BILL ANALYSIS Ó AB 1834 Page 1 ASSEMBLY THIRD READING AB 1834 (Williams) As Amended April 24, 2014 Majority vote HIGHER EDUCATION 8-4 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Williams, Bloom, Fong, |Ayes:|Gatto, Bocanegra, | | |Fox, | |Bradford, | | |Jones-Sawyer, Medina, | |Ian Calderon, Campos, | | |Quirk-Silva, Weber | |Eggman, Gomez, Holden, | | | | |Pan, Quirk, | | | | |Ridley-Thomas, Weber | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Chávez, Achadjian, Olsen, |Nays:|Bigelow, Donnelly, Jones, | | |Wilk | |Linder, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Expands the definition of employees under the Higher Education Employer-Employee Relations Act (HEERA) to include students whose employment is contingent on their status as students, specifically to Graduate Student Researchers (GSRs). EXISTING LAW establishes HEERA to provide a statutory framework to regulate labor relations at University of California (UC), California State Univeristy (CSU), and Hastings College of Law and their employees; provides the Public Employment Relations Board (PERB) authority to enforce HEERA; defines "employees" under the HEERA and authorizes PERB to find a student employee whose employment is contingent on his or her status as a student as an employee only if the services he or she provides is unrelated to his or her educational objectives, or those educational objectives are subordinate to the services he or she performs and that coverage under the HEERA would further the purposes of the HEERA. (Government Code Sections 3560-3599) FISCAL EFFECT : According to the Assembly Appropriations Committee, assuming that the approximately 12,000 GSRs at UC choose to unionize, UC will incur the following costs: 1)Bargaining. One-time costs in the low hundreds of thousands of dollars for bargaining sessions and travel. AB 1834 Page 2 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 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 : PERB's decision in Regents of the UC & Association of AB 1834 Page 3 Student Employees, UAW, et al (1998) (PERB Order No. 1301-H) determined that under the current statutory language, UC's 12,000 Teaching Assistants (TAs), Readers and Tutors had bargaining rights because their employment is not contingent upon their status as students, but GSRs did not. Student employees equivalent to GSRs at CSU are covered under HEERA by a voluntary agreement with CSU. According to the author, GSRs "work at UC for 5 to 10 years while pursuing degrees. They frequently move in and out of the TA bargaining unit, since they are often employed as both teaching and research assistants. The movement between these jobs creates a lack of continuity. When student employees work as GSRs their contractual rights for workload protections, job security, grievance and arbitration procedures, family leave and other rights disappears. This bill extends the right for the 14,000 GSRs at UC to choose to bargain collectively under HEERA. SB 259 (Hancock) of 2012, was substantially similar to this bill. SB 259 was approved by the Legislature but subsequently vetoed by the Governor. Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960 FN: 0003613