BILL ANALYSIS Ó AB 528 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL SECURITY Rob Bonta, Chair AB 528 (Baker) - As Introduced February 23, 2015 SUBJECT: San Francisco Bay Area Rapid Transit District: strikes: prohibition SUMMARY: Prohibits employees of the San Francisco Bay Area Rapid Transit District (BART) from striking if the transit district board maintains the compensation and benefit provisions of an expired contract and that contract or previous contract includes provisions prohibiting strikes. Specifically, this bill: 1)Prohibits BART employees from striking or engaging in a work stoppage as long as the BART board of directors maintains the compensation and benefit provisions of an expired contract and the expired contract or previous contract includes an agreed upon provision prohibiting strikes. 2)Provides that if the transit district employer finds that an employee willfully engaged in a strike or work stoppage in violation of the above, the employee may be dismissed, upon the conclusion of appropriate proceedings, if that finding is sustained. AB 528 Page 2 EXISTING LAW: 1)Establishes the Public Employment Relations Board (PERB), which houses the State Mediation and Conciliation Service, and has legal jurisdiction over labor relations between most state and local public employers and their employees. 2)Specifically defines how to resolve disputes between public transportation employers and employee organizations, including timeframes for the exchange of contract proposals and collective bargaining, and the assignment of a conciliator from the State Mediation and Conciliation Service, as specified. 3)Allows the Governor, whenever he or she determines that a threatened strike or lockout, if permitted to occur, would significantly disrupt the public's health, safety, or welfare, to appoint a board to investigate the issues involved in the dispute and submit a report to the Governor within 7 days. 4)Requires that the report include statements of fact with regard to the dispute, be public, and not contain recommendations. 5)Prohibits any strike or walkout during the period of investigation by the board. 6)Requires the board to consist of no more than 5 members, defines per diem and reimbursements for board members, and AB 528 Page 3 allows the board to hold public hearings, subpoena witnesses, require the production of documents, and to use all necessary means to compel witnesses and obtain testimony. 7)Allows the Governor, upon receiving the report from the board, to request the Attorney General to petition any court of competent jurisdiction to enjoin the strike or lockout for a period of 60 days, and requires the court to issue the enjoining order if the court finds that the strike or lockout, if permitted, would significantly disrupt public transportation or endanger public health, safety, or welfare. 8)Specifies that if the local agency has a charter or establishing legislation that establishes a time period for negotiating or meeting and conferring that is shorter than 60 days, then these provisions do not apply to disputes arising in that agency between the employer and exclusive bargaining representative. 9)Clarifies that, except as expressly provided, nothing in these laws shall be construed either to expressly grant or deprive employees of the right to strike. FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: According to the author, "The San Francisco Bay Area Rapid Transit District (BART) was formed by the state legislature in 1957, and has established provisions regulating collective bargaining of the employees and the board of AB 528 Page 4 directors. Over 400,000 riders rely daily on BART to get to work, go to school, see the doctor, visit family and friends, and engage in their communities. BART transit services are essential to Bay Area residents and commuters, and must be protected. There have been five labor strikes in BART history. Two strikes in 2013 created havoc for riders, jammed Bay Area roads, and caused environmental damage with greater carbon emissions impacting air quality. The 2013 strikes brought transportation to a grinding halt in the Bay Area and cost over $73 million dollars a day to the Bay Area economy. These 2013 strikes occurred even though BART workers had a no-strike clause in their most recent contract.' "In past and current labor contracts for BART, strikes and work stoppages are prohibited by no-strike clauses. Strikes and work stoppages are also prohibited during times of investigation that are called by the Governor. A loophole, however, was made glaringly apparent when BART workers twice went on strike in 2013. The workers went on strike anyway, because the contract with a no-strike clause had expired. They went on strike even though they continued to receive wages and benefits under the expired contract." The author concludes, "This bill closes the loophole and ensures public safety, health, and welfare are protected by declaring that if BART employees continue to receive pay and other benefits provided by BART management under the expired contract, the worker must abide by the no-strike clause of that contract." Opponents state, "The right to strike - as codified into law in 1935 via the National Labor Relations Act (NLRA) - is a longstanding, federally-protected action and cornerstone from workers' rights in the workplace, and is part of the collective AB 528 Page 5 bargaining process. Ultimately, AB 528 is punitive and does not consider the intricacies of the collective bargaining process, the history and underlying rationale of how or why a strike might be considered, nor the careful considerations given by represented public employees in public transportation agencies prior to calling a strike." Additionally, opponents believe that, "?this bill may run afoul of the provisions of section 13(c) of the Federal Urban Mass Transit Act of 1966, which prohibits states and local governments from eroding employee collective bargaining rights. Consequently, passage of this bill could result in a withholding of federal funding for BART." Existing federal law protects the collective bargaining rights of specified transit workers employed in certain transit agencies and districts that were, mostly in the 1960's through the 1970's, converted from private to public agencies. Federal Transit Law Section 13(c) requires that these employee protections, commonly referred to as "protective arrangements" or "Section 13(c) arrangements" must be certified by the United States Department of Labor (USDOL) and in place before federal transit funds can be released to a mass transit employer subject to the Federal Transit Law. Section 13(c) requires, among other things, the continuation of collective bargaining rights, and protection of transit employees' wages, working conditions, pension benefits, seniority, vacation, sick and personal leave, travel passes, and other conditions of employment. SB 423 (Huff) of last year would have repealed various statutes governing public transportation labor disputes, including AB 528 Page 6 requirements governing labor relations when a strike is threatened; added new laws to prohibit public transportation workers from striking; and proscribed penalties and sanctions for employees and recognized labor organizations that participate in, cause, encourage, or condone strikes. This bill failed passage in the Senate Public Employment and Retirement Committee. REGISTERED SUPPORT / OPPOSITION: Support Innovation Tri-Valley Leadership Group Jerry T. Thorne, Mayor, City of Pleasanton Moraga Town Council Opposition American Federation of State, County and Municipal Employees California Conference Board of the Amalgamated Transit Union California Conference of Machinists AB 528 Page 7 California Federation of Teachers California Labor Federation California Professional Firefighters California State Council of the Service Employees International Union California Teamsters Public Affairs Council Engineers & Scientists of CA, IFPTE Local 20, AFL-CIO International Longshore & Warehouse Union Professional & Technical Engineers, IFPTE Local 21, AFL-CIO UNITE-HERE, AFL-CIO Utility Workers Union of America Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916) 319-3957 AB 528 Page 8