BILL ANALYSIS Ó AB 616 Page 1 Date of Hearing: April 24, 2013 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Rob Bonta, Chair AB 616 (Bocanegra) - As Amended: March 19, 2013 SUBJECT : Local public employee organizations: dispute: factfinding panel. SUMMARY : Makes changes to the Meyers-Milas-Brown Act (MMBA) with respect to impasse procedures and factfinding and the process for determining the appropriateness of a bargaining unit, placing that authority with the Public Employment Relations Board (PERB). Specifically, this bill : 1)Extends the period of time that an employee organization has to request fact finding in disputes not submitted to mediation from 30 days to 60 days following the date either party provided the other with written notice of a declaration of impasse. 2)Provides that if either party disputes that a genuine impasse has been reached, it may submit that dispute to PERB for resolution. If PERB determines that a genuine impasse exists, the parties' differences are subject to the remainder of the fact finding procedures of the MMBA. 3)Defines "impasse" for purposes of these provisions to mean that the parties to a dispute over a matter within the scope of collective bargaining have reached a point that future meetings to resolve the issue would be futile. 4)Allows the employee relations commissions for the County and City of Los Angeles to maintain and amend existing impasse rules and regulations as they deem necessary consistent with the policies contained in the MMBA. 5)Grants PERB the authority to make unit determinations in accordance with the rules and regulations it has adopted in accordance with the MMBA. 6)Specifies the criteria PERB is required to take into consideration when determining an appropriate unit. AB 616 Page 2 7)Specifies that an appropriate group of skilled crafts employees has the right to be in a separate bargaining unit based on occupation. 8)Specifies that "skilled crafts employees" includes, but is not limited to, carpenters, plumbers, electricians, painters, and operating engineers. 9)Establishes a rebuttable presumption that professional and nonprofessional employees should not be included in the same bargaining unit. 10)Authorizes PERB, rather than the public agency, to adopt rules and regulations providing for the designation of management and confidential employees of the public agency and restricting those employees from representing any employee organization that represents other employees of the public agency on collective bargaining matters. EXISTING LAW , as established by the MMBA: 1)Contains various provisions intended to promote full communication between public employers and their employees by providing a reasonable method of resolving disputes regarding wages, hours, and other terms and conditions of employment between public employers and public employee organizations. 2)Provides that if, after a reasonable amount of time, representatives of the public agency and the employee organization fail to reach agreement, the two parties may mutually agree on the appointment of a mediator and equally share the cost. 3)Authorizes an employee organization to request that the parties' differences be submitted to a factfinding panel not sooner than 30 days, but not more than 45 days, following the appointment of a mediator or entering into a mediation process. If the dispute was not submitted to mediation, an employee organization may request that the parties' differences be submitted to a factfinding panel not later than 30 days following the date either party provided the other with written notice of a declaration of impasse. 4)Allows an employer to implement their last, best and final offer once any applicable mediation and fact-finding AB 616 Page 3 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. 5)Authorizes a local public agency to adopt reasonable rules and regulations after consultation in good faith with representatives of an employee organization or organizations for the administration of employer-employee relations under the MMBA. This includes provisions for verifying that an organization does in fact represent employees of the organization, recognition of employee organizations, and exclusive recognition of employee organizations. 6)Authorizes a public agency to adopt reasonable rules and regulations providing for the designation of management and confidential employees of the public agency and restricting those employees from representing any employee organization that represents other employees of the public agency on matters within the scope of representation. 7)Delegates jurisdiction over the employer-employee relationship to PERB and charges PERB with resolving disputes and enforcing the statutory duties and rights of local public agency employers and employee organizations. FISCAL EFFECT : Unknown. COMMENTS : According to the author, "Typically, local public agencies, such as cities and counties, delegate the responsibility for making such unit determinations to their chief executive officer or general manager. Although appropriate unit determinations are of critical importance in affording public employees the fullest freedom to exercise their right to join and be represented by employee organizations of their own choosing, current law allows a clearly interested party, the public employer, to decide which job classifications will be included in the unit and which will not." "In contrast, the other major California labor-law statutes, such as the Educational Employment Relations Act (EERA), the State Employer-Employee Relations Act (Ralph M. Dills Act) and the Higher Education Employment Relations Act (HEERA), as well as the National Labor Relations Act (a source of guidance to interpreting the California statutes), unit determinations are made by an expert and impartial administrative