BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 259
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        SENATE THIRD READING
        SB 259 (Hancock)
        As Amended  March 14, 2011
        Majority vote 

         SENATE VOTE  :25-12  
         
         HIGHER EDUCATION    6-2         APPROPRIATIONS      12-5        
         
         ----------------------------------------------------------------- 
        |Ayes:|Block, Brownley, Fong,    |Ayes:|Gatto, Blumenfield,       |
        |     |Galgiani, Lara,           |     |Bradford,                 |
        |     |Portantino                |     |Charles Calderon, Campos, |
        |     |                          |     |Davis, Fuentes, Hall,     |
        |     |                          |     |Hill, Cedillo, Mitchell,  |
        |     |                          |     |Solorio                   |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Olsen, Miller             |Nays:|Harkey, Donnelly,         |
        |     |                          |     |Nielsen, Norby, Wagner    |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         SUMMARY  :  Expands the definition of employees under the Higher 
        Education Employer-Employee Relations Act (HEERA) to include student 
        employees whose employment is contingent upon their status as 
        students, specifically Graduate Student Researchers (GSRs).  

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
        assuming that the approximately 14,000 GSRs at University of 
        California (UC) choose to unionize, UC will incur the following 
        costs, which assumes that, since GSR work is similar to that of the 
        6,000 Postdoctoral Scholars already under a bargaining agreement 
        with UC, some efficiencies will be gained:

        1)Bargaining.  One-time costs in the low hundreds of thousands of 
          dollars for bargaining sessions and travel.

        2)Contract Administration-including training staff regarding 
          contract terms, grievance management, handling unfair labor 
          practice charges, responding to union information requests, and 
          conducting labor management meetings-could be in the range of $1 
          million annually systemwide.  UC estimates a cost of about $1.7 
          million systemwide to administer its contract with postdoctoral 
          scholars, stating that this is a newer bargaining unit than that 








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          for teaching assistants and that newer units generally require 
          greater administration. 

        3)Compensation Increases.  To the extent that collective bargaining, 
          in and of itself, results in overall compensation increases for 
          GSRs, systemwide costs would increase by about $2 million annually 
          for each 1% of across-the-board compensation increase.

        4)Union Dues.  If collective bargaining were to result in UC 
          covering the cost of union dues, UC estimates an annual cost of 
          $2. 3 million based on current GSR systemwide payroll costs and 
          United Auto Workers (UAW) dues rate.  (The UAW represents UC 
          postdoctoral scholars and teaching assistants.)

        Some of the above costs might be absorbable, and will likely decline 
        over time. Given years of tight budgets; however, it is not likely 
        that current UC administrative resources could simply assume the 
        entirety of this new responsibility.

        In terms of funding, much of the above costs could be covered from 
        the grants and contracts that fund much of UC's research, which in 
        addition to funding the direct costs of the research, include an 
        allowance for recovery of indirect costs like contract 
        administration and other related overhead expenses.  UC indicates, 
        however, that indirect costs are typically higher than research 
        sponsors are willing to pay and that recovery of such costs varies 
        among research sponsors.  UC reports that rates negotiated with 
        federal agencies are among the highest but are still estimated at 5% 
        to 18% below the true indirect costs of conducting the research.  To 
        the extent the above costs are not covered within the amount 
        provided in grants and contracts, they would be covered by the 
        General Fund and student fee revenue.

         COMMENTS  :   HEERA provides a statutory framework to regulate labor 
        relations at UC, the California State University (CSU), and Hastings 
        College of Law.  HEERA is administered and enforced by the Public 
        Employment Relations Board (PERB).  In a 1998 decision, PERB 
        determined that under the current statutory language, UC's 12,000 
        Teaching Assistants (TAs), Readers and Tutors had collective 
        bargaining rights because their employment is not contingent upon 
        their status as students, but that GSRs, also known as Research 
        Assistants did not have such rights.  (UC's 6,000 Postdoctoral 
        Scholars may also collectively bargain under HEERA.)  As noted 
        previously, the UAW represents UC teaching assistants and 








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        Postdoctoral Scholars.  Student employees equivalent to GSRs at CSU 
        are covered under HEERA by a voluntary agreement with CSU.

        Difference between TAs, GSRs, and Postdoctoral Scholars:

        1)Teaching Assistants/Associates/Fellows are enrolled students, 
          whose primary duty is assistance in all aspects of instruction 
          (tutoring, grading, advising, sectional teaching, sectional 
          laboratory teaching, field work teaching, limited lecturing).  
          These duties are performed under the supervision of faculty 
          "instructors of record" and are paid from state funds 
          (instructional money).

        2)GSRs are enrolled students selected for high achievement and 
          promise as creative scholars, and assist faculty members with 
          scholarly research. GSRs may not be assigned teaching, 
          administrative, or general assistance duties, and are paid from 
          contracts and grants generated by the faculty.

        3)Postdoctoral Scholars are not enrolled students; they are 
          individuals who have recently completed a doctoral degree, who 
          seek additional scholarship and continued research training.  The 
          Postdoctoral Scholar conducts research under the general oversight 
          of a faculty mentor in preparation for a career position in 
          academe, industry, government, or the nonprofit sector.

        According to the UAW, graduate students work at UC for five to 10 
        years while pursuing their PhDs.  During this time, they frequently 
        move in and out of the TA union, since they are employed as both TAs 
        and GSRs.  This movement between jobs creates a lack of continuity, 
        with the same group of workers having unequal rights and benefits 
        from one term to the next.  According to UC, GSRs are often 
        recruited and enrolled specifically for research, but departments 
        will require one or two semesters as a TA in order to meet the 
        instructional needs of that department.  The one or two semesters of 
        as a TA also tend to occur within the first year or so of their 
        course of study, with the GSR's focus shifting to research later on.


         Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916) 319-3960 
                                                                  FN: 0004990











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