Chief Justice CASTILLE.
We granted review to determine whether a labor arbitration award, issued pursuant to the Public Employe Relations Act ("PERA"),
Appellant, American Federation of State, County and Municipal Employees, District Council 33, Local 934 ("appellant"), and appellee, the Philadelphia Housing Authority ("PHA"), are parties to a collective bargaining agreement ("CBA") governing the wages, hours and working conditions of PHA's employees. The CBA includes a provision that an employee can be terminated only for just cause. Thomas Mitchell, a warehouseman employed by PHA, was accused of sexually harassing a co-worker, Stephanie Broadnax, and was fired following an internal PHA investigation. Thereafter, appellant filed a grievance on Mitchell's behalf. When the grievance procedures of the CBA were exhausted without a resolution satisfactory to appellant and Mitchell, appellant filed a demand for arbitration. Arbitration hearings were conducted on August 27, 2003 and February 17, 2004. The issue before the arbitrator was "whether [PHA] had just cause to terminate [Mitchell's] employment, and, if not, what would be the appropriate remedy." Arbitration Award, dated July 12, 2004, at 27. The arbitrator made extensive factual findings. Id. at 3-27.
Broadnax testified about Mitchell's numerous sexually explicit comments and actions toward her, which began in 2001 and continued into 2002. Id. at 3-10. She described acts of inappropriate touching and sexual comments made by Mitchell, which caused her discomfort, particularly when she and Mitchell were alone. She described one particularly egregious incident where Mitchell grabbed Broadnax from behind while she was filing paperwork, "grinding" himself into her for approximately 15 seconds. Id. at 5, 9. Another incident involved Mitchell hiding under a desk to "take a nap" and then asking Broadnax if he could "eat her pussy" while she worked. Mitchell would hug Broadnax, throw his arms around her neck, and "play with himself" while speaking to her; he made her "upset and nervous." Broadnax testified that she also witnessed Mitchell pinch the breasts of the other female warehouse employee, Linda Bradford.
When Broadnax learned that Mitchell was going to be reassigned to a desk next to hers, she advised her supervisor, Joseph Brunetti, about Mitchell's conduct, and that she did not want to work so close to Mitchell. Then, Broadnax and Mitchell engaged in a verbal altercation which was apparently prompted by Mitchell's anger that Broadnax had reported his behavior to Brunetti. Brunetti broke up the argument, and took Mitchell outside to discuss and criticize his behavior. Brunetti told Mitchell that he had to stop touching Broadnax and refrain from any more yelling.
Grdinich interviewed Broadnax and Mitchell at the warehouse, finding Broadnax credible and Mitchell not credible. Grdinich testified that PHA had a zero tolerance policy on sexual harassment, and because of this policy, she recommended that PHA take immediate administrative action against Mitchell, although she did not recommend a specific discipline. Susan Stefencavage, PHA's human resources assistant general manager, explained that the decision to terminate Mitchell was based on: 1) his pattern of sexual harassment; 2) his unwanted touching of Broadnax; 3) his touching himself; 4) "the policy which provides for termination"[
The arbitrator concluded that Mitchell was not credible, and that Broadnax's testimony regarding Mitchell's inappropriate conduct was credible. The arbitrator specifically found that Mitchell had been adequately informed about PHA's prohibition against sexual harassment, and that his behavior toward Broadnax was "lewd, lascivious and extraordinarily perverse." Id. at 33. Although he found that Mitchell's misconduct was "unacceptable," the arbitrator also found that after the "verbal warning" given to Mitchell by Brunetti, Mitchell engaged in no further inappropriate sexual harassment of Broadnax. The
PHA filed a petition to vacate the arbitrator's award, which the trial court denied. On PHA's further appeal, the Commonwealth Court reversed, holding that PHA's legal obligation to protect its employees constituted a "core function" of the agency that PHA could not bargain away and, therefore, the arbitrator's award requiring Mitchell's reinstatement was not rationally derived from the CBA and could not be enforced. Philadelphia Housing Authority v. American Fed. of State, County & Mun. Employees, 900 A.2d 1043 (Pa.Cmwlth.2006), vacated, 596 Pa. 207, 941 A.2d 1257 (2008). Appellant petitioned for allowance of appeal, and by order dated January 2, 2008, this Court granted the petition, vacated the Commonwealth Court's order, and remanded with instructions to reconsider PHA's petition to vacate in light of Westmoreland Intermed. Unit No. 7 v. Westmoreland Intermed. Unit No. 7 Classroom Assistants Educ. Support Personnel Ass'n, 595 Pa. 648, 939 A.2d 855 (2007) ("Westmoreland"). Our remand order essentially directed the Commonwealth Court to consider PHA's petition under Westmoreland's newly adopted "public policy exception" to the "essence test," rather than the disapproved "core functions exception" the court had applied in the earlier appeal.
