Fish And Wildlife Officers Guild, Resp. v. Wa State Dept. Of Fish And Wildlife, Apps. ( 2015 )


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  •            IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
    DIVISION ONE
    FISH AND WILDLIFE OFFICERS'                       No. 72104-6-
    GUILD,
    Respondent,
    v.                              PUBLISHED OPINION
    WASHINGTON DEPARTMENT OF
    FISH AND WILDLIFE,
    Appellant.                FILED: December 7, 2015
    Schindler, J. — The right of state employees to collective bargaining is
    governed by statute. The Personnel System Reform Act of 2002 (PSRA), chapter 41.80
    RCW, requires exclusive bargaining representatives of bargaining units with fewer than
    500 employees to negotiate a master collective bargaining agreement (CBA) as a
    coalition. The PSRA requires the representatives for all bargaining units to bargain as a
    coalition for health care benefits. The PSRA sets forth the rules for certification of an
    employee organization as the exclusive bargaining representative for the employees of
    a bargaining unit. If a master CBA is in effect when an employee organization of fewer
    than 500 employees is certified, that agreement shall apply and "[n]othing in this section
    requires the parties to engage in new negotiations during the term of that agreement."1
    1 RCW41.80.080(2)(a)
    No. 72104-6-1/2
    The Fish and Wildlife Officers' Guild (FWOG) filed an unfair labor practice complaint
    asserting the state of Washington (State) refused to bargain wages and health care
    benefits. The Public Employment Relations Commission (PERC) concluded that when
    it certified FWOG as the exclusive bargaining representative of approximately 94
    employees, the coalition master CBA for the 2011-2013 biennium was in effect and
    applied. PERC ruled the State did not alter the status quo or commit an unfair labor
    practice by refusing to engage in collective bargaining with FWOG and negotiate a new
    agreement on wages and health care benefits. The superior court reversed the PERC
    decision. The Washington Department of Fish and Wildlife appeals the superior court
    order. FWOG contends PERC erroneously interpreted and applied the PSRA. We
    reverse the superior court and affirm the PERC decision.
    FACTS
    The facts are undisputed. The Washington Federation of State Employees,
    AFSCME,2 Council 28, AFL-CIO3 (WFSE), represented a number of bargaining units
    including the Washington Department of Fish and Wildlife enforcement officers,
    bargaining unit RU-538. The master collective bargaining agreement (CBA) between
    WFSE and the state of Washington (State) for the 2009-2011 biennium expired on June
    30,2011.
    During 2010 and early 2011, WFSE and the State negotiated a successor master
    CBA for the next biennium, July 1, 2011 through June 30, 2013. On December 14,
    2010, WFSE and the State tentatively agreed to a three percent salary reduction for all
    bargaining unit employees effective July 1, 2011.
    2 American Federation of State, County, and Municipal Employees.
    3 American Federation of Labor-Congress of Industrial Organizations.
    No. 72104-6-1/3
    On January 5, 2011, the State and the coalition of bargaining units with fewer
    than 500 employees agreed to a master CBA that included a three percent salary
    reduction for the 2011-2013 biennium effective July 2, 2011.
    The State also negotiated an agreement with a coalition of all exclusive
    bargaining representatives (Health Care Coalition) to reduce the health care
    contributions paid by the State. On December 2, 2010, the State and the Health Care
    Coalition agreed to a reduction in the amount the State contributed for health care
    premiums from 88 percent to 85 percent effective January 1, 2012.
    WFSE scheduled meetings with bargaining unit employees on the tentative
    master CBA. WFSE posted the tentative master CBA on its website with a description
    of the three percent wage reduction and the change in health care contributions agreed
    to by the Health Care Coalition. On January 24, 2011, WFSE mailed ballots to
    members. On February 17, 2011, WFSE announced the bargaining unit members
    voted to ratify the 2011-2013 master CBA that included a three percent reduction in
    wages and a reduction in health care benefits.4
    On March 4, 2011, the Fish and Wildlife Officers' Guild (FWOG) filed a petition
    with the Public Employment Relations Commission (PERC) to represent approximately
    94 "full time and regular part time employees in the Enforcement Program" of the
    Washington Department of Fish and Wildlife. PERC scheduled a unit determination
    hearing for June 7, 2011.
