STEPHAN, J.
In these consolidated appeals, the Commission of Industrial Relations (CIR) determined that Douglas County, Nebraska, committed a prohibited labor practice when it increased union members' monthly health insurance premiums without negotiating. Douglas County appeals, contending that the parties' collective bargaining agreement (CBA) authorized its unilateral action and that its action did not change the status quo. We affirm in part, and in part reverse and vacate.
Douglas County and Employees United Labor Association (EULA) entered into a CBA effective January 1, 2009, through December 31, 2010. Article 12 of the CBA is entitled "Insurance and Pension Benefits" and provides in relevant part:
The health insurance premiums are set annually. The CBA does not contain a continuation clause.
No increases were made in the health insurance premium rates for the 2010 calendar year. But on November 16, 2010, Douglas County sent a memorandum to EULA members with an attached health insurance premium rate sheet effective January 1, 2011. This rate sheet showed increases in the overall premium costs for all EULA members for calendar year 2011. The increases were based on the percentage of contribution allocations in the CBA. No changes were made to the health insurance coverage other than the increased premiums. The November 16 memorandum stated that Douglas County was "pass[ing] along to the employees" "the increased premium cost for 2011" "as specified in the [CBA]." Douglas County began deducting the increased premium costs from employee paychecks in December 2010. Douglas County did not negotiate the increase in premiums with EULA.
Meanwhile, on May 2, 2011, EULA filed three additional petitions alleging that Douglas County also unilaterally changed the health insurance benefits of certain other EULA members. These petitions were consolidated before the CIR. In November, a telephonic hearing was conducted and the parties stipulated that the record and exhibits received by the CIR in case No. S-11-712 should also be received in the pending case. On January 12, 2012, the CIR again held that Douglas County committed a prohibited labor practice by passing on the premium increase without bargaining and ordered Douglas County to negotiate the issue and reimburse EULA members for the amount of increased premiums they had paid, plus interest. Douglas County timely appealed, and the case is docketed before us as case No. S-12-121. We granted Douglas County's motion to consolidate the two appeals.
Douglas County assigns in both appeals that the CIR erred in (1) finding it committed a prohibited labor practice when it passed on a portion of the increased cost of the health insurance plan to the employees; (2) not giving full force and effect to the plain language of the CBA, which unequivocally defined the parties' rights regarding how health insurance premiums were to be shared; and (3) concluding that the health insurance contribution percentages expired when the CBA expired.
In a cross-appeal, EULA contends the CIR erred in failing to award it attorney fees.
In reviewing an appeal from the CIR in a case involving wages and conditions of employment, an order or decision of the CIR may be modified, reversed, or set aside by the appellate court on one or more of the following grounds and no other: (1) if the CIR acts without or in excess of its powers, (2) if the order was procured by fraud or is contrary to law, (3) if the facts found by the CIR do not support the order, and (4) if the order is not supported by a preponderance of the competent evidence on the record considered as a whole.
The Legislature has declared that the continuous, uninterrupted, and proper functioning and operation of state government is essential to the welfare, health, and safety of the people of Nebraska.
Here, Douglas County is the governmental entity and EULA is the union representing certain employees of Douglas County. The parties agree that health insurance, including health insurance premiums, is a mandatory topic of bargaining.
But Douglas County contends it did not commit a prohibited practice under the facts of these cases because (1) the health insurance premium issue is "covered by" the existing language of article 12 of the parties' CBA and (2) the increased premiums did not change the status quo.
Douglas County's primary argument is that it had no duty to bargain prior to passing on the increase in health insurance premiums, because the parties had already bargained the issue. Specifically, it contends that "the topic of premiums has already been negotiated and the result of that negotiation is specifically memorialized in [article 12 of] the CBA."
We assume without deciding that the language of article 12 authorized Douglas County to unilaterally pass on a percentage of the increase in health insurance premiums during the term of the CBA. But that is not the circumstance before us. Here, Douglas County increased EULA members' health insurance premiums effective January 2011, after the CBA had expired. Although Douglas County repeatedly asserts in its brief that the parties agreed to abide by the terms of the CBA until a new one was negotiated, no evidence in the record supports a finding that the actual CBA remained in effect after December 31, 2010. Indeed, Douglas County's primary witness testified that the contract with EULA expired on December 31, 2010, and that the parties were "not under any existing contract" at the time of trial. The CBA had no continuation clause, and on the record before us, we conclude that it had expired before Douglas County implemented the increase in EULA members' health insurance premiums.
Because the CBA had expired, Douglas County's argument that it had no duty to bargain on the issue of health insurance
Douglas County also contends that it did not commit a prohibited practice because its action in passing on the premium increases pursuant to the percentage allocations in the CBA did not change the status quo. To support this argument, it contends that even though the CBA expired, legally, its terms continue in effect until a new agreement is reached. According to Douglas County, because the increase was implemented pursuant to the continuing contractual terms, there was no change in the status quo, and thus it had no duty to bargain on the issue.
The CIR has broadly held that "parties to a collective bargaining agreement continue it in effect beyond its expiration date until" a new agreement has been reached.
But, contrary to the argument advanced by Douglas County, this does not mean that the expired CBA continues in effect. Rather, it means that the conditions under which the employees worked endure throughout the collective bargaining process.
But we do find that Douglas County's argument that the percentage allocation of health insurance premiums in the CBA is the status quo is relevant to the remedy imposed by the CIR in these appeals.
Generally, when terms or conditions of employment are in a contractual provision, the status quo is determined by reference to the precise wording of the relevant contractual provision, even when that provision is contained in an expired contract.
In a cross-appeal, EULA alleges the CIR erred when it failed to award it attorney fees. This assignment of error is limited to case No. S-11-712, because no attorney fees were requested in case No. S-12-121.
The CIR has the power and authority to make such findings and to enter such temporary or permanent orders that it may find necessary to provide adequate remedies to the injured party or parties, to effectuate the public policy enunciated in § 48-802, and to resolve the dispute.
In refusing to award attorney fees, the CIR found that Douglas County's conduct "borders on the line between repetitive misconduct and overtly creative contract interpretation" but found "no direct evidence in the record of repetitive, egregious, or willful conduct." It also found no evidence that Douglas County "willfully" refused to bargain, but reasoned that it instead mistakenly believed that it was not required to bargain.
EULA argues that CIR precedent demonstrates Douglas County's persistent practice of bargaining in bad faith over health insurance. It notes that the day after the CIR issued the decision in this case, it found in another case an "emerging
The record fully supports the CIR's decision not to award attorney fees in this case, and we affirm the denial of attorney fees.
Health insurance premiums are a mandatory subject of bargaining, and Douglas County therefore had a duty to bargain on the issue. It cannot rely on the terms of the expired CBA to excuse it from this duty, but the percentage allocation formula of the expired CBA constitutes the status quo after the CBA expired and governs the parties' obligations until a successor agreement is reached. We affirm (1) the CIR's determination that Douglas County committed a prohibited labor practice in failing to negotiate health insurance premium increases effective January 1, 2011, and (2) the CIR's decision not to award attorney fees. But we reverse and vacate those portions of the CIR's orders requiring Douglas County to reimburse EULA members for increased insurance premiums deducted from their wages, plus interest.
AFFIRMED IN PART, AND IN PART REVERSED AND VACATED.