BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 789|
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                                 THIRD READING


          Bill No:  SB 789
          Author:   Steinberg (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM  :  4-2, 4/1/09
          AYES:  DeSaulnier, Ducheny, Leno, Yee
          NOES:  Wyland, Cogdill

           SENATE APPROPRIATIONS COMMITTEE  :  7-3, 4/20/09
          AYES:  Kehoe, Corbett, DeSaulnier, Hancock, Leno, Wolk, Yee
          NOES:  Cox, Denham, Walters
          NO VOTE RECORDED:  Oropeza, Runner, Wyland


           SUBJECT  :    Labor representatives:  elections

           SOURCE  :     United Farm Workers


           DIGEST  :    This bill creates a new election process for  
          agricultural workers to select their representatives for  
          collective bargaining.  This bill extends existing  
          prohibitions and penalties to employers engaged in unfair  
          labor practices, with regard to a majority signup election.

           ANALYSIS  :    Existing law provides for a secret ballot  
          election process for agricultural workers where a petition  
          has been submitted, as specified, asking for the  
          opportunity for workers to decide whether to select a  
          particular union as their collective bargaining  
          representative.  Specifically, the law:
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          1.Allows for the filing of a petition that is signed by a  
            majority of the current employees in a collective  
            bargaining unit, or accompanied with cards signed by a  
            majority of the current employees in a collective  
            bargaining unit, with the Agricultural Labor Relations  
            Board (ALRB) to seek representatives to collectively  
            bargain for the employees in the bargaining unit.  The  
            petition must allege the following:

             A.   That the number of employees of the employer named  
               in the petition is not less than 50 percent of the  
               employer's peak agricultural employment for the  
               current calendar year.

             B.   That a valid election has not been conducted among  
               the agricultural employees of the employer named in  
               the petition within 12 months immediately preceding  
               the filing of the petition.

             C.   That no labor organization is currently certified  
               as the exclusive collective bargaining representatives  
               for the employees of the employer named in the  
               petition.

             D.   That the petition is not barred by an existing  
               collective bargaining agreement.

          Upon receiving the signed petition, the ALRB must  
          investigate the petition immediately.  If the ALRB finds  
          that the petition is accurate, then it must hold an  
          election by secret ballot within seven days of the filing  
          of the petition.  The ALRB must print ballots that list the  
          labor organization or organizations that seek to represent  
          the employees, as well as a "no labor organizations" voting  
          option.  Whoever receives 50 percent plus one of the votes  
          cast shall win the election.  Run-offs, if necessary, must  
          take place.

          2.Defines a number of activities of employers, employees,  
            and/or interested parties as improper interference with  
            the election process, generally known as unfair labor  
            practices.








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          3.Allows the ALRB hold hearings to decide if any unfair  
            labor practices took place, and if it finds such actions  
            took place, the ALRB must issue a cease and desist order  
            and also take affirmative action, which can include  
            reinstatement with or without back pay, and making an  
            employee whole, where appropriate, for loss of pay.  

          This bill:

          1. Creates an alternative procedure to the secret ballot  
             election, the majority signup election, which would  
             allow employees of a collective bargaining unit to  
             select their representative for collective bargaining by  
             submitting a petition that alleges the following:

               A.     That the number of employees currently employed  
                 by the employer named in the petition is not less  
                 than 50 percent of the employer's peak agricultural  
                 employment for the current calendar year.

               B.     That a valid election has not been conducted  
                 among the agricultural employees of the employer  
                 named in the petition within the 12 months  
                 immediately preceding the filing of the petition.

               C.     That no labor organization is currently  
                 certified as the exclusive collective-bargaining  
                 representatives of the employees of the employer  
                 named in the petition.

               D.     That the petition is not barred by an existing  
                 collective bargaining agreement.

          2. Requires that the petition must be accompanied with  
             representation cards signed by more than 50 percent of  
             the currently employed employees in the bargaining unit.  
              These cards must be issued by the ALRB upon the request  
             of a labor organization.  The representation cards must  
             include sufficient space for the name of the labor  
             organization, the name of the agricultural employer, the  
             employee's name, address and phone number, the name of  
             the employee's foreman, the signature of the person  
             witnessing the employee that signed the card, and the  
             date that the card was signed.







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          3. Provides that a representative card is considered valid  
             if the card includes the name of the labor organization,  
             the employee's name, and the employee's signature.  The  
             representative card must also include: 

               A.     A statement that the employee signing the card  
                 wishes to  have a specified labor representative as  
                 his or her collective-bargaining representative with  
                 respect to rates of pay, wages, hours of employment,  
                 and other conditions of employment. 

