LIU, J.—
In 1975, the Legislature enacted the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 (ALRA; Lab. Code, § 1140 et seq.) "to encourage and protect the right of agricultural employees to full freedom of association, self-organization, and designation of representatives of their own choosing, to negotiate the terms and conditions of their employment, and to be free from the interference, restraint, or coercion of employers of labor." (Lab. Code, § 1140.2; all statutory references are to this code unless otherwise specified.) The ALRA established an elaborate framework governing the right of agricultural workers to organize themselves into unions to engage in collective bargaining with their employers. (Agricultural
Twenty-five years later, the Legislature determined that additional legislation was necessary to fulfill the goals of the ALRA because it had proven ineffective at facilitating the negotiation and completion of collective bargaining agreements. The Legislature therefore enacted the ALRA's "mandatory mediation and conciliation" (MMC) provisions to "ensure a more effective collective bargaining process between agricultural employers and agricultural employees." (Stats. 2002, ch. 1145, § 1, p. 7401.) In certain cases in which an employer and a labor union have failed to reach a first contract, either party may invoke MMC, which involves a mediation process before a neutral mediator. (§ 1164 et seq.; the MMC statute.) If the parties do not reach an agreement on all terms through mediation, the mediator resolves the disputed terms and submits a proposed contract to the Board, which can then impose that contract on the parties.
In this case, the United Farm Workers of America (UFW) filed an MMC request with the Board after failing to reach a collective bargaining agreement with petitioner Gerawan Farming, Inc. (Gerawan). When mediation similarly failed to produce an agreement, the mediator submitted a report fixing the contractual terms, which the Board adopted in its final order. Gerawan petitioned for review of the Board's order, contending, among other things, that the MMC statutory scheme was unconstitutional. The Court of Appeal agreed, holding that "the MMC statute on its face violates equal protection principles" and that it "improperly delegated legislative authority." In so holding, the Court of Appeal adopted the reasoning of the dissent in Hess Collection Winery v. Agricultural Labor Relations Bd. (2006) 140 Cal.App.4th 1584, 1611 [45 Cal.Rptr.3d 609] (dis. opn. of Nicholson, J.) (Hess), in which the court upheld the MMC statute against a similar constitutional challenge (see Hess, at pp. 1603-1610 (maj. opn.)). We granted review to resolve this conflict, and we conclude that the MMC statute neither violates equal protection nor unconstitutionally delegates legislative power.
We also granted review to resolve an important statutory question. In arguing that the final order should be set aside, Gerawan also claimed that the UFW, the labor union certified as the bargaining representative under the ALRA, had abandoned its employees after a lengthy absence and therefore forfeited its status as representative. Applying the settled rule that a union remains certified until decertified by the employees in a subsequent election,
We hold that the distinction drawn by the Court of Appeal is untenable and that employers may not refuse to bargain with unions — whether during the ordinary bargaining process or during MMC — on the basis that the union has abandoned its representative status. As the Board and lower courts have consistently observed, the Legislature intended to reserve the power to decertify labor organization representatives to employees and labor organizations alone. Allowing employers to raise an abandonment defense would frustrate that intent and undermine the ALRA's comprehensive scheme of labor protections for agricultural employees.
The Legislature enacted the ALRA in 1975 to "ensure peace in the agricultural fields by guaranteeing justice for all agricultural workers and stability in labor relations." (Stats. 1975, 3d Ex. Sess., ch. 1, § 1, p. 4013.) "To achieve this goal, the act declares the right of agricultural employees to organize themselves into unions and to engage in collective bargaining, free from intimidation by either employers or union representatives." (ALRB I, supra, 16 Cal.3d at p. 398; see § 1140.2.) In enacting the ALRA, the Legislature intended to fill a gap in the labor protections afforded by the federal National Labor Relations Act (NLRA; 29 U.S.C. § 151 et seq.), which exempts "any individual employed as an agricultural laborer." (29 U.S.C. § 152(3); see Lab. Code, § 1140.4, subd. (b) [defining "`agricultural employee'" as "those employees excluded from the coverage of the National Labor Relations Act, as amended, as agricultural employees"].) Accordingly, the ALRA identifies a number of unfair labor practices and other unlawful acts (§§ 1153, 1154, 1154.5, 1155.4, 1155.5), and empowers the Board to investigate, prevent, and remedy such practices (§ 1160).