Upon further briefing and reargument, the Commonwealth Court again reversed the trial court and vacated the arbitration award which reinstated Mitchell. Philadelphia Housing Authority v. American Fed. of State, County & Mun. Employees, 956 A.2d 477, 487 (Pa.Cmwlth.2008) (en banc). Applying the public policy exception to the essence test, the court determined that the arbitrator's award reinstating Mitchell violated two related public policies, a policy arising from Title VII of the Civil Rights Act of 1964, and federal Equal Employment Opportunity Commission ("EEOC") regulations, as well as the policy embodied in the Pennsylvania Human Relations Act ("PHRA"): a public policy against sexual harassment, and a separate public policy favoring voluntary employer actions to prevent sexual harassment, including the imposition of sanctions against harassers. Id. at 483. The court determined that Mitchell's reinstatement, without any sanction whatsoever, undermined the public policies against sexual harassment, and thus could not be upheld. "If forced to honor the arbitration award, PHA will not be complying with Title VII and the PHRA, each of which requires
Appellant filed a petition for allowance of appeal in this Court, and we granted review on the following rephrased issues:
Philadelphia Housing Authority v. American Fed. of State, County & Mun. Employees, 601 Pa. 313, 972 A.2d 482 (2009).
As stated, our review of this appeal from a PERA arbitration award is governed by the essence test. If the issue falls within the scope of the parties' CBA, we may vacate the arbitration award only if it "indisputably and genuinely is without foundation in, or fails to logically flow from," the CBA. Cheyney University, 743 A.2d at 413. Under Westmoreland, if the essence test is satisfied, we may consider further whether the award violates a well-defined and dominant public policy. Westmoreland, 939 A.2d at 866 (essence test is subject to narrow exception by which arbitrator's award will be vacated if it violates public policy of Commonwealth). The parties do not dispute that the subject of the arbitration award — the termination of a PHA employee for "just cause" — flowed logically from the parties' CBA. The crux of this matter lies in the proper application of the public policy exception to the essence test. This is a pure question of law; our standard of review is de novo, and our scope of review is plenary. Dechert LLP v. Commonwealth, 606 Pa. 334, 998 A.2d 575, 579 (2010).
Appellant argues that, in vacating the arbitration award reinstating Mitchell, the Commonwealth Court failed to properly apply a highly deferential standard of review. Appellant argues specifically that the award is not contrary to any well-defined, dominant public policy, and thus the very narrow public policy exception to the essence test does not apply here. Appellant states that the exception derives from the law of contracts prohibiting enforcement of agreements that violate the
Appellee PHA argues that the Commonwealth Court properly vacated the arbitration award. According to PHA, termination of Mitchell was warranted under the circumstances, and the award reinstating him — together with back pay and no other sanction — was contrary to a dominant and well-defined public policy against sexual harassment in the workplace. PHA argues the public policy is clearly derived from federal law — Title VII of the Civil Rights Act of 1964, and the regulations of the EEOC — as well as federal cases interpreting them. PHA also cites to the PHRA, and this Court's recent decision in Weaver v. Harpster, 601 Pa. 488, 975 A.2d 555, 567 (2009) (in enacting PHRA, "the legislature articulated a public policy to eliminate all forms of invidious discrimination, including sex discrimination in the workplace"). PHA further argues that these laws also create a public policy which favors voluntary employer prevention of sexual harassment in the workplace, as well as the application of sanctions for harassment. The arbitrator clearly found that Mitchell had engaged in sexual harassment and, according to PHA, its responsive decision to terminate Mitchell advanced these strong public policies. PHA asserts that the arbitration award which removed all sanctions against Mitchell undermined PHA's attempts to comply with its own rules designed to eliminate sexual harassment. Further, according to PHA, the verbal "counseling" given to Mitchell prior to any investigation by PHA of the harassment claims could not possibly have constituted an adequate sanction for Mitchell's conduct. PHA claims that the arbitrator effectively condoned Mitchell's "unacceptable" behavior by ordering his reinstatement with back pay. PHA emphasizes that, despite appellant's argument to the contrary, PHA does not take the position that "severe discipline" or termination is required in every instance of sexual harassment; however, PHA does argue that it should be allowed to fire a sexual harasser under the right circumstances, such as those shown in this case.
