BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 857|
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                                 THIRD READING


          Bill No:  SB 857
          Author:   Lieu (D)
          Amended:  4/25/11
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  3-2, 05/10/11
          AYES:  Evans, Corbett, Leno
          NOES:  Harman, Blakeslee


           SUBJECT  :    Civil damages

           SOURCE  :     University of California Employees
                      American Federation of State, County and 
          Municipal
                        Employees Local 3299, AFL-CIO


           DIGEST  :    This bill prohibits an employer's recovery of 
          damages resulting from expenses incurred in anticipation 
          of, or in preparation for, an employee strike.  
          Accordingly, this bill overturns the ruling in  California 
          Nurses Association v. Regents of the University of 
          California  (2010) PERB (Public Employment Relations Board) 
          Decision No. 2094-H. 

           ANALYSIS  :    Existing law, the Meyers-Milias-Brown Act of 
          1968 (MMBA), permits local governments, including cities, 
          counties, and special districts, to establish 
          administrative procedures for employee representation and 
          collective bargaining agreements.  (Gov. Code Sec. 3500 et 
          seq.)  Existing law permits the PERB to resolve labor 
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          disputes under the Meyers-Milias-Brown Act of 1968 (MMBA) 
          and provides PERB with exclusive jurisdiction over a 
          complaint alleging any violation of the MMBA.  (Gov. Code 
          Sec. 3509.)  PERB's jurisdiction over the MMBA excludes 
          peace officers, management employees and the City and 
          County of Los Angeles.  (Gov. Code Sec. 3541 et seq.)

          Existing law, the Educational Employment Relations Act of 
          1976 (EERA), provides for collective bargaining in 
          California's public schools (K-12) and community colleges.  
          (Gov. Code Sec. 3540 et seq.)  Existing law permits the 
          PERB to resolve labor disputes under the EERA.  (Gov. Code 
          Sec. 3541.)

          Existing law, the State Employer-Employee Relations Act of 
          1978, known as the Ralph C. Dills Act (Dills Act), provides 
          for collective bargaining for state government employees.  
          (Gov. Code Sec. 3512 et seq.)  PERB has the same authority 
          to enforce the Dills Act as it does under the EERA.  (Gov. 
          Code Sec. 3514(h).)

          Existing law, the Higher Education Employer-Employee 
          Relations Act of 1979 (HEERA), provides for collective 
          bargaining for employees of the California State University 
          System, the University of California System, and Hastings 
          College of Law.  (Gov. Code Sec. 3560 et seq.)  Existing 
          law permits PERB to resolve labor disputes under the HEERA 
          and provides PERB with exclusive jurisdiction over a 
          complaint alleging any violation of the HEERA.  (Gov. Code 
          Secs. 3563 and 3563.2.)

          Existing law, the Trial Court Employment Protection and 
          Governance Act and the Trial Court Interpreter Employment 
          and Labor Relations Act, provide for collective bargaining 
          for trial court employees and court interpreters.  (Gov. 
          Code Secs. 71600 and 71800.)  Existing law provides PERB 
          with the same authority to enforce these Acts as it does 
          under HEERA and provides PERB with exclusive jurisdiction 
          over a complaint alleging any violation of these Acts.  
          (Gov. Code Secs. 71639.1 and 71825.)

          This bill prohibits recovery of damages resulting from 
          expenses incurred by an employer in anticipation of, or in 
          preparation for, an unlawful strike.

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          This bill defines "unlawful strike" to mean any strike that 
          has been determined unlawful by PERB.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  5/11/11)

          University of California Employees (co-source) 
          American Federation of State, County and Municipal 
          Employees Local                                        
          3299, AFL-CIO (co-source) 
          California Labor Federation, ALF-CIO
          California Nurses Association

           ARGUMENTS IN SUPPORT  :    According to the author's office:

               In February of 2010, PERB was hearing an unfair labor 
               practice case between the University of California 
               system and the California Nurses Association.  Largely 
               made up of Schwarzenegger appointees, the Board 
               created out of whole-cloth a right which had 
               previously not existed:  strike damages due to the 
               threat of a strike.  ÝEmphasis in original.]

               In response to this, both the Assembly and Senate 
               Chairs at the time challenged the right of PERB to 
               levy strike damages in this case; PERB was ultimately 
               unresponsive.  To date, appellate courts have declined 
               to hear the appeal on the PERB decision as well. The 
               author and the sponsor believe that this decision is a 
               derivation from the traditional scope of PERB's powers 
               and rights, and therefore requires a legislative 
               response.

          The University of California Employees, American Federation 
          of State, County and Municipal Employees Local 3299, 
          AFL-CIO, writes:

               This bill is necessary to protect the right of public 
               employees to strike. ?SB 857 would protect unions from 
               union-busting tactics.  Specifically, it would protect 
               them from having an injunction filed by the employer 

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               with ÝPERB] after notice is given of a strike, 
               followed by the employer claiming exorbitant damages 
               for a strike that never took place.  The restrictions 
               put in place by SB 857 would prevent this from 
               happening. 

          The California Nurses Association (CNA), a supporter of 
          this bill and plaintiff in the case at issue, writes:

               CNA strongly supports ÝSB] 857 because of our 
               contentious labor relations with the UC ÝUniversity of 
               California] since having a 2005 strike enjoined and 
               the fact that the UC has spent over $3.5 million on a 
               notorious union-busting law firm? Ýwhich] is being 
               used in efforts to strip workers of fundamental rights 
               and/or to shackle unions with costly and 
               time-consuming litigation when workers exercise these 
               rights.  In 2005, UC nurses planned to strike over 
               UC's failure to bargain in good faith over CNA's 
               proposals for safe staffing to provide and protect 
               patient care in the UC Medical Centers?.  Later that 
               year the contract was settled.  Nevertheless, UC 
               pursued charges against CNA, and have claimed $9 
               million in damages.   


          RJG:nl  5/11/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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