The Board's other primary duty is to oversee and certify the results of bargaining representative elections. Under the ALRA, "[r]epresentatives designated or selected by a secret ballot for the purposes of collective bargaining by the majority of the agricultural employees in the bargaining unit shall be the exclusive representatives of all the agricultural employees in such unit for the purpose of collective bargaining with respect to rates of pay, wages, hours of employment, or other conditions of employment." (§ 1156; see § 1156.3 [setting forth the election process].) The ALRA also provides a process by
In the decades that followed, it became clear that the ALRA had not resulted in the widespread adoption of collective bargaining agreements between agricultural employers and employees. "Between 1975 and 2001 ..., of the state's approximately 25,000 farm employers, there existed fewer than 250 signed union agreements and there were another 250 farms where workers voted for union representation but had not yet obtained a contract." (Note, Overcoming the First Contract Hurdle: Finding a Role for Mandatory Interest Arbitration in the Private Sector (2008) 23 Lab. Law. 323, 338.) A substantial factor was "the continued refusal of agricultural employers to come to the bargaining table once an election has occurred," which caused employees to "wait[ ] for years while negotiations for union contracts drag on without hope of progress." (Sen. Rules Com., Off. of Sen. Floor Analyses, 3d reading analysis of Sen. Bill No. 1156 (2001-2002 Reg. Sess.) as amended Aug. 30, 2002, p. 7 (hereafter Senate Bill 1156 Analysis).) As we have recognized, "when an employer engages in dilatory tactics after a representation election his action may substantially impair the strength and support of a union and consequently the employees' interest in selecting an agent to represent them in collective bargaining.... `Employee interest in a union can wane quickly as working conditions remain apparently unaffected by the union or collective bargaining....' [Citations.]" (J. R. Norton Co. v. Agricultural Labor Relations Bd. (1979) 26 Cal.3d 1, 30 [160 Cal.Rptr. 710, 603 P.2d 1306] (J. R. Norton).) The Legislature found that in 2002, agricultural employers had not agreed to a contract in about 60 percent of the cases where a labor union had been certified. (See Sen. Bill 1156 Analysis, supra, at p. 7 [finding that among the 428 companies with agricultural workers who had voted for UFW representation, only 185 of those companies had reached a collective bargaining agreement with their employees]; see also Governor's signing message to Leg. on Assem. Bill No. 2596 & Sen. Bill No. 1156 (Sept. 30, 2002) Sen. Recess J. (2001-2002 Reg. Sess.) p. 6227.)
These concerns prompted the Legislature in 2002 to add the MMC provisions to the ALRA. (§ 1164 et seq., added by Stats. 2002, ch. 1145 § 2, pp. 7401-7404.) The Legislature determined there was "a need ... for a mediation procedure in order to ensure a more effective collective bargaining process between agricultural employers and agricultural employees, and thereby more fully attain the purposes of the [ALRA], ameliorate the working conditions and economic standing of agricultural employees, create stability
Within 21 days after the mediation period expires, "the mediator shall file a report with the board that resolves all of the issues between the parties and establishes the final terms of a collective bargaining agreement, including all issues subject to mediation and all issues resolved by the parties prior to the certification of the exhaustion of the mediation process. With respect to any issues in dispute between the parties, the report shall include the basis for the mediator's determination. The mediator's determination shall be supported by the record." (§ 1164, subd. (d).) In crafting a determination, the mediator "may consider those factors commonly considered in similar proceedings, including: [¶] (1) The stipulations of the parties. [¶] (2) The financial
Once the Board has issued a final order, a party may petition for writ of review in the Courts of Appeal or in this court. (§§ 1164.5, 1164.9.) Judicial review is limited to "determin[ing], on the basis of the entire record, whether any of the following occurred: [¶] (1) The board acted without, or in excess of, its powers or jurisdiction. [¶] (2) The board has not proceeded in the manner required by law. [¶] (3) The order or decision of the board was
Soon after the Legislature enacted the MMC statute, agricultural employers challenged its constitutionality. In Hess, the Court of Appeal rejected claims that the MMC statutory scheme violated principles of due process and equal protection, interfered with the right of contract, invalidly delegated legislative authority, and was vague and overbroad. (Hess, supra, 140 Cal.App.4th at p. 1591.) Justice Nicholson dissented, contending that the law "delegated legislative power unconstitutionally and violated equal protection guarantees of the state and federal Constitutions." (Id. at p. 1611 (dis. opn. of Nicholson, J.); see id. at pp. 1612-1617 (dis. opn. of Nicholson, J.).)
According to the UFW, the union "began renewing demands for bargaining with agricultural employers that had never agreed to contracts" after Hess upheld the MMC statute's constitutionality. This case arises from one of those renewed demands.
Gerawan is a farming business that owns about 12,000 acres in Fresno and Madera Counties. It employs thousands of direct-hire workers to grow, harvest, and pack stone fruit and table grapes. In a 1990 secret election, Gerawan's employees voted to be represented by the UFW. After rejecting Gerawan's challenges to the election, the Board certified the UFW as the exclusive bargaining representative on July 8, 1992. (See Gerawan Ranches (1992) 18 ALRB No. 5.) The Board also affirmed an administrative law judge's finding that Gerawan had committed unfair labor practices during the election period. (Ibid.)
Several days later, Cesar Chavez, the UFW's founder, sent a letter to Gerawan requesting negotiations, which Gerawan "formally accept[ed]." The UFW made a renewed request to bargain in November 1994, after which the parties held at least one negotiation session. The parties did not reach an agreement. After the negotiation session, according to a former Gerawan executive, the UFW "represented that it would revise its proposal ... and that it would contact Gerawan about future negotiations," but the "UFW never contacted Gerawan again concerning [those] negotiations."
For reasons not apparent in the record, neither the UFW nor Gerawan attempted to communicate or restart negotiations until October 12, 2012, when the UFW served Gerawan with a renewed demand to bargain. Gerawan asked the UFW to explain its absence between early 1995 and October 2012;
The parties thereafter agreed on an experienced mediator, Matthew Goldberg, and conducted several mediation sessions in the summer of 2013. The voluntary mediation failed to produce an agreement. As required by section 1164, subdivision (a), Goldberg then conducted a number of on-the-record hearings and submitted a report resolving the disputed terms to the Board on September 28, 2013. Gerawan objected to Goldberg's report "both generally and as to its particular terms." In light of these objections, the Board remanded six provisions to the mediator for further proceedings. (Gerawan Farming, Inc. (2013) 39 ALRB No. 16.) The parties reached agreement on the remanded provisions, and Goldberg issued a second report incorporating the agreed-upon provisions. Neither party objected to the second report, and it took effect as the Board's final order on November 19, 2013. (Gerawan Farming, Inc. (2013) 39 ALRB No. 17; see § 1164.3.)
