BILL ANALYSIS                                                                                                                                                                                                    






                 Senate Committee on Labor and Industrial Relations
                               Mark DeSaulnier, Chair

          Date of Hearing: April 14, 2010              2009-2010 Regular  
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:Yes
                                                       Urgency: No
          
                                  Bill No: SB 1474
                                  Author: Steinberg
                      Version: As Introduced February 19, 2010
          

                                       SUBJECT
          
                          Labor representatives: elections.


                                      KEY ISSUE

          Should the State of California establish an alternative election  
          procedure by which agricultural employees could decide whether  
          to select a particular labor organization to represent them for  
          collective bargaining purposes?
          

                                       PURPOSE
          
          To give agricultural employees an alternative electoral method  
          for choosing their collective bargaining representative, the  
          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:

          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 + one of the votes cast shall win the election.  
            Run-offs, if necessary, must take place.

          1.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.

          2.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  :
          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 2

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          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.

          1.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.

          2.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  
          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 3

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               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.

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

          2.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.  

          3.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.

          4.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.
          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 4

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

          6.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  
            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  
          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 5

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            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
          
          1.  Need for this bill?

             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. 

          2.  How many labor representative elections have been held?
           
            According to testimony in 2006 joint legislative hearing from  
            Antonio Barbosa of the ALRB, from 1975 to 2006, the board has  
            held 1,280 elections and issued certifications as either a  
            union win or union loss in 1,071 cases.  Between 2000 and  
            2007, the ALRB has issued 48 certifications, with 29 elections  
            resulting in a plurality for a particular union and 19  
            resulting in a plurality for "no union".  This includes the  
            UFW and several other agricultural labor organizations.  In a  
            2001 labor hearing, UFW reported that of the 428 companies  
            where elections had taken place, only 185 signed union  
            contracts. 

          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 6

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          3.  Proponent Arguments  :
            
            Proponents note that farm workers are an unusually vulnerable  
            workforce demographic in California.  Many farm workers are  
            undocumented workers and have few rights due to recent court  
            decisions.  Proponents also state that many farm workers work  
            in isolated areas, making inspections for labor regulations  
            difficult.  Proponents argue that these conditions present a  
            strong need for collective bargaining and a union presence,  
            but this has been blocked by employers through coercion,  
            anti-union pamphlets, and captive audience meetings prevent  
            fair elections from taking place.  Proponents believe that  
            majority choice elections will allow California's farm workers  
            to truly and freely choose the best options for their  
            livelihood and their families' livelihood.

          4.  Opponent Arguments  :

            Opponents argue that existing law gives labor organizations  
            many rights, including the ability for labor organizations to  
            enter a farmer's property, and that existing remedies  
            available to the ALRB are sufficient.  They also feel that  
            majority choice elections are not a real election, is  
            fundamentally undemocratic, opens workers up to intimidation  
            from unions in their homes, and that they deprive farm workers  
            of a proper debate on the pros and cons of unionization.   
            Opponents also state that the provisions for increased civil  
            penalties are excessive, possibly unconstitutional, and an  
            undue burden on businesses.  

          5.  Prior Legislation  :

            SB 789 of 2009 was nearly identical to this bill, and was  
            vetoed by Governor Schwarzenegger.  His veto message read, in  
            part:

                    SB 789 sets in place a "majority signup  
                    election" process for agricultural  
                    employees to select union representation.   
                    This process fundamentally alters an  
                    employee's right to a secret ballot  
                    election that allows the employee to  
          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 7

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                    choose, in the privacy of the voting booth  
                    without coercion or manipulation, whether  
                    or not to be represented?. I cannot support  
                    this alteration of the secret ballot  
                    process.
            AB 2386 (Nunez) of 2008 would have authorized agricultural  
            employees to select collective bargaining representation  
            through a new "mediated election" process.  This bill was  
            vetoed by Governor Schwarzenegger.

            SB 180 (Migden) of 2007 was almost identical to SB 1474.  That  
            legislation was vetoed by Governor Schwarzenegger.  


                                       SUPPORT
          
          United Farm Workers - Sponsor
          Association of California State Supervisors
          California Labor Federation
          California Nurses Association/National Nurses Organizing  
          Committee
          California Rural Legal Assistance Foundation
          California State Employees Association
          California State Employees Association Retirees, Inc.
          California State University Employees Union
          United Nurses Associations of California/Union of Health Care  
          Professionals
           
           
                                     OPPOSITION
          
          Agricultural Council of California
          Alliance of Western Milk Producers
          Allied Grape Growers
          American Council of Engineering Companies of California 
          Associated Builders and Contractors
          Associated General Contractors
          California Aftermarket Industry Association
          California Association of Wheat Growers
          California Association of Winegrape Growers
          California Automotive Wholesalers Association
          California Bean Shippers Association
          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 8

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          California Business Properties Association
          California Chamber of Commerce
          California Citrus Mutual
          California Farm Bureau Federation
          California Framing Contractors Association
          California Grain & Feed Association
          California Grape and Tree Fruit League
          California Grocers Association
          California Hospital Association
          California Hotel and Lodging Association
          California Independent Grocers Association
          California Manufacturers and Technology Association
          California Pear Growers Association
          California Professional Association of Specialty Contractors
          California Restaurant Association
          California Retailers Association
          California Seed Association
          California State Floral Association
          California Warehouse Association
          California Women for Agriculture
          Family Winemakers of California
          Grower-Shipper Association of Central California
          Grower-Shipper Vegetable Association of Santa Barbara and San  
          Luis Obispo Counties
          National Federation of Independent Business
          Nisei Farmers League
          Pacific Coast Renderers Association
          Pacific Egg & Poultry Association
          Ventura County Agricultural Association
          Western Electrical Contractors Association
          Western Growers Association
          Western United Dairymen
          Wine Institute


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          Hearing Date:  April 14, 2010                            SB 1474  
          Consultant: Gideon L. Baum                               Page 9

          Senate Committee on Labor and Industrial Relations