In Matter of Board of Educ. of City School Dist. of City of Buffalo , the Buffalo Fiscal Stability Association (BFSA) imposed a wage freeze on all city employees -- including those working for the school system. As a result, when the City of Buffalo's Board of Education (BBOE) was unable to pay the increases outlined in a collective bargaining agreement, the Professional Clerical and Technical Employees Association (PCTEA) challenged the constitutionality of that action in federal court.
When the Second Circuit Court of Appeals affirmed the ase's dismissal, PCTEA sought arbitration and BFSA responded with a lawsuit in the Erie County Supreme Court seeking to stop the arbitration.
After BFSA's challenge was dismissed, it appealed to the Appellate Division, Fourth Department, which rejected BFSA's argument arbitration violated public policy. While arbitrators have broad powers, the AD4 refused to presume the panel's determination would violate governing standards.
The appellate court also rejected BFSA's argument the federal litigation precluded arbitration, because that case had been "limited to constitutional challenges" and thus didn't foreclose an arbitration designed to determine whether the collective bargaining agreement had been violated.
Buffalo had some chip on its shoulder.
To download a copy of the Appellate Division's decision, please use this link: Matter of Board of Educ. of City School Dist. of City of Buffalo