Gerawan filed a petition for review of the Board's final order to the Court of Appeal under section 1164.5, claiming that the order was invalid because the MMC statute is unconstitutional. Gerawan argued that the statute violated equal protection and due process, invalidly delegated legislative power, and constituted an unconstitutional taking of private property. Gerawan also reiterated that the Board's order should be set aside because the UFW abandoned its status as the employees' certified bargaining representative after a "nearly two-decade absence." The Court of Appeal granted Gerawan's request to stay the Board's final order pending the appeal.
The Court of Appeal held that the MMC statute was facially unconstitutional because it "violates equal protection of the law and improperly delegates legislative authority." As to equal protection, the court adopted the
The court further concluded that the MMC statute unconstitutionally delegates legislative authority because it empowers the mediator "to establish employment terms that will be imposed by the force of law ... without any definite policy direction, goal or standard." Because the section 1164.3, subdivision (e) "factors alone are not enough," the law "fails to supply the necessary guidance to either the mediator or the Board." Further, the court held, "the delegation of powers under the MMC statute also lacks the necessary procedural safeguards or mechanisms to assure a fair and evenhanded implementation of the legislative mandate to impose a [collective bargaining agreement]." The court did not resolve Gerawan's other constitutional claims.
Despite holding the MMC statute "constitutionally invalid," the Court of Appeal also decided "the statutory issues as an alternative basis for [its] ruling." The court concluded that "abandonment may be raised defensively in response to a union's demand to invoke the substantial legal measures of the MMC process," notwithstanding the Board's long-standing position that "abandonment does not exist unless a union is either unwilling or unable to continue to represent the subject employees." The court recognized that under its precedent holding that "a rebuttable presumption exists that a certified union continues to enjoy majority support by the employees," an employer may not refuse to bargain under the ALRA by contending that the union has forfeited its representative status. But because "the MMC process differs materially from bargaining and is largely a postbargaining process," the court continued, "the employer's continuing duty to bargain is not an impediment" to an "employer's ability to defend a union's MMC request." The court thus held that the Board abused its discretion by ordering MMC without considering Gerawan's claim of union abandonment.
We now consider Gerawan's claims that the MMC statute (1) violates substantive due process by imposing interest arbitration without the employer's consent, (2) violates equal protection under the Fourteenth Amendment to the United States Constitution and article I, section 7 of the California Constitution, and (3) unconstitutionally delegates legislative power. Although we typically decide statutory claims before deciding constitutional claims, we discuss Gerawan's constitutional claims first because the Court of Appeal held the statute facially unconstitutional in addition to resolving Gerawan's statutory claim. Were we to hold that abandonment is a defense under the MMC statute, our holding would have no import in light of the Court of Appeal's decision without a determination that the statute is constitutional. And were we to hold that abandonment is not a defense under the MMC statute, we would likewise need to address Gerawan's constitutional claims.
Gerawan's lead argument in its briefing is that compulsory interest arbitration in the private sector is categorically impermissible because it forces employers into arbitration without their consent. This is essentially a claim that the MMC statute violates substantive due process. Although Gerawan raised various due process challenges below, the Court of Appeal declined to
Gerawan acknowledges that interest arbitration has "emerged as a fairly common feature of public sector labor relations at the federal, state, and local levels." (Weiler, Striking a New Balance: Freedom of Contract and the Prospects for Union Representation (1984) 98 Harv. L.Rev. 351, 372 (Weiler); see Fisk & Pulver, supra, at pp. 50-51.) But Gerawan contends that no state has ever imposed compulsory interest arbitration on private employers because doing so would be unconstitutional. Gerawan places significant emphasis on a trilogy of cases from the 1920s that held unconstitutional a Kansas statute authorizing a three-judge industrial court to arbitrate employment disputes and impose wages and other terms of employment. (See Wolff Co. v. Industrial Court (1923) 262 U.S. 522 [67 S.Ct. 1103, 43 S.Ct. 630] (Wolff); Dorchy v. Kansas (1924) 264 U.S. 286 [68 S.Ct. 686, 44 S.Ct. 323]; Wolff Packing Co. v. Indus. Court (1925) 267 U.S. 552 [69 S.Ct. 785, 45 S.Ct. 441].)
In Wolff, the high court concluded that the statute violated the "liberty of contract" under the Fourteenth Amendment. (Wolff, supra, 262 U.S. at p. 544.) The court relied on precedent that had located "the right of the employer on the one hand, and of the employee on the other, to contract about his affairs" in substantive due process. (Id. at p. 534, citing Adkins v. Children's Hospital (1923) 261 U.S. 525 [67 S.Ct. 785, 43 S.Ct. 394] (Adkins).) As we have explained, "this restrictive view of the police power was completely repudiated" by the high court a decade later. (Birkenfeld v. City of Berkeley (1976) 17 Cal.3d 129, 155 [130 Cal.Rptr. 465, 550 P.2d 1001] (Birkenfeld); see West Coast Hotel Co. v. Parrish (1937) 300 U.S. 379, 400 [81 S.Ct. 703, 57 S.Ct. 578] [overruling Adkins]; Pope, Contract, Race, and Freedom of Labor in the Constitutional Law of "Involuntary Servitude" (2010) 119 Yale L.J. 1474, 1543 [Wolff's "anchorage in Fourteenth Amendment economic due process, never secure, has altogether washed away"].) Thus, Gerawan's claim that private-sector interest arbitration offends substantive due process is unpersuasive. (See Hess, supra, 140 Cal.App.4th at pp. 1598-1601.)