    On May 25, the legislature approved the 2011-2013 WFSE master CBA and the
    2011-2013 coalition master CBA reducing the wages paid by three percent.
    Engrossed Second Substitute H.B. 1087, 62nd Leg., 1st Spec. Sess. (Wash. 2011).
    4 The master coalition also ratified the 2011-2013 CBA.
    No. 72104-6-1/4
    The legislature also approved the Health Care Coalition agreement reducing the
    amount the State contributed to employee health care premiums from 88 percent to 85
    percent effective January 1, 2012. Engrossed Second Substitute H.B. 1087, 62nd
    Leg., 1st Spec. Sess. (Wash. 2011).
    That same day, on May 25, the legislature adopted Engrossed Substitute Senate
    Bill (ESSB) 5860 declaring an emergency and reducing the base salaries for the 2011-
    2013 biennium for all executive, legislative, and judicial branch State employees by
    three percent. ESSB 5860, 62nd Leg., 1st Spec. Sess. (Wash. 2011).
    On June 24, PERC issued an "Interim Certification" of FWOG as the exclusive
    bargaining representative for a bargaining unit of approximately 94 Fish and Wildlife
    officers.
    On June 28, FWOG sent a letter to the director of the Financial Management
    Labor Relations Office (LRO Director) "to verify that the employer understands the need
    to maintain the status quo throughout this period and up until the State reaches a
    Collective Bargaining Agreement with the Guild." FWOG asserts the WFSE master
    CBA that the Fish and Wildlife officers previously agreed to and ratified did not apply
    after WFSE disclaimed representation on June 6, 2011. FWOG demanded collective
    bargaining on "a new labor agreement" on wages and benefits.
    In response, the LRO Director states that because the coalition master CBA was
    in effect for the 2011-2013 biennium when the bargaining unit was certified, that
    agreement applied to bargaining unit employees.
    There is a current collective bargaining agreement in place for the
    Coalition of Unions, which I've attached for your reference. Article 1.2 of
    that master agreement provides:
    No. 72104-6-1/5
    Ifthe Public Employment Relations Commission certifies a new
    bargaining unit in general government during the term of this
    Agreement and the exclusive bargaining representative represents
    fewer than a total of five hundred (500) employees, the terms of this
    Agreement will apply. The Employer agrees to enter into
    negotiations regarding mandatory subjects with the newly added
    group to discuss any bargaining unit specific concerns which are
    not addressed in this Agreement.
    You raise the issue of the 3% compensation reduction. The master
    collective bargaining agreement in place for the 2011-2013 Coalition of
    Unions agreement provides for a 3% reduction in pay and offsetting
    temporary salary reduction leave. The compensation reduction contained
    in the master agreement has been approved and funded by the
    legislature. The same is true for the 2011-2013 Washington Federation of
    State Employees (WFSE) master agreement.
    The LRO Director states that under the PSRA, the employer did not have "the
    ability to bargain over legislatively imposed pay reductions, nor does it have the ability
    to bargain a new agreement between the State and the Guild" for the 2011-2013
    biennium. However, the LRO Director agreed that under the PSRA, the State would
    negotiate "subjects that are unique to [Fish and Wildlife officers] that are not addressed
    in the Coalition agreement."5
    RCW 41.80.020(2)(a) establishes that unions with fewer than 500
    employees shall negotiate with the State for one master collective
    bargaining agreement, which covers all such unions. The statute further
    provides that the Governor's designee and the exclusive representative or
    representatives are authorized to enter into supplemental bargaining of
    agency-specific issues for inclusion in, or as an addendum to, the master
    collective bargaining agreement, subject to the parties' agreement
    regarding the issues and procedures for supplemental bargaining.
