Regents of University of Mich. v. Michigan Employment Relations Commission

• Decision Date: 21 January 1972
• Docket Number: Docket No. 11524,No. 2,2
• Citation: 38 Mich.App. 55,195 N.W.2d 875
• Parties: , 79 L.R.R.M. (BNA) 3100, 68 Lab.Cas. P 52,767 REGENTS OF the UNIVERSITY OF MICHIGAN, a corporational body corporate, Plaintiff-Appellant, v. MICHIGAN EMPLOYMENT RELATIONS COMMISSION and University of Michigan Interns-Residents Association, Defendants-Appellees
• Court: Court of Appeal of Michigan — District of US

Page 875

195 N.W.2d 875

38 Mich.App. 55, 79 L.R.R.M. (BNA) 3100,

68 Lab.Cas. P 52,767

REGENTS OF the UNIVERSITY OF MICHIGAN, a corporational body

corporate, Plaintiff-Appellant, v. MICHIGAN EMPLOYMENT RELATIONS COMMISSION and University of

Michigan Interns-Residents Association,

Defendants-Appellees.

Docket No. 11524.

Court of Appeals of Michigan, Division No. 2.

Jan. 21, 1972.

Released for Publication April 4, 1972.

Robert J. Battista, Butzel, Long, Gust, Klein & Van Zile, Detroit, for appellant.

Frank J. Kelley, Atty. Gen., Robert A. Derengoski, Sol. Gen., Francis W. Edwards, Asst. Atty. Gen., for MERC.

Harvey I. Wax, Levin, Levin, Garvett & Dill, Detroit, for Interns, etc.

Before McGREGOR, P.J., and HOLBROOK and VanVALKENBURG ^*, JJ.

VanVALKENBURG, Judge.

Appellant Regents of the University of Michigan seek review of the March 16, 1971 decision and order of appellee Michigan Employment Relations Commission, whereby a representation election was ordered to be conducted among the interns, residents, and post-doctoral fellows working for the appellant at the University of Michigan Medical Center for the purpose of determining whether said individuals wished to be represented for collective bargaining purposes by the University of Michigan Interns-Residents Association.

The genesis of this story goes back to the fall of 1966, when a group of interns and resident doctors connected with the University Hospital, desiring to bargain with the Regents of the University of Michigan concerning wages, rates of pay, and conditions of employment, decided to band together and form the University of Michigan Interns-Residents Association. The Regents, however, refused to recognize this newly formed organization as a bargaining agent. The Association thereafter filed an election petition with the Commission in April 1970.

An extensive hearing was held in June and July of 1970 before a trial examiner. Briefs were filed, and oral arguments were presented to the full Commission on March 2, 1971, whereupon the Commission issued its order of March 16, 1971, setting the election for April 21, 22, and 23, 1971. Prior to the election the Regents sought to stay the election. This Court denied the motion to stay the election, 'but without prejudice to the plaintiff's right to decline to bargain with the bargaining agent until a decision by this Court on the application for leave and until further order of the Court.'

The election was held and resulted in 296 votes in favor of representation, 115 against, and 4 challenged ballots. The Association soon after the election requested of the Regents that negotiations be instituted, but this was refused on the theory that the matter was still pending before this Court. Leave to appeal was granted and an order was issued staying all proceedings among the parties until such time as a final decision could be made.

The factual setting having been laid, we must now look at the issues raised.

MAY THE PUBLIC EMPLOYMENT RELATIONS ACT BE APPLIED TO THE REGENTS OF THE UNIVERSITY OF MICHIGAN IN THE PRESENT MATTER WITHOUT CONTRAVENING THEIR AUTHORITY UNDER CONST 1963, ART. 8, S 5?

The question of whether the constitutional grant of authority to supervise, direct, and control university affairs insulates the governing bodies of state universities from regulation as a public employer has now been laid to rest. The Michigan Supreme Court in Board of Control of Eastern Michigan University v. Labor Mediation Board, 384 Mich. 561, 565, 566, 184 N.W.2d 921, 922, 923 (1971), while recognizing that:

'The powers and prerogatives of Michigan universities have been jealously guarded not only by the boards of those universities but by this Court in a series of opinions running as far back as 1856',

nonetheless held that:

'Here we find no plenary grant of powers which, by any stretch of the imagination, would take plaintiff's operations outside of the area of public employment. 'Public employment' is clearly intended to apply to employment or service in all governmental activity, whether carried on by the state or by townships, cities, counties, commissions, boards or other governmental instrumentalities. It is the entire public sector of employment as distinguished from private employment. The public policy of this State as to labor relations in public employment is for legislative determination.'

