BILL ANALYSIS SENATE JUDICIARY COMMITTEE Senator Ellen M. Corbett, Chair 2007-2008 Regular Session AB 863 A Assemblymember Davis B As Introduced Hearing Date: June 19, 2007 8 ADM:rm 6 3 SUBJECT Los Angeles County Superior Court Employees DESCRIPTION This bill would require the Los Angeles County Superior Court (LACSC) to pay each employee in certain, specified bargaining units represented by the American Federation of State, County and Municipal Employees (AFSCME) an amount equivalent to the additional amount the employee would have received if the reclassification raise the employee received on October 1, 2005, were retroactive to August 1, 2005. BACKGROUND In 2000, SB 2140 (Burton, Chapter 1010) established the Trial Court Employment Protection and Governance Act (Act), which, among other things, created a civil-service like employment system for many trial court employees, including a mutual obligation for the trial courts and recognized employee organizations to meet and confer in good faith. The legislation also established a trial court's authority to establish job classifications and salary ranges as it deems necessary. The 2005-06 state budget included augmentations to the Trial Court Trust Fund of $3.5 million for pay parity in the LACSC. The majority of the collective bargaining units reached agreement on job classifications and pay effective August 1, 2005. Negotiations between the LACSC and certain employee groups represented by AFSCME were not completed (more) AB 863 (Davis) Page 2 until October 1, 2005, and those employees' pay adjustments did not begin until that time. AFSCME seeks in this bill to make those October 1, 2005 pay adjustments retroactive to August 1, 2005. CHANGES TO EXISTING LAW Existing law defines the phrase "trial court employee," for purposes of the Act, to mean a person paid from the trial court's budget and subject to the trial court's right to control the manner and means of his or her work because of the trial court's authority to hire, supervise, discipline, and terminate employment. (Government Code (GC) Section 71601.) Existing law requires, among other things, that trial courts and recognized employee organizations have a mutual obligation to meet and confer in good faith, as specified, in order to, among other things, endeavor to reach agreement on matters within the scope of representation. (GC Section 17601.) Existing law provides that each trial court may establish such job classifications and may appoint such trial court officers, deputies, assistants, and employees as are deemed necessary for the performance of the duties and the exercise of the powers conferred by law upon the trial courts. (GC Section 71620.) Existing law provides that each trial court may establish a salary range for each of its employee classifications, and considerations shall include, but are not limited to, local market conditions and other local compensation-related issues such as difficulty of recruitment or retention. (GC Section 71623.) This bill would require the LACSC to pay each employee in a bargaining unit represented by any of the following employee organizations an amount equivalent to the additional amount the employee would have received if the reclassification raise the employee received on October 1, 2005, were retroactive to August 1, 2005: (a)AFSCME Local 276, Mediators and Evaluators. (b)AFSCME Local 575, the Los Angeles County Superior Court AB 863 (Davis) Page 3 (LACSC) Clerks Association. (c)AFSCME Local 910, the LACSC Legal Professional Unit. (d)AFSCME Local 3271, the LACSC Professional Employees. (e)AFSCME Local 3302, the LACSC Clerical. COMMENT 1. Stated need for the bill The sponsor, AFSCME, writes: Existing law provides that each trial court may establish a salary range for each of its employee classifications, and considerations shall include, but are not limited to, local market conditions and other local compensation-related issues such as difficulty of recruitment or retention. The Legislature authorized a Classification and Compensation study, whereby the results were implemented in 2005. Additionally, funds were authorized by the Legislature for implementation August 1, 2005. These funds have been appropriated by the Legislature to the Trial Court [Trust] Fund for the purpose of reclassification of AFSCME Local 276, Local 575, Local 910, Local 3271, and Local 3302. However, the [LACSC] implemented the new classification and compensation levels on October 1, 2005, thereby denying the affected workers two months of pay at the appropriate rate. AFSCME also writes that the impetus for the Classification and Compensation study was court unification [superior and municipal courts unification, Proposition 220, 1998], which resulted in workers throughout the court system performing the same jobs in different classifications with different pay rates. As part of the unification