DONOFRIO, J.
Defendants, Wayne County (or the county) and the Wayne County Chief Executive Officer (the CEO), appeal both as of right and by leave granted the trial court's orders granting partial summary disposition in favor of intervening plaintiff, Michigan AFSCME Council 25, on its claim that defendants unlawfully imposed a wage reduction for county employees, and denying defendants' motion for reconsideration regarding the applicability of governmental immunity. Because defendants were not required to obtain approval from the Wayne County Commission before implementing the terms of the "last best offer,"
Plaintiffs (four AFSCME local unions) and defendants were parties to a collective-bargaining agreement (CBA). After the CBA expired, the parties unsuccessfully engaged in negotiations to reach a successor agreement. On October 21, 2010, plaintiffs filed this action, alleging that defendants were in violation of the Wayne County charter and had engaged in improper collective-bargaining practices. In a December 1, 2010, letter to plaintiffs, Mark Dukes, director of Wayne County's labor relations division, declared that negotiations had reached an impasse and indicated that the county would be implementing the terms of its "last best offer" (LBO), which required union employees to accept a 20-percent wage decrease and other concessions. The LBO was issued through the labor relations division, under the authority of the CEO, and was not submitted to or approved by the Wayne County Commission. The county filed a counterclaim for a declaratory judgment and injunctive relief. The trial court granted the motion to intervene of Council 25. Like plaintiffs, Council 25 alleged that the CEO violated Wayne County ordinances by imposing the wage decrease without commission approval.
The trial court granted defendants summary disposition of plaintiffs' claims for lack of jurisdiction
Defendants moved for reconsideration or, alternatively, for a stay of proceedings pending appeal, arguing for the first time that they were immune from suit pursuant to the governmental tort liability act (GTLA), MCL 691.1401 et seq., for violations of a county ordinance. Defendants contended that the trial court therefore erred by granting partial summary disposition in favor of Council 25. The trial court denied defendants' motion and request for a stay. Defendants now appeal in this Court.
"This Court reviews de novo a trial court's grant or denial of a motion for summary disposition." Latham v. Barton Malow Co., 480 Mich. 105, 111, 746 N.W.2d 868 (2008). "A motion for summary disposition under MCR 2.116(C)(8) tests the legal sufficiency of a claim by the pleadings alone." Smith v. Stolberg, 231 Mich.App. 256, 258, 586 N.W.2d 103 (1998). Summary disposition under subrule (C)(8) is appropriate when a claim "is so clearly unenforceable as a matter of law that no factual development could establish the claim and justify recovery." Id.
Public employment labor relations are governed by the public employment relations act (PERA), MCL 423.201 et seq. The underlying purpose of PERA "is to resolve labor-management strife through collective bargaining." Detroit Fire Fighters Ass'n, IAFF Local 344 v.
Section 15 of PERA, MCL 423.215(1), provides:
In constructing this provision, our Supreme Court has recognized:
If the parties have negotiated in good faith regarding mandatory subjects of bargaining, their statutory duty under PERA has been met. Id. at 55, 468 N.W.2d 61.
Intrinsic to the duty to collectively bargain in good faith is the authority to unilaterally implement an LBO when negotiations have reached an impasse. The parties here do not dispute this authority, which is a product of the evolution of the common law as it pertains to collective bargaining.
In support of its argument that commission approval was required, Council 25 relies on, and the trial court found dispositive, Wayne County Ordinance 90-847,
Ordinance 90-847, § 3(a) provides:
Ordinance 90-847, § 2, defines "rule" as follows:
Ordinance 90-847, § 3, sets forth requirements that must be met before an agency adopts a rule, including:
Ordinance 90-847, § 6, exempts certain rules from the requirements of notice and commission approval, including "[a] determination, decision, order or opinion in a case," "[a] declaratory ruling or opinion as applied to a fixed and stated set of facts," and "[a]n individual decision by an agency to exercise or not to exercise a legal power,
Council 25 principally relies on Ordinance 90-847, § 7, and contends that commission approval before implementation of the LBO was required because the LBO affected county employees' rates of compensation and benefits. The plain language of § 7, however, pertains to "the internal management, organization or procedures of an agency[.]" Moreover, as is readily apparent from the other quoted provisions of Ordinance 90-847, the ordinance involves agency rulemaking and is wholly inapplicable to collective bargaining and negotiations, a matter that § 4.323 of the Wayne County Charter imparted to the labor relations division, under the direction of the CEO. Because Ordinance 90-847 does not apply to the collective-bargaining process, the trial court erred by relying on the ordinance and granting partial summary disposition for Council 25. As previously discussed, the labor relations division, under the CEO's direction, was authorized to implement the LBO as part of the negotiation process in an effort to reach a successor CBA. Accordingly, defendants were entitled to summary disposition in their favor.
