International Brotherhood of Electrical Workers, Local 1245 and Department of Energy, Western Area Power Administration (Authority decision, March 25, 1988)

Final FLRA decision. The Authority finds both union insurance proposals outside the agency's duty to bargain and dismisses the negotiability petition. An aggrieved person may seek judicial review by filing a petition in an appropriate United States court of appeals within 60 days after issuance under 5 U.S.C. § 7123(a).

Plain-English summary

IBEW Local 1245 proposed that the Western Area Power Administration pay for accidental death and dismemberment coverage and fully fund medical insurance or supplemental medical coverage for employees. The Authority found that federal statutes already govern these insurance benefits and allocate premium costs between employees and the government. The union's proposals would make the coverage free to employees, contrary to those statutes. The Authority found both proposals outside the duty to bargain and dismissed the petition.

Decision snapshot

• Authority: 5 U.S.C. §§ 7103(a)(14), 7117(a)(1), 8707, and 8906.
• Outcome: Both insurance proposals nonnegotiable; petition dismissed.
• Key point: The proposed full agency payment conflicted with federal insurance premium rules.

Full text (FLRA public release)

[ v31 p1002 ]
31:1002(80)NG

The decision of the Authority follows:

31 FLRA NO. 80

INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS, AFL-CIO
LOCAL 1245

Union

and

DEPARTMENT OF ENERGY
WESTERN AREA POWER
ADMINISTRATION

Agency

Case No. 0-NG-1465

DECISION AND ORDER ON NEGOTIABILITY ISSUES

I. Statement of the Case

This case is before the Authority because of a negotiability appeal filed under section 7105(a)(2)(E) of the Federal Service labor - Management Relations Statute (the Statute) and concerns the negotiability of two proposals which would require the Agency to provide, free of cost to employees: (1) an accidental death and dismemberment policy and (2) a medical insurance plan or supplemental medical policy. We find both proposals to be nonnegotiable because they do not concern &conditions of employment* within the meaning of section 7103(a)(14) of the Statute and also because they conflict with applicable law.

II. Proposals

Proposal I

To provide for a $100,000 accidental death and dismemberment policy, the premium to be paid for by Western Area Power Administration.

Proposal 2

To provide for Western to pay 100 percent of medical premium. (If illegal, propose a supplemental medical plan.)

A. Positions of the Parties

The Agency contends that the proposals are nonnegotiable because they concern matters specifically provided for by Federal law. Therefore the proposals do not concern "conditions of employment" as defined in section 7103(a) (14) of the Statute.

The Union did not file a response to the Agency's statement of position, but asserted in its petition for review that the proposals concern terms and conditions of employment of bargaining unit employees.

B. Analysis and Conclusion

Section 7103(a)(12) of the Statute, requires agencies and exclusive representatives to consult and bargain in good faith "with respect to the conditions of employment" affecting bargaining unit employees. "Conditions of employment" is defined in section 7103(a)(14) as "personnel policies, practices, and matters . . . affecting working conditions(.)" Excluded from the definition, among other matters, are those personnel policies and matters "to the extent such matters are specifically provided for by Federal statute (.)" Furthermore, under section 7117 (a), matters which are inconsistent with law or Government-wide rule or regulation are excluded from the scope of bargaining.

The disputed proposals would provide, free of cost, accidental death and dismemberment insurance to unit employees and would also provide the employees with free medical insurance or, alternatively, with cost-free supplemental medical insurance. Life insurance, including accidental death and dismemberment coverage, is covered by 5 U.S.C. 8701-16. The Union does not contend, nor is there any other basis for concluding, that the employees in the unit are not covered by these sections. Compare, American Federation of Government Employees, AFL - CIO, Local 1897 and Department of the Air Force Eglin Air Force Base, Florida, 24 FLRA 377 (1986) (Chairman Calhoun dissenting) (the payment of health insurance premiums for employees of a nonappropriated fund activity was held to be negotiable because the employees were not covered by laws relating to health insurance and retirement).

5 U.S.C. 8707(a) requires that a share of the premium of an insured employee's group life and accidental death and dismemberment policy be withheld from the employee's pay. 5 U.S.C. 8707 provides that the Government will contribute a sum equal to one-half the amount withheld from an insured employee's pay toward the payment of the employee's group life and accidental death and dismemberment premium. These two sections, taken together, require that both employees and their agencies share in paying the premiums for group life and accidental death and dismemberment policies. Additionally, 5 U.S.C. 8714a and b require that the cost of any optional life and accidental dismemberment insurance made available by the Office of Personnel Management, the administrator of the program, be borne exclusively by employees who select such coverage. Consequently, the first proposal not only concerns a matter--accidental death and dismemberment insurance--provided for by law but also, by establishing the amount of insurance and providing it will be cost-free to employees, is inconsistent with the applicable law. Accordingly, we find proposal I to be nonnegotiable, because it fails to meet the definition of "conditions of employment" under section 7103(a)(14) of the Statute and because its conflict with applicable law precludes bargaining under section 7117(a)(1).

Similarly, Proposal 2 concerns a matter provided for by law. 5 U.S.C. 8901-13 cover Federal employees' health insurance. 5 U.S.C. 8906 provides that the Government's contribution for employee health benefits shall not exceed 60 percent of the average premium for selected health insurance plans or 75 percent of an individual's premium. Proposal 2, therefore, addresses a matter provided for by law and, by requiring that health insurance in some form be furnished without cost to employees, is in direct conflict with the applicable law. Accordingly Proposal 2 is also nonnegotiable under sections 7103(a)(14) and 7117(a)(1) of the Statute. See Fort Stewart (Georgia) Association of Educators and Fort Stewart Schools, 28 FLRA 547, 555 (1987) (Chairman Calhoun concurring in relevant part), petition for review filed sub nom. Fort Stewart Schools v. FLRA, No. 87-8734 (11th Cir. Sept. 22, 1987).

Therefore, for the reasons stated, we find both of the disputed proposals to be outside the duty to bargain.

III. Order

The petition for review is dismissed.

Issued, Washington, D.C. March 25, 1988.

Jerry L. Calhoun, Chairman

Jean McKee, Member

FEDERAL LABOR RELATIONS AUTHORITY