    5 The LRO Director also noted the legislature adopted ESSB 5860 declaring an emergency and
    directing a "3% cut" in wages. The letter states, in pertinent part:
    RCW 41.80.040 prohibits bargaining over actions deemed "necessary to carry out the
    mission of the state and its agencies during [an] emergency]." And, of course, pursuant
    to RCW 41.80.020 (6), the terms of a collective bargaining agreement may not conflict
    with a statute.
    (Alterations in original.)
    No. 72104-6-1/6
    On July 1, 2011, the State implemented the three percent wage reduction
    according to the terms of the master CBAs, the coalition master CBA, and ESSB 5860
    for all State employees. The reduction in the amount the State contributed to health
    care premiums was scheduled to take effect on January 1, 2012.
    On November 9, 2011, FWOG filed an unfair labor practice complaint with
    PERC. The complaint alleged the State interfered with employee rights by refusing to
    engage in collective bargaining with FWOG and unilaterally reducing wages and health
    care benefits.6
    FWOG and the State entered into a joint stipulation of facts. FWOG and the
    State filed cross-motions for summary judgment on whether the State committed an
    unfair labor practice by refusing to engage in collective bargaining with FWOG on
    wages and health care benefits. The PERC hearing examiner granted the State's
    motion for summary judgment. The decision states that "under RCW 41.80.010(2)(a),
    upon certification, the union became a party to the coalition collective bargaining
    agreement and was not entitled to bargain a separate agreement on wages and health
    benefits." The hearing examiner ruled as a matter of law, the State "did not unilaterally
    change wages or health benefits or breach its good faith bargaining obligations over
    wages and health benefits." FWOG appealed the hearing examiner decision.
    PERC affirmed the decision of the hearing examiner. Decision 11394-B - PSRA,
    No. 24387-U-11-6249 (Wash. Pub. Emp't Relations Comm'n Sept. 5, 2013). PERC
    rejected the argument that the hearing examiner decision violated the status quo
    principles under the Public Employees' Collective Bargaining Act (PECBA), chapter
    6 FWOG also alleged the State changed paid release time and insisted to impasse on ground
    rules. The superior court affirmed the PERC decision to dismiss these allegations. Neither the State nor
    FWOG appeal dismissal of these allegations.
    No. 72104-6-1/7
    41.56 RCW. PERC concluded "the unique features of Chapter 41.80 RCW" dictate "a
    different result."
    In essence, the union requests that the status quo principles applicable
    under Chapter 41.56 RCW apply to Chapter 41.80 RCW. The status quo
    under Chapter 41.56 RCW would have been the collective bargaining
    agreement negotiated between the employer and the WFSE and that
    status quo would have continued until the employer and the union
    negotiated a new agreement. However, the unique features of Chapter
    41.80 RCW require a different result.
    PERC decided that after certifying FWOG as the exclusive bargaining
    representative of approximately 94 Fish and Wildlife officers, the coalition master CBA
    established the status quo, and FWOG was not entitled to negotiate a new master CBA
    on wages or health care benefits. The PERC decision states, in pertinent part:
    The bargaining unit employees were covered by the WFSE master
    agreement at the time the union filed its petition. During the pendency of
    the representation petition, the status quo wages, hours, and other terms
    and conditions of employment were set by the WFSE master agreement.
    The employer was obligated to maintain the status quo until the union was
    certified as the exclusive bargaining representative. Once the union was
    certified as the exclusive bargaining representative, the WFSE master
    agreement no longer applied because the union represented fewer than
    500 employees.
    The union was not entitled to negotiate a separate master collective
    bargaining agreement. Ifthe employees had chosen to join a union that
    represented more than 500 employees, upon ratification, the employees
    would have been covered by that master collective bargaining agreement.
    RCW 41.80.010(2)(a) and 41.80.080(2)(a). In this case, the employees
    chose to be represented by a union that represented fewer than 500
    employees. When the union was certified, the coalition collective
    bargaining agreement was in effect and became the status quo. Thus, the
    employees were covered by the coalition agreement and will be required
    to bargain successor agreements as part of the coalition.
