Local 195, IFPTE v. State of New Jersey

88 N.J. 393, 443 A.2d 187 (1982)

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Local 195, IFPTE v. State of New Jersey

New Jersey Supreme Court
88 N.J. 393, 443 A.2d 187 (1982)

Facts

The Local 195 of the International Federation of Professional and Technical Engineers, AFL-CIO (Local 195) (plaintiff) and the State of New Jersey (the state) (defendant) were bargaining over new contract terms. Their existing contract provided that the state would meet with Local 195 “to discuss all incidences of contracting or subcontracting whenever it becomes apparent that a layoff or job displacement would result.” The state and Local 195 jointly petitioned the New Jersey Public Employer Relations Committee (PERC) for a scope-of-negotiations determination as to whether negotiations had to cover clauses limiting contracting and subcontracting. PERC decided subcontracting was negotiable under its previous decisions because deciding to subcontract would effectively terminate bargaining-unit employees and have a “cataclysmic effect on wages, hours, and working conditions. The appellate court reversed, holding that subcontracting work was an inherently managerial prerogative. One judge dissented, arguing that the majority failed to consider public employees’ interest and that subcontracting required bargaining. Because of the dissent, the New Jersey Supreme Court reviewed the case on appeal as of right.

Rule of Law

Issue

Holding and Reasoning (Pashman, J.)

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