BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1474
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          SENATE THIRD READING
          SB 1474 (Steinberg)
          As Amended  August 12, 2010
          Majority vote

           SENATE VOTE  :22-11  
           
           LABOR & EMPLOYMENT     4-1      APPROPRIATIONS      12-5        
           
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          |Ayes:|Swanson, Furutani,        |Ayes:|Fuentes, Bradford,        |
          |     |Monning, Yamada           |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis,                    |
          |     |                          |     |De Leon, Gatto, Hall,     |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bill Berryhill            |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Agricultural Labor Relations Board (ALRB)  
          to certify a labor organization for purposes of collective  
          bargaining if a representation election has been set aside for  
          employer misconduct, as specified.  Specifically,  this bill  :   

          1)Authorizes the ALRB to refuse to certify an election if it  
            finds that the employer engaged in misconduct affecting the  
            right of employees to a free and uncoerced choice in a secret  
            ballot election.

          2)Specifies that the ALRB shall not refuse to certify an  
            election based solely on a de minimis violation of the law.

          3)Provides that, notwithstanding any other provision of law, if  
            an election has been set aside because of employer misconduct  
            that affected the outcome of the election, a labor  
            organization shall be certified as the exclusive bargaining  
            representative if it has already submitted valid authorization  
            cards signed by more than 50 percent of the employees.

          4)In cases involving election objection petitions filed  
            regarding bargaining units with no current certified  
            bargaining representative, requires the ALRB to issue a final  








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            order on the matter within twelve months after the objection  
            petition is filed.

          5)Declares the intent of the Legislature to provide the ALRB, in  
            addition to existing law and standards, with an alternative  
            basis to set aside an election and a remedy for misconduct  
            affecting the right of employees to a free and uncoerced  
            choice in a secret ballot election. 

           EXISTING LAW  authorizes the ALRB to refuse to certify an  
          election if it finds that any of the assertions made in on  
          objection petition are correct, that the election was not  
          conducted properly, or that misconduct affecting the results of  
          the election occurred.  Current law requires the ALRB to certify  
          an election unless it determines that there are sufficient  
          grounds to refuse to do so.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill will result in unknown, probably minor net  
          costs to the ALRB.

           COMMENTS  :  As introduced, this bill would have authorized  
          agricultural employees to select collective bargaining  
          representation through a specified "majority signup election"  
          process, in addition to the existing representation election  
          process provided for under current law.  The sponsor of the  
          bill, the United Farm Workers (UFW), and other supports argued  
          that majority choice elections would allow California's farm  
          workers to truly and freely choose the best options for their  
          livelihood and that of their family.  Opponents to the  
          introduced version of the bill argued 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 regarding the pros and cons of union representation.

          However, this bill was recently amended to instead require the  
          ALRB to certify a labor organization for purposes of collective  
          bargaining if a representation election has been set aside for  
          employer misconduct, as specified.

          Under federal labor law, the National Labor Relations Board  
          (NLRB) may issue "bargaining orders" as a remedy where an  
          employer has committed unfair labor practices which have made  
          the holding of a fair election unlikely or which have in fact  








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          undermined a union's majority and caused an election to be set  
          aside.  This remedy is generally referred to as a "Gissel  
          bargaining order" after the federal case which reaffirmed the  
          authority of the NLRB to issue such orders.   NLRB v. Gissel  ,  
          (1969) 395 U.S. 575.

          Following the enactment of the Agriculture Labor Relations Act  
          (ALRA) in 1975, it was an open question as to whether the ALRB  
          had similar authority as the NLRB to issue "bargaining orders"  
          as a remedy in certain cases.

          This question was resolved in the affirmative by the California  
          Supreme Court in Harry Carian Sales v. ALRB, (1985) 39 Cal.3d  
          209.  The court began by noting that the ALRA, like the NLRA,  
          neither expressly authorizes nor expressly prohibits the  
          issuance of bargaining orders.  However, the court held that  
          such bargaining orders are in fact authorized under the ALRA,  
          stating, "[W]ere we to interpret the ALRA to prohibit the  
          issuance of bargaining orders, employers would be free to commit  
          egregious unfair labor practices as a means of avoiding union  
          organization, or defeating a union in an election, without fear  
          of significant sanction."   Id . at 223-4.

          The UFW contends that, despite this authority to issue  
          bargaining orders in cases of egregious employer misconduct, the  
          ALRB has not done so since the legal question was resolved by  
          the California Supreme Court in 1985.

          UFW argues that currently there is no effective remedy in law to  
          enforce a farm worker's right to a secret ballot election free  
          from fear of coercion or manipulation.  As evidence of this,  
          they point to a recent decision of the ALRB which stated the  
          following:

               "In these circumstances, due to the lack of any  
               sanctions other than setting aside the election,  
               there is no method of removing the taint on  
               employee free choice created by the election  
               misconduct. As a result, the setting aside of the  
               election merely returns the situation to the  
               status quo before the election petition was filed,  
               but with the residual effect on free choice from  
               the misconduct. Obviously, this allows wrongdoers  
               to profit from their misconduct even if it results  
               in the setting aside of the election. 








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               Thus, we are forced to conclude that the election  
               objections process where, as here, the tally of  
               ballots indicates an ostensible "No Union"  
               victory, is all but a meaningless exercise in  
               terms of its affect on the rights of the parties  
               and the employees. Regrettably, the statute in its  
               present form does not provide the Board with  
               remedial authority through which it might address  
               this problem. Consequently, it is a problem that  
               may be addressed only by the Legislature."   
                Giumarra Vineyards Corp  . (2006) 32 ALRB 5, at 5.

          UFW argues that this bill creates parity so that if ALRB finds  
          employer wrongdoing, their victory would be taken away by  
          immediately certifying a labor organization.  The bill ensures  
          the secret ballot election process is protected at all costs.   
          UFW concludes that the remedy provided in this bill would serve  
          to eliminate the ALRB's identified problem of employers  
          "profiting" from their misconduct even if that misconduct means  
          violating a farm worker's rights under a secret ballot election.

          Opponents argue that the existing law has been well-served for  
          over 30 years and that the changes proposed by this bill are  
          unnecessary and unwarranted.  Opponents also express concern  
          about the precedent this bill sets for other industries.  


           Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


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