In Weaver v. Harpster, supra, this Court held that there was no common law cause of action for sexual harassment against an employer who is not subject to the PHRA. Notably, neither the Weaver majority nor the dissent disputed the existence of a public policy against sexual harassment in the workplace. Thus, the majority noted that "in the first section of the PHRA, the legislature articulated a public policy in the broadest of terms, establishing that the Commonwealth's interest in fostering employment without regard to sex applies to `all individuals,' without limitation." 975 A.2d at 565.
Moreover, as the Commonwealth Court noted here, PHA's formal sexual harassment policy strictly prohibits discrimination or harassment on the basis of sex, and a notice posted in PHA's workplace advises that sexual harassment on the job violates Title VII. Arbitration Award at 32-33. See also Philadelphia Housing Authority v. American Fed. of State, County & Mun. Employees, 956 A.2d at 478-79. The notice warns that a finding of sexual harassment could result in a range of disciplinary measures, including oral or written warnings, demotion, suspension, or even discharge. Arbitration Award at 32; 956 A.2d at 479. The arbitrator expressly found that this notice "provided adequate information to [Mitchell] concerning the prohibition against sexual harassment/misconduct." Arbitration Award at 32-33. Accordingly, the Commonwealth Court had ample support for its recognition that "there is an explicit, well-defined, and dominant public policy against sexual harassment in the workplace," in both federal and Pennsylvania law. 956 A.2d at 483-84.
Nevertheless, the arbitrator ordered PHA to reinstate Mitchell with back pay, reasoning that warehouse supervisor Brunetti's verbal counseling put an end to the sexual harassment and thus adequately addressed Mitchell's "lewd, lascivious and extraordinarily perverse" conduct. Although we do not hold that termination was required under the circumstances here, we likewise reject the arbitrator's and appellant's counter-assertion that a public employer can be precluded from taking such decisive action against an employee following its investigation. A public employer should be empowered to implement a zero tolerance policy when appalling, assaultive, repeated sexual harassment is at issue. The arbitration award to the contrary in this case affirmatively encourages — indeed it rewards — sexual harassment in the public workplace.
Along these lines, PHA argues that the arbitrator's award here violates public policy because it prevents PHA from taking "appropriate corrective action following its sexual harassment investigation," and because the "pre-investigation warning" given to Mitchell "logically could not have been discipline for misconduct disclosed only after the warning was issued." Appellee's Brief at 24. PHA does not claim that a "mere reprimand" or "warning" for sexual harassment is always insufficient and thus constitutes a per se violation of public policy. But, PHA does argue that supervisor Brunetti's conversation with Mitchell cannot have been categorized as appropriate remedial action because it took place before PHA's investigation, and before the extent of Mitchell's sexual harassment had been discovered by appropriate managerial staff at PHA.
We agree with PHA on this point. The arbitrator specifically found that Mitchell was aware of the prohibition against sexual harassment in the workplace, and that he nevertheless proceeded to commit multiple acts of "lewd, lascivious[,] extraordinarily
The issue before the arbitrator was whether there was just cause for this termination, and if not, what would be the appropriate remedy short of termination. The absurd award here makes a mockery of the dominant public policy against sexual harassment in the workplace, by rendering public employers powerless to take appropriate actions to vindicate a strong public policy. Such an irrational award undermines clear and dominant public policy.
Given the repeated assaultive conduct PHA sought to address, this should not be a difficult case. A public employer cannot be denied the power to impose consequences for this sort of inappropriate, and facially criminal, conduct.
As stated, in Westmoreland, a majority of this Court adopted a public policy exception to the essence test, although Mr. Justice Saylor, whose vote was necessary to recognizing that approach, emphasized that his concurrence was based on "the understanding that the exception is exceptionally narrow, consistent with this Court's prior explanations." 939 A.2d at 868 (Saylor, J., concurring). In this case, a holding that the arbitrator's award did not violate a well-defined, explicit, and dominant public policy would construe the public policy exception so narrowly that it would be, as a practical matter, completely negated. Appellant attempts to separate Mitchell's egregious behavior from the arbitrator's directive that Mitchell be reinstated without sanction for that behavior. Appellant agrees that sexual harassment is against the law, but nevertheless argues that the arbitrator's award undermining PHA's attempt to vindicate the law by firing the harasser must be upheld.