Further, we note that MCL 46.11(g) empowered the commission to approve county employee salaries once a successor CBA was reached. That provision states:
Under this provision, once negotiations resulted in a successor CBA, the commission had the authority to approve employee salaries before the new CBA took effect. The parties indicated at oral argument that this process is the one that was actually used when plaintiffs and defendants reached a successor CBA at year's end 2011. Thus, the commission ultimately had the opportunity to ratify the successor CBA, including approving employee salaries, and did so before the CBA took effect. Notably, the procedure outlined in Ordinance 90-847, § 3, was not employed when the parties reached a successor CBA. Rather, the CBA was placed on the commission's agenda and simply ratified. The process that was used confirms our conclusion that Ordinance 90-847 is inapplicable in these circumstances. Moreover, application of the ordinance in these circumstances would conflict with the Wayne County Charter because it would infringe on the exclusive authority conferred on the executive to negotiate CBAs. See Wayne County Charter, § 4.323. To accept the interpretation of Council 25 would require the legislative branch, the commission, to intrude into the negotiation process, exclusively granted to the executive, rather than to perform its overseeing
Having determined that the trial court erred by denying summary disposition for defendants, we need not address defendants' argument that governmental immunity precluded plaintiffs from proceeding on the issue of damages.
Reversed and remanded for entry of summary disposition in defendants' favor. Defendants, being the prevailing parties, may tax costs pursuant to MCR 7.219. We do not retain jurisdiction.
FITZGERALD, J., concurred with DONOFRIO, J.
M.J. KELLY, P.J. (dissenting).
After examining the relevant provisions of the public employment relations act, MCL 423.201 et seq., I conclude that the act cannot be read to include a codification of the negotiating tactic referred to as the last-best-offer rule. It also cannot be read to limit a local government's authority to regulate its negotiator's use of the last-best-offer tactic. Instead, whether and to what extent a negotiator may employ the last-best-offer tactic is — unless used in bad faith — a matter of local concern that may be governed by local law. Under local law, defendant Wayne County's Chief Executive Officer (the Executive) had the authority to negotiate collective-bargaining agreements with plaintiffs — four locals and Council 25 of the American Federation of State, County and Municipal Employees (collectively the Unions) — which necessarily included the authority to use the last-best-offer tactic. But local law also limits that authority: the Executive may not use the tactic if it would result in lower benefits for the employees without first obtaining approval from defendant Wayne County — specifically the Wayne County Commission (the Commission). Because the Executive did not obtain the Commission's approval before using the last-best-offer tactic to reduce the employees' benefits, the trial court correctly determined that those terms were unlawful and invalid. Further, I reject defendants' contention that they cannot be compelled to restore the unlawfully withheld pay and benefits because they have governmental immunity. Because I would affirm the trial court on these bases, I must respectfully dissent.
This Court reviews de novo a trial court's decision on a motion for summary disposition as well as the proper interpretation and application of statutes. Chen v. Wayne State Univ., 284 Mich.App. 172, 191, 200, 771 N.W.2d 820 (2009).
