In Selma Firefighters Association, IAFF, Local 3716 v. City of Selma (2014) PERB Decision No. 2380-M, the Board held that economic exigencies and an impending budget deadline did not justify the City of Selma declaring a bargaining impasse and imposing its alleged last, best, and final offer (“LBFO”). The Board explained “it has long been noted that such economic exigency provides no justification for suspending the duty to bargain in good faith.” And it disagreed with the City that language in the MMBA requiring that the parties “endeavor to reach agreement … prior to the adoption by the public agency of its final budget for the ensuing year” required or even suggested that agreement must occur before adoption of a budget. Citing a prior decision, the Board stated that “collective bargaining has no necessary linkage with the … budgetary process.” “Consistent with this reasoning, the City was not justified in its rush to conclude bargaining, declare impasse and impose its LBFO prior to its adoption of its budget.”

Comment: We have noticed that tactics and arguments like those utilized by the City of Selma are on the rise, particularly with employers attempting to justify unilateral action based on asserted “fiscal emergencies.” We are in the process of litigating a number of challenges to such employer actions, and we hope that this decision pours some cold water on employers’ aspirations to create a financial/budgetary-needs exception to the bargaining obligation.

If you have any questions, please contact Jonathan Yank at jonathan@majlabor.com.