Federal cases cited by appellant to support its position are materially distinguishable from the instant matter, and not only because they do not involve sexual harassment.
Id. at 65, 121 S.Ct. 462. Given that the arbitrator's decision complied with this expressly stated public policy regarding drug abuser recidivist truck drivers, and where the legislation had complex remedial aims of which opportunities for rehabilitation are a "critical component," the argument that the arbitration award violated public policy failed. Id. at 64-65, 121 S.Ct. 462. The Court emphasized that the award did not "condone" the employee's conduct; instead it "punishe[d]" him by suspending him for three months without pay, requiring him to pay arbitration costs for both sides, and imposing conditions for continued employment. Id. at 65-66, 121 S.Ct. 462. See also Communication Workers v. Southeastern Elec. Coop., 882 F.2d 467, 468 (10th Cir.1989) (suspension without pay of employee who engaged in sexual harassment only once, and was penitent and apologetic about it, was sufficient discipline). The no discipline award in the instant case is easily distinguishable.
The decision in United Paperworkers Int'l Union v. Misco, Inc., 484 U.S. 29, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987), another victimless drug case,
The decision in W.R. Grace & Co. v. Local Union 759, 461 U.S. 757, 103 S.Ct. 2177, 76 L.Ed.2d 298 (1983), another case which did not involve assaultive sexual behavior against a co-worker, is also inapposite. In upholding the arbitrator's award against the employer's claim that it violated public policy, the Court focused on the primacy of seniority rules in the parties' pre-existing collective bargaining agreement over a subsequent contract between the employer and the EEOC, designed to remediate past race and gender discrimination in hiring, and in which the union had not participated. The Court held that the employer was not entitled to "alter the collective bargaining agreement without the Union's consent" and thus the arbitrator's award was proper and enforceable. Id. at 771, 103 S.Ct. 2177. Here, PHA did not attempt to supplant the parties' CBA without the union's consent; instead, PHA applied the agreement's terms by discharging for "just cause" an employee who violated established public policy.
The Third Circuit's decision in Stroehmann Bakeries, Inc. v. Local 776, 969 F.2d 1436 (3d Cir.1992), which involved claims of sexual harassment, is more instructive. In Stroehmann, the labor arbitrator reinstated — with back pay — a worker who had been fired when the company discovered that he had sexually harassed a customer's employee. The Third Circuit affirmed the district court's order vacating the arbitrator's award while confirming that courts may vacate labor arbitration awards only when they "explicitly conflict with well-defined, dominant public policy." Id. at 1441, 969 F.2d 1436. The circuit court held that there is indeed a "well-defined and dominant public policy concerning sexual harassment in the workplace which can be ascertained by reference to law and legal precedent." Id. (citing Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2(a)(1); Meritor Sav. Bank, supra; 29 C.F.R. § 1604.11(a) (unwelcome sexual advances and other physical conduct of sexual nature constitute sexual harassment when such conduct has purpose or effect of creating intimidating, hostile, or offensive work environment)). In holding that the arbitration award was unacceptable under the public policy exception, the court stated that "an award which fully reinstates an employee accused of sexual harassment without a determination that the harassment did not occur violates public policy." Id. at 1442. See also Newsday Inc. v. Long Island Typographical Union, 915 F.2d 840 (2d Cir.1990) (reinstatement of repeat sexual harasser violated explicit, well-defined and dominant public policy).
Although a labor arbitrator's decision is entitled to deference by a reviewing court, it is not entitled to a level of devotion that
Even if the arbitrator's award reinstating Mitchell were not patently unreasonable on its face, the arbitrator's reasoning betrays a lack of appreciation for the dominant public policy, reasoning which obviously infected his award: the reasoning and the award simply cannot be separated one from the other. The arbitrator's finding that the pre-investigation discussion between Brunetti and Mitchell resolved the matter before a higher level of management became involved is equally problematic. Appellant apparently views this chastisement as an appropriate response that was "reasonably calculated" to stop the harassment, Appellant's Brief at 26, and that nothing more severe was either required or permitted. But, apart from acknowledging that "the only action taken in terms of counseling or discipline" prior to termination was Brunetti's "verbal warning," the arbitrator did not measure its value as discipline. The arbitrator was charged with determining whether termination was proper and, if not, whether some other form of discipline was. Were we to approve the arbitrator's award finding no just cause for termination, and ordering reinstatement with back pay, we would essentially be holding that PHA has no recourse from the arbitrator's conclusion that Mitchell's cessation of overt acts of sexual harassment, which he denied in testimony found to be unbelievable, sufficed to end the matter.
