Justia Government Contracts Opinion Summaries

Articles Posted in Supreme Court of Illinois

AFSCME represents approximately 40,000 state employees working in executive agencies. In 2008, AFSCME and the state negotiated a collective bargaining agreement effective through June 2012, providing for a general wage increase on January 1, 2009, and thereafter on every July 1 and January 1. Individual increases varied, but totaled 15.25%. A 4% increase was scheduled for July 1, 2011. In 2010, facing declining state revenues and the potential layoff of 2,500 state employees, AFSCME and the state agreed to $300 million in cost savings, including deferring the July 2011 increase; a 2% increase would be implemented on July 1, 2011, with the remaining 2% to be implemented on February 1, 2012. After adoption of the fiscal 2012 budget, the Department of Central Management Services notified agencies and labor relations administrators that, due to insufficient appropriations, the wage increase could not be implemented in 14 agencies. In arbitration, the state argued that the Public Labor Relations Act mandates that executive branch expenditures under a CBA are contingent on corresponding appropriations by the General Assembly, that this provision restates the mandate of the Illinois Constitution appropriations clause, and that it was incorporated into the CBA by the statement that β€œthe provisions of this contract cannot supersede law.” The arbitrator issued an award in favor of AFSCME. The Illinois Supreme Court reversed the lower courts and vacated the award, holding that the arbitration award violates Illinois public policy, as reflected in the appropriations clause and the Public Labor Relations Act. View "Illinois v. Am. Fed'n of State, County & Mun. Employees, Council 31" on Justia Law