BILL ANALYSIS �
AB 961
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
AB 961 (Mansoor) - As Amended: March 31, 2011
SUBJECT : Public employee organizations: negotiations: pension
benefits.
SUMMARY : Excludes matters relating to pension benefits from
the scope of public employee collective bargaining.
Specifically, this bill :
1)Excludes matters relating to pension benefits from the scope
of representation of public employees by recognized public
employee organizations under the Meyers-Milias-Brown Act
(MMBA), the Ralph C. Dills Act (Dills Act), the Educational
Employment Relations Act (EERA), the Higher Education
Employer-Employee Relations Act (HEERA), including HEERA
supervisory employees, the Trial Court Employment Protection
and Governance Act (Trial Court Act), the Trial Court
Interpreter Employment and Labor Relations Act (Court
Interpreter Act), and the Los Angeles County Metropolitan
Transportation Authority Transit Employer-Employee Relations
Act (Transit Employer-Employee Relations Act).
EXISTING LAW :
1)Establishes the MMBA to provide a statutory framework for
local government employer-employee relations, and specifies
that the scope of representation includes all matters
including, but not limited to, wages, hours, and other terms
and conditions of employment, excluding consideration of the
merits, necessity, or organization of any service or activity
provided by law or executive order.
2)Establishes the Dills Act to provide a statutory framework for
state employer-employee relations, and specifies that the
scope of representation is limited to wages, hours, and other
terms and conditions of employment, excluding consideration of
the merits, necessity, or organization of any service or
activity provided by law or executive order.
3)Establishes the EERA to provide a statutory framework for
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public school employer-employee relations, and specifies that
the scope of representation is limited to wages, hours, and
other terms and conditions of employment, as specified.
4)Establishes the HEERA to provide a statutory framework for
employer-employee relations at the University of California
(UC), California State University (CSU), and Hastings College
of Law, and defines scope of representation, as specified, for
the UC and CSU.
5)Establishes the Trial Court Act to provide a statutory
framework to promote full communication between trial courts
and their employees by providing a reasonable method for
resolving disputes regarding wages, hours, and other terms and
conditions of employment between trial courts and recognized
employee organizations and specifies that the scope of
representation includes all matters relating to employment
conditions and employer-employee relations, including, but not
limited to, wages, hours, and other terms and conditions of
employment.
6)Establishes the Court Interpreter Act setting forth provisions
and procedures governing the employment and compensation of
certified and registered trial court interpreters, and court
interpreters pro tempore, employed by the trial courts and
specifies that the scope of representation includes all
matters relating to employment conditions and
employer-employee relations, including, but not limited to,
wages, hours, and other terms and conditions of employment.
7)Establishes the Transit Employer-Employee Relations Act to
provide the means by which relations between the Los Angeles
County Metropolitan Transportation Authority and their
supervisory employees may assure that the responsibilities and
authorities granted to each transit district by statute are
carried out in an atmosphere that permits the fullest
participation by employees in the determination of conditions
of employment which affect them and includes within the scope
of representation all matters relating to employment
conditions and employer-employee relations, including, but not
limited to, wages, hours, and other terms and conditions of
employment.
8)Establishes the Public Employment Relations Board (PERB) as
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the state agency having responsibility for administering the
MMBA, Dills Act, EERA, HEERA, Trial Court Act, Court
Interpreter Act, and Transit Employer-Employee Relations Act.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "In the late 1990s, the
California Legislature passed very generous pension plans for
public employees. At that time the dot com boom was in full
swing and California had a budget surplus. However, with the
stock market collapse and the housing bust of 2008, California's
public pension systems have been exposed to new weaknesses. Our
current economic recession leaves California with massive
unfunded liability for public employee pensions.
"Existing pension plans for public employees are guaranteed by
the state regardless of market conditions. This bill will help
reduce future pension obligations by creating a negotiating
environment that will allow the implementation of a more
sustainable pension benefit."
Supporters state, "California's rapidly expanding pension
liabilities are a crisis for our already cash strapped state,
and removing collective bargaining by politically powerful and
well financed government employee unions will make reform more
likely. Collective bargaining was never intended for public
employees. In essence, they are allowed to negotiate with
themselves (government) for better pay and benefits. At least
in the private sector, workers must negotiate against the free
market. If their demands are too high, the company they work
for goes out of business. As government can readily borrow
money, they face no such inhibitions?Removing pension benefits
out of collective bargaining will restore an important check and
balance to public pension benefit programs."
Opponents state, "Collective bargaining, at its core, embodies
the essence of democracy. As a fundamental human right,
voluntary negotiations between employers and local employee
organizations take place for the sole purpose collectively
reaching agreements regulating wages, hours and working
conditions. Collective bargaining not only benefits workers,
but society as a whole thanks to labor-management relations that
increase skill levels and reduce turnover. This basic process
provides a forum where employers and employees can join together
to address problems specific to their respective communities."
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Opponents point out that California's public employee unions are
leading pension reform at the bargaining table. "State employees
agreed to pay more into the system, reduced accrual rates for
new employees, and other reforms, saving $400 million last year
in the state budget -- on top of a 14% pay cut through
furloughs. A March, 2011 League of California Cities survey
found that nearly four out of 10 cities have negotiated new or
increased cost sharing. Nearly a quarter have negotiated a
second tier, and dozens have changed how salary is calculated.
The League's conclusion: 'There is a strong indication that we
will continue to see changes adopted at the local collective
bargaining table.' Further, collective bargaining protects
public workers and taxpayers from political patronage. The
public is best served by public employees whose first loyalty is
to their job, not to a political party. In the public sector,
collective bargaining insulates employees from politics and
patronage."
Opponents conclude, "Retirement benefits are an important
element of our members' total compensation, a subject that is a
critical element of the bargaining process. Statutorily
restricting retirement benefits from the bargaining table
possibly could distort bargaining around other elements of a
total agreement. Under collective bargaining, a change in
employee retirement benefits would need the concurrence of both
the employee organization, the state employer and be subject to
ratification by the Legislature. Such a process provides more
than adequate protections for the public treasury."
This bill is similar to SB 527 (Walters) of this year which
would exclude matters relating to pension benefits from the
scope of collective bargaining, except for the amount of
employee contributions to public pension plans.
REGISTERED SUPPORT / OPPOSITION :
Support
Mayor of Costa Mesa, Gary Monahan
Costa Mesa Taxpayers Association
Garden Grove Chamber of Commerce
Howard Jarvis Taxpayers Association
Orange County Taxpayers Association
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Opposition
American Federation of State, County and Municipal Employees
Association for Los Angeles Deputy Sheriffs
California Association of Highway Patrolmen
California Association of Professional Scientists
California Correctional Peace Officers Association
California Nurses Association
California Professional Firefighters
California Public Defenders Association
California School Employees Association
California Statewide Law Enforcement Association
California Teachers Association
CDF Firefighters
Laborers' Locals 777 & 792
Los Angeles Police Protective League
Los Angeles Probation Officers' Union
Orange County Employees Association
Orange County Professional Firefighters Association
Professional Engineers in California Government
Retired Public Employees Association
Riverside Sheriffs' Association
San Diego County Court Employees Association
Service Employees International Union California
Service Employees International Union, Local 1000
United Nurses Associations of California/Union of Health Care
Professionals
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957