Still, appellant argues that the law of deference to arbitrators prevents PHA from firing an employee who engaged in "extraordinarily perverse" and "unacceptable" sexual harassment of his co-worker, and then failed to take responsibility for the conduct, and insists that PHA must give him a job and all his back pay. We reject this argument and conclude instead that a public employer must be permitted to do more than engage in adjectival condemnation when faced with this sort of employee misconduct. We therefore hold that the arbitrator's award of reinstatement with back pay violates the public policy of this Commonwealth, and we thus affirm the Commonwealth Court's decision to vacate the award.
Order Affirmed.
Justice ORIE MELVIN did not participate in the decision of this case.
Justices SAYLOR and EAKIN and TODD join the opinion.
Justice SAYLOR files a concurring opinion.
Justice EAKIN files a concurring opinion.
Justice McCAFFERY files a concurring opinion in which Justice BAER joins.
I join the majority opinion on the limited issue on which this appeal was allowed. I write only to observe that the reasoning applied in the recent decisions in Ellwood City v. PLRB, 606 Pa. 356, 998 A.2d 589 (2010), and City of Philadelphia v. International Association of Firefighters, Local 22, 606 Pa. 447, 999 A.2d 555 (2010) ("IAFF"), indicates there are areas of managerial prerogative accorded to public employers which reside outside the permissible range of bargaining. See Ellwood City, 606 Pa. at 374, 998 A.2d at 599-600; IAFF, 606 Pa. at 471, 999 A.2d at 569-70. This suggests that such areas likewise may not be invaded by grievance arbitrators in applying the terms of collective bargaining agreements (since it would be unreasonable for arbitrators to interpret agreements to accord concessions which could not be made by a public employer in the first instance).
This sector of the law has been a difficult one for the courts, given the strong, competing policies in issue. Nevertheless, upon my review of Ellwood City, International Association of Firefighters, and the present decision, I find that the reasoning tends to circle back to constrain the permissible range of arbitrability relative to a public employer's ability to implement discipline supported by just cause, in a manner very similar to the previously disapproved core functions exception. This having been said, I recognize that the present appeal is not an appropriate vehicle for a more definitive treatment of such aspect of the managerial prerogative overlay, in light of the limited grant of allocatur.
Justice EAKIN, concurring.
I fully agree Mitchell's conduct was despicable, and sexual harassment in the workplace should not be tolerated, and that there is a clear public policy against workplace sexual harassment. That, however, is not the policy on which the case is decided. The majority posits a corollary to this policy, dictating that it is against public policy to reinstate with back pay a public employee who has egregiously sexually harassed a co-worker. I join the majority with the understanding the new public policy is limited to a public employer and egregious misconduct.
Just as with any form of repugnant behavior, there are gradations of misconduct, and the consequences that flow from such behavior must likewise have gradations commensurate with the conduct. Crimes such as assault are acts that are de facto against public policy — you cannot harass a coworker, and you are equally prohibited from punching them. But there are degrees of assault — a slap is not the same as a gunshot, though both qualify as assaults — and there are gradations of punishment that mirror the seriousness of the assault. Likewise, there are degrees of harassment, and there should be degrees of consequences as well. Where the harassment is by an employee paid by the public, the consequences of misconduct are presumptively greater. Where the harassment is, as here, egregious, the consequences must be greater.
However, while any workplace sexual harassment is against public policy, we cannot sanction a preemptive requirement of dismissal in all cases, no matter the level of misconduct. The majority does not attempt to address where the line is drawn for lesser harassment, or whether the same standards apply to non-public employers. Perhaps this is not the case in which to delineate standards and guidelines for arbitrators in keeping with this policy, but the same must at some point be offered. In the interim, I join the result of the majority.
Justice McCAFFERY, concurring.
The majority correctly states that this appeal fundamentally concerns the "proper application of the public policy exception to the essence test." Majority op. at 1121. Although I believe that the arbitration award here did not sufficiently consider the Commonwealth's strong public policy to prevent sexual harassment and thus requires revisiting, because I also believe that the majority failed to properly consider and apply the public policy exception in this case in several important respects, I must respectfully write separately.
