UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 114
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2419 (Rev. 18)
ARB CASE NO: 02-013
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 56
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2415 (Rev. 19)
ARB CASE NO: 02-014
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 85
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2517 (Rev. 21)
ARB CASE NO: 02-015
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 68
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2497 (Rev. 17)
ARB CASE NO: 02-016
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 112
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2165 (Rev. 17)
[Page 2]
ARB CASE NO: 02-017
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 94
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2401 (Rev. 20)
ARB CASE NO: 02-018
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 85
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2521 (Rev. 22)
ARB CASE NO: 02-019
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 130
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2431 (Rev. 18)
ARB CASE NO: 02-020
UNITED GOVERNMENT SECURITY
OFFICERS OF AMERICA, LOCAL 137
and INDEPENDENT COURT SECURITY
OFFICERS, LOCAL UNION 142
In re: Substantial Wage Variance
Between Local Collective Bargaining
Agreement Wage and Local
Prevailing Wage Determination
No. 94-2413 (Rev. 15)
BEFORE: THE ADMINISTRATIVE REVIEW BOARD
Appearances:
For Petitioner: Leslie Deak, Esq., Washington, D.C.
For Respondent Administrator, Wage and Hour Division: Lois R. Zuckerman, Esq., Douglas J. Davidson, Esq., Steven J. Mandel, Esq., Howard M. Radzely, Esq., Acting Solicitor, U.S. Department of Labor, Washington, D.C.
For Intervenor The International Brotherhood of Electrical Workers:
Terry R. Yellig, Esq.,Sherman, Dunn, Cohen, Leifer & Yellig, P.C., Washington, D.C.
FINAL DECISION AND ORDER
This case concerns the McNamara-O'Hara Service Contract Act of 1965, as amended, 41 U.S.C.A. § 351 et seq. (West 1994) (SCA) and 29 C.F.R. Parts 6 and 8 (2002). The United Government Security Officers of America International Union (UGSOA), on behalf of nine local unions, petitions the Administrative Review Board ("ARB" or "Board") to review the November 1, 2001 and the November 5, 2001 final rulings of William W. Gross, Director, Office of Wage Determinations, Employment
[Page 3]
Standards Division. Gross was acting on behalf of the Acting Administrator, Wage and Hour Division (Administrator). In view of the similarity of issues and in the interest of judicial and administrative economy, the nine petitions have been consolidated for review and decision. We vacate the Administrator's final rulings that denied UGSOA's request for substantial variance hearings pursuant to Section 4(c) of the SCA.
BACKGROUND
The parties do not dispute the facts. The United States Marshall Service entered into government contracts with AKAL Security, Inc. (AKAL) to provide court security officer services for federal buildings located within the jurisdiction of the United States Courts of Appeals for the Fifth, Sixth and Tenth Circuits. The Marshall Service also contracted with United International Investigative Services, Inc. (United International) for court security officer services for federal buildings located within the Fourth Circuit and with Knight Protective Service, Inc. (Knight) to provide court security officer services for federal buildings located within the jurisdiction of the Seventh Circuit. The SCA governs these contracts. UGSOA is the union representing the court security officers of AKAL, United International, and Knight. UGSOA's local unions entered into collective bargaining agreements with AKAL, United International, and Knight. These agreements specified the wages to be paid to their members.1
1 The parties do not dispute that the collective bargaining agreements were negotiated at arm's-length. Furthermore, although the record does not contain any predecessor contracts, the parties also do not dispute that the collectively bargained wage rates at issue here are not less than those contained in predecessor contracts. See 41 U.S.C.A. § 353(c).
2 The Administrative Review Board provides the same "adjudicative service" for the Department of Labor's Wage and Hour Division that "reviewing courts … provide…." Keebler, slip op. at 21.
3 In his dissent in Gracey, Judge Phillips relied upon evidence in the record before the Fourth Circuit that between 1972, when Section 4(c) was enacted, and 1988, it had been the consistent policy of the Administrator to hold substantial variance hearings for the purpose of determining whether CBA wage rates are below prevailing wage rates. Gracey, 868 F.2d at 681. Also, as the Board recently noted, during the first years immediately following enactment of Section 4(c), several substantial variance hearings involving CBA wage rates that were less than the prevailing wage rates were actually tried before Department of Labor Administrative Law Judges. See U.S. Dep't of State, ARB No. 98-114, slip op. at 15-16 n.8 (ARB Feb. 16, 2000).
4 Prior to the establishment of the ARB, the BSCA issued SCA final decisions (1992-1996), and before the BSCA was created, the Deputy Secretary of Labor rendered final decisions.
5 We are aware that one of these appeals was filed on behalf of court security officer members employed within the jurisdiction of the Fourth Circuit in which Gracey was decided. See ARB No. 02-017. We acknowledge that the Fourth Circuit's decision in Gracey controls the disposition of ARB No. 02-017.