BILL ANALYSIS Ó AB 646 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Warren T. Furutani, Chair AB 646 (Atkins) - As Amended: March 23, 2011 SUBJECT : Local public employee organizations: impasse procedures. SUMMARY : Establishes additional processes, including mediation and factfinding, that local public employers and employee organizations may engage in if they are unable to reach a collective bargaining agreement. Specifically, this bill : 1)Allows either party, if after a reasonable time they fail to reach agreement, to request that the Public Employment Relations Board (PERB) appoint a mediator to assist the parties in reconciling differences. If PERB determines that an impasse exists, it is required to appoint a mediator within five working days after receipt of the request at PERB's expense. 2)Specifies that the parties are still able to utilize their own negotiated and mutually agreed-upon mediation procedure, in which case, PERB would not appoint a mediator, as specified. 3)Authorizes either party to request a factfinding panel to investigate the issues if the mediator is unable to settle the matter and declares factfinding is appropriate. 4)Specifies that the factfinding panel consist of one member selected by each party and a chairperson selected by PERB or by agreement of the parties. 5)Authorizes the factfinding panel to make inquiries and investigations, hold hearings, and take any other steps it deems appropriate, and to issue subpoenas requiring the attendance and testimony of witnesses and the production of witnesses. 6)Requires any state agency, the California State University, or any political subdivision of the state to furnish requested information to the factfinding panel, as specified. AB 646 Page 2 7)Specifies the criteria the factfinding panel should be guided by in arriving at their finding and recommendations. 8)Requires the factfinding panel to make findings of fact and recommend terms of a settlement if the dispute is not settled within 30 days. This information must first be provided to the parties being made available to the public. 9)Requires the costs of the chairperson of the factfinding panel to be paid for by PERB if PERB selected the chairperson. If the chairperson was mutually selected by the parties, the costs will be divided equally between the parties. Any other costs incurred will be borne equally by the parties, as specified. 10)Specifies that the parties are still able to utilize their own negotiated and mutually agreed-upon factfinding procedure, in which case, cost will be borne equally by the parties. 11)Allows an employer to implement their last, best and final offer once any applicable mediation and factfinding procedures have been exhausted. EXISTING LAW , as established by the Meyers-Milias-Brown Act (MMBA): 1)Contains various provisions intended to promote full communication between public employers and their employees by providing a reasonable method of resolving disputes regarding wages, hours, and other terms and conditions of employment between public employers and public employee organizations. 2)Provides that if, after a reasonable amount of time, representatives of the public agency and the employee organization fail to reach agreement, the two parties may mutually agree on the appointment of a mediator and equally share the cost. If the parties reach impasse, the public agency is not required to proceed to interest arbitration and may implement its last, best and final offer. 3)Authorizes a local public agency to adopt reasonable rules and regulations after consultation in good faith with representatives of an employee organization or organizations for the administration of employer-employee relations under the MMBA. AB 646 Page 3 4)Delegates jurisdiction over the employer-employee relationship to the Public Employment Relations Board (PERB) and charges PERB with resolving disputes and enforcing the statutory duties and rights of local public agency employers and employee organizations. FISCAL EFFECT : Unknown. COMMENTS : According to the author, "Currently, there is no requirement that public agency employers and employee organizations engage in impasse procedures where efforts to negotiate a collective bargaining agreement have failed. Without impasse procedures, negotiations may not be fully effective, and bargaining may break down before all avenues for agreement are explored. Many municipalities and public agencies promulgate local rules which include impasse rules and procedures. However, this requirement is not uniform, and the lack of uniformity may serve to create confusion and uncertainty. "The creation of mandatory impasse procedures is likely to increase the effectiveness of the collective bargaining process, by enabling the parties to employ mediation and fact-finding in order to assist them in resolving differences that remain after negotiations have been unsuccessful. Mediators are often useful in restarting stalled negotiations, by encouraging dialogue where talks have broken down; identifying potential areas where agreement may be reached; diffusing tension; and suggesting creative compromise proposals. Fact-finding panels can also help facilitate agreement, by making objective, factual determinations that can help the parties engage in productive discussions and reach reasonable decisions." Opponents state, "AB 646 undermines a local agency's authority to establish local rules for resolving impasse and the requirement that a local agency engage in factfinding may delay rather than speed the conclusion of contract negotiations." Opponents go on to say they are not aware of any abuses or short-comings of the current process and question the need for making such an important change in the process of reaching a collective bargaining agreement. Opponents conclude, "Most importantly, the provisions in AB 646 could lead to significant delays in labor negotiations between AB 646 Page 4 public employers and employee organizations and result in additional costs to public employers at a time when public agencies are struggling to address budget shortfalls and maintain basic services for their residents. AB 646 would provide a disincentive for employee organizations to negotiate in good faith when there exists the option of further processes under the PERB that will prolong negotiations. Most collectively bargained contracts are stalled due to cost-saving measures being sought by the public agency in a downturned economy; requiring mediation and factfinding prior to imposing a last, best and final offer would simply add costs and be unhelpful to both the employer and the employees." The Committee is informed the author will be offering amendments in Committee that do the following: 1)Remove all of the provisions related to mediation, making no changes to existing law. 2)Remove the requirements that an employer and employee organization submit their differences to a fact-finding panel and instead provides employees organizations with the option to participate in the fact-finding process established in Government Section 3505.4, which is added by this measure. 3)Clarify the existing requirement for a public employer to conduct a public impasse hearing prior to imposing its last, best, and final offer. REGISTERED SUPPORT / OPPOSITION : Support American Federation of State, County and Municipal Employees (Sponsor) California Labor Federation Opposition Association of California Healthcare Districts California Association of Sanitation Agencies California State Association of Counties Desert Water Agency East Valley Water District El Dorado Irrigation District AB 646 Page 5 Placer County Board of Supervisors Regional Council of Rural Counties Sacramento Municipal Utility District Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957