Gerawan also relies on Labor Board v. Jones & Laughlin (1937) 301 U.S. 1 [81 S.Ct. 893, 57 S.Ct. 615] (Jones) and Porter Co. v. NLRB (1970) 397 U.S. 99 [25 L.Ed. 2d 146, 90 S.Ct. 821] (Porter), where the high court interpreted the NLRA to prohibit compulsory arbitration. But the high court resolved these decisions on statutory grounds and said nothing about compulsory arbitration's constitutionality. (See Jones, at p. 45; Porter, at pp. 104-109.)
These concerns were the impetus for the MMC statute's enactment. The Legislature was aware that the ALRA had failed to promote collective bargaining agreements, finding that almost 60 percent of union representation elections did not result in a first contract. (See Sen. Bill 1156 Analysis, supra, at p. 7.) In light of the "peculiar problems with the collective bargaining process between agricultural employers and agricultural employees" (Hess, supra, 140 Cal.App.4th at p. 1604), the Legislature reasonably could have concluded that a mediation process followed by binding arbitration in the event of a bargaining impasse would "correct" the ALRA's failure and facilitate the adoption of first contracts (Sen. Bill 1156 Analysis, supra, at p. 7). The Legislature also reasonably could have believed that facilitating first contracts furthers the goal of "ensuring stability" in the agricultural industry. (Stats. 2002, ch. 1145, § 1, p. 7401; see Weiler, supra, at p. 409 ["[F]irst-contract arbitration attempts to do more than simply settle a past dispute: it also seeks to install the union firmly within the plant and to ... allow[ ] employees to experience life under a collective agreement, a contract one hopes is attractive enough to warrant renewal."].)
The high court first articulated the "class of one" theory of equal protection in Village of Willowbrook v. Olech (2000) 528 U.S. 562 [145 L.Ed.2d 1060, 120 S.Ct. 1073] (Olech). There, Grace Olech claimed that the village violated equal protection by conditioning her connection to the municipal water supply on the Olechs granting the village a 33-foot easement, while only requiring a 15-foot easement from other property owners seeking access to the same water supply. (Id. at p. 563.) Olech alleged that the easement demand was "`irrational and wholly arbitrary,'" and was "motivated by ill will resulting" from previous litigation. (Ibid.) The high court recognized that "successful equal protection claims [can be] brought by a `class of one,' where the plaintiff alleges that she has been intentionally treated differently from others similarly situated and that there is no rational basis for the difference in treatment." (Id. at p. 564.)
But laws regulating a small number of individuals, or even a class of one, are not necessarily suspect. As the high court has explained, "[t]he premise
In Engquist, the high court held that the "`class-of-one' theory of equal protection has no place in the public employment context." (Engquist, supra, 553 U.S. at p. 594.) Although it relied in part on the distinction between the government "as employer as opposed to sovereign," the court also stressed the "core concern of the Equal Protection Clause as a shield against arbitrary classifications." (Id. at p. 598.) Unlike the easement decision in Olech, the court explained, "[t]here are some forms of state action ... which by their nature involve discretionary decisionmaking based on a vast array of subjective, individualized assessments. In such cases the rule that people should be `treated alike, under like circumstances and conditions' is not violated when one person is treated differently from others, because treating like individuals differently is an accepted consequence of the discretion granted. In such situations, allowing a challenge based on the arbitrary singling out of a particular person would undermine the very discretion that such state officials are entrusted to exercise." (Id. at p. 603.)
Although Engquist's holding was limited to the public employment context, our Courts of Appeal have concluded that "its reasoning applies more broadly." (Las Lomas Land Co., LLC v. City of Los Angeles (2009) 177 Cal.App.4th 837, 859 [99 Cal.Rptr.3d 503] (Las Lomas); see Squires v. City of Eureka (2014) 231 Cal.App.4th 577, 595 [180 Cal.Rptr.3d 10] ["individualized discretionary decisions will not support a class of one claim"].) The Ninth Circuit has also read Engquist to foreclose class of one claims against any "forms of state action that `by their nature involve discretionary decisionmaking based on a vast array of subjective, individualized assessments.'" (Towery v. Brewer (9th Cir. 2012) 672 F.3d 650, 660.) Other courts have held that although "Engquist does not bar all class-of-one claims involving discretionary state action," its reasoning may still be "properly applied outside of the employment context." (Analytical Diagnostic Labs, Inc. v. Kusel (2d Cir. 2010) 626 F.3d 135, 142; see Hanes v. Zurick (7th Cir. 2009) 578 F.3d 491, 495.)
