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Walter E. Headley, Jr. v. City of Miami, Florida Corrected Opinion

Citation: Not availableDocket: SC13-1882

Court: Supreme Court of Florida; March 23, 2017; Florida; State Supreme Court

Original Court Document: View Document

Narrative Opinion Summary

The Supreme Court of Florida reviewed a conflict between district court rulings concerning a local government's ability to modify a collective bargaining agreement (CBA) under financial urgency. The case involved the Miami Lodge No. 20, Fraternal Order of Police, and the City of Miami. The City, citing a financial urgency, unilaterally altered the CBA affecting wages and pensions without completing the impasse resolution process. The Union filed an unfair labor practice charge, arguing that the City's actions violated collective bargaining rights. The Public Employees Relations Commission (PERC) ruled that the City acted within its rights under section 447.4095, permitting modifications after notifying and negotiating with the Union. The First District upheld PERC's interpretation, while the Fourth District disagreed, emphasizing the need for exhausting all funding alternatives before altering the CBA. The Supreme Court quashed the First District's decision, reinforcing that collective bargaining rights are protected under the Florida Constitution and require a compelling state interest for any impairment. The case was remanded for further proceedings consistent with this interpretation, stressing the importance of adhering to statutory procedures and protecting contractual obligations.

Legal Issues Addressed

Impact Bargaining versus Financial Urgency Bargaining

Application: The distinction between impact bargaining and financial urgency bargaining was highlighted, with the former concerning management decisions affecting employees' terms outside the CBA.

Reasoning: The distinction between impact bargaining and financial urgency bargaining is crucial; the former addresses management decisions outside the agreement affecting it, while the latter seeks to modify the terms of the agreement itself.

Interpretation of Financial Urgency under Section 447.4095

Application: PERC defined financial urgency as a condition needing immediate action, distinct from financial emergency, allowing modifications after notifying and negotiating with the Union.

Reasoning: PERC defined 'financial urgency' as a condition necessitating immediate action to modify an agreement, distinct from a financial emergency or bankruptcy.

Modification of Collective Bargaining Agreement under Financial Urgency

Application: The City of Miami declared a financial urgency to unilaterally alter the CBA without completing the impasse resolution process.

Reasoning: On July 28, 2010, the City declared a financial urgency and intended to unilaterally change the CBA, affecting wages and pension benefits.

Strict Scrutiny and Collective Bargaining Rights

Application: The court emphasized that unilateral modifications require proof of a compelling state interest and exhaustion of alternatives, protecting collective bargaining rights.

Reasoning: The right to bargain collectively is recognized as a fundamental right under the state's constitution and can only be limited by demonstrating a compelling state interest.

Unfair Labor Practice Charge

Application: The Union filed an unfair labor practice charge claiming improper alteration of the CBA without following mandated procedures.

Reasoning: The Union filed an unfair labor practice (ULP) charge with the Public Employees Relations Commission (PERC), claiming the City improperly altered the CBA without completing the mandated resolution process.