The majority argues that the use of the last-best-offer tactic is integral to the bargaining process and "inherent to the statutory obligation to negotiate in good faith...." Ante at 275. The majority asserts that, because "the authority to implement the [last best offer] was integral to the negotiation process, ... commission approval was not required before the [offer] could be implemented." Ante at 275. Although its analysis is not entirely clear, the majority has apparently interpreted the statutory duty to bargain in good faith as an inherent limitation on the authority of local governments to regulate their own conduct during negotiations. To the extent that the majority's opinion can be read to stand for that proposition, it has no basis in the statutory language and, therefore, amounts to a judicially created rule
The public employment relations act provides, in relevant part, that a "public employer shall bargain collectively with the representatives of its employees...." MCL 423.215(1). Further, the duty to bargain collectively is a "mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment...." Id. However, the obligation to bargain in good faith "does not compel either party to agree to a proposal or make a concession." Id. Notably, this statute does not delineate the types of tactics that may be used during negotiations — it merely mandates that the bargaining be in good faith, whatever the tactics. See Detroit Police Officers Ass'n v. Detroit, 391 Mich. 44, 54, 214 N.W.2d 803 (1974) (stating that the essential requirement of good-faith bargaining is simply that the parties manifest an attitude and conduct that are conducive to reaching an agreement). Similarly, the statute imposes the obligation to bargain in good faith on the "public employer," but does not propose to identify or limit the authority of local governments to select individuals or entities to bargain on their behalf and does not require local governments to give unfettered authority to their representatives to use whatever tactics the representative might wish to use, as long as those tactics are consistent with good-faith bargaining. The statute is quite limited in application and accordingly cannot be understood to deprive local governments of the ability to specify whether, when, or how specific bargaining tactics may be used. See Local 1277, Metro. Council No. 23, AFSCME v. City of Center Line, 414 Mich. 642, 651, 327 N.W.2d 822 (1982) (stating that the statute is procedural in nature and requires the parties to "`confer in good faith with an open mind and a sincere desire to reach an agreement.'") (citation omitted).
Our Supreme Court has recognized that after the parties to a good-faith bargain reach an impasse, a public employer may take unilateral action on a disputed issue if that action "is consistent with the terms of its final offer to the union." Detroit Police Officers Ass'n, 391 Mich. at 56, 214 N.W.2d 803. And it has been held that the use of the last-best-offer tactic after an impasse is a part of the negotiating process. Brown v. Pro Football, Inc., 518 U.S. 231, 239, 116 S.Ct. 2116, 135 L.Ed.2d 521 (1996). It is, therefore, permissible to use this tactic. See Detroit Police Officers Ass'n, 391 Mich. at 63, 214 N.W.2d 803. But the Legislature did not require the use of this tactic. Stated another way, a public employer does not necessarily breach its duty to negotiate in good faith simply because it uses the last-best-offer tactic. Similarly, a public employer may legitimately conclude that it is not in its own best interest to use this tactic and, in lieu of its use, continue to operate under an expired bargaining agreement without breaching its duty to negotiate in good faith. Consequently, MCL 423.215(1) does not prevent a local government from directly or indirectly limiting its own negotiator's use of the last-best-offer tactic, and the majority errs to the extent that it concludes otherwise.
The majority also argues that Wayne County's local laws do not require the Executive to obtain the Commission's approval before using the last-best-offer tactic, even when the use of that tactic reduces the public employees' wages. I cannot agree.
Wayne County's charter provides that the Commission is the county's legislative body, id. at § 3.111, and that the Commission must exercise its powers by ordinance or resolution, id. at § 3.115. The charter also grants the Commission the power to approve all contracts made by the county. Id. at § 3.115(3). And the Commission has expressly reserved that right by ordinance with respect to collective-bargaining agreements. Wayne County Code, § 120-121(c).
Nevertheless, the Unions argued that the Wayne County ordinances governing its agencies' rulemaking authority plainly apply to the Executive's use of the last-best-offer tactic. See Wayne County Code, Ch 5. The trial court agreed and determined that § 5-6(1) of the Code applied to the Executive's use of the last-best-offer tactic. For that reason, it concluded that the Executive had to obtain the Commission's approval before its use could become "valid and of effect."
The majority, in contrast, concludes that § 5-6 does not apply to the use of the last-best-offer tactic. Although the majority quotes the relevant ordinances, it offers very little interpretive analysis; rather, it summarily concludes that, given the overall provisions of the ordinances governing
Section 5-6 provides that a "memorandum, directive, order or determination which governs the internal management, organization or procedures of an agency, but which also addresses or substantially impacts upon" certain matters "shall not be valid and of effect unless" it complies with the commission approval requirements stated under chapter 5 of the Wayne County Code. One such matter involves any memorandum, order or determination that fixes the "rate of compensation for county officers and employees, including fringe benefits...." Wayne County Code, § 5-6(1). This ordinance represents a clear policy choice by the local legislature: the Wayne County Commission determined that it is in the best interests of the county to maintain the status quo on the pay and benefits for county employees unless the change is directly approved by the Commission.
