DEPARTMENT OF AGRICULTURE AGRICULTURAL RESEARCH SERVICE PLUM ISLAND ANIMAL DISEASE CENTER GREENPORT, NEW YORK and LOCAL 1940, AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES, AFL-CIO
In the Matter of an Interest Arbitration
DEPARTMENT OF AGRICULTURE
AGRICULTURAL RESEARCH SERVICE
PLUM ISLAND ANIMAL DISEASE
GREENPORT, NEW YORK
LOCAL 1940, AMERICAN
FEDERATION OF GOVERNMENT
Case No. 90 FSIP 141
ARBITRATOR'S OPINION AND DECISION
The Department of Agriculture, Agricultural Research Service, Plum Island Animal Disease Center, Greenport, New York (Employer or PIADC) filed a request with the Federal Service Impasses Panel (Panel) to consider a negotiation impasse under section 7119(b)(1) of the Federal Service Labor-Management Relations Statute (Statute) between it and Local 1940, American Federation of Government Employees, AFL-CIO (Union). The parties accepted the Panel's recommendation, pursuant to section 2471.6(a)(2) of its regulations, to submit the dispute to the undersigned for mediation-arbitration whereby I was vested with authority to mediate with respect to all outstanding issues, and render a decision should any remain unresolved.
On August 21, 1990, representatives of the parties convened before me at the Employer's facility on Plum Island located off the eastern coast of Long Island, New York. When the parties were unable to reach an agreement: during mediation, a hearing was held. The parties were afforded the opportunity to present in full their respective positions, offer testimony, cross-examine witnesses, and submit documentary evidence for the record. Conference calls were held with the parties on September 5, 13., and 18, 1990, In an attempt to narrow the issue. Post-hearing briefs were filed, and I have now considered I the entire record.
The Employer's mission is to conduct research to protect U.S. commodities against catastrophic economic losses caused by foreign animal disease agents accidentally or deliberately introduced into the United States. The bargaining unit consists of approximately 200 General Schedule and Wage Grade employees, the majority of whom hold skilled trade and administrative positions. Approximately 11 members of the bargaining unit are part of the marine crew which operates the ferry boats that transport passengers, equipment, and supplies to Plum Island and back from Orient Point, New York, and Old Saybrook, Connecticut. These employees are compensated under the Marine Wage System, 5 U.S.C. § § 5348, and have their wages determined by the prevailing rates and practices in the maritime industry.(1) Marine crew members hold positions such as pilot, chief engineer, assistant engineer, and able seaman.
The parties have negotiated a master collective-bargaining agreement which is in effect until May 5, 1991. Pertinent to the dispute herein is Article XVII, entitled Marine Wage System, which provides in section 2, as follows:
SECTION 2. Beginning the first full pay period on or after the effective date of this contract, marine crew wages will be increased by 5 percent. Thereafter, wage rates for vessel employees in the representation unit will be adjusted at the same proportion of cost-of-living increases and on the same date as Wage Grade employees in the representational unit. On or before the anniversary date for each subsequent year of this contract, the Center and the Union agree to bargain over the question of marine crew wages as found in this Section. . . .
Marine crew employees received a 4.1 percent cost-of-living adjustment (COLA) effective July 1, 1989, and a 3.6 percent COLA effective July 1, 1990, the same adjustment received by Wage Grade employees in the bargaining unit. The parties, however, disagree over the amount of any additional wage increases for the marine crew during those years which would have taken effect each May, coinciding with the anniversary date of the term agreement.
The parties stipulated the issue as follows: To what extent, if any, should wages for the marine vessel crew be increased beyond the 4.1 percent COLA for 1989, and the 3.6 percent COLA for 1990, which these employees have received.
POSITIONS OF THE PARTIES
1. The Union
The Union proposes that employees on the marine crew receive an increase of 5 percent of their pay for 1989, and another 5 percent for 1990. The Union maintains that the cost of living in the Long Island, New York, area rose by "at least 6 percent during 1989 and 1990, " respectively. (Un. Br. 2). The adjustment, as proposed, would keep marine crew wages competitive in the local labor market since these employees do not receive step increases in their pay as do Wage Grade employees; rather, the only wage adjustment which they receive is an annual cost-of-living increase, the amount of which is determined by whatever pay adjustment is afforded the Wage Grade employees at the Employer's facility, and any wage increase negotiated pursuant to the parties' term agreement.
The Union contends that the Employer can well afford the pay increase proposed, noting that the Employer has spent, over the past 3 years, some $1.5 million to refurbish facilities. Furthermore, the adjustment proposed is fair and equitable, intended to bring traditionally lower Federal-sector wages in line with those in the private sector. In this regard, the Union maintains that it is implicit under 5 U.S.C. § § 5348 that wages for the Plum Ashland marine crew be adjusted based upon a comparison with other marine crews in the prevailing area. It alleges that a comparison of the wages received by the marine crews on two privately-owned ferry companies in the area, the North Ferry and the Bridgeport Ferry, as well the Governors Island Ferry,(2) indicates that wages for the Plum Island marine crew fall short by an average of 13 percent. Finally, the Union argues in its brief that the wage survey which determines the base pay for the Employer's Wage Grade employees showed that an 8 percent increase in both 1989 and 1990, was warranted.(3)
2. The Employer
The Employer proposes that wages for the marine crew be established according to the following procedure:
1. The parties will request information on the cost-of-living ad