BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 259 (Hancock) - Student Labor Relations
Amended: As Introduced Policy Vote: PE&R 3-2
Urgency: No Mandate: No
Hearing Date: April 22, 2013
Consultant: Maureen Ortiz
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 259 expands the definition of employees under
the Higher Education Employer-Employee Relations Act to include
student employees whose employment is contingent upon their
status as students.
Fiscal Impact:
Approximately $639,000 to UC for collective bargaining
(General)
Annual costs to UC between $605,959 - $1.7 million for
administering the contracts (General)
Potential salary increases as a result of negotiations
ranging from $2.3 million to $14 million (General/Federal -
approximately 85% funding comes from Federal grants and
private sources)
The UC estimates initial costs associated with collective
bargaining to be $639,000. This cost entails 116 days for the
following: bargaining sessions, planning, researching, drafting
language, responding to union information requests, travel days
and travel expenses for a Negotiator and Assistance Negotiator.
The estimate also includes 58 days of expenses for Faculty
Representatives, Labor Relations Campus Representatives, and
Labor Relations Assistant. The ongoing cost ranges are based on
whether the total cost to administer GSR contracts is similar to
the costs incurred to administer teaching assistance contracts
($605,959) or similar to costs currently paid to administer
post-doctoral contracts ($1,689,784). Administrative costs stem
from the need to provide additional staff support to bargain a
contract, develop policy and educational materials, and
implement training programs for the campuses. These costs would
likely be paid from the General Fund.
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An issue has been raised on whether UC can use grant funding
provided for indirect costs to cover the expenses of collective
bargaining. Direct costs are those that can be specifically
identified with the project, whereas indirect cost items are
associated with general infrastructure support. According to
the Federal Office of Management and Budget, there are eight
areas of general infrastructural support described as indirect
costs: department administration; building use; equipment;
operations and maintenance; library; general administration;
student service administration; and sponsored projects
administration. Whether costs of negotiating contracts would
fall under the umbrella of indirect expenses is not clear,
however, UC indicates that during the last several years, the
money it has received for indirect expenses has not even covered
the actual cost of research activities, and, therefore there is
currently not a sufficient excess of those funds that could be
used for collective bargaining purposes. In any event, if
indirect funds are used to pay for collective bargaining, they
would redirect from cost recovery efforts to adequately fund
research.
In addition, UC estimates that if the GSRs receive a
compensation increase as a result of their new contract (for
instance, to cover the cost of union due contributions),
additional costs would be $2.3 million annually for a 1.15%
salary increase; $6 million for a 3% increase; $10 million for
an increase of 5%, and $14 million for a salary increase of 7%.
Though the graduate student research positions are mostly funded
from grants and federal monies, those grants are in limited
supply and any increases in costs would likely result in fewer
GSR positions being offered.
The University of California already extends health insurance
benefits to its GSRs. Teaching Assistants are also provided a
child care subsidy as a result of their collectively bargained
agreement. Last year, this topic was one of the reasons for the
legislation since oftentimes the same individual might move from
a TA position to a GSR from term to term, losing child care
benefits that they previously had. According to UC, they are
committed to begin offering child care subsidies to GSRs
starting this fall.
Background: The Higher Education Employer-Employee Relations Act
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(HEERA) provides a statutory framework to regulate labor
relations between the University of California (UC), the
California State University (CSU), and Hastings College of Law
and their employees. HEERA is administered and enforced by the
Public Employment Relations Board (PERB).
PERB's decision in Regents of the UC & Association of Student
Employees, UAW, et al (1998) (PERB Order No. 1301-H) rendered a
determination that under the current statutory language, UC's
12,000 Teaching Assistants (TAs), Readers, and Tutors had
bargaining rights but, the Research Assistants (RAs) did not.
This inequity creates a continuity problem when student
employees change positions from TAs to RAs, and back again since
while employed as RAs, they are not covered by a contract and
consequently lose child care subsidies and other rights and
benefits.
Proposed Law: SB 259 will authorize graduate student Research
Assistants who are employed by the University of California to
collectively bargain for benefits. There are approximately
14,000 GSRs employed by the University of California, and about
85% of the funding comes from non-State sources such as Federal
funds and private grants, with the remaining costs coming from
the General Fund.
Related Legislation: This bill is similar to SB 259 (Hancock)
which was vetoed by the Governor last year. In part the message
reads, "Collaboration between faculty and research assistants is
an integral part of their training and education. It is rare
that this relationship is subject to collective bargaining at
other universities and I am reluctant to upset the balance
established under current law. ?..Finally, given the current
stresses facing the state and its universities, now is not the
time to mandate these new requirements."
Staff Comments: Aside from providing eligibility for UC
Research Assistants to participate in a collective bargaining
process, the provisions of SB 259 may create a fundamental
change in the faculty-student relationship which is currently
more of an academic mentor-mentee relationship. The University
of California indicates that this relationship would change to
one of employer-employee, and could have a severely negative
impact on the University's mission of teaching, research and
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service.
Student employees who work jobs equivalent to RAs at CSU are
covered under HEERA by voluntary agreement between the UAW and
CSU.