BILL ANALYSIS Ó
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 1606
Gloria Negrete McLeod, Chair Hearing date: May 7, 2012
AB 1606 (Perea) as introduced 2/07/12 FISCAL: YES
LOCAL LABOR RELATIONS: FACTFINDING PROVISIONS
HISTORY :
Sponsor: American Federation of State, County and
Municipal Employees (Co-Sponsor)
California Professional Firefighters (Co-Sponsor)
Peace Officers Research Association of California
(Co-Sponsor)
Service Employees International Union, California
(Co-Sponsor)
Other legislation: AB 646 (Atkins)
Chapter 680, Statutes of 2011
ASSEMBLY VOTES :
PER & SS 4-1 3/28/12
Appropriations 12-5 4/18/12
Assembly Floor 46-244/23/12
SUMMARY :
AB 1606 clarifies the situations in which an employee
organization representing local public employees may request
factfinding upon reaching impasse in labor negotiations with
the employer.
BACKGROUND AND ANALYSIS :
1) Current law :
a) establishes the Meyers-Milias-Brown Act (MMBA), which
governs labor relations between local public employers and
the recognized representatives of local public employees.
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b) requires collective bargaining over wages, hours, and
other terms and conditions of employment between public
employers and public employee organizations.
c) in cases of impasse that occur in collective
bargaining, establishes a mediation process intended to aid
in resolving disputes.
d) allows public employee organizations to request
factfinding if a mediator is unable to reach a settlement
within 30 days of appointment, and establishes procedures
and requirements for the fact-finding process.
e) allows an employer to implement its last, best and
final offer once any applicable mediation and fact-finding
procedures have been exhausted and, despite the
implementation of the best and final offer, allows a
recognized employee organization the right each year to
meet and confer.
f) 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.
2) This bill clarifies that if the dispute leading to
impasse was not submitted to mediation, the employee
organization may request factfinding within 30 days after the
date that either party provided the other with written notice
of the declaration of impasse.
COMMENTS :
1) Recent PERB Actions :
On December 8, 2011, PERB approved amendments to three
regulation sections and the adoption of two new regulation
sections as emergency regulations necessary for the
implementation of the provisions of AB 646. The emergency
rulemaking package was submitted to the Office of
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Administrative Law (OAL) on December 19, 2011. On December
29, 2011, OAL approved the emergency regulatory action,
effective on January 1, 2012. Below is the relevant
excerpt from those new regulations:
32802. Request for Factfinding under the MMBA.
(a) An exclusive representative may request that the
parties' differences be submitted to a factfinding panel.
The request shall be accompanied by a statement that the
parties have been unable to effect a settlement. Such a
request may be filed:
(1) Not sooner than 30 days, but not more than 45
days, following the appointment or selection of a
mediator pursuant either to the parties' agreement to
mediate or a mediation process required by a public
agency's local rules; or
(2) If the dispute was not submitted to mediation, not
later than 30 days following the date that either party
provided the other with written notice of a declaration
of impasse.
2) Arguments in Support :
According to the author, "Ambiguity in the drafting of AB
646 has called into question whether an employer can forgo
all impasse procedures, including mediation and
fact-finding. In fact, several local government employers
argue that AB 646 does not require fact-finding if the
parties do not engage in mediation.
"Last December, PERB adopted emergency regulations to
implement the provisions of AB 646. The adopted
regulations provide that, if the parties opt to mediate, a
fact-finding request can be filed not sooner than 30 days,
but not more than 45 days, following the appointment or
selection of a mediator. In cases where a dispute is not
submitted to a mediator, the request for fact-finding must
occur within 30 days following the date that either party
provided the other with written notice of declaration of
impasse.
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"However, the issue whether AB 646 requires that mediation
occur as a precondition to an employee organization's
ability to request fact-finding remains unresolved. AB
1606 would clarify that fact-finding is available to
employee organizations in all situations, regardless of
whether the employer and employee have engaged in
mediation."
Supporters state, "During the PERB rulemaking process, it
became apparent that AB 646 was drafted in a manner that
called into question whether mediation was a precondition
to an employee organization's ability to request
factfinding. Numerous employers and employee organizations
provided public comments on the issue. The majority of
interested parties, both employer and labor
representatives, urged a reading of AB 646 that provides
for a factfinding request whether mediation occurs or not.
In December 2011, PERB adopted emergency regulations that
implemented the majority opinion, allowing factfinding to
be requested in all circumstances, because they found it to
be the most efficient ways to implement the entirety of AB
646 and accurately reflect the intent of the Legislature.
"AB 1606 seeks to provide a final, statutory clarification
of this question, by revising the Government Code to allow
factfinding in all circumstances in which a local public
employer and its employees have reached an impasse in their
negotiations. AB 1606 properly reflects the intent of the
Legislature to strengthen collective bargaining by ensuring
employers and employees operate in good faith and work
collaboratively to deliver government services in a fair,
cost-efficient manner."
3) Arguments in Opposition :
Opponents state, "While it is indicated that this bill is
intended to be technical and clarifying of existing law,
the language states that the panel shall consider different
items when reaching their decision. It is believed these
factors take more and more discretion away from the Board
(i.e., the financial ability of the public agency, consumer
price index, etc.) and puts it into the hands of the fact
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finding panel. While it is not mentioned in the bill's
text, the decision of the fact finding panel will be made
public so it could also have political implications.
"This bill would be applicable to both formal contract
negotiations and any Meet and Confer process involving
changes to departmental operations that have an impact to
the wages, hours or working conditions of employees. The
fact finding panel would be required to consider, weigh,
and be guided by the criteria outlines in arriving at their
findings and recommendations. The broad criteria allows
for the panel to consider factors normally not considered
by the County as being relevant to operations. The costs
of this process or revenue impacts are unknown at this
time. However, many County agencies/departments implement
operational changes to gain efficiencies and/or lower costs
that require a Meet and Confer process to address impacts
to employees. This bill could significantly impact the
proposed changes which could be implemented."
4) SUPPORT :
American Federation of State, County and Municipal
Employees (AFSCME), AFL-CIO, Co-Sponsor
California Professional Firefighters (CPF), Co-Sponsor
Peace Officers Research Association of California (PORAC),
Co-Sponsor
Service Employees International Union (SEIU), California,
Co-Sponsor
California Labor Federation (CLF)
California Teachers Association (CTA)
Laborers' Locals 777 & 792
5) OPPOSITION :
County of Orange Board of Supervisors
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