    PERC affirmed the dismissal of the allegation that the State violated RCW
    41.80.110 by refusing to bargain with FWOG on wages and health care benefits. The
    No. 72104-6-1/8
    PERC decision states, in pertinent part:
    The union did not represent more than 500 employees and was required
    to bargain as part of the coalition. The union was not entitled to negotiate
    a separate master collective bargaining agreement or agreement on
    health benefits. Upon certification, the status quo for employee wages,
    hours, and terms and conditions of employment became the coalition
    collective bargaining agreement. The employer did not unilaterally change
    the status quo on wages, health benefits, or paid release time. The
    employer did not insist to impasse upon ground rules.
    FWOG filed an appeal of the PERC decision in superior court. The court
    reversed the PERC decision that the State did not commit an unfair labor practice. The
    court concluded PERC erred in concluding the coalition master CBA applied. The court
    ruled that under general contract principles, the State had a duty to engage in collective
    bargaining with FWOG on wages and health care benefits. The State appeals.
    ANALYSIS
    The State argues the superior court erred in reversing the PERC decision.
    FWOG contends PERC erroneously interpreted the PSRA in concluding the State did
    not commit an unfair labor practice.
    In reviewing an agency decision, we sit in the same position as the superior court
    and apply the standards of the Administrative Procedure Act, chapter 34.05 RCW.
    Pasco Police Officers' Ass'n v. City of Pasco, 
    132 Wash. 2d 450
    , 458, 
    938 P.2d 827
    (1997). Accordingly, our review is limited to the record of the administrative tribunal and
    the PERC decision, not the decision of the hearing examiner. City of Vancouver v. Pub.
    Emp't Relations Comm'n, 
    107 Wash. App. 694
    , 703, 
    33 P.3d 74
    (2001).
    A reviewing court may grant relief only ifthe party challenging the agency
    decision shows that the order is invalid for one of the reasons set forth at RCW
    34.05.570(3). Yakima Police Patrolmen's Ass'n v. City of Yakima, 
    153 Wash. App. 541
    ,
    8
    No. 72104-6-1/9
    553, 
    222 P.3d 1217
    (2009). RCW 34.05.570(3)(d) requires relief from the agency order
    when the decision is based on an erroneous interpretation or application of the law.
    We review an agency order granting summary judgment de novo. Quadrant
    Corp. v. Am. States Ins. Co., 154Wn.2d 165, 171, 
    110 P.3d 733
    (2005). Unchallenged
    and stipulated facts are verities on appeal. Fuller v. Dep't of Emp't Sec, 
    52 Wash. App. 603
    , 605, 
    762 P.2d 367
    (1988).
    The State argues the right of State employees to engage in collective bargaining
    is governed by statute, and the specific and unique provisions of the PSRA control. The
    State asserts that under the statutory provision for negotiation and ratification of a
    master CBA, RCW 41.80.010(2)(a); and the statute that sets forth the rules following
    certification of an employee organization as a new bargaining representative, RCW
    41.80.080(2)(a); the State did not commit an unfair labor practice by refusing to engage
    in collective bargaining with FWOG on wages and health care benefits for the 2011-
    2013 biennium. FWOG contends that under the plain language of the PSRA, the State
    committed an unfair labor practice by refusing to bargain and by interfering with the
    employees' right to negotiate a new CBA.
    Interpretation or application of the law by an agency is reviewed de novo. Pasco
    
    Police, 132 Wash. 2d at 458
    . Our objective is to ascertain and give effect to legislative
    intent. Dep't of Ecology v. Campbell & Gwinn, LLC, 
    146 Wash. 2d 1
    , 9, 
    43 P.3d 4
    (2002).
    Statutory interpretation begins with the plain meaning of the statute. Lake v.
    Woodcreek Homeowners Ass'n, 
    169 Wash. 2d 516
    , 526, 
    243 P.3d 1283
    (2010). The
    "plain meaning" of a statute is discerned from the ordinary meaning of the language at
    issue as well as the context of the statute in which that provision is found, related
    No. 72104-6-1/10
    provisions, and the statutory scheme as a whole. 
