BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 857| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 857 Page 2 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. CONTINUED SB 857 Page 3 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 CONTINUED SB 857 Page 4 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 **** END **** CONTINUED