BILL ANALYSIS Ó SB 259 Page 1 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 SB 259 Page 2 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 SB 259 Page 3 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 SB 259 Page 4