FINE, J.
¶ 1 Milwaukee District Council 48, American Federation of State, County and Municipal Employees appeals the final orders in consolidated Milwaukee County circuit-court cases that, respectively, vacated and refused to confirm an arbitration award determining that a reduction in work hours for members of District Council
¶ 2 This case arises out of the unilateral attempt by Milwaukee County Executive Scott Walker to save Milwaukee County money by reducing work-week hours of employees in "those departments under my direction" with the exception of those "working in direct patient care or correctional/detention staff."
¶ 3 The arbitration process was started by the filing of a grievance under the union's collective-bargaining contract with Milwaukee County. The grievance was submitted by David Eisner, who was the local union's president and who was on leave from his County employment. The parties agree that his work-week hours were not affected by the Walker order. The grievance is on a form prescribed by the collective-bargaining contract and indicates by hand-printing on lines asking for "Name of Grievant" and "Title of Grievant" that it was from "David Eisner, District Council 48, All Bargaining Unit Members." In that part of the form asking "What happened to cause your Grievance?," the hand-printed entry reads: "On or about 5-14-09, County Executive Scott Walker notified bargaining unit members that effective 6-28-09, he was temporarily reducing certain employee's [sic] workweek to 35 hours. This unilateral action by the county executive is in violation of the contract, county ordinances, civil service rules, the Municipal Employment Relations Act, and past practices." (Uppercasing omitted.) In a place on the form for "Signature of Grievant" are the handwritten names "David Eisner" and "Kurt Zwicker." None of the parties tell us in their appellate briefs who "Kurt Zwicker" is.
¶ 4 The Arbitrator found that under Walker's order "[a]bout 1,800 bargaining unit employees were slated to have their hours reduced," and that this would save "[a]n estimated $4.5 million" if the reduced-hours order was in effect "from June 28 to the beginning of 2010." None of the parties dispute this finding. The Arbitrator also found:
(Bolding omitted.) None of the parties dispute these findings either. The Arbitrator recognized that the collective-bargaining contract did not guarantee a "40-hour work week," but also did "not expressly address whether the County is free
¶ 5 The 2004 Malamud Award upheld a proposed, but not implemented, "temporary" reduction of work-week hours from forty to thirty-five, assuming, "without deciding, that four weeks is a temporary period." The Malamud Award, however, did not decide how long the reduction would have to last to no longer be "temporary" because both the Union and the County requested that it not do so. The Malamud Award noted, though, that the County could not "unilaterally and permanently reduce the hours of full time employees."
¶ 6 The substantive issue in the current arbitration was whether the reduction in work-week hours imposed by Walker's order was "temporary" or "permanent." In attempting to discern from the collective-bargaining contract the outer boundaries of "temporary," the Arbitrator looked to sections 1.05 and 2.11(1) in the collective-bargaining contract. Section 1.05, the "Management Rights" provision (uppercasing omitted), permits the County to use "[t]emporary help agency employees" to do work that "has historically been performed by the members of the bargaining unit" but not "for more than 45 days." Section 2.11(1) permits employees to be "assigned to perform duties of a higher classification for which they are qualified for a period not in excess of 45 days." In light of these provisions, the Arbitrator wrote:
(Parenthetical record references and names of budget officials omitted.) Thus, the Arbitrator concluded that "[t]he situation here therefore is markedly different from the one before Arbitrator Malamud which involved a possible 4 weeks reduction in hours which, in fact, never took place." The Arbitrator then turned to whether the "permanent" reduction in work-week hours, that is, one "slated to greatly exceed 45 days," was permitted under the collective-bargaining contract. As we have seen, the Arbitrator determined that such a "permanent" reduction in work-week hours was not permitted. He reasoned, in essence, as follows:
As noted, the circuit court vacated the Award.
¶ 7 Arbitration in Wisconsin is governed by WIS. STAT. ch. 788, The Wisconsin Arbitration Act, § 788.17. Section 788.10(1) governs the limited scope of a court's review of an arbitration award:
Chapter 788 applies to contracts to arbitrate that were made on or after June 19, 1931. WIS. STAT. § 788.18. Limited judicial oversight of arbitration awards was also the pre-Act law. See Koepke v. E. Liethen Grain Co., 205 Wis. 75, 77-78, 236 N.W. 544, 545 (1931) ("Contentions such as that the arbitrators misconceived the real issue as to responsibility for an item of damage, or that they failed to duly regard the technical legal requirements as to satisfying the burden of proof, or otherwise decided an issue contrary to law or the technically relevant or competent evidence, do not warrant vacating their award.").