agency, such as AB 616 Page 4 the Public Employment Relations Board (PERB) and the National Labor Relations Board (NLRB), respectively." With respect to the impasse procedures, the author states, "?when a public employer and a public employee organization reach an impasse in collective bargaining and the dispute has not been submitted to voluntary mediation, the employee organization may request that the parties' differences be submitted to a factfinding panel not later than 30 days following the date that either party provided the other with a written notice of a declaration of impasse. PERB has interpreted this provision, in its regulations and its administrative rulings, to require the employee organization to make this request within 30 days of a declaration of impasse, without regard to whether the employer and union have in fact reached a genuine impasse in the negotiations. This loophole could allow a public employer to evade its duty to bargain in good faith by declaring impasse prematurely or in bad faith." Opponents state, "On the issue of recognition of employee representative and unit determination and modification, we believe that counties and their employees know best how these matter should be decided. Local rules specify how a unit will be formed or modified and when and how a union will be recognized. We fail to see how PERB, a centralized body, is better positioned to make determinations about which employees belong together in a bargaining unit in counties as different as Alpine and San Diego. Further, we do not see how PERB could handle this increased workload without significant staff increases which seem unlikely to be provided in the current budget climate. Delays in making these decisions will lead to uncertainty and increased labor friction." On the issue of extending the time from 30 to 60 days for the submission of differences to a factfinding panel, opponents believe this will do nothing more than lengthen the negotiating period to the benefit of the party interested in maintaining the status quo. Opponents conclude, "Finally, the shift in AB 616 that allows PERB to designate management and confidential employees strips counties of their fundamental right to make personnel decisions. Management and confidential employees engage in work which makes them privy to the decision-making process of a county and the information management and confidential employees have AB 616 Page 5 access to can affect labor relations. For this reason it is crucial and inherent in the powers and duties of a county to retain the prerogative to designate which employees are management and confidential based on the work they perform locally." The Committee is informed that the author will be offering amendments in Committee that retain Section 1 of the bill dealing with impasse procedures and delete all other provisions of the bill. PRIOR LEGISLATION : AB 1606 (Perea), Chapter 314, Statutes of 2012, authorized an employee organization to request that the parties' differences be submitted to a fact-finding panel not sooner than 30 days, but not more than 45 days, following the appointment of a mediator or entering into a mediation process. If the dispute was not submitted to mediation, an employee organization may request that the parties' differences be submitted to a factfinding panel not later than 30 days following the date either party provided the other with written notice of a declaration of impasse. AB 646 (Atkins), Chapter 680, Statutes of 2011, allowed local public employee organizations to request factfinding if a mediator is unable to reach a settlement within 30 days of appointment, defines certain responsibilities of the factfinding panel and interested parties, and made specified exemptions from these provisions. AB 195 (Hernández), Chapter 271, Statutes of 2011, specified that a public agency is prohibited from, among other things, imposing reprisals on or discriminating against employees because of their exercise of rights guaranteed by the act, and specified that knowingly providing a recognized employee organization with inaccurate information regarding the financial resources of the public employer constituted a refusal or failure to meet and negotiate in good faith. The bill also declared that the provisions were intended to be technical and clarify of existing law. AB 1156 (Nunez), Chapter 215, Statutes of 2003, clarified the role of PERB, relative to its jurisdiction in resolving disputes and enforcing the statutory duties and rights of local public AB 616 Page 6 agency employers and employees under the MMBA, to include the power to order elections, conduct any election it orders and adopt rules to apply in areas where a public agency has no rule. The bill also empowered employees of a local public agency and employee organization to challenge a rule or regulation of a public agency in violation of MMBA. AB 1281 (Cedillo), Chapter 790, Statutes of 2001, required local agencies to recognize an employee organization as the exclusive representative of the employees in an appropriate unit based upon a signed petition, authorization cards, or union membership cards showing that a majority of the employees desire such recognition. SB 739 (Solis), Chapter 901, Statutes of 2000, revised MMBA to transfer jurisdiction for the resolution of unfair labor practice charges and representation disputes to PERB. REGISTERED SUPPORT / OPPOSITION : Support Coalition of California Utility Employees International Brotherhood of Electrical Workers Opposition California Association of Sanitation Agencies California State Association of Counties County of Lassen County of Sonoma Board of Supervisors Butte County boards of Supervisors League of California Cities Rural County Representatives of California Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957