    Lake, 169 Wash. 2d at 526
    . " 'Statutes
    are to be read together, whenever possible, to achieve a harmonious total statutory
    scheme.'" In re Bankr. Petition of Wieber. 
    182 Wash. 2d 919
    , 926, 
    347 P.3d 41
    (2015)7
    (quoting State ex rel. Peninsula Neighborhood Ass'n v. Dep't of Transp., 
    142 Wash. 2d 328
    , 342, 
    12 P.3d 134
    (2000)). "While we look to the broader statutory context for
    guidance, we 'must not add words where the legislature has chosen not to include
    them,' and we must 'construe statutes such that all of the language is given effect.'"
    
    Lake. 169 Wash. 2d at 526
    (quoting Rest. Dev., Inc. v. Cananwill, Inc., 
    150 Wash. 2d 674
    ,
    682, 
    80 P.3d 598
    (2003)). "Where the language of a statute is clear, legislative intent is
    derived from the language of the statute alone." City of Spokane v. Rothwell, 
    166 Wash. 2d 872
    , 876, 
    215 P.3d 162
    (2009). If the statute is unambiguous, the inquiry ends.
    State v. Armendariz, 160Wn.2d106, 110, 156P.3d201 (2007).
    When construing a collective bargaining statute, we give "substantial weight and
    great deference" to PERC's interpretation in view of its expertise in the area of collective
    bargaining. City of Bellevue v. Int'l Ass'n of Fire Fighters, Local 1604, 
    119 Wash. 2d 373
    ,
    381-82, 
    831 P.2d 738
    (1992). However, we may substitute our interpretation for that of
    the agency. Chi. Title Ins. Co. v. Office of the Ins. Comm'r, 178Wn.2d 120, 133, 
    309 P.3d 372
    (2013).
    The national Labor Relations Act specifically exempts state and local government
    employers from coverage. 29 U.S.C. § 152(2) ("The term 'employer'. . . shall not
    include . . . any State or political subdivision thereof"). Congress left the decision
    concerning collective bargaining rights for public employees to the states. See also City
    7 Internal quotation marks omitted.
    10
    No. 72104-6-1/11
    of Yakima v. Int'l Ass'n of Fire Fighters, AFL-CIO, Local 469, Yakima Fire Fighters
    Ass'n, 117Wn.2d655, 666-67, 818 P.2d 1076(1991).
    In 1967, the legislature adopted the Public Employees' Collective Bargaining Act
    (PECBA), chapter 41.56 RCW. Laws of 1967, Ex. Sess., ch. 108, § 1. The PECBA
    gives cities, counties, and political subdivisions of the State the right to engage in
    collective bargaining with employees on wages, hours, and working conditions.
    However, the PECBA gives the right to engage in collective bargaining to only certain
    limited categories of State employees. See, e.g., RCW 41.56.473 (Washington State
    Patrol officers); RCW 41.56.027 and RCW 47.64.120 (Washington State Department of
    Transportation Ferries Division employees).
    In 2002, the legislature adopted the PSRA, chapter 41.80 RCW. Laws of 2002,
    ch. 354, § 301. The legislature substantively restructured the administration and
    collective bargaining rights for State employees.
    The PSRA of 2002 gives all State employees the right to engage in collective
    bargaining with "the governor or governor's designee." RCW 41.80.010(1), .020(1).
    "Except as may be specifically limited by this chapter," the PRSA gives State employees
    the right to organize and "bargain collectively through representatives of their own
    choosing." RCW 41.80.050.