Applying Engquist's reasoning, the ALRB argues that the MMC process is "an inherently individualized process" and thus cannot be subject to a class of
The discretion afforded to the mediator under the MMC statute is channeled by section 1164's statutory factors. As noted, the statute instructs the mediator to "consider those factors commonly considered in similar proceedings, including: [¶] (1) The stipulations of the parties. [¶] (2) The financial condition of the employer and its ability to meet the costs of the contract in those instances where the employer claims an inability to meet the union's wage and benefit demands. [¶] (3) The corresponding wages, benefits, and terms and conditions of employment in other collective bargaining agreements covering similar agricultural operations with similar labor requirements. [¶] (4) The corresponding wages, benefits, and terms and conditions of employment prevailing in comparable firms or industries in geographical areas with similar economic conditions, taking into account the size of the employer, the skills, experience, and training required of the employees, and
These statutory factors serve to further the MMC's purposes while minimizing arbitrary or irrational differences between the collective bargaining agreements imposed by the MMC process on similarly situated agricultural employers. (See Hess, supra, 140 Cal.App.4th at p. 1604 ["These requirements reasonably ensure that contracts of different employers will be similar."].) We relied on similar reasoning in rejecting an equal protection claim in People v. Wilkinson (2004) 33 Cal.4th 821 [16 Cal.Rptr.3d 420, 94 P.3d 551]. There, we held that the exercise of a prosecutor's charging discretion did not violate equal protection principles in part because "numerous factors properly may enter into a prosecutor's decision to charge under one statute and not another, such as a defendant's background and the severity of the crime." (Id. at p. 838; see RUI One Corp. v. City of Berkeley (9th Cir. 2004) 371 F.3d 1137, 1154 [rejecting equal protection challenge to city's expansion of coverage of living wage ordinance to "only a handful of employers" based on geographic, employer-size, and revenue criteria].)
We note that section 1164, subdivision (e) provides that the mediator "may consider" these statutory factors. In Hess, the court concluded that in this context the statute's reference to "`may' means `must'" because "`"[w]ords permissive in form ... are considered as mandatory"'" when duties of public entities like the Board are at issue. (Hess, supra, 140 Cal.App.4th at p. 1607.) Neither Gerawan nor the Court of Appeal assigns any significance to the statute's use of the word "may," and the Court of Appeal simply assumed that a mediator "shall consider this list of factors." (Italics added.) We need not decide how to interpret "may" as used in section 1164, subdivision (e), because Gerawan's argument is that even if the mediator does consider the statutory factors, the factors themselves do not sufficiently constrain the mediator's discretion. As explained, we reject that argument.
Gerawan further argues that "[b]ecause the statute does not pass any judgments as to the sort of terms that would foster collective bargaining and stability, a mediator could consider one employer's wages with relation to `comparable firms' and choose to impose a wage increase, a wage decrease, or no change at all." The Court of Appeal took the same view, posing a hypothetical in which mediators impose collective bargaining agreements on three similar employers with "different terms ... result[ing] in different wages and a different impact on the profit margin for each employer."
Gerawan has raised no as-applied challenge in this case, so we need not resolve whether an as-applied class of one challenge is cognizable in this context. Gerawan does not claim to have evidence that it was treated differently by the mediator or the Board from similarly situated agricultural employers that have undergone the MMC process, or that a similarly situated agricultural employer even exists. Indeed, Gerawan does not mention any specific terms of the mediator's report in its equal protection argument. And Gerawan concedes that the mediator was unable to find any agricultural employer that was sufficiently similar in terms of farm operations upon which to model the proposed collective bargaining agreement. Gerawan instead chose to focus solely on the asserted facial unconstitutionality of the MMC statute. Simply hypothesizing, as the Court of Appeal did, that differential treatment among similarly situated agricultural employers is possible is not enough to declare the MMC statute facially unconstitutional. In sum, the statute does not facially violate equal protection principles.
The Court of Appeal also held that the MMC statute improperly delegates legislative authority in violation of the California Constitution. We disagree.
The MMC process does not suffer from either defect. First, the Legislature did not leave the resolution of fundamental policy issues to others. In ALRB I, we held that an ALRB regulation providing farm labor organizers a qualified right of access to agricultural employers' premises did not constitute an unconstitutional delegation of legislative power. (ALRB I, supra, 16 Cal.3d at p. 419.) We concluded that "the `fundamental policy determination' was made by the Legislature when that body decided, after much study and discussion, to grant to agricultural workers throughout California the rights of self-organization and collective bargaining so long denied to them under federal law." (Ibid.) Because the access regulation "merely implement[ed]" the statutory program, "it [did] not amount to a `fundamental policy determination.'" (Ibid.)
The same is true here. The Legislature made the fundamental policy determination that the MMC process was necessary "in order to ensure a more effective collective bargaining process between agricultural employers and agricultural employees, and thereby more fully attain the purposes of the [ALRA]." (Stats. 2002, ch. 1145, § 1, p. 7401.) It did so in response to evidence showing that the ALRA had failed in its goal of promoting the adoption of collective bargaining agreements by agricultural employers. The Legislature then made a variety of subsidiary policy decisions concerning the necessary procedures, the factors channeling the mediator's discretion, the preconditions for invoking the MMC process, and the extent of review by the Board and the courts. (§§ 1164, 1164.3, 1164.5, 1164.11.) The Legislature tasked the mediator with resolving the precise terms concerning "wages, hours, or other conditions of employment" in a single collective bargaining agreement. (§ 1164.3, subd. (a)(1).) But even with regard to those terms, the mediator's role is limited to resolving only disputed terms. (§ 1164, subd. (d).)
