(a) The authority through its boards shall deal with and enter into written contracts with the employes of the authority through accredited representatives of such employes or representatives of any labor organization authorized to act for such employes concerning wages, salaries, hours, terms and conditions of employment, and pension or retirement provisions. Collective bargaining and the employer-employe relations of the authority and its public employes shall not be subject to or governed by the terms and provisions of the act of November 27, 1967 (P.L. 628, No. 288),¹ entitled “An act protecting the rights of employes of existing transportation systems which are acquired by cities of the third class or any authority thereof or certain joint authorities; requiring cities of the third class or any authority thereof or any such joint authority to enter into contracts with labor organizations acting for such employes, and providing for arbitration in case of disputes.”

(b) It shall be the duty of the authority and the authorized representative to exert every reasonable effort to settle all disputes by engaging in collective bargaining in good faith and by entering into settlements by way of written agreements and maintaining the same.

(c) The authority shall not be required to bargain over matters of inherent managerial policy, which shall include, but shall not be limited to, such areas of discretion or policy as the functions and programs of the authority, standards of services, its overall budget, utilization of technology, the organizational structure and selection and direction of personnel. The authority, however, shall be required to meet and discuss on policy matters affecting wages, hours and terms and conditions of employment as well as the impact thereon upon request by the authorized representative.

(d) First-level supervisors shall not be included in bargaining units with other employes of the authority. Incumbents holding first-level supervisory positions on the effective date of this subsection will be given the opportunity to continue in represented status or to terminate their bargaining unit status. Those who choose to continue in represented status shall retain the individual right to terminate their bargaining unit status at any time. All newly appointed first-level supervisors shall not be included in bargaining units with other employes of the authority. “First-level supervisor” shall mean the lowest level at which an employe functions as a supervisor. For the purposes of this section “supervisor” shall mean any individual having authority in the interests of the employer to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward or discipline other employes or responsibly to direct them or adjust their grievances; or, to a substantial degree, effectively recommend such action, if, in connection with the foregoing, the exercise of such authority is not merely routine or clerical in nature, but calls for the use of independent judgment. In the event that an employe in a position defined as a “first-level supervisor” is removed from his or her position due to a layoff or other reduction in force, such employe may elect to return to the position he or she held immediately prior to becoming a “first-level supervisor.” In all cases, such job placement will be made in accordance with full seniority.

(e) Collective bargaining shall commence at least one hundred days prior to the expiration of a collective bargaining agreement.

(f) In the case of any labor dispute where collective bargaining does not result in an agreement, the dispute, with the written consent of both parties, shall be submitted to final and binding interest arbitration. The board of arbitration shall be composed of three persons, one appointed by the authority, one appointed by the labor organization representing the employes and a third member to be agreed upon by the labor organization and the authority. The member selected by the labor organization and the authority shall act as chairman of the board. The determination of the majority of the board of arbitration thus established shall be final and binding on all matters in dispute. If, after a period of ten days from the date of the appointment of the two arbitrators representing the authority and the labor organization, the third arbitrator has not been selected, then either arbitrator may request the American Arbitration Association to furnish a list of five persons from which the third arbitrator shall be selected. The arbitrators appointed by the authority and the labor organization, promptly, after the receipt of such list, shall determine, by lot, the order of elimination, and, thereafter, each shall, in that order alternately, eliminate one name until only one name remains. The remaining person on the list shall be the third arbitrator. All contract provisions shall remain status quo during the period of arbitration, and there shall be no lockouts, strikes or other interference with or interruption of transit operations during the arbitration proceedings or during any action which may be instituted to upset the arbitration award. The term “labor dispute” shall include any controversy regarding written provisions of a collective bargaining agreement between the parties concerning wages, salaries, hours, terms and conditions of employment or benefits, including health and welfare, sick leave insurance or pension or retirement provisions. The term “interest arbitration” shall mean formulation by a neutral arbitrator of provisions governing wages, hours of work and other terms and conditions of employment after consideration of proposals relating to wages, hours of work and other terms and conditions of employment advanced by the authority and the authorized representative of the employes of the authority. Each party shall pay one-half of the expenses associated with any arbitration which may be conducted pursuant to this subsection.