We therefore hold that, while the Regents continue to enjoy the entire control and management of its affairs and property, they are a public employer and thus are subject to regulation as a public employer.

Hence, we are confronted with the crucial issue.

ARE INTERNS, RESIDENTS, AND POST-DOCTORAL FELLOWS SERVING AT THE UNIVERSITY AND AFFILIATED HOSPITALS OF THE UNIVERSITY OF MICHIGAN MEDICAL CENTER PUBLIC EMPLOYEES WITHIN THE MEANING OF 1965 P.A. NO. 379?

Two members of the Commission, who comprised the majority, decided that, although the persons who sought to be included in the bargaining unit were students of the University of Michigan Medical School, they nonetheless also had an employment relationship with the University and were entitled to unite for collective bargaining purposes. The majority determined the appropriate unit to be:

'All interns, residents and fellows employed by the Regents of the University of Michigan possessing the equivalent of a minimum of an M.D. or D.D.S. degree, and post-doctoral fellows in the clinical and basis sciences, EXCLUDING pharmacy interns, dietetic interns, nurse anesthetist trainees, chaplaincy interns, and all other employees.'

The third member of the Commission dissented, holding that:

'I would find on the basis of the record as a whole that interns and residents are not employees in the traditional or legal sense but are in fact post-graduate students. Their activities represent a continuation of their medical study and are, therefore, primarily educational rather than employment in nature. I would find, contrary to my colleagues, that the interns and residents are not public employees for whom this Commission should direct an election.'

Appellees maintain that the findings of fact made by the majority of the Employment Relations Commission are final, and that the reviewing court may not substitute its judgment for that of the administrative agency if such findings by the agency are supported by competent, material, and substantial evidence. Generally speaking, we have no quarrel with this argument; however, we note with approval the language of 8 Callaghan's Michigan Pleading & Practice (2d ed.), § 60.88, pp. 259, 260, that:

'Legal conclusions drawn by an agency, and questions of law involved in its decisions or determinations, are reviewable. Thus it has been decided that findings upon undisputed facts are reviewable, the determination in such case being a legal conclusion, and that legal conclusions based upon findings of fact are subject to review.'

The question herein raised, as to whether the interns, residents, and post-graduate fellows are to be considered employees within the meaning of the statute, is a question of law, and thus is properly the subject of review by this Court.

In 1947 the legislature enacted 1947 P.A. No. 336, commonly referred to as the Hutchinson Act, ¹ for the purpose of preventing strikes among public employees and creating a procedure by which to mediate grievances. In 1965 the Legislature, exercising its authority granted in Const.1963, art. 4, § 48, ² enacted 1965 P.A. No. 379; M.C.L.A. § 423.201 et seq.; M.S.A. § 17.455(1) et seq. which substantially amended the 1947 act and included eight new sections.

The pertinent part of the title to the act as amended reads:

'An act to prohibit strikes by Certain public employees; * * * to declare and protect the rights and privileges of public employees; * * *.' (Emphasis supplied.)

The statute does not, however, define what is meant by the words 'public employees.' Some help is found in Hillsdale Community Schools v. Labor Mediation Board, 24 Mich.App. 36, 41, 179 N.W.2d 661, 663 (1970), where it was held that:

'The words 'public employee' are to identify the employees Other than private and does not define public employee so as to exclude supervisory personnel.'

The word 'employee' is quite flexible in meaning and subject to different interpretations in accordance with the intent of the statute in which it is used. Illustrative of this point, we quote the language found in 30 C.J.S. Employee p. 672:

"Employee' has neither technically nor in general use a restricted meaning by which any particular employment or service is indicated, and that it may have different meanings in different connections admits of no doubt. The word 'employee' has no fixed meaning which must control in every instance, and it is not a word of art, but takes color from its surroundings and frequently is carefully defined by the statute where it appears.'

Since the term 'employee's is nebulous in nature and undefined in the statute, what then was the intent of the Legislature with regard to interns, residents, and post-graduate fellows acting as such at hospitals associated with state universities? It is first necessary to look at the nature of these persons' positions. Webster's Third New International Dictionary defines the word 'intern' as:

'An advanced student or recent graduate in a professional field * * * one trained in a profession allied to medicine who undergoes a period of practical clinical experience prior to practicing his profession.'

The same dictionary defines 'resident' as:

'a physician serving a residency',

with 'residency' being defined as:

'a period of advanced medical training and education that normally follows graduation from medical school and completion to internship and that consists of supervised practice of a specialty in a hospital and its out-patient department and instruction from specialists on the hospital staff.'

'Fellow' is defined as:

'A young physician...