Second, the MMC statute does not "fail[ ] to provide adequate direction for [its] implementation." (Carson, supra, 35 Cal.3d at p. 190.) The Legislature indicated that the mediator, in resolving disputed issues, "may consider those factors commonly considered in similar proceedings," including the parties' stipulations; the employer's financial condition; corresponding terms in comparable collective bargaining agreements, firms, or industries; the average consumer prices for goods and services; and the overall cost of living. (§ 1164, subd. (e).) The Court of Appeal concluded that these statutory factors do not cure the delegation problem because they do "not provide the mediator with any policy objective to be carried out or standard to be attained once those factors have been considered." But we have previously rejected the argument that such a "listing of factors does not adequately inform [the administrative authority] just how the presence of the factors under particular circumstances is to be translated." (Birkenfeld, supra, 17 Cal.3d at p. 168.)
In Birkenfeld, we considered a constitutional challenge to a Berkeley charter amendment establishing residential rent control. The plaintiffs argued that the charter amendment's provisions for adjusting maximum rents "fail[ed] to provide sufficient standards for the guidance of the rent control board ... and thereby constitute[d] an unlawful delegation of legislative power." (Birkenfeld, supra, 17 Cal.3d at p. 167.) In dismissing this challenge, we emphasized that the amendment directed the rent control board to consider a nonexclusive list of factors when reviewing petitions for rent adjustments. (Id. at pp. 167-168.) And we noted that the board was "given other significant guidance by the charter amendment's statement of purpose" because "[s]tandards sufficient for administrative application of a statute can be implied by the statutory purpose." (Id. at p. 168.) "By stating its purpose and providing a nonexclusive illustrative list of relevant factors to be considered," we concluded, "the charter amendment provides constitutionally sufficient legislative guidance to the Board." (Ibid.)
Gerawan's argument that the Legislature should determine "the specific formula or objective pursuant to which the delegee would operate" fares no better. In the rent control context, we have said the fact that an "ordinance does not articulate a formula for determining just what constitutes a just and reasonable return does not make it unconstitutional." (Carson, supra, 35 Cal.3d at p. 191; see Kavanau v. Santa Monica Rent Control Bd. (1997) 16 Cal.4th 761, 768 [66 Cal.Rptr.2d 672, 941 P.2d 851]; Fisher v. City of Berkeley (1984) 37 Cal.3d 644, 680 [209 Cal.Rptr. 682, 693 P.2d 261].) Similarly, the high court has held in the ratemaking context that "[t]he Constitution does not bind rate-making bodies to the service of any single formula or combination of formulas." (Power Comm'n v. Pipeline Co. (1942) 315 U.S. 575, 586 [86 S.Ct. 1037, 62 S.Ct. 736].) The Legislature here was not required to provide a specific formula for mediators to follow in resolving disputed terms of individual collective bargaining agreements. It is sufficient that the MMC statute sets forth a nonexclusive list of factors for the mediator to consider when developing a fair and reasonable agreement based on the parties' individualized circumstances. The Legislature has given the mediator constitutionally "adequate direction." (Carson, at p. 190.)
This conclusion is consistent with substantial precedent rejecting similar nondelegation challenges to compulsory interest arbitration in the public employment context. In Fire Fighters Union v. City of Vallejo (1974) 12 Cal.3d 608 [116 Cal.Rptr. 507, 526 P.2d 971], we rejected a nondelegation challenge to a Vallejo city charter provision that permitted an arbitral board to resolve disputed terms of employment after considering "`all factors relevant to the issues from the standpoint of both the employer and the employee, including the City's financial condition.'" (Id. at p. 622.) We held that so
"Other jurisdictions have sanctioned their compulsory interest arbitration schemes even though presented with less precise or even non-explicit standards for decision" than the type of factors set out in the MMC statute. (City of Detroit v. Detroit Police Officers Assn. (1980) 408 Mich. 410, 464-465 [294 N.W.2d 68], fn. omitted; see, e.g., Fraternal Order of Police, Lodge No. 165 v. City of Choctaw (1996) 1996 OK 78 [933 P.2d 261, 267-268] (Choctaw); Superintending School Committee of City of Bangor v. Bangor Education Assn. (Me. 1981) 433 A.2d 383, 387 (City of Bangor); City of Richfield v. Local No. 1215, Internat. Assn. of Fire Fighters (Minn. 1979) 276 N.W.2d 42, 47; Division 540, Amalgamated Transit Union, AFL-CIO v. Mercer County Improvement Authority (1978) 76 N.J. 245, 252-254 [386 A.2d 1290]; Harney v. Russo (1969) 435 Pa. 183, 189 [255 A.2d 560, 61 Mun. L Rep. 16].) Other compulsory arbitration statutes provide "a well-settled list of factors" that closely resembles that set forth in section 1164, subdivision (e). (Fisk & Pulver, supra, at p. 66 [citing statutes].) "Formulation of rigid standards for the guidance of arbitrators in dealing with complex and often volatile issues would be impractical, and might destroy the flexibility necessary for the arbitrators to carry out the legislative policy of promoting the improvement of the relationship between public employers and their employees." (City of Bangor, at p. 387.)
Gerawan argues that the MMC statute's judicial review is additionally ineffective because a court would be unable "to assess whether ex parte or `off-the-record' communications `decisively influenced' the mediator's decisions." But as the Board explains, ALRB regulations require the mediator to cite evidence in the record to support his or her final report and prohibit the mediator from basing any findings or conclusions on "off the record" communications. (Cal. Code Regs., tit. 8, § 20407, subd. (a)(2).) Further, the regulations allow a party to file with the Board "declarations that describe pertinent events that took place off the record" in case of any alleged misconduct or improper factfinding. (Id., § 20408, subd. (a).) Gerawan did not do so here. The ALRB regulations provide additional safeguards against unfairness or favoritism.