process, AFSCME asserts that the Legislature intended that pay parity be achieved between superior and municipal court employees doing the same job. AB 863 (Davis) Page 4 2. Related budget bill language In both the 2005-06 and current budget bills, this issue has been addressed. The current budget conference committee has approved the following bill language: 0250-101-0932 Provision XX. From funds previously provided by the Legislature in the 2004-05 budget to address court employee pay parity due to unification of the municipal and superior courts, the Judicial Council shall allocate funds to the Los Angeles Superior Court and the court shall pay to each employee the amount the employee would have received if the reclassification raise the employee received on October 1, 2005, had been retroactive to August 1, 2005. The Administrative Office of the Courts [AOC] shall confirm with the Los Angeles Superior Court the names of the affected employees and the amount of funding necessary to implement this provision. Very similar language was contained in the 2005-06 Budget bill. The AOC reports that it is holding the funds (approximately $230,000) appropriated in the 2005 budget and will continue to do so until LACSC indicates that it will disburse the funds according to the budget bill language and/or AB 863. BECAUSE THIS RETROACTIVE PAY ISSUE HAS BEEN OUTSTANDING FOR TWO YEARS AND INVOLVES A MINIMAL AMOUNT OF MONIES, SHOULD NOT THE LACSC COMMIT TO DISBURSING THE FUNDS AS IT HAS ALREADY BEEN DIRECTED TO DO? SHOULD THE BILL BE AMENDED TO PROVIDE A LEGISLATIVE DECLARATION URGING THE LACSC TO ACT IN A RESPONSIBLE MANNER AND DISBURSE THE FUNDS THE JC IS HOLDING AS DIRECTED? 3. Prior virtually identical legislation Senate Bill 1696 (Dunn of 2006), which was identical to AB 863, was vetoed. The governor's veto message reads: AB 863 (Davis) Page 5 This bill would circumvent the collective bargaining process by requiring retroactive pay increases for employees of the Los Angeles County Superior Court, which were not agreed to during negotiations. Furthermore, signing this bill would undermine the collective bargaining process by encouraging bargaining units to come to the Legislature to determine the outcome rather than follow the process set forth in law requiring negotiation between the parties locally. 4. Opponents' arguments Opponent California Judges Association (CJA) writes that "CJA expresses no opinion on the merits of retroactive pay for individuals affected by the bill, nor on whether sufficient funds have been set aside in the past to make retroactive payments. Rather, [CJA has] a long-standing policy against resolving collective bargaining disputes by statute. CJA generally opposes interference with local labor negotiations." Opponent LACSC also writes that AB 863 would undermine the collective bargaining process "because it represents an effort to obtain through legislation that which AFSCME was unable to obtain through good faith negotiations." Additionally, opponent LACSC writes: Prior to implementing the Study recommendations, the [LACSC] engaged in good faith labor negations with both AFSCME and SEIU (Service Employees International Union) about the effect of the Study. The court and SEIU reached agreement after four bargaining sessions. After reaching agreement with SEIU, the court implemented salary increases for SEIU bargaining unit members on August 1, 2005. The court and AFSCME held 34 bargaining sessions but were unable to reach agreement on the issues. Consequently, the court implemented its last, best and final offer effective October 1, 2005. AFSCME sought to have the court implement the offer retroactively to August 1, 2005, but, consistent with long established AB 863 (Davis) Page 6 practice, the court declined to grant retroactive pay increases. By sponsoring AB 863, AFSCME seeks to change the outcome of the parties' good faith negotiations and have the Legislature provide AFSCME bargaining unit members something AFSCME was unable to obtain through collective bargaining. AFSCME responds that, because it represents many more bargaining units than SEIU, it was unable to complete contract negotiations in the timeframe that SEIU was. And, in any event, the LACSC implemented its final offer of its own volition and chose not to make it retroactive to August 1, 2005. Support: Orange County Employees Assoc. Opposition: CA Judges Assoc.; Los Angeles County Superior Court HISTORY Source: American Federation of State, County and Municipal Employees Related Pending Legislation: None Known Prior Legislation: SB 1696 (Dunn of 2006), which was virtually identical to this bill, was vetoed. (See Comment 2 for details.) Prior Vote: Assembly Public Employees, Retirement & Social Security Committee (Ayes 4, Noes 1) Assembly Appropriations Committee (Ayes 12, Noes 5) Assembly Floor (Ayes 42, Noes 31) ************** AB 863 (Davis) Page 7