My differences with the majority opinion's approach are several, and, respectfully, I find the majority's consideration of the public policy exception here to be troublingly unmoored from certain bedrock principles and, at the same time, lacking in sufficient consideration of the
It is axiomatic that public policy is a category of public concern that is "well defined and dominant[,] ... ascertained by reference to the laws and legal precedents
Weaver v. Harpster, 601 Pa. 488, 975 A.2d 555, 563 (2009).
The instant case implicates the public policy concern regarding sexual harassment, which is a form of sexual discrimination. See id. at 564-65 (citing Section 952 of the Pennsylvania Human Relations Act ("PHRA"), 43 P.S. § 952). Employment without fear of sexual discrimination is a public policy goal of this Commonwealth. Id. The PHRA "provides the administrative
On the federal level, Title VII of the Civil Rights Act makes it unlawful, among other things, for an employer to condone a sexually hostile work environment. 42 U.S.C. § 2000e-2(a)(1); Meritor Savings Bank v. Vinson, 477 U.S. 57, 106 S.Ct. 2399, 91 L.Ed.2d 49 (1986). In Meritor Savings Bank, the United States Supreme Court determined:
Id. at 67, 106 S.Ct. 2399 (quoting Henson v. Dundee, 682 F.2d 897, 902 (1982)).
The High Court also observed, however: "Of course, ... not all workplace conduct that may be described as `harassment' affects a `term, condition, or privilege' of employment within the meaning of Title VII.... For sexual harassment to be actionable, it must be sufficiently severe or pervasive to alter the conditions of the victim's employment and create an abusive working environment." Id. at 67, 106 S.Ct. 2399 (citations and some quotation marks omitted). Moreover, once a plaintiff pursuing a Title VII action shows the existence of a hostile working environment, the plaintiff must also establish the element of respondeat superior. Andrews v. City of Philadelphia, 895 F.2d 1469, 1486 (3d Cir. 1990). "[L]iability exists where the [employer] knew or should have known of the harassment and failed to take prompt remedial action." Id. (quoting Steele v. Offshore Shipbuilding, Inc., 867 F.2d 1311, 1316 (11th Cir.1989)). "Thus, if a plaintiff proves that management-level employees had actual or constructive knowledge about the existence of a sexually hostile environment and failed to take prompt and adequate remedial action, the employer will be liable." Id. Conversely, "when an employer's remedial response results in the cessation of the complained of conduct, liability must cease as well." Howard v. Winter, 446 F.3d 559, 567 (4th Cir.2006).
In this case, there can be no question that the arbitrator's findings of fact established that Ms. Broadnax was subject to a hostile work environment because of the actions of her co-employee, Thomas Mitchell. To this extent, I agree with the majority that the Commonwealth's public policy against sexual harassment was implicated by this case, a conclusion also reached by the arbitrator here as well.
However, the majority opinion asserts that intermixed with the Commonwealth's clear public policy of preventing sexual harassment is some co-existing public policy that requires a PERA arbitrator to defer to an employer's obligation to conduct a high-level investigation into allegations of sexual harassment and to recognize the employer's chosen form of discipline, including a belief that the employer should be "empowered to implement a zero tolerance policy," which an arbitrator may not thereafter "undermine." Majority op. at 1124, 1124-26, 1126-27, and 1128. Indeed, the majority states that "the record ... established that Mitchell sexually harassed his co-worker, by both word and deed, in direct violation of applicable state law, federal law
A violation of public policy is the only circumstance that allows a reviewing court, including this Court, to interfere with a PERA arbitration award that meets the essence test. Id. Further, the public policy exception is extremely narrow. Id.; see also id. at 868 (Saylor, J., concurring); Eichelman v. Nationwide Insurance Co., 551 Pa. 558, 711 A.2d 1006, 1008 (1998); and BLaST Intermediate Unit 17 v. CNA Insurance Cos., 544 Pa. 66, 674 A.2d 687, 689 (1996) (quoting Hall v. Amica Mutual Insurance Co., 538 Pa. 337, 648 A.2d 755, 760 (1994)) ("Only in the clearest cases, therefore, may a court make an alleged public policy the basis of judicial decision.").