In sum, the Legislature resolved the fundamental policy issues and provided sufficient guidance and procedural safeguards in the MMC statute. The MMC statute does not unconstitutionally delegate legislative authority.
We next consider whether agricultural employers may defend against a union's MMC request by showing that the union abandoned its status as bargaining representative. As noted, "[a]n agricultural employer or a labor organization certified as the exclusive bargaining agent of a bargaining unit of agricultural employees" may file a declaration with the Board requesting MMC. (§ 1164, subd. (a), italics added.) There is no dispute that Gerawan's employees elected the UFW as their certified representative in 1992 and that no subsequent valid election or decertification has taken place. But Gerawan contends, and the Court of Appeal agreed, that it is entitled to argue that the UFW forfeited its certification — and thus its ability to invoke the MMC process — because it had been absent from 1995 to 2012. Because the MMC statute relies entirely on the preexisting ALRA certification procedures, we first recount that statutory backdrop before addressing whether such a defense is available.
Soon after the ALRA's enactment, the Board considered whether an employer has a continuing duty to bargain with a union certified as the exclusive bargaining representative where an agreement has not been reached by the end of the initial year of certification. (Kaplan's Fruit & Produce Co., Inc. (1977) 3 ALRB No. 28 (Kaplan's Fruit).) The employers in that case had pointed to section 1155.2, which provides that if the Board finds that the employer had failed to bargain in good faith with the certified union, then the Board may "extend the certification for up to one additional year, effective immediately upon the expiration of the previous 12-month period following initial certification." (§ 1155.2, subd. (b).) "[I]f `certification' lapses after one year," the employers argued, their "duty to bargain [under section 1153, subd. (e)] must also lapse." (Kaplan's Fruit, at p. 2.) The Board rejected that argument, relying on NLRB precedent holding that "`a certified union, upon expiration of the first year following its certification, enjoys a rebuttable presumption that its majority representative status continues.'" (Ibid., quoting Terrill Machine Co. (1969) 173 N.L.R.B. 1480.) Certification under the ALRA, the Board explained, creates a "duty to bargain" that has no time limit, as well as an "election bar," set out in section 1156.6. (Kaplan's Fruit, at pp. 2-3.) Section 1155.2's extension procedure concerns only the election bar, which seeks "to bind employees to their choice of bargaining agent for a period of time sufficient to allow the bargaining relationship to mature and bear fruit"; it does not concern the employer's duty to bargain. (Kaplan's Fruit, at p. 4.)
The Board also based its decision on the policies underlying the ALRA. Accepting the argument that an employer's bargaining obligation lapsed one year after certification would "in effect require annual elections at every organized ranch in the State." (Kaplan's Fruit, supra, 3 ALRB No. 28 at p. 2.) This would "strike at the Act's central purpose of bringing `certainty
The Court of Appeal in F & P Growers Assn. v. Agricultural Labor Relations Bd. (1985) 168 Cal.App.3d 667 [214 Cal.Rptr. 355] (F & P Growers) considered a related question: whether an employer may refuse to bargain with a union representative when it reasonably believes that the union has lost the support of a majority of its employees. (Id. at pp. 670-671.) Agreeing with the Board, the court held that an employer could not raise a "`good faith doubt of majority support'" defense under the ALRA, even though NLRB precedent provided such a defense under the NLRA. (F & P Growers, at p. 678; see Nish Noroian Farms (1982) 8 ALRB No. 25.) In so holding, the court pointed to several critical differences between the ALRA and NLRA. First, although the NLRA permits employers to "voluntarily recognize and bargain with a labor union that has demonstrated its majority status by means other than an election" (F & P Growers, supra, at p. 674, citing NLRB v. Gissel Packing Co. (1969) 395 U.S. 575 [23 L.Ed.2d 547, 89 S.Ct. 1918]), the ALRA specifically prohibits an employer from bargaining with a nonelected union (§ 1153, subd. (f)). Second, whereas the NLRA permits employers to petition to conduct an election for a representative, the ALRA allows only employees or labor unions to petition for an election. (Compare 29 U.S.C. § 159(c)(1)(B) with Lab. Code, § 1156.3.) Third, under the ALRA, only employees or labor organizations can move to decertify a union representative. (F & P Growers, at pp. 675-676, citing § 1156.7.)
These differences, the court explained, "show[ed] a purpose on the part of the Legislature to prohibit the employer from being an active participant in determining which union it shall bargain with in cases arising under the ALRA." (F & P Growers, supra, 168 Cal.App.3d at p. 676.) Permitting an employer to "rely on its good faith belief in order to avoid bargaining with an employee chosen agricultural union" would allow the employer to "do indirectly ... what the Legislature has clearly shown it does not intend the employer to do directly." (Id. at pp. 676-677.) The court observed that unique
The Court of Appeal did not dispute the validity of the precedent above or the "well-settled rule" that "an employer must continue to bargain in good faith with the originally certified union." But it held that employers may raise an abandonment defense against a union's request for MMC because "the MMC process differs materially from bargaining and is largely a postbargaining process."
