BILL ANALYSIS Ó
AB 646
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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.
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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.
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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
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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
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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