IN THE SUPREME COURT OF IOWA
No. 461/89-1629
Filed April 17,1991
POLK COUNTY SECONDARY ROADS, POLK
COUNTY BOARD OF SUPERVISORS, AFSCME 1868, and AFSCME INTERNATIONAL,
Appellants,
VS.
IOWA CIVIL RIGHTS COMMISSION, Appellee.
Appeal from the Iowa District Court for Polk County, Jack Levin,
Judge.
Appeal from the district court's affirmance of the civil rights
commission's finding that the election of remedies clause in a
collective bargaining agreement was retaliatory and a discriminatory
practice. AFFIRMED IN PART AND REVERSED IN PART.
James A. Smith, County Attorney, and Mary W. Vavroch, Assistant
County Attorney, for appellants Polk County.
Michael E. Hansen, Des Moines, for appellants AFSCME Local 1868
and AFSCME International.
Thomas J: Miller, Attorney General, and Teresa Baustian, Assistant
Attorney General, for appellee.
Susan M. Bolte, Des Moines, for amicus curiae Public Employment
Relations Board.
Considered by Carter, P.J., and Lavorato,
Neuman, Snell, and Andreasen, JJ.
ANDREASEN, J.
This case involves a collective bargaining
agreement which prohibits discrimination and includes an election
of remedies provision. The fundamental question is whether the
arbitration of civil rights complaints conflicts with Iowa Civil
rights law.
1. Background.
In 1984, Kenneth Hill, Jr., a black male, was fired from his
*job with Polk County for allegedly stealing some county-owned
gravel for private use by a coworker. The coworker, who was white
and who also participated in the theft, was also fired. Hill believed
his conduct was less serious than that of his coworker who benefited
from the theft: he also believed it to be less serious than the
conduct of other coworkers who had received lesser sanctions in
the past. Hill's certified bargaining representative, under Iowa's
public employment law, was the American Federal of State, County
and Municipal Employees, Local 1868 (AFSCME Local). On April 9,
1984, Hill began the grievance procedures under the AFSCME local's
collective bargaining agreement (agreement). He claimed his discharge
was discriminatory and not for good cause. Prior to arbitration,
Hill filed a complaint with the Iowa Civil Rights Commission and
the Polk County Board of Supervisors (collectively referred t(
as the county) alleging race was a factor in his termination.
After the arbitration hearing, but before a decision had been
rendered, the county received a copy of Hill's complaint and subsequently
objected to the arbitrability of the dispute based on a provision
in the agreement. The relevant portion of the agreement is as
follows:
The provisions Of this Agreement shall be applied equally to all Employees in the bargaining unit, without discrimination as to age, sex, marital status, race, color, creed, national origin, partisan political affiliation, or Union activity. The Union shall share equally with the Employer the responsibility for applying this provision of the Agreement. In the event that any Employee takes action through any court, governmental agency or other agency regarding this contractual grievance procedure shall be waived and no grievance shall be allowed regarding the issue.
Based on this election of remedies provision, the arbitrator
determined that Hill's grievance was nonarbitrable and denied
the grievance. Because of this denial, Hill filed another complaint
with the commission. This complaint was directed against the county,
the AFSCME Local and AFSCME International. He claimed that the
denial of his contractual right to arbitrate because he exercised
his statutory rights was a form of discrimination. Although Hill's
original complaint was administratively closed, the Commission
found probable cause to believe the election of remedies clause
constituted discrimination against Hill on the part of the contracting
parties.*
The AFSCME Local began an action before the Public Employment
Relations Board (PERB) for a declaratory judgment on the question
of whether the election of remedies clause is a mandatory, permissive,
or illegal subject of bargaining. The AFSCME Local and the county
participated in the declaratory ruling process, but the Commission
was not informed of the proceeding. PERB eventually ruled that
the election of remedies provision was a permissive subject of
bargaining.
On May 15, 1986, a Commission hearing officer issued a recommended
decision and order. This decision, which was adopted by the commission
with only one minor addendum, found that the election of remedies
clause was retaliatory. As a remedy, the Commission ordered most
of the discrimination clause stricken from the agreement. It ordered
reconsideration be given as to whether Hill's grievance is arbitrable
with the removal of a portion of the clause. The Commission reasoned
that if the removed provisions of the discrimination clause were
not in the agreement, the forfeiture of contractual rights to
grievance under the contract would no longer be required. On appeal,
the district court affirmed the Commission. This appeal
followed.
