SJC strikes down ‘evergreen’ clauses

In an Oct. 22 ruling, the Supreme Judicial Court struck down so-called “evergreen” clauses in collective bargaining agreements.

In a 4-2 decision, the SJC held that state statute, Chapter 150E, limits collective bargaining contracts to three years; therefore, it found, “evergreen” clauses, which provide that all terms of a contract are in force until a new contract is reached, are not valid.

The case in question was Boston Housing Authority v. The International Conference of Firemen and Oilers Local 3.

The consensus among municipal labor attorneys is that existing terms and conditions of employment remain in effect until new contract agreements are reached. The SJC decision did not change the general rule that cities and towns must bargain to impasse before changing any wages or terms of employment.

The real impact of the decision is that the grievance procedures that are a part of every collective bargaining agreement are no longer valid during the interim between the expiration of a collective bargaining contract and the implementation of a new bargaining agreement.

The MMA will continue to monitor this situation and provide additional guidance as it becomes available.

• MMA letter to governor and legislative leaders supporting SJC decision on ‘evergreen clauses’