¶ 8 In assessing appeals challenging an arbitration award, we review the award and not the circuit court's decision. Wisconsin Dep't of Employment Relations v. Wisconsin State Bldg. Trades
(Quoted sources and citations omitted, except for statute, and emphasis in original.) Unlike reviewing a decision by a court lower in the judicial hierarchy, a court may not overturn an arbitration award because the arbitrator made an error of law unless the award shows "a manifest disregard of the law." City of Madison v. Madison Professional Police Officers Ass'n, 144 Wis.2d 576, 586, 425 N.W.2d 8, 11 (1988). Manifest disregard of the law does not, as Milwaukee County and Walker seem to contend, mean "wrong"; it means that the arbitrator or arbitration panel "`understood and correctly stated the law but ignored it.'" Lukowski v. Dankert, 184 Wis.2d 142, 149, 515 N.W.2d 883, 885 (1994) (quoted source omitted). Thus, "[b]ecause arbitration is what the parties have contracted for, the parties get the arbitrator's award, whether that award is correct or incorrect as a matter of fact or of law." City of Madison, 144 Wis.2d at 586, 425 N.W.2d at 11. Stated another way, when parties agree to arbitrate the potential disputes between them, they contract for the arbitrator's resolution and not that of a judicial tribunal, whether at the circuit-court or appellate level, even though the arbitrator's resolution and rationale is seen by a court as wrong, as long as the arbitrator draws the essence of the award from the parties' contract.
¶ 9 Milwaukee County, and Walker (by adopting the County's brief on the jurisdictional issue), contend that the grievance submitted by Eisner could not trigger the arbitration because the collective-bargaining contract in section 4.02 requires that the person submitting the grievance be personally aggrieved, and, as we have seen, Eisner was not subject to Walker's order. Specifically, the County points to the provision in the collective-bargaining contract where it "recognizes the right of the employee to file a grievance," and that what the contract calls "Guidelines To Be Followed When Initiating A Written Grievance" provides that "[t]he employee alone or with his/her Union Representative shall" set out the nature of the grievance, including the basis and relief requested. The County also points to a 1975 "Umpire's Ruling" (uppercasing omitted) where the Umpire (a position analogous to that of the Arbitrator here) determined that a union steward did not have the right to initiate a grievance in connection with the classification of some Milwaukee County workers because the steward was "not actually aggrieved himself." The County contends that the arbitrator here was bound by the 1975 ruling under issue-preclusion principles. The circuit court agreed with these contentions. We do not.
¶ 10 The Arbitrator determined that it was "immaterial that Eisner, who signed the grievance, will not personally suffer a reduction in hours since he also filed it on behalf of `all bargaining unit members' who are affected by the reduction in hours." Although issue-preclusion principles can apply to Arbitration awards, there are requisites that are not satisfied here:
Dane County v. Dane County Union Local 65, AFSCME, AFL-CIO, 210 Wis.2d 267, 279-280, 565 N.W.2d 540, 545 (Ct.App. 1997). First, there is no indication in the 1975 Ruling that the steward's grievance specifically asserted, as does the grievance here, that it was submitted on behalf of the
Thus, the 1975 grievance clause focused on "a claim or dispute by an employee or group of employees" while the clause in the current collective-bargaining contract focuses on "matters involving the interpretation, application or enforcement of the terms of this Agreement." Under Dane County's teaching, the Arbitrator here was not bound by the 1975 Umpire's Report.
¶ 11 Further, the collective-bargaining contract itself makes the Arbitrator the final word on whether there is arbitration jurisdiction under the collective-bargaining contract. It provides: "If a dispute arises as to whether the issues referred to the permanent arbitrator is [sic] within his/her jurisdiction, the permanent arbitrator will have the authority to resolve that issue." This is a significant grant of authority to the Arbitrator by the collective-bargaining contract because it trumps the general rule on which the County relies, namely that "[t]he issue of an arbitrator's authority to arbitrate a specific dispute often involves a question of law which is appropriately decided by a court de novo, with no deference owed the arbitrator's conclusion regarding his or her own authority." Wisconsin Dep't of Employment Relations, 2003 WI App 178, ¶ 19, 266 Wis.2d at 524, 669 N.W.2d at 505 (emphasis added). "Often," however, does not mean invariably: "The question whether the parties have submitted a particular dispute to arbitration, i.e., the `question of arbitrability,' is `an issue for judicial determination [u]nless the parties clearly and unmistakably provide otherwise.'" Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79, 83, 123 S.Ct. 588, 154 L.Ed.2d 491 (2002) (emphasis by Howsam, quoted source omitted).