When an appeal is taken from actions of the Commission in a
chapter 601A proceeding, our scope of review is for the correction
of errors of law. Peoples Memorial Hosp. v. Iowa Civil Rights
Comm'n, 322 N.W.2d 87,90-91 (Iowa 1982). We apply the substantial
evidence rule of section 17A.19(8)(f) to determine whether there
is sufficient evidence to warrant the decision the Commission
made and whether our conclusions are the same as those of the
district court. King v. Iowa Civil Rights Comm'n, 334 N.W.2d 598,
601 (1983).
II. The International's Motion to Dismiss.
AFSCME International urges that there is no substantial evidence
to support its inclusion as a party in this action, as it was
not a party to the collective bargaining agreement. It urges only
the exclusive certified representative can be sued. Iowa Code
§§ 20.16-17, 20,23. It claims the court and Commission
erred in denying its motion to dismiss. At oral argument the Commission
conceded there was no apparent reason for including the International
as a party. Accordingly, we reverse the court's ruling and hereby
dismiss AFSCME International from this action.
III. Statute of Limitations.
The county urges that the act which
the court found to be discriminatory was agreeing to the election
of remedies clause. Because this act took plate more than 180
days prior to the filing of Hill's complaint, they urge the complaint
is barred. Iowa Code § 601A.15(12). The Commission urges
that the clause and its enforcement constitute a "continuing
violation," while in effect tolls the running of the statute
of limitations.
The Iowa Administrative Code provides that,
[i]f the alleged unlawful discriminatory practice or act is of a continuing nature, the date of the occurrence of the alleged unlawful practice shall be deemed to be any date subsequent to the commencement of the alleged unlawful practice up to and including the date upon which the unlawful practice has ceased.
161 Iowa Admin. Code, 3.3(2) (1988). On the other hand, it
is equally clear that a plaintiff may not use the continuing violation
doctrine to prosecute claims of past discrimination even if the
effects of that discrimination continue into the present. HyVee
Food Stores v. Civil Rights Comm'n, 453 N.W.2d 512, 527 (Iowa
1990).
Here the collective bargaining agreement set out a policy which
Hill and the Commission alleged to be discriminatory. This policy
remained in effect well into the 180-day limitations period. The
limitations period is measured from the last occurrence of an
instance of that policy. Guardians Assoc. v. Civil Serv. Comm'n,
633 F.2d 232, 249 (2d Cir. 1980). affd, 463 U.S. 582, 103 S. Ct.
3221, 77 L. Ed. 2d 866 (1983). The last instance of the allegedly
discriminatory policy was the dismissal of Hill's grievance procedure.
This occurred less than 180 days prior to the filing of Hill's
complaint.
The AFSCME Local cites Brown v. Public Employment Relations Board,
345 N.W.2d 88 (Iowa 1984), as authority for the proposition that
the limitations period begins to run when the contract clause
becomes effective. Brown is distinguishable from this case: in
Brown the complainant's status was affected immediately when the
clause became effective. Here, Hill was not affected for years
after the election of remedies clause was first adopted. Brown
also differs from the present case in that Brown was not a civil
rights case. We construe chapter 601A broadly to effectuate its
purposes. Iowa Code § 601A.18: Chauffeurs, Teamsters &
Helpers, Local Union No. 238 v. Iowa Civil Rights Comm'n, 394
N.W.2d 375, 381 (Iowa 1986). We hold that Hill's complaint was
timely filed.
IV. Iowa Civil Rights Act.
The Iowa Civil Rights Act is found at chapter 601A of the Iowa
Code. Section 601 A.6 prohibits employers and labor organizations
from discriminating against employees and union-members on the
basis of "age, race, creed, color, sex, national origin,
religion or disability." Of more specific importance to this
case, section 601A.1 1 (2) makes it an unfair or discriminatory
practice to discriminate against another person because such person
has filed a complaint under chapter 6OlA. Finally, section 601A.16(l)
provides that the administrative procedures established by chapter
601A are the exclusive means for asserting claims under that chapter.
Lynch v. City of Des Moines, 454 N.W.2d 827,831 n.2 (Iowa 1990).
V. Iowa Public Employment Relations Act.
The Iowa Public Employment Relations Act is found at Iowa Code
chapter 20. The chapter establishes collective bargaining between
state government and its employees. PERB, created by section 20.5,
is charged with administrating the provisions of the chapter.
Iowa Code § 20.6(l). Pursuant to section 17A.9, PERB has
provided by rule for declaratory rulings. 621 Iowa Admin. Code
10.1 (1986) (formerly 660 Iowa Admin. Code 10.1 (1985)). One of
PERB's tasks is to determine, upon request, whether a given subject
is a mandatory, permissive, or illegal subject of bargaining.
