CopyCited 4 times | Published | District Court, S.D. Florida | 81 L.R.R.M. (BNA) 2312, 1972 U.S. Dist. LEXIS 11842
...ing Phase I. That defendants were free at the inception of Phase II to pay the wage increases negotiated under their preexisting contracts cannot be doubted after an examination of Pay Board regulations and interpretive rulings. Pay Board regulation § 201.14 issued on November 13, 1971, provided in pertinent part: "Existing contracts and pay practices previously set forth will be allowed to operate according to their terms except that specific contracts or pay practices are subject to review, w...
...ove categories which are placed in effect prior to January 1, 1972. Such reports are required only in bargaining or pay practice situations involving 1,000 or more employees." 36 Fed.Reg. 21952 (Nov. 17, 1971) On April 19, 1972, Pay Board regulation § 201.14 was amended to accord with the interpretation it had been given from the start of Phase II: "(a) In general....
...o such contract or pay practice is unreasonably inconsistent with the criteria established by the Board. In the event of a challenge, these terms shall be allowed to remain in effect unless and until the Pay Board rules otherwise." 37 Fed.Reg. 7697. Section
201.14 remains substantially the same to date. Unlike Pay Board regulation §
201.11, which applies to contracts negotiated after November 14, 1971, and requires prior approval by the Pay Board of increases in excess of 5.5 percent, section
201.14 applies to "existing contracts" or, as it has subsequently been refined, "contracts ....
...which existed prior to November 14, 1971." As the provision that the terms of challenged contracts are to remain in effect pending an adverse determination by the Pay Board manifests, no prior approval is now, nor ever has been required for the implementation of increases permitted by section 201.14. Accord, Davis v. Servis Equip. Co., 80 L.R.R.M. 2020 (N.D.Tex. Mar. 31, 1972). If evidence should be sought that section 201.14 applies to the contracts of the parties now before the court, it is to be found in Pay Board ruling 1972-9, issued February 18, 1972....
...Likewise, Pay Board ruling 1972-1 issued February 4, 1972, held that even increases exceeding the Phase II 5.5 percent general wage and salary standard which were due after November 14, 1971, under a contract in existence prior to that date could be paid. 37 Fed.Reg. 2987 (Feb. 10, 1972). Governed by section 201.14, the contracts between the parties could "operate according to [their] terms" during Phase II....