    The PSRA adopts a unique structure that mandates the negotiation of a master
    CBA. RCW 41.80.010(2)(a). Exclusive bargaining representatives for bargaining units
    with fewer than 500 members must bargain as a coalition for wages, hours, and other
    terms and conditions of employment. RCW 41.80.010(2)(a). RCW 41.80.010(2)(a)
    11
    No. 72104-6-1/12
    states:
    If an exclusive bargaining representative represents more than one
    bargaining unit, the exclusive bargaining representative shall negotiate
    with each employer representative as designated in subsection (1) of this
    section one master collective bargaining agreement on behalf of all the
    employees in bargaining units that the exclusive bargaining representative
    represents. For those exclusive bargaining representatives who represent
    fewer than a total of five hundred employees each, negotiation shall be by
    a coalition of all those exclusive bargaining representatives. The coalition
    shall bargain for a master collective bargaining agreement covering all of
    the employees represented by the coalition. The governor's designee and
    the exclusive bargaining representative or representatives are authorized
    to enter into supplemental bargaining of agency-specific issues for
    inclusion in or as an addendum to the master collective bargaining
    agreement, subject to the parties' agreement regarding the issues and
    procedures for supplemental bargaining. This section does not prohibit
    cooperation and coordination of bargaining between two or more exclusive
    bargaining representatives.181
    RCW 41.80.020 defines the scope of bargaining. RCW 41.80.020(1) states:
    Except as otherwise provided in this chapter, the matters subject to
    bargaining include wages, hours, and other terms and conditions of
    employment, and the negotiation of any question arising under a collective
    bargaining agreement.
    The PSRA mandates coalition collective bargaining for health care benefits with
    the bargaining representative of aN bargaining units for "the dollar amount expended on
    behalf of each employee for health care benefits shall be conducted between the
    employer and one coalition for all the exclusive bargaining representatives subject to
    this chapter." RCW 41.80.020(3). The amount agreed to with the coalition "shall be
    included in all master collective bargaining agreements negotiated by the parties."
    RCW 41.80.020(3). RCW 41.80.020(3) provides, in pertinent part:
    Matters subject to bargaining include the number of names to be certified
    for vacancies, promotional preferences, and the dollar amount expended
    on behalf of each employee for health care benefits. However, except as
    provided otherwise in this subsection for institutions of higher education,
    8 Emphasis added.
    12
    No. 72104-6-1/13
    negotiations regarding the number of names to be certified for vacancies,
    promotional preferences, and the dollar amount expended on behalf of
    each employee for health care benefits shall be conducted between the
    employer and one coalition of all the exclusive bargaining representatives
    subject to this chapter. . . . Any such provision agreed to by the employer
    and the coalition shall be included in all master collective bargaining
    agreements negotiated by the parties.[9]
    Under RCW 41.80.010(3)(a), the master CBA must be submitted to the Office of
    Financial Management by October 1 prior to the legislative session before the beginning
    of the biennium. The Office of Financial Management must certify that the master CBA
    is "feasible financially for the State." RCW 41.80.010(3)(b). "The legislature shall
    approve or reject the submission of the request for funds as a whole." RCW
    41.80.010(3)(b). RCW 41.80.010(3) provides:
    The governor shall submit a request for funds necessary to implement the
    compensation and fringe benefit provisions in the master collective
    bargaining agreement or for legislation necessary to implement the
    agreement. Requests for funds necessary to implement the provisions of
    bargaining agreements shall not be submitted to the legislature by the
    governor unless such requests:
    (a) Have been submitted to the director of the office of financial
    management by October 1 prior to the legislative session at which the
    requests are to be considered; and
    (b) Have been certified by the director of the office of financial
    management as being feasible financially for the State.
    The legislature shall approve or reject the submission of the
    request for funds as a whole. The legislature shall not consider a request
    for funds to implement a collective bargaining agreement unless the
    request is transmitted to the legislature as part of the governor's budget
    document submitted under RCW 43.88.030 and 43.88.060. If the
    legislature rejects or fails to act on the submission, either party may
    reopen all or part of the agreement or the exclusive bargaining
    representative may seek to implement the procedures provided for in
    RCW 41.80.090.
