Borough of Ellwood City v. Pennsylvania Labor Relations Board

In Borough of Ellwood City v. Pennsylvania Labor Relations Board, Pa. 998 A.2d 589 (2010), the Supreme Court recognized that managerial prerogatives falling outside the realm of Act 111 collective bargaining "include, but are not limited to, 'such areas of discretion or policy as the functions and programs of the public employer, standards of services, its overall budget, utilization of technology, the organizational structure, and selection and direction of personnel.'" Id. at, 998 A.2d at 599. The Court stated: Given the General Assembly's intent in passing Act 111, we conclude that, when reviewing a disputed provision in an Act 111 interest arbitration award, a court should first inquire whether the provision concerns a topic that is subject to the right of collective bargaining, i.e., is rationally related to the terms and conditions of employment. If the topic is so subject, the court should next inquire whether the award also implicates the non-bargainable managerial prerogatives of a public employer. If the award does, the court must then determine whether the award unduly infringes upon the exercise of those managerial responsibilities. If . . . the award unduly infringes upon the exercise of managerial responsibilities, then the award concerns a managerial prerogative that lies beyond the scope of collective bargaining, the award reflects an excess of the arbitration board's Act 111 powers, and is voidable. Id. at 999 A.2d at 570-71.