(g) If an agreement has not been reached within forty-five days of the termination date of the collective bargaining agreement, either party may, in writing, call upon the Pennsylvania Labor Relations Board to appoint a neutral fact-finder. The fact-finder may hold hearings and take oral or written testimony and shall have subpoena power. Collective bargaining may continue during fact-finding. In the event an agreement has not been reached by the expiration date of the collective bargaining agreement and fact-finding has not previously been requested, both parties shall immediately, in writing, call upon the Pennsylvania Labor Relations Board to appoint a neutral fact-finder. The fact-finder may hold hearings and take oral or written testimony and shall have subpoena power. Collective bargaining may continue during fact-finding.

(h) The Commonwealth shall pay one-half of the cost of fact-finding; the remaining one-half of the cost shall be divided equally between the parties. The Pennsylvania Labor Relations Board shall establish rules and regulations under which the fact-finder shall operate.

(i) The findings of facts and recommendations shall be sent by registered mail to the Pennsylvania Labor Relations Board and to both parties not more than forty-five days after the appointment of the fact-finder.

(j) Not more than fifteen days after the findings and recommendations shall have been sent, the parties shall notify the Pennsylvania Labor Relations Board and each other whether or not they accept the recommendations of the fact-finder, and, if they do not, the fact-finder shall publicize his findings and recommendations.

(k) If the authority and the authorized representative of the employes of the authority do not accept the recommendations of the fact-finder and refuse to mutually agree to final and binding interest arbitration in accordance with subsection (f), the employes shall have the right to strike in regard to that dispute, and such strike shall not be prohibited unless or until such a strike creates a clear and present danger or threat to the health, safety or welfare of the public: Provided, That such strike shall not be prohibited on the grounds that it creates a clear and present danger or threat to the health, safety or welfare of the public unless the court's order granting relief further mandates that both parties submit the labor dispute to final and binding interest arbitration by a board of arbitration under the provisions of this section. No party, other than the authority, shall have any standing to seek any relief in any court of this Commonwealth under this subsection.

(l) Notwithstanding the provisions of subsection (k), no strike shall be permitted until the completion of a thirty-day “cooling-off” period, commencing immediately following the termination of the collective bargaining agreement, during which time the parties may reevaluate their respective positions. Nothing herein contained shall prohibit fact-finding during the “cooling-off” period.

(m) Although the arbitrators may consider any factors deemed to be relevant, the arbitrators shall consider and give weight primarily to, and describe in the award, the impact of the following factors in determining the award:

(n) No employe of the authority shall engage in any strike, walkout or other concerted cessation or curtailment of work, and no authorized representative of employes of the authority shall cause, instigate, encourage, promote or condone any strike, slowdown, walkout or other concerted cessation or curtailment of work by any employe of the authority where, in either case, such action is taken in support of any labor dispute involving the formulation of any contract provisions until fifteen days following the issuance of the fact-finder's report.

(o) The authority shall submit disputes involving the interpretation of specific provisions of collective bargaining agreements, including formal written supplemental understandings and agreements directly related to contract provisions, in effect from time to time, to grievance arbitration. In any grievance arbitration, the arbitrator must base the award upon the express terms and conditions of a labor agreement between the authority and the authorized representative. Each party shall pay one-half of the expenses associated with any arbitration which may be conducted pursuant to this subsection.

(p) If the authority or the authorized representative refuses to submit to the procedures set forth in this section, such refusal shall be deemed a refusal to bargain in good faith, and unfair practice charges may be filed by the submitting party, or the Pennsylvania Labor Relations Board may, on its own, issue an unfair practice complaint and conduct such hearings and issue such orders as provided by law.