Background and Summary of the Federal Reserve System Labor Relations Regulations

POLICY ON LABOR RELATIONS FOR FEDERAL RESERVE BANKS
CHARGES OF UNFAIR LABOR PRACTICE

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POLICY ON LABOR RELATIONS FOR FEDERAL RESERVE BANKS

With the exception of certain executive, administrative, and supervisory personnel, any employee of a Federal Reserve Bank may join an existing labor organization or participate in the formation of a new labor organization (12 CFR 269.2). For purposes of the regulation, “the term ‘labor organization’ means any lawful organization of any kind, or any employee representation group, which exists for the purpose, in whole or in part, of dealing with any Federal Reserve Bank concerning grievances, personnel policies and practices, or other matters affecting the working conditions of its employees, but the term shall not include any organization, (a) which asserts the right to strike against the government of the United States, the Board of Governors of the Federal Reserve System, or any Federal Reserve Bank, or to assist or participate in any such strike, or which imposes a duty or obligation to conduct, assist or participate in any such strike, or (b) which fails to agree to refrain from seeking or accepting support from any organization which employs coercive tactics affecting any Federal Reserve Bank’s operations, or (c) which advocates the overthrow of the constitutional form of the Government of the United States, or (d) which discriminates with regard to the terms or conditions of membership because of race, color, sex, creed, age, or national origin” (12 CFR 269.1).

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Recognition of Labor Organization

To be recognized as the exclusive bargaining representative of employees in an appropriate unit, (1) the labor organization seeking recognition must show that it has cards signed by at least 30 percent of the employees in the unit requesting a representative election, (2) an election must be held, and (3) the labor organization must receive a majority of the votes (12 CFR 269.5).

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Agreements and Grievance Procedures

Any initial or basic agreement that is entered into with a labor organization must be approved by the president of the Bank or a duly authorized officer. In addition, agreements are subject to specific requirements that are detailed in section 269.7 of the regulation. The regulation describes unfair labor practices for Banks (12 CFR 269.6) and allows for grievance procedures to be incorporated into agreements entered into with a recognized labor organization (12 CFR 269.8).

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Mediation of Negotiation Impasses

If the parties reach a negotiation impasse, one of the parties may request the assistance of an independent mediator (12 CFR 269.9). This mediator may be a person selected through the American Arbitration Association, the Federal Mediation and Consolidated Service, or any other such recognized organization, or any other individual who provides such services.

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System Labor Relations Panel

Finally, the regulation provides for the establishment of a Federal Reserve System Labor Relations Panel consisting of three members (one member of the Board of Governors and two public members) to be selected by the Board of Governors. This panel advises the Board on labor relations matters and in any disputed matters may, at the request of a party and at its discretion, issue decisions, which are final and binding on the parties. (12 CFR 269.11)

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CHARGES OF UNFAIR LABOR PRACTICE

A charge that a bank or labor organization has engaged in or is engaging in unfair labor practices (as defined in 12 CFR 269.6) must be made within 60 days of the date on which the violations occurred or within 60 days of the date on which the charging party becomes or should have become aware of the alleged violation (12 CFR 269b.110). The charge must be in writing and presented to the secretary of the Federal Reserve System Labor Relations Panel (“panel”), who will cause a copy of the charge to be served on each opposing party and other potential parties in interest (12 CFR 269b.111). The respondent must then file an answer to the charge within 15 days after service of the charge (12 CFR 269b.120).

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Preliminary Investigation

Within five days after the answer has been or should have been filed, the panel may refer the matter to the National Center for Dispute Settlement of the American Arbitration Association (“center”) (12 CFR 269b.210(a)). The center will investigate to determine whether the charging party has established a “prima facie case.” For purposes of the regulation, a “prima facie case” is one “where allegations of an unfair labor practice that have been presented give reasonable cause to believe that such practice may have occurred, but where evidentiary proceedings are necessary for determination of whether the allegations are substantiated” (12 CFR 269b.210(b)).

The purposes of the investigation are to determine whether formal proceedings are warranted and, as an alternative to the hearing procedure, to help the parties resolve the issue (12 CFR 269b.240(a)). When the investigation is complete, the center shall issue a determination of whether the charge was timely filed and within the jurisdiction of the panel, and whether the charging party has presented a prima facie case.

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Appeal of Determination

If the center determines that a prima facie case does not exist, a party other than the respondent, or a party having the same interest as the respondent, may petition the panel to set aside the determination and to cause formal proceedings to be invoked. This petition must be made within five days of receipt of the center’s determination (12 CFR 269b.310).

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Formal Hearings

The procedures for conduct of a formal hearing are described in sections 269b.410, 269b.420, 269b.430, 269b.440-444, and 269b.450 of the regulation. The panel must review the hearing officer’s report and recommendations, as well as the record of the hearing, and issue a written decision. If the panel has determined that the respondent is engaging in or has engaged in unfair labor practices, it must issue a cease-and-desist order and may require the respondent to take appropriate affirmative corrective action (12 CFR 269b.540). For cases in which the panel orders remedial action, the regulation requires submission of a report to the panel that such remedial action has been taken within the period specified in the panel’s decision (12 CFR 269b.610).