¶ 12 As we have seen, whether a court agrees or disagrees with an arbitrator's legal analysis, an award based on that analysis will be upheld unless it is an outlier as described by Racine County: "An arbitrator exceeds his or her powers when the arbitrator demonstrates either perverse misconstruction or positive misconduct, when the arbitrator manifestly disregards the law, when the award is illegal, or when the award violates a strong public policy." Id., 2008 WI 70, ¶ 11, 310 Wis.2d at 519, 751 N.W.2d at 317 (quoted source omitted). Thus, as we have also already noted, an error of law will not vitiate an arbitration award that draws its essence from the parties' contract. See City of Madison, 144 Wis.2d at 586, 425 N.W.2d at 11. Neither Milwaukee County nor Walker asserts that the Arbitrator engaged in "positive misconduct." As discussed below, we cannot say that the Arbitrator's analysis of the interplay between WIS. STAT. §§ 59.17(2) & 59.17(2)(a) and section 17.28 of the Milwaukee County General Ordinances so as to trump the management-rights provision of the collective-bargaining contract, section 1.05, "manifestly disregard[ed] the law."
¶ 13 In disputing the Arbitrator's legal analysis on the interplay between WIS. STAT. §§ 59.17(2) & 59.17(2)(a) and section 17.28 of the Milwaukee County General Ordinances and its effect on section 1.05 of the collective-bargaining contract, Milwaukee County and Walker argue that section 17.28's phrase "increase or decrease in ... employe [sic] hours in a given classification" does not mean, as the County writes in its appellate brief, a reduction in "the hours of work assigned to incumbents in positions in classifications," but rather refers "to a classification that is staffed on an hourly basis by an indeterminate number of hourly employees based on departmental needs rather than a fixed number of full-time positions." Thus, the County argues, "Walker's executive order did not increase o[r] decrease the authorized number of employe [sic] hours in a classification established by the budget." (Emphasis in original.) The County points to as support for its interpretation of the ordinance the sentence that precedes the sentence on which the Arbitrator relied, and we quote the pertinent sentences in full:
Walker's brief joins the County's contention and, in addition, seeks to support Walker's May 14, 2009, order by pointing to WIS. STAT. § 59.60, which prevents counties and county officers from incurring obligations for which there are not sufficient funds.
¶ 14 Insofar as whether the Award violates "a strong public policy," see Racine County, 2008 WI 70, ¶ 11, 310 Wis.2d at 519, 751 N.W.2d at 317, the Award does not run afoul of that exception to the invulnerability of arbitration awards because reasonable persons might disagree whether Walker's order was the appropriate way of making up a budget shortfall, especially in light of the fact that the Milwaukee County Board of Supervisors has not passed the resolution that the Arbitrator determined would permit Walker to do what he did. This is clear from the supreme court's analysis earlier this year of an arbitration award's public-policy implications:
Sands v. Menard, Inc., 2010 WI 96, ¶ 50, 328 Wis.2d 647, 787 N.W.2d 384, 397 (quoted source omitted). Sands overturned that aspect of an arbitration award that forced a lawyer on a reluctant client because the attorney-client "relationship was irretrievably broken" and if the lawyer accepted the award's remedy of reinstatement she "would be forced to violate her ethical obligations as an attorney." Id., 2010 WI 96, ¶¶ 2, 49, 57, 70, 328 Wis.2d at 652, 672, 676, 681, 787 N.W.2d at 387, 397, 399, 401. Significantly, even in Sands, three justices would have upheld the arbitration award in light of the general invulnerability of such awards. Id., 2010 WI 96, ¶ 112, 328 Wis.2d at 699-700, 787
¶ 15 Under the governing standards that circumscribe our review of arbitration awards, the Award here must be confirmed. See WIS. STAT. § 788.09 (On a timely application, a court "must" enter an "order confirming the award" "unless the award is vacated, modified, or corrected under s. 788.10 or 788.11."). Accordingly, we remand this matter to the circuit court with directions that it confirm the Award. See WIS. STAT. § 808.09.
Orders reversed and cause remanded with directions.