AGO 144.

• Case Date: September 13, 1994
• Court: North Carolina

North Carolina Attorney General Opinions 1994. AGO 144. September 13, 1994Attorney General Letter Opinion No. 144Ms. Terri Toth McGaughey Attorney at Law Post Office Box 389 Raleigh, North Carolina 27602-0389RE: Advisory Opinion; Application of G.S. 95-98 to the Research Triangle Regional Public Transportation AuthorityDear Ms. McGaughey: On behalf of your client, the Research Triangle Regional Public Transportation Authority ("TTA"), you have requested an opinion as to whether G.S. § 95-98 prohibits TTA from entering into, and/or prevents the enforceability of, an agreement with a labor union representing private or public employees working in the TTA's service area. It is our understanding that TTA is a body corporate and politic organized pursuant to Chapter 160A, Article 26 of the North Carolina General Statutes ("Regional Public Transportation Act"). The purpose of TTA is to "finance, provide, operate, and maintain for a safe, clean, reliable, adequate, convenient, energy efficient, economically and environmentally sound public transportation system" for its service area. G.S. § 160A-608. Among the general powers of TTA is the power "to obtain grants, loans and assistance from the United States . . . ." G.S. § 160A-610(18). In order to purchase coaches for use in regional bus service, TTA has applied for a grant from the Federal Transit Administration and is attempting to satisfy the provisions of Section 5333(b) (formerly 13(c)) of the Federal Transit Act, 49 U.S.C. § 1601, et seq. Section 5333(b) requires, as a grant condition, the development of terms and conditions which are "fair and equitable" (as determined by the U.S. Department of Labor) in order to protect the interests of unionized employees of mass transportation providers operating in TTA's service area who are dismissed or displaced due to TTA's use of the federal grant money. This requirement is typically implemented by negotiated protective arrangements with local unions whose members may be negatively impacted by the grant. TTA has been so negotiating with the Amalgamated Transit Union ("ATU"). These negotiations relate to terms and conditions of employment, including hiring preferences for union members dismissed as a result of TTA's expansion of operations. G.S. § 95-98 reads as follows:

Any agreement, or contract, between the governing authority

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