               B.     A statement that no promises or threats were  
                 made to obtain the employee's signature on the card.

               C.     An acknowledgement that by signing the card the  
                 employee is manifesting a desire to be represented  
                 by a labor organization.

               D.     An acknowledgement that the employee is aware  
                 of the Agriculture Labor Relations Board's toll-free  
                 number, which is available for complaints about  
                 coercion or other unfair labor practices.

          4. Requires the ALRB to keep the information on the cards  
             confidential.

          5. Requires that the labor representative submitting the  
             petition must also personally serve the employer with  
             the petition the same day the ALRB receives it.  The  
             employer then has 48 hours to give the ALRB a complete  
             and accurate list of all of the employees in the  
             bargaining unit.  

          6. Requires ALRB, upon receipt of a petition for "majority  
             signup election," to immediately commence an   
             investigation.  Within five days of receipt of the  
             petition, ALRB shall make an administrative  
             determination whether the petition requirements have  
             been met and the labor organization has submitted the  
             requisite number of representation cards by comparing  
             the names on the cards to the names on the list  
             submitted by the employer.








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          7. Specifies that if ALRB determines that the labor  
             organization has submitted the requisite number of  
             representation cards and met other requirements, it  
             shall immediately certify the labor organization as the  
             exclusive bargaining representative.  If ALRB determines  
             that the labor organization has not submitted the  
             requisite number of cards, it shall grant the labor  
             organization 30 days to submit additional representation  
             cards.

          8. States that an employer's duty to bargain with the labor  
             organization begins immediately after a labor  
             organization is certified.

          9. Provides that within five days after the board certifies  
             a labor organization through a majority signup election,  
             any person may file with the board a petition objecting  
             to the certification on one or more of the following  
             grounds:

               A.     Allegations in the majority signup petition  
                 were false.

               B.     The board improperly determined the  
                 geographical scope of the bargaining unit.

               C.     The majority signup election was conducted  
                 improperly.

               D.     Improper conduct affected the results of the  
                 majority signup election.

          Upon receipt of a petition objecting to certification, the  
          board shall conduct a hearing to rule on the petitioner's  
          objections, and shall mail a notice of the time and place  
          of the hearing to the petitioner and the labor organization  
          whose certification is being challenged. If the board finds  
          at the hearing that any of the allegations in the petition  
          are true, the board shall revoke the certification.

          10.Extends existing prohibitions and penalties to employers  
             who engage in unfair labor practices.  

          11.Provides that if the ALRB finds willful or repeated  







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             actions by the employer to interfere, restrain, or  
             coerce agricultural employees in their right to self  
             organize and collectively bargain, or if an employer is  
             found to be discriminating against a member of a labor  
             organization in hiring or tenure of employment, or to  
             encourage or discourage membership in any labor  
             organization, the ALRB may impose a civil penalty  
             against that employer for $20,000 for each violation.  

          This bill adds to this requirement that, should there be  
          any charges of discrimination or threats to discharge an  
          employee for belonging to or seeking to belong to a labor  
          organization, or any charges of an employer trying to  
          interfere, restrain, or coerce agricultural employees in  
          their right to self organize and collectively bargain, the  
          ALRB must give those charges priority of all other cases,  
          except cases of similar character.

           Comments
           
          In August of 2006, the Senate Labor Committee and the  
          Senate Judiciary Committee held a joint informational  
          hearing entitled "Labor and Civil Rights of Farm Workers."   
          Members of the United Farm Workers testified on the  
          challenges of participating in labor representative  
          elections due to anti-union flyers distributed by  
          employers, as well as intimidation and coercion.  Antonio  
          Barbosa, head of the ALRB, also discussed the challenges of  
          conducting an election due to the board's lack of funding  
          and staff.   Kristin Martin, an attorney with Davis, Cowell  
          & Bowe, suggested majority-choice elections as a way for  
          employees to select their labor representative without the  
          conflict between employers and labor organizations, and  
          without the costs associated with staffing and conducting a  
          traditional union election.  Legislation was later  
          introduced in the California Legislature to attempt to  
          implement this latter suggestion.  At the federal level,  
          similar complaints and problems with the secret ballot  
          election process have led to the introduction of  
          legislation known as "The Employee Free Choice Act."

          According to the Public Employment Relations Board,  
          workplaces in the following categories may currently be  
          organized through a majority signup election such as that  







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          set forth in this bill:

          1. Public and charter school employees, under the state's  
             Educational Employment Relations Act.
          2. Higher education employees, under the state's Higher  
             Education Employment Relations Act.
          3. Local public employees, under the state's  
             Meyer-Milias-Brown Act.
          4. Trial court employees, under the state's Trial Court  
             Employment Relations Act.
          5. Supervisory employees in the L.A. County Metropolitan  
             Transit Agency.

