BILL ANALYSIS Ó SENATE JUDICIARY COMMITTEE Senator Hannah-Beth Jackson, Chair 2015-2016 Regular Session AB 874 (Santiago) Version: June 13, 2016 Hearing Date: June 21, 2016 Fiscal: Yes Urgency: No ME SUBJECT Collective bargaining: Judicial Council DESCRIPTION This bill would amend the Ralph C. Dills Act to make it applicable to Judicial Council employees, thereby providing Judicial Council employees the right to join an employee organization and collectively bargain. This right would extend to all Judicial Council employees except managerial employees, confidential employees, supervisory employees, government affairs employees, and human resources employees. BACKGROUND The California Constitution (Constitution) designates most State employees as members of the Civil Service. However, the Constitution specifies that some State employees are "at will" employees and not members of the civil service. As an example, legislative employees and Judicial Council employees are excluded under the Constitution from civil service and are "at will" employees. Due to the Constitutional constraint, the Legislature cannot convert Judicial Council employees into members of the civil service. However, the Legislature can statutorily grant any "at will" public employees the right to join an employee organization and collectively bargain. The Ralph C. Dills Act (Dills Act) allows state executive branch employees to bargain collectively for their wages, hours, and terms and conditions of employment. Under the Dills Act, managers and confidential employees are not granted collective bargaining rights. This bill would make the Dills Act applicable to Judicial Council employees, thereby providing Judicial Council employees the right to join an employee organization and collectively bargain with their employer--the AB 874 (Santiago) Page 2 of ? Judicial Council. Under the bill, the collective bargaining rights would extend to all Judicial Council employees except managerial employees, confidential employees, supervisory employees, government affairs employees, and human resources employees. This bill was heard in Senate Public Employment and Retirement Committee on June 13 2016, and passed out of the Committee on a 3-2 vote. CHANGES TO EXISTING LAW Existing law provides that the civil service includes every employee of the State except as provided in the Constitution. (Cal. Const. art. 7, Sec. 1.) Existing law exempts some State employees from the civil service, including legislative employees and officers and employees appointed or employees by councils, commissions or public corporations in the judicial branch or by a court of record or officer thereof. (Cal. Const. art. 7, Sec. 4.) Existing law , the Ralph C. Dills Act, provides rights of collective bargaining for state employees, as defined, the mechanism for exercising those rights, and the obligations of the state employees, Governor, and employee organizations. (Gov. Code Secs. 3512-3524.) Existing law defines "state employees" for the purpose of the Ralph C. Dills Act as any civil service employee of the state, and the teaching staff or schools under the jurisdiction of the State Department of Education or the Superintendent of Public Instruction. (Gov. Code Sec. 3513(c)(1).) Existing law excludes the following from the definition of "state employees" for the purposes of the Ralph C. Dills Act: managerial, confidential, and supervisory employees; employees of the Department of Human Resources; professional employees of the Department of Finance engaged in technical or analytical state budget preparation other than the auditing staff; professional employees in the Personnel/Payroll Services Division of the Controller's office engaged in technical or analytical duties in support of the state's personnel and AB 874 (Santiago) Page 3 of ? payroll systems other than the training staff; employees of the Legislative Counsel Bureau; employees of the Bureau of State Audits; employees of the office of the Inspector General; employees of the board, conciliators employed by the California State Mediation and Conciliation Service; employees of the Office of the State Chief Information Officer except as specified; and intermittent athletic inspectors who are employees of the State Athletic Commission. (Gov. Code Sec. 3513(c)(1).) Existing law provides that state employees, as defined by the Ralph C. Dills Act, have the right to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations. (Gov. Code Sec. 3515.) Existing law provides that employee organizations shall have the right to represent their members in their employment relations with the state, as specified. (Gov. Code Sec. 3515.5.) Existing law provides that the scope of representation shall be limited to wages, hours, and other terms and conditions of employment, as specified. (Gov. Code Sec. 3515.6.) Existing law provides that the Governor or his representative as may be properly designated by law shall meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations, and shall consider fully such presentations as are made by the employee organization on behalf of its members prior to arriving at a determination of policy or course of action. (Gov. Code Sec. 3517.) Existing law provides that the Governor and the recognized employee organization shall jointly prepare a written memorandum of understanding (MOU) when they reach agreement and shall present the MOU to the Legislature for determination. (Gov. Code Sec. 3517.5.) Existing law provides that if the Governor and employee organization fail to reach an agreement within a reasonable period of time, the Governor and the organization may agree upon AB 874 (Santiago) Page 4 of ? the