    Consistent with the requirement under RCW 41.80.010(2)(a) to negotiate a
    master CBA, the legislature adopted rules governing certification of an employee
    9 Emphasis added.
    13
    No. 72104-6-1/14
    organization as the new exclusive bargaining representative of a bargaining unit. Under
    RCW41.80.080(4)(b), a bargaining unit may petition to change bargaining
    representatives during a 30-day window that is "no more than one hundred twenty
    calendar days nor less than ninety days" before the expiration of the CBA. RCW
    41.80.080(4)(b) states:
    No question concerning representation may be raised if:... [a] valid
    collective bargaining agreement exists covering the unit, except for that
    period of no more than one hundred twenty calendar days nor less than
    ninety calendar days before the expiration of the contract.
    RCW 41.80.080(2)(a) states that when a new employee organization is certified
    as the exclusive bargaining representative of fewer than 500 employees and a master
    CBA is "in effect for the exclusive bargaining representative, it shall apply to the
    bargaining unit for which the certification has been issued." RCW 41.80.080(2)(a)
    states, in pertinent part:
    If an employee organization has been certified as the exclusive bargaining
    representative of the employees of a bargaining unit, the employee
    organization may act for and negotiate master collective bargaining
    agreements that will include within the coverage of the agreement all
    employees in the bargaining unit as provided in RCW41.80.010(2)(a).
    However, if a master collective bargaining agreement is in effect for the
    exclusive bargaining representative, it shall apply to the bargaining unit for
    which the certification has been issued. Nothing in this section reguires
    the parties to engage in new negotiations during the term of that
    agreement.[10]
    The parties dispute whether under the plain language of the PSRA, the coalition
    master CBA was in effect and applied to FWOG. The State asserts PERC correctly
    decided that because the coalition master CBA was in effect when PERC certified
    FWOG, it applies, and the State did not have the authority to negotiate a new
    agreement with FWOG on wages and health care benefits. The State asserts RCW
    10 Emphasis added.
    14
    No. 72104-6-1/15
    41.80.010(2)(a) authorizes supplemental collective bargaining only for agency-specific
    issues, not wages or health care benefits.
    First, FWOG asserts the PSRA gives the State the authority to engage in
    supplemental collective bargaining for wages and health care benefits. We disagree.
    RCW 41.80.020 establishes the scope of bargaining. RCW 41.80.020(1) specifically
    states that "felxcept as otherwise provided in this chapter," wages and conditions of
    employment are subject to collective bargaining.11 RCW41.80.010(2)(a) requires
    bargaining units with fewer than 500 members engage in collective bargaining as a
    coalition and authorizes the State to enter into supplemental bargaining only for agency-
    specific issues as an addendum to the master CBA. Wages and health care benefits
    are not "agency-specific" issues.
    Next, FWOG contends the PERC decision that the coalition master CBA applied
    ignores the right of employees to choose an exclusive bargaining representative and the
    right of an exclusive bargaining representative to negotiate a CBA. FWOG argues the
    definition of exclusive bargaining representative, RCW 41.80.005(9); the rights of
    employees, RCW 41.80.050; and the rights of the certified exclusive bargaining
    representative, RCW 41.80.080(3); require the State to engage in bargaining with
    FWOG for a new CBA on wages and health care benefits. We disagree.
    RCW 41.80.005(9) defines an "exclusive bargaining representative" as "any
    employee organization that has been certified under this chapter as the representative
    of the employees in an appropriate bargaining unit." The PSRA grants employees the
    right to "bargain collectively through representatives of their own choosing . . . [e]xcept
    11 Emphasis added.
    15
    No. 72104-6-1/16
    as may be specifically limited by this chapter." RCW 41.80.050.12 The statute
    addressing the responsibilities of a newly certified exclusive bargaining representative
    of an employee organization of fewer than 500 members under RCW 41.80.080(3) also
    does not require the State to negotiate a new CBA. RCW 41.80.080(3) states:
    The certified exclusive bargaining representative shall be responsible for
    representing the interests of all the employees in the bargaining unit. This
    section shall not be construed to limit an exclusive representative's right to
    exercise its discretion to refuse to process grievances of employees that
    are unmeritorious.