Accordingly, considerations of an employer's subjective policies, even a zero-tolerance policy, what a reviewing court feels an employer "should" be able to do, or the employee's failure to take responsibility for his or her actions, do not in any manner constitute public policy and are thus not relevant to our inquiry. A reviewing court's only inquiry is whether the arbitration award, having met the essence test, violates a clearly established public policy. I respectfully, but strenuously, disagree with and oppose any view that judicial review of PERA arbitration awards may be based on upholding the employer's investigatory and disciplinary policies, unless those policies themselves unmistakably constitute a clearly established dominant public policy. The majority opinion does not support its conclusion that these internal employer policies do constitute a public policy that the arbitrator was required to recognize. Indeed, as even PHA acknowledges, there is no public policy that requires a sexual harasser to be fired in accordance with an employer's internal policy. Cf. Eastern Associated Coal Corp. v. United Mine Workers of America, District 17, 531 U.S. 57, 67, 121 S.Ct. 462, 148 L.Ed.2d 354 (2000) (holding that when neither the governing statute nor regulation requires the discharge of a worker violating transportation safety laws for drug use, the High Court will not infer a public policy that goes beyond the statutory and regulatory scheme). Moreover, here, PHA
Secondly, and of critical importance in my view, absent from the majority opinion is any serious discussion of the
Office of Attorney General v. Council 13, American Federation of State, County & Municipal Employees, AFL-CIO, 577 Pa. 257, 844 A.2d 1217, 1222 (2004) (footnote and case citations omitted; emphases added).
Final and binding arbitration is "highly valued" in labor relations; more critically, it is absolutely required for labor disputes arising under PERA. Westmoreland, supra at 862. Consequently, "broad judicial review" of final and binding arbitration awards under PERA has long been recognized as incompatible with that Act's purposes, and a standard of review "characterized by great deference" is mandated. Id. Indeed, under PERA, reviewing courts are not permitted to impose their "own brand of labor relations philosophy" and act as "superarbitrator[s]." State System of Higher Education (Cheyney University) v. State College and University Professional Association (PSEA-NEA), 560 Pa.135, 743 A.2d 405, 413 (1999). We have described the "heart" of PERA as the right of public employees to organize for purposes of collective bargaining, and the "lifeblood" of PERA as "the requirement that labor disputes arising under a collective bargaining agreement be resolved by final and binding arbitration." Westmoreland, supra at 861 (citing 43 P.S. §§ 1101.401 and 1101.903). "[F]requent judicial disapproval of the awards of [PERA] labor arbitrators would tend to
The majority opinion's determination not to address this co-existing public policy is undoubtedly the cause, I believe, for its extremely troubling open-ended review of the PERA arbitration award. As this case concerns the public policy exception to the essence test, a critical component to judicial review, untouched by the majority opinion, is defining how a reviewing court is to proceed once it is recognized that the public policy exception to the essence test is implicated. In other words, what standard and scope of review applies that will not only allow the reviewing court to explore the record to determine if, in fact, a public policy of this Commonwealth has been violated by the arbitrator's award, but will also respect the co-existing public policy against judicial interference — or at best, in very limited circumstances, minimal interference — in PERA arbitration awards, and respect the undeniable circumstance that
As this Court has adopted the federal essence test and the corresponding
Further, because of the overarching public policy encouraging quick, final, and binding resolution of labor disputes, in accordance with contracts negotiated by the employers and the employees' unions, the High Court determined that the focus regarding other public policy matters rests solely on whether the
I believe that the approach taken by the United States Supreme Court in the above trio of cases very closely reflects the philosophical foundation of our adoption in Westmoreland, supra, of a narrow federal public policy exception to the essence test,
Applying the above principles to the instant case, I would hold here that the fit between the arbitrator's factual findings, based on the evidence of record, and the arbitrator's actual award reflects such an alarming degree of disharmony as to justify the extremely rare recourse of judicial intrusion. Here, the arbitrator found that the employee's conduct was "lewd, lascivious, and extraordinarily perverse," based on factual findings that the employee had rubbed or "ground" his clothed genital area into a co-employee, inappropriately hugged this co-employee, and articulated his desire to engage in sexual acts with this co-employee. Arbitration Award, dated 7/12/04, at 33-34. However, the arbitrator also found that the employee had ceased such activity after being warned by a supervisor to do so. Based on the latter finding, the arbitrator reinstated the employee with back pay.
I agree with the majority opinion to the extent that the arbitration award, summarized above, exhibited such scant consideration for the important public policy goal of preventing sexual harassment in the workplace that it must be revisited.