As noted, the Board rejected the abandonment defense in MMC proceedings after the MMC statute's enactment in 2002. (San Joaquin Tomato Growers, Inc., supra, 37 ALRB No. 5 at pp. 3-4; Pictsweet Mushroom Farms, supra, 29 ALRB No. 3 at pp. 10-11.) Yet in subsequent amendments to the MMC statute, the Legislature took no action to modify or overrule the Board's interpretation. (See Stats. 2003, ch. 870, § 1, p. 6391; Stats. 2011, ch. 697, § 4.) This provides additional evidence that the Board's construction of the MMC statute is consistent with the Legislature's intent. (See Thornton, supra, 4 Cal.App.4th at p. 1257.)
The Court of Appeal's contention that the MMC process falls "outside the ordinary bargaining context" lacks support in the MMC statute. Rather, the text and structure of the statute indicate that the MMC process is a continuation of the ordinary bargaining process. The Legislature enacted the MMC statute in order to "ensure a more effective collective bargaining process between agricultural employers and agricultural employees" (Stats. 2002, ch. 1145, § 1, p. 7401, italics added), and the MMC process begins only after a union representative or an employer makes "a renewed demand to bargain" (§ 1164, subd. (a), italics added). Moreover, the MMC statute requires that the parties, with the assistance of the mediator, conduct considerable negotiation before the interest arbitration phase. (§ 1164, subd. (c).) In many cases, the parties may reach a voluntary agreement on all or most of the disputed terms before the mediator writes a final report or before the ALRB issues its final order.
Seizing on a single sentence in the Board's 1977 decision in Kaplan's Fruit, the Court of Appeal suggested that the "Board's own precedent reflects [that] any process by which the parties are compelled to agree to imposed terms ... does not fit into the parameters of bargaining under the ALRA." But Kaplan's Fruit does not stand for that broad principle. In the course of holding that employers have a continuing duty to bargain with a union representative, the Board merely described the contemporary state of the law, which at that time did not provide for interest arbitration: "Nothing we declare in this opinion alters the statutory protection given to employers. Their duty to bargain, no matter how long its duration, does not compel them to agree to a proposal...." (Kaplan's Fruit, supra, 3 ALRB No. 28 at p. 7.) When the Legislature later enacted the MMC statute, it expanded the "duty to bargain" to include the MMC process.
Finally, even if the MMC process "differs materially from bargaining," as the Court of Appeal found, neither Gerawan nor the Court of Appeal has identified any statutory language, legislative history, or other evidence suggesting that the Legislature intended "bargaining" to be treated differently from so-called "postbargaining." Whether abandonment should be recognized as a defense in the latter context but not the former is a question for the Legislature, not the courts.
Indeed, the very purpose of the MMC statute was to revive long-dormant relationships between agricultural employers and labor unions in order to facilitate the adoption of first collective bargaining agreements. The Legislature was troubled by employers' "continued refusal[s] ... to come to the bargaining table once an election has occurred," which caused employees "to languish without the negotiated contracts they have elected to secure." (Sen. Bill 1156 Analysis, supra, at p. 7.) Thus, the MMC statute was enacted with an understanding that the MMC process would be available to unions that had long ago reached an impasse with employers and were unable to resume negotiations — in other words, unions that are likely to have less of a presence at the employer precisely because no collective bargaining agreement yet exists.
In the face of the strong legislative policy against employer participation in the union selection process, Gerawan argues that "the employer's ability to raise the abandonment defense [against the MMC statute] is ... the only way to protect the workers' right to choose." The Court of Appeal similarly concluded that "employees' right to a representative of their own choosing would be seriously jeopardized in the situation of abandonment by a union where ... the absentee union suddenly reappeared on the scene to demand the MMC process."
The Court of Appeal opined that the "rapid timeframe" of the MMC process would mean that decertification "would often be too late." But the ALRA requires that the Board set an election within seven days from receiving a decertification petition. (§ 1156.3, subd. (b).) By contrast, a union representative generally may not request MMC until 90 days after its renewed demand to bargain, and even after that, the statute requires at least 30 days of mediation. (§ 1164, subds. (a), (c).) Employees thus have a considerable amount of time in which to deliberate and organize for purposes of decertification. In this case, for example, the UFW filed its renewed demand to bargain on October 12, 2012, and the mediator did not issue his final report until almost one year later, on September 28, 2013. Moreover, an initial collective bargaining agreement does not last forever. The contract imposed by the Board's final order here, for example, has a three-year term. If the employees are dissatisfied with either the collective bargaining agreement or their union's representation, then they can petition to decertify the union in the third year of that term. (§ 1156.7, subd. (c).)
An additional protection against unexplained union absences is that "a union disclaimer of interest or union defunctness" terminates the union's certification as bargaining representative. (San Joaquin Tomato Growers, Inc., supra, 37 ALRB No. 5 at p. 3; see Pictsweet Mushroom Farms, supra, 29 ALRB No. 3 at p. 6.) Thus, under the Board's precedent, employees are entitled to select a new union representative when its existing representative has suffered an "institutional death" and is therefore unable to represent the employees. (Picstweet Mushroom Farms, supra, 29 ALRB No. 3 at p. 6.)
We reverse the judgment of the Court of Appeal and remand for further proceedings consistent with our opinion.
Cantil-Sakauye, C. J., Chin, J., Corrigan, J., Cuéllar, J., Kruger, J., and Kline, J.,