See Iowa Code § 20.9; Note, The Scope of Negotiations Under
the Iowa Public Employment Relations Act, 63 Iowa L. Rev. 649,
668-70 (1978).
VI. Arbitrability of Discrimination Claims.
Section 601A.16(i) states, "[a] person claiming to be
aggrieved by an unfair or discriminatory practice must initially
seek an administrative relief by filing a complaint with the Commission......
We have noted that concurrent or parallel grievance procedures
and statutory appeal procedures are undesirable and should be
avoided. Shenandoah Educ. Ass'n. v. Shenandoah Community School
Dist., 337 N.W.2d 477, 482 (Iowa 1983). We have also held that
when the legislature has made the dispute resolution provisions
of a chapter exclusive, arbitration is inappropriate. Devine v.
City of Des Moines, 366 N.W.2d 580,582 (Iowa 1985).
We have often stated that the procedures
under chapter 601A are exclusive and that a claimant asserting
a discriminatory practice must pursue the remedy provided by the
Act. Smith v. ADM Feed Corp. 456 N.W.2d 378, 381 (Iowa 1990):
Lynch v. City of Des Moines, 454 N.W.2d 827, 831 n.2 (Iowa 1990):
Northrup v. Farmland Indus., 372 N.W.2d 193, 197 (Iowa 1985).
More specifically, we have held that chapter 601A preempts other
remedies which might be available, and that civil rights complainants
will not be allowed to avail themselves of those other remedies.
Vaughn v. Ag Processing, Inc., 459 N.W.2d 627, 638 (Iowa 1990).
The specific language of section 601A.16(l), combined with our
previous statements that the procedures under chapter 601A are
exclusive, convinces us that the arbitration of civil rights violations
is against public policy. Provisions for arbitration in a collective
bargaining agreement do not override statutory civil rights provisions.
Iowa Code § 20.28.
The Court of Appeals of New York faced a similar situation involving
Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-2000e-7.
In re Wertheim & Co. v. Halpert, 421 N.Y.S.2d 876, 48 N.Y.2d
681 (1979). In a memorandum opinion, the court affirmed an order
of the appellate division holding that an arbitration agreement
was unenforceable where the claim to be arbitrated was the subject
of an action pending in federal court. Id. at 877, 48 N.Y.S.2d
681, 683.
We recognize the United States Supreme Court has held that
the arbitration of a claim of employment discrimination does not
bar an employee's right to proceed to trial under Title VII of
the Civil Rights Act of 1964. Alexander v. Gardner-Denver Co.,
415 U.S. 36, 48, 94 S. Ct. 10 11, 101 9-20, 39 L. Ed. 2d 147,
158 (1974). Thus, generally, under federal law, victims of racial
discrimination in the private sector have a choice of remedies
and are not limited to Title VII. Id. at 47-49, 94 S. Ct. at 1019,
39 L. Ed. 2d at 158. They can submit their discrimination claims
to arbitration. However, even under, federal law, Title VII is
the exclusive remedy available to a federal employee complaining
of job-related racial discrimination. Brown v. General Servs.
Admin., 425 U.S. 820, 835, 96 S. Ct. 1961, 1969, 48 L. Ed. 2d
402, 413 (1976).
The election of remedies clause in the collective bargaining
agreement is ineffective because, as the Commission's order points
out, under Iowa law there is no choice to be made. Iowa law which
specifically requires state civil rights complaints initially
to be filed with the Commission. Iowa Code § 601A.16(l).
When a violation of chapter 601 A forms the basis of a public
employee's grievance, arbitration is not an option. Hill was not
adversely affected by the terms of the agreement. There was no
retaliation on the part of the county or the local.
Any other basis for his grievance that Hill might have, unrelated
to his chapter 601A claim of discrimination, remains arbitrable.
This is consistent with the agreement. The only issue which the
agreement purported to affect was violations of an employee's
rights regarding which the employee takes action through any court,
governmental agency or other agency. Hill's complaint with the
Commission dealt only with alleged racial discrimination, thus
any other grounds for his grievance remain arbitrable. The agreement
merely purported to deny employees the right to arbitrate something
which we determine to be nonarbitrable.