    If a master CBA is in effect for a newly certified exclusive bargaining
    representative representing fewer than 500 employees, the PSRA does not permit the
    State to negotiate a separate CBA. RCW 41,80.080(2)(a) specifically states, "Nothing
    in this section requires the parties to engage in new negotiations during the term of that
    agreement."
    The statutory scheme and plain language of the PSRA make clear the legislative
    intent to require negotiating a master CBA by a coalition for bargaining units of fewer
    than 500 members, and if that agreement is in effect when a new exclusive bargaining
    representative is certified, it shall apply and the State may not negotiate a new
    agreement.
    FWOG concedes it did not file the petition for certification until after the WFSE
    master CBA and the coalition master CBA were entered into for the 2011-2013
    biennium. There is no dispute FWOG represents fewer than 500 employees and a
    coalition master CBA for all bargaining units with fewer than 500 employees was "in
    12 RCW 41.80.050 states, in pertinent part:
    Except as may be specifically limited by this chapter, employees shall have the right to
    self-organization, to form, join, or assist employee organizations, and to bargain
    collectively through representatives of their own choosing for the purpose of collective
    bargaining free from interference, restraint, or coercion.
    16
    No. 72104-6-1/17
    effect" on June 24, 2011 when PERC certified FWOG as the exclusive bargaining
    representative. The statute anticipates certification will occur after a successor coalition
    master CBA has been negotiated and funded. RCW 41.80.080(4) allows questions
    concerning representation only during a "window" period of no more than 120 days nor
    less than 90 days before the expiration of a CBA. But the PSRA does not allow the
    State and the newly certified exclusive bargaining representative to negotiate subjects
    already covered in the master agreement. Instead, if a master CBA is "in effect," it will
    apply to the bargaining unit for which certification was issued and "[n]othing in this
    section requires the parties to engage in new negotiations during the term of that
    agreement." RCW41.80.080(2)(a).
    We conclude the State did not commit an unfair labor practice by refusing to
    negotiate a new CBA with FWOG on wages and health care benefits for the 2011-2013
    biennium.
    FWOG also asserts the PERC decision violates common law contract principles
    and the constitutional First Amendment right of association. We disagree. The
    Washington State Supreme Court has consistently held that the terms and conditions of
    public employment are controlled by statute. Wash. Fed'n of State Emps.. AFL-CIO.
    Council 28, AFSCME v. State, 
    101 Wash. 2d 536
    , 539-42, 
    682 P.2d 869
    (1984).
    FWOG concedes the First Amendment does not create a right to bargain but
    argues that "once a state creates a collective bargaining system it cannot infringe or
    retaliate against the exercise of rights under such statutes." FWOG does not meet its
    heavy burden to establish the PSRA is unconstitutional. Eugster v. State, 
    171 Wash. 2d 839
    , 843, 
    259 P.3d 146
    (2011) (We presume a statute is constitutional, and the
    17
    No. 72104-6-1/18
    challenging party "bears the burden of establishing a statute's unconstitutionality
    beyond a reasonable doubt."). Nonetheless, we conclude the PSRA does not
    unconstitutionally infringe on the right to collective bargaining.13
    We hold that under the plain language of the PSRA, PERC correctly concluded
    that the State did not commit an unfair labor practice by refusing to separately bargain
    with FWOG on wages and health care benefits. We reverse the superior court and
    affirm the PERC decision.
    \\XaAa^
    WE CONCUR:
    l/^kfey, J                                                \>^e^
    13 We also note the legislature declared an emergency and mandated the three percent salary
    reductions under ESSB 5860. RCW 41.80.020(5) provides that "[t]he employer and the exclusive
    bargaining representative shall not bargain over matters pertaining to management rights established in
    RCW 41.80.040." RCW 41.80.040 provides, in pertinent part:
    The employer shall not bargain over rights of management which, in addition to all
    powers, duties, and rights established by constitutional provision or statute, shall include
    but not be limited to the following:
    (4) The right to take whatever actions are deemed necessary to carry out the
    mission of the state and its agencies during emergencies.
    18