appointment of a mediator, as specified. (Gov. Code Sec. 3518.) This bill extends the provisions of the Ralph C. Dills Act to all Judicial Council employees, except managerial employees, confidential employees, supervisory employees, employees in the offices of human resources, and employees in the offices of government affairs. This bill clarifies that the provisions of the Ralph C. Dills Act do not apply to judicial officers or employees of the Supreme Court, the courts of appeal, or the Habeas Corpus Resource Center. This bill provides that the employer for purposes of bargaining or meeting and conferring in good faith, for the Judicial Council employees, means the Administrative Director of the Courts, or his or her designated representatives, acting with the authorization of the chairperson of the Judicial Council. This bill excludes the Judicial Council employee organization and Administrative Director of the Courts or designated representative from the requirement of preparing a written memorandum of understanding (MOU) when they reach agreement and from the requirement to present the MOU to the Legislature for determination, and from other provisions related to the Ralph C. Dills Act MOU requirement. This bill provides that the Judicial Council employees may not be included in a bargaining unit that includes employees other than those of the Judicial Council. COMMENT 1.Stated need for the bill According to the author: Since Judicial Council employees are expressly exempt from state civil service rules by Article 7 Section 4(b) of the California Constitution, the Dills Act does not confer bargaining rights for Judicial Council employees. As a result, Judicial Council employees are not represented by a union, but would like to be. The Government Code cannot be amended to make Judicial Council employees civil AB 874 (Santiago) Page 5 of ? service employees due to the state's constitutional prohibition. However, the Dills Act can be amended to confer bargaining rights to Judicial Council employees to allow them union representation if they choose to. Since Judicial Council employees are state employees, the Dills Act may be an appropriate framework for providing collective bargaining rights. 2.Judicial Council employees want the opportunity to organize and collectively bargain The Service Employees International Union (SEIU), Local 1000, represents 95,000 public employees statewide and is the sponsor of this bill. According to the sponsor, "Judicial Council employees approached [SEIU, Local 1000] asking the [union] to represent them in bargaining." SEIU, Local 1000 is sponsoring this bill to allow the Judicial Council employees a path to union representation if the "employees organize themselves and choose to be represented." According to the Judicial Council, they have "adopted a neutral position on the policy of AB 874." As currently drafted, this bill would exclude managerial employees, confidential employees, and supervisory employees from the Judicial Council employee bargaining unit. Similarly, under the Dills Act, managerial employees, confidential employees, and supervisory employees are excluded from the state employee bargaining units. Staff notes that a typical agency in the Executive branch would exempt managerial, confidential, and supervisory employees from the bargaining unit. Staff also notes that California trial court employees are entitled to collectively bargain under the Trial Court Employment Protection and Governance Act. (See Gov. Code Secs. 71600-71618.) 3.The Bargaining Unit The author previously agreed to exclude employees in the Judicial Council's offices of human resources and government affairs from the bargaining unit. However, the author reports that after the most recent amendments SEIU Local 1000 and the Judicial Council agreed to a bargaining unit that simply excludes managerial, supervisorial, and confidential employees. The agreement also allows the Judicial Council to designate the confidential positions so long as the managerial, supervisory, and confidential positions exempted do not exceed one-third of the total permanent full-time Judicial Council employees. The AB 874 (Santiago) Page 6 of ? author proposes the following amendments to reflect the agreement regarding the appropriate bargaining unit. Author's amendments: On page 4, in line 38, strike out "confidential employee, or" On page 4, in line 39, after "supervisory employee" insert: "or a confidential employee as defined in (e)" On page 4, in line 40, strike out "include:" and insert "include a" On page 5, in line 1, strike out "(A) A" On page 5, strike out lines 3, 4, and 5 entirely On page 5, after "Judicial Council." insert "(e) The Judicial Council has the authority to designate state employee positions and confidential positions. Managerial, supervisory, and confidential positions exempted under this provision shall not exceed one third of the total permanent full-time Judicial Council employees." Support : California Labor Federation Opposition : None Known HISTORY Source : American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO; Service Employees International Union, Local 1000 Related Pending Legislation : None Known Prior Legislation : AB 2381 (Hernández, 2012) This bill would have amended the Ralph C. Dills Act to make it applicable to Judicial Council employees. This bill was held in Senate Public Employment and Retirement Committee. AB 874 (Santiago) Page 7 of ? Prior Vote : Senate Public Employment and Retirement Committee (Ayes 3, Noes 2) Assembly Floor (Ayes 52, Noes 25) Assembly Appropriations Committee (Ayes 12, Noes 5) Assembly Public Employees, Retirement/Soc Sec Committee (Ayes 6, Noes 1)