I believe that under our precedents, as well as those of the United States Supreme Court, the above minimal analysis represents
The majority opinion, however, failing to articulate any scope or standard of review for when a PERA arbitration award purportedly violates public policy, appears to simply dive right into a de novo review of the record before the arbitrator, which
The above-cited examples from the majority opinion are, in my respectful opinion, completely incompatible with PERA and this Court's precedents. See, e.g., State System of Higher Education, supra at 413. Indeed, I believe that some of the above-cited excerpts are incompatible with general principles of appellate review in any normal case. However, the present matter is not a normal appellate case, as it is a review of a PERA arbitration award and thus, subject only to rare, limited, and deferential review. Thus, I cannot join the majority opinion's wholesale de novo review, which is both without foundation and
Additionally, without explicitly stating or providing any reasoning, the majority opinion has apparently determined that when a party contends that an arbitration award violates public policy, a reviewing court may, perhaps, examine the arbitration award to determine if the award is "reasonable." See majority op. at 1125
To the extent that this is the majority's position, I respectfully believe that a solid legal foundation must be made for what would appear to be a new standard in labor relations law.
Moreover, the majority opinion, in a footnote, asserts that United States Supreme Court decisions, some of which are directly cited to and relied upon by this Court in Westmoreland, are not relevant because they involve private employers under the National Labor Relations Act, while our case involves a public employer under PERA. Majority op. at 1125-26 n. 13. The majority states: "In the case of public employers, such as PHA, we may apply a less restrictive reading of the exception, and thus accord less deference to an arbitration award such as the inexplicable award at issue here." Id.
Respectfully, this assessment is made without any analysis, which is particularly troubling because it announces yet another shift in a standard of review adopted by our previous case law, without explaining how or why the previous standard is inadequate or unworkable. I see no reason for a change. The salient issue still remains, as the majority recognizes, whether the arbitration award here violated public policy. Unless grounded in specific law, public policy does not shift depending on whether the employer is private or public. Here, the public policy that is implicated is the prevention and discouragement of sexual harassment. Private employers are no more absolved of responsibility for activities that violate this public policy than are public employers, nor are private employees given freer rein than public employees in this area. The public policy is the same, whether public or private. I therefore cannot join this shift in our standard.
Finally, the majority opinion states at one point that "termination is not required under the circumstances here." Majority op. at 1124. However, an arbitrator would be hard pressed to come to any other conclusion after reading the majority opinion in its entirety. For example:
Id. at 1124-25.
Elsewhere, the majority writes: "[T]he arbitrator's decision to reinstate Mitchell undermined PHA's attempt to comply with its legal responsibilities to investigate and then provide a remedy." (id. at 1124); "The absurd award here makes a mockery of the dominant public policy against sexual harassment in the workplace, by rendering public employers powerless to take appropriate actions to vindicate a strong public policy. Such an irrational award undermines clear and dominant public policy." (id. at 1125); "Here, PHA did not attempt to supplant the parties' CBA without the union's consent [contrasting this case with a federal case]; instead, PHA applied the agreement's terms by discharging for "just cause" an employee who violated established policy." (Id. at 1127).
Again, these examples demonstrate that the majority opinion has conflated judicially defined "public policy" with what the majority subjectively believes an employer "should" be able to do under circumstances such as those present in this case; the latter is explicitly not public policy. Moreover, it should be axiomatic that a reviewing court lacks the power to determine whether the employer had "just cause" for terminating the employee. "Just cause" for termination is not a clearly established dominant public policy. It is a term found in the relevant collective bargaining agreement that the parties thereto have agreed would be, when an unresolved dispute arose, interpreted by an arbitrator, who would then
I believe that a resolution of the issue placed before this Court may be achieved in a manner that respects and adheres to the arbitration process as an instrument of public policy contemplated by PERA, and recognized by previous decisions of this Court. When a challenge is made that an arbitration award, which otherwise meets the essence test, violates a clear and dominant public policy of this Commonwealth, the court's review must proceed hand-in-glove with the overarching public policy of minimal interference with the arbitrator's role. PERA, and the parties through their collective bargaining process, have determined that
Initially, the court must determine what, precisely, is the public policy implicated. Based on statutory and other authority, the public policy implicated in this case is clearly the prevention of sexual harassment. Secondly, where, as in this case, the discrepancy between
Further, I believe that this approach to the issue mirrors the approach that this Court adopted when it finally settled on the essence test:
Westmoreland, supra at 863 (quotation marks and citations to State System of Higher Education, supra, and other authority omitted; emphases added).
Thus, I would hold narrowly here that the arbitration award made pursuant to PERA failed to sufficiently consider the Commonwealth's strong public policy to prevent sexual harassment, thus implicating the
Justice BAER joins the Concurring Opinion.