           Prior Legislation  

          SB 180 (Migden) was introduced in 2007 and in its final  
          form was almost identical to SB 789.  That legislation was  
          vetoed by Governor Schwarzenegger.  The governor's veto  
          stated, in part:

               By setting in place a "card-check" organizing process,  
               SB 180 significantly changes the protections afforded  
               to all of California's agricultural workers under the  
               ALRA.  This "card-check" process fundamentally alters  
               an employee's right to a secret ballot election that  
               currently affords them the opportunity to cast a  
               ballot privately without fear of coercion or  
               manipulation by any interested parties.  This bill  
               also limits the opportunity for employees to hear and  
               consider other viewpoints on unionization. For these  
               reasons, I am returning SB 180 without my signature. 

          AB 2386 (Nunez) was introduced in 2008.  This legislation  
          would have authorized agricultural employees to select  
          collective bargaining representation through a new  
          "mediated election" process.  This bill was also vetoed by  
          Governor Schwarzenegger.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  4/21/09)

          United Farm Workers (source) 







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          American Federation of State, County and Municipal  
          Employees, AFL-CIO
          California Labor Federation
          California Professional Firefighters

           OPPOSITION  :    (Verified  4/21/09)

          American Council of Engineering Companies
          Associated General Contractors
          California Association of Winegrape Growers
          California Business Properties Association
          California Chamber of Commerce
          California Farm Bureau Federation
          California Framing Contractors Association
          California Grocers Association
          California Hospital Association
          California Hotel & Lodging Association
          California Independent Grocers Association
          California Restaurant Association
          California Retailers Association
          National Federation of Independent Business
          National Right to Work Committee
          Western Electrical Contractors Association-Independent  
          Electrical
            Contractors
          Western Growers

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          farm workers are an unusually vulnerable workforce  
          demographic in California. The author also states that many  
          farm workers work in isolated areas, making inspections for  
          labor regulations difficult.  The author argues that these  
          conditions present a strong need for collective bargaining  
          and a union presence.  There is overwhelming evidence, of  
          workers being prohibited from engaging in the collective  
          bargaining process due to organizing efforts being blocked  
          by employers through coercion, anti-union pamphlets, and  
          captive audience meetings prevent fair elections from  
          taking place.  The California Labor Federation states that  
          the statistics on employer interference in union organizing  
          campaigns, as detailed in a report by Cornell University  
          scholar Kate Bronfenbrenner, are alarming: Ninety-two  
          percent of private-sector employers require employees to  
          attend closed-door meetings to hear anti-union propaganda.  







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          Seventy-five percent of employers hire outside consultants  
          to run anti-union campaigns. Half of employers threaten to  
          shut down if employees join a union. In 25 percent of  
          organizing campaigns, private-sector employers illegally  
          fire workers because they want to form a union. 

          The author believes that majority choice elections will  
          allow California's farm workers to choose the best options  
          for having a fair say as it relates to their working  
          conditions.  Finally, the United Farm Workers point out  
          that Farm workers have been singled out for decades:  
          excluded from the National Labor Relations Act, the Federal  
          Insecticide Act, the Fair Labor Standards Act, and Federal  
          Child Labor laws. Even today, farm workers are not covered  
          by California's overtime laws.  Farm workers deserve the  
          rights afforded by SB 789.

           ARGUMENTS IN OPPOSITION  :    The National Right to Work  
          Committee (NRWC) states that card check is Big Labor's  
          latest scheme to organize workers without even giving them  
          the protection of a secret ballot vote free from union  
          coercion.  Card check recognition is a fundamentally flawed  
          process due in large part to its lack of confidentiality  
          among workers, opponents argue.  Further, unlike a secret  
          ballot process where workers retain their ability to  
          choose, under card check union officials often use lies,  
          coercion, and intimidation tactics to pressure workers to  
          sign union authorization cards.  NRWC cites two articles  
          from the Las Vegas Review-Journal that relate stories of  
          employees who were threatened if they refused to support  
          the union effort.  The California Chamber of Commerce notes  
          that labor unions in California are experiencing a decline  
          in membership.  Bolstering their numbers should occur  
          because workers see a need, not by adulterating the  
          election process.  They reject attempts to undermine the  
          secret ballot process in California in any way as this  
          sends the wrong message to new or growing businesses that  
          could create jobs for California citizens.  
           

          AGB:nl  4/22/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE








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