VII. Res Judicata Effect of the PERB Ruling.
The county and the AFSCME Local contend that the declaratory
ruling issued by PERB precluded the Commission from hearing Hill's
complaint. They urge, citing City of Des Moines v. Iowa Civil
Rights Comm'n, 343 N.W.2d 836 (Iowa 1984), that PERB's ruling
is entitled to res judicata effect. While it is true that a final
adjudicatory decision of an administrative agency is entitled
to res judicata as if it were a judgment of a court, id, it is
also true that for issue preclusion or res judicata to apply,
the issue litigated must be identical to the issue raised in the
previous action. Amro v. Iowa Dist. Court, 429 NW.2d 135,140 (Iowa
1988).
PERB's ruling, issued January 31, 1986, held that the election
of remedies clause in this case was a legal permissive subject
of bargaining within the meaning of section 9 of the Public Employment
Relations Act, Iowa Code section 20.9. The issue before the Commission,
however, was not the legality of the clause under chapter 20,
but rather whether the clause constituted discrimination under
chapter 601A. This is not the same issue as the one which was
before PERB. While part of PERB's inquiry involved determining
whether the clause was legally prohibited, this is a much broader
question than the one faced by the Commission.
There are circumstances in which the clause could come into
play where the concerns of chapter 601A would not be implicated.
For example, among other things, the agreement protects employees
from discrimination on the basis of marital status and partisan
political affiliation. Neither of these classifications is protected
by chapter 601A. Therefore, chapter 601A is not a barrier to the
arbitration of grievances which are based on discrimination on
those grounds. Nor would chapter 601 A, under such circumstances,
permit the Commission to contradict PERB's ruling that the election
of remedies clause was legal.
The issue before the Commission, however, was not whether,
in general terms, the election of remedies clause was legal. The
issue was whether, in the context of race, the agreement's purported
forfeiture of Hill's arbitration rights constituted a discriminatory
practice. Because the issues before the two agencies were not
the same, the Commission was not precluded from proceeding as
it did.
VIII. Primary Jurisdiction.
The county and the AFSCME Local both urge PERB had primary
jurisdiction over this case and that the Commission therefore
was without authority to decide the case. They rely heavily on
our decision to Hollinrake v. Monroe County, 433 N.W.2d 696 (Iowa
1988). In Hollinrake, we held that a civil rights complaint against
the Iowa Law Enforcement Academy, based on its vision requirements
for certifying peace officers, should have been brought under
chapter 17A rather than chapter 601A. We held that the proper
means of contesting the agency's rule was under chapter 17A because
the allegedly discriminatory rule ' was one which the agency was
required to make under Iowa law. Id. at 699, citing Iowa Code
§ 80.11 (1985).
Hollinrake clearly sets out an exception to the general rule
of section 601A.16(l) that all civil rights complaints must proceed
through the Commission. We decline, however, to widen that exception
beyond cases where the alleged discriminatory practice results
from "the agency's action in carrying out its statutory duty
to enact a rule." Hollinrake, 433 N.W.2d at 699. We hold
Hill was not precluded by the doctrine of primary jurisdiction
from proceeding with his complaint through the Commission. Indeed,
we hold that he had no other means of proceeding.
IX. Reformation of the Collective Bargaining Agreement.
The Commission's order deleted a portion
of the agreement. Iowa Code section 601A. 15(8) sets out the remedies
which the Commission may employ to carry out the purposes of chapter
601A. The options include remedial action as well as cease and
desist orders. While the Commission is given wide latitude in
fashioning an appropriate remedy, the action taken by the Commission
must be statutorily authorized. Chauffeurs, Teamsters & Helpers,
394 N.W.2d at 384.
We find no statutory authority which would permit the Commission
to rewrite a collective bargaining agreement.While clearly the
Commission may prevent the clause from being enforced, it may
not simply delete portions of the agreement.
X. Conclusion.
In summary, we reverse the court's
denial of the International's motion to dismiss.We affirm the
court's holding that the action was timely filed. Based upon our
determination that civil rights complaints are nonarbitrable,
we reverse the court's conclusions that the AFSCME Local and county
discriminated against Hill by including the election of remedies
clause in the agreement. We affirm the court's determination that
the Commission was not precluded by PERB's earlier ruling. We
affirm the court's holding that the doctrine of primary jurisdiction
did not prevent the Commission from proceeding with Hill's complaint.
We reverse the court on the question of the Commission's authority
to rewrite the collective bargaining agreement.
Costs to be assessed one-half against appellants and one-half
against appellees.
AFFIRMED IN PART AND REVERSED IN PART.
* Hill also complained that the AFSCME Local had discriminated against him on the basis of race in its representation of him during the grievance procedure resulting from his termination. The Commission found no violation. Hill did not seek judicial review of the agency's dismissal of this complaint.