American Federation of Government Employees v. Federal Labor Relations Authority, No. 20-1398 (D.C. Cir. 2022)
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Unions challenged a Policy Statement of the Federal Labor Relations Authority that announced for the first time that zipper clauses (provisions that foreclose midterm bargaining) are mandatory bargaining subjects. The Authority determined that, if an agency and a union intractably disagree over a zipper clause proposal, the agency may bring the proposal to the impasses panel—which has the authority to put it (or a different clause reflecting what it determines to be a better resolution) into the parties’ term agreement. Before 2020, the Authority had not issued any Policy Statement in over 35 years.
The D.C. Circuit vacated the Policy Statement. The Authority structured its consideration of the zipper clause question in two steps, first holding that the Federal Service Labor-Management Relations Statute does not entitle employees to demand midterm bargaining even when the parties’ agreement is silent on the matter. The Authority then relied on that holding as “necessary” to its conclusion that proposed contractual zipper clauses expressly foreclosing midterm bargaining are mandatory bargaining subjects. The first holding was arbitrary. The Authority’s errors “include miscasting Supreme Court precedent, relying on conclusory assertions, and mischaracterizing its dramatic shift of the bargaining baseline as allowing the parties to resolve the issue.”
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