Metro wins ruling against arbitration award

A federal judge has ruled in WMATA’s favor on one stage of a lawsuit over arbitrator-awarded pay increases to union employees.

By law, WMATA’s pay and benefits for union employees are decided by arbitration. In November 2009, an arbitrator awarded workers a 3% retroactive raise and two additional annual 3% raises.

WMATA decided to appeal under a law that said in essence that arbitration can’t award salaries the authority can’t afford or which “adversely affect the public welfare.” Since pay increases have created budget gaps that threaten service cuts, they argued the award did violate these provisions.

According to a press release WMATA just issued, a judge agreed:

The judge agreed with the transit Authority that the Kasher Supplemental Opinion issued on June 22, 2010, did not comply with the National Capital Area Interest Arbitration Standards Act, a federal statute which applies to interest arbitration decisions involving WMATA.

The judge directed the Kasher arbitration board to submit a Supplemental Opinion that complies with the Standards Act within 40 days. Upon submission of the Supplemental opinion, the parties will have 15 days to submit motions stating their respective positions, and the Judge will then issue a final decision in this matter on an expedited basis.

The National Capital Area Interest Arbitration Standards Act prohibits an arbitrator from rendering an award that provides for salaries and other benefits that exceed the interstate compact agency’s funding ability; allows an increase in pay rates only if any costs to the agency do not adversely affect the public welfare; and requires the arbitrator to issue a written award that demonstrates all of the factors in the Act.

It sounds like the issue isn’t settled, but WMATA has won one round.