Section 5-6 is codified under chapter 5 of the Wayne County Code, which deals generally with administrative rulemaking procedures. This chapter governs the procedures with which an agency must comply in order to validly promulgate "rules" or make "rulings." See Wayne County Code, § 5-2. Section 5-5 provides that certain "rules or rulings" are exempt "from the notice, processing and commission approval requirements" stated under chapter 5, but subject to the exceptions stated under "section 5-6." Id. That is, § 5-5 establishes an exception to the exemptions it provides by reference to § 5-6, but it does not necessarily follow that § 5-6 only applies to rules or rulings. It is noteworthy that the Commission did not refer to the term "rule" within § 5-6. Section 5-1 defines "rule" as
In contrast, § 5-6 — on its face — applies generally to all "memoranda, directive[s], orders or determinations" that govern the internal management of an agency. The Commission's decision to refer to these specific categories rather than using the defined terms "rule" or "ruling" must be understood to have been deliberate and must be given effect. See Baker v. Gen. Motors Corp., 409 Mich. 639, 665, 297 N.W.2d 387 (1980) ("Every word of a statute should be given meaning and no word should be treated as surplusage or rendered nugatory if at all possible."). That is, § 5-6 must be understood to apply to all memoranda, directives, orders or determinations without regard to whether those memoranda, directives, orders or determinations are also rules or rulings under § 5-1. Hence, I cannot agree with the majority's conclusion that this ordinance does not apply because it only "`governs the internal management, organization or procedures of an agency...." Ante at 277 (emphasis omitted).
Fixing the rate of compensation and benefits for governmental employees implicates the internal management of an agency. Accordingly, the Executive's use of the last-best-offer tactic is a directive or order that governs the internal management of an agency and which — however
In their motion for reconsideration of the trial court's order granting summary disposition in favor of the Unions, Wayne County and the Executive argued for the first time that the Unions' claims were barred by governmental immunity. They maintained that the Unions could not seek damages for the pay and benefits that might have been unlawfully withheld because the Unions' claims did not sound in contract and the Unions otherwise failed to plead in avoidance of governmental immunity. Wayne County and the Executive failed to raise this issue in a properly supported motion for summary disposition. As a result, they were not — at that point — entitled to any relief. See Barnard Mfg. Co., Inc. v. Gates Performance Engineering, Inc., 285 Mich.App. 362, 370, 775 N.W.2d 618 (2009) (stating that a moving party must make a properly supported motion for summary disposition before the opposing party has any obligation to even respond and, if not properly made, the trial court should not grant relief). And this Court will generally not fault a trial court for refusing to consider a defense that a party raised for the first time in a motion for reconsideration. Pierron v. Pierron, 282 Mich.App. 222, 264, 765 N.W.2d 345 (2009). Nevertheless, even considering this issue on its merits, I do not agree that governmental immunity applies.
In this case, the Unions sued to invalidate the Executive's unilateral decision to alter the terms of employment for the Unions' members. Although the claims alleged that the Executive's decision was unlawful under an ordinance, the Unions did not premise their request for relief on that ordinance or any tort theory. Rather, the Unions initially asked the trial court to make their members "whole" and in a later complaint asked for any relief that the trial court might conclude was warranted. Because the Executive unlawfully reduced the members' pay and benefits, that reduction was void. Accordingly, the employees were entitled to have the pay and benefits that were unlawfully withheld restored to them — that is, they were entitled to the pay and benefits that they had actually earned for their labors under the interim contractual agreement either until the Commission approved the Executive's change in the benefits and pay or until the parties entered into a new collective-bargaining agreement, whichever came first. Thus, although the Executive's use of the last-best-offer tactic to unlawfully reduce the members' pay and benefits was void under an ordinance, the damages arise from Wayne County's contractual obligation to pay its employees under the interim agreement pending a lawful change in the pay and benefits. Because the damages arise from this contractual obligation, Wayne County is not immune from liability. See Koenig v. South Haven, 460 Mich. 667, 675, 597 N.W.2d 99 (1999).
The public employment relations act does not limit a local government's authority to regulate its negotiators' use of the last-best-offer tactic. Wayne County has, as a matter of public policy, determined that its public employees should not have their compensation and benefits reduced without the Commission's approval. The
I would affirm.