 9). PEBA for the first time guaranteed to public employees the right under the law "to organize and bargain collectively with their employers." Section 10-7D-2. PEBA excluded "management employees, supervisors and confidential employees" from the collective-bargaining process. Section 10-7D-5. However, it opened the process to several categories of public employees that were explicitly excluded by the UNM Policy. See § 10-7D-4(P) (defining "public employee"); UNM, Policy p B, at 3-4.

¶4 One of the provisions of PEBA created the PELRB, whose function is the administration of PEBA. Section 10-7D-8 (creating the Board). The powers and duties of the PELRB included promulgating rules and regulations, § 10-7D-9(A), overseeing collective bargaining between public employees and their employers, § 10-7D-9(A)(1), (2), and enforcing the provisions of PEBA "through the imposition of appropriate administrative remedies," § 10-7D-9(F). See generally § 10-7D-9 (delineating powers and duties of the PELRB). PEBA forbade public employers, public employees, and labor organizations from engaging in a number of specific "prohibited practices" in conducting labor-management relations. Section 10-7D-19 (practices prohibited to public employers); § 10-7D-20 (practices prohibited to public employees); § 10-7D-21 (practices prohibited to labor organizations). The PELRB was responsible for hearing and determining "complaints of prohibited practices" under the Act. Section 10-7D-9(A)(3).

¶5 On March 10, 1995, the New Mexico Federation of Teachers (NMFT) filed a prohibited practices complaint with the PELRB, alleging violations of PEBA by UNM. See PELRB Case No. PPC 14-95(0) (March 10, 1995), see also Commencement of Case, Public Employee Labor Relations Board, 11 NMAC 21.3.8 (March 18, 1993) (procedures for filing prohibited practices complaint). The NMFT claimed that UNM's Policy barred the right of bargaining collectively to certain occupational categories whose inclusion PEBA required. The NMFT sought to represent non-faculty professional and technical employees.

¶6 On the same day, the American Association of University Professors--Gallup Branch (AAUP) submitted a petition to UNM requesting recognition as the bargaining representative for teaching faculty, librarians, and academic counselors at UNM's campus in Gallup, New Mexico. On March 23, 1995, the Regents declined to accept this petition. The AAUP responded with a prohibited practices complaint, filed with the PELRB on April 26, 1995. See PELRB Case No. PPC 17-95(O); see also 11 NMAC 21.3.8 (procedures for filing prohibited practices complaint).

¶7 Later the same year, three formal hearings were held before a PELRB hearing officer, on October 10, and November 12 and 13. See Prohibited Practices Hearings, Public Employee Labor Relations Board, 11 NMAC 21.3.16 (March 18, 1993) (mandating formal hearing in the absence of a settlement agreement). The complaints by the NMFT and the AAUP--who, in this opinion, we shall occasionally characterize as "the Unions"--were consolidated at these hearings. The hearing officer issued a decision and recommended order on March 6, 1996. See Decision and Order of the Hearing Officer, PELRB Case No. PPC 14-95(0) (NMFT complaint), PELRB Case No. PPC 17-95(O) (AAUP complaint) (Mar. 6, 1966) [hereinafter First Decision and Order]; see also Hearing Officer Reports, Public Employee Labor Relations Board, 11 NMAC 21.3.18 (March 18, 1993) (requirements for report by hearing officer).

¶8 PEBA included a special provision for those public employers that, prior to October 1, 1991, had already voluntarily adopted a collective-bargaining system and had successfully negotiated collective-bargaining agreements with their employees. See § 10-7D-26(A) & (B). This grandfather clause permitted those public employers to continue to operate under their preexisting provisions and procedures. UNM argued that, under this grandfather clause, it was exempted from recognizing the Unions. The hearing officer disagreed, concluding that, "The UNM labor policy at issue is invalid insofar [as] it denies the rights to UNM faculty, professional and technical employees under PEBA to join, assist or refuse same with respect to any labor organization." First Decision and Order, at 12.

¶9 UNM also argued that the interpretation of PEBA urged by the Unions conflicted with its Regents' constitutional authority to control and manage the university, and that, in such circumstances, the New Mexico Constitution must prevail. The hearing officer disagreed, concluding that "UNM's constitutional status does not prohibit the application of PEBA to it. PEBA has no direct impact on [the] duty of the Board of Regents of UNM to manage or control the [university]." Id.

¶10 Further, the hearing officer held that UNM had committed a prohibited practice by its refusal to accept the AAUP's petition that it be recognized as the bargaining agent on behalf of the faculty, counselors, and librarians at UNM's Gallup Branch. Id. There was no similar holding with respect to the NMFT's complaint.

¶11 The hearing officer recommended that the PELRB enter an order requiring "UNM [to] conduct an election to determine whether the AAUP shall be the exclusive certified bargaining unit representative of any eligible employees listed in the AAUP's petition who work at Gallup/UNM." Id. at 13. Finally, he recommended that the PELRB "issue [an] order invalidating that portion of UNM's existing Policy on Labor-Management Relations having to do with denying faculty, professional and technical employees the rights guaranteed under PEBA to join [or] assist labor organizations for the purpose of bargaining collectively over working conditions or refusal of same." Id.

¶12 As permitted by PELRB regulations, UNM filed a notice of appeal, on March 22, 1996, seeking PELRB review of the hearing officer's recommendation. See Appeal to Board of Hearing Officer's Recommendation, Public Employee Labor Relations Board, 11 NMAC 21.3.19.1 (March 18, 1993) (procedure for applying for Board review). Two months later, the PELRB issued its determination. See Decision and Order, 1 PELRB No. 18 (June 25, 1996). The Board adopted the hearing officer's conclusions of law on two issues:

1. That portion of the UNM labor policy at issue is invalid because it denies the right to form, join or assist a labor organization to the faculty, professional, and technical occupational groups and also denies the right for such occupational groups to refuse to engage in such organizing activities.

2. The constitutional argument does not foreclose the application of PEBA to UNM. The Act...