BILL ANALYSIS �
AB 508
Page 1
ASSEMBLY THIRD READING
AB 508 (Swanson)
As Introduced February 15, 2011
Majority vote
LABOR & EMPLOYMENT 5-1 APPROPRIATIONS 12-5
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|Ayes:|Swanson, Alejo, Allen, |Ayes:|Fuentes, Blumenfield, |
| |Furutani, Yamada | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Miller |Nays:|Harkey, Donnelly, |
| | | |Nielsen, Norby, Wagner |
| | | | |
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SUMMARY : Extends an existing bid preference for public transit
contractors who agree to retain employees (as specified) to also
include solid waste handling and recycling services contractors.
EXISTING LAW :
1) Requires all bidders on public transit service contracts to
advise the awarding authority whether they will retain the
employees of the prior contractor/subcontractor.
2) Requires awarding authorities who put out a bid for public
transit service to provide a 10% bidding preference to
contractors and subcontractors who agree to retain the
employees of the prior contractor/subcontractor for a period
of at least 90 days.
3) Requires existing contractors to provide awarding authorities
with specified employee information, which will assist
bidding contractors/subcontractors in costing their bids.
4) Exempts contractors/subcontractors from retaining employees
for "cause," as defined.
5) Authorizes the new contractor/subcontractor to pay alternate
wages and provide alternate benefits from those of the prior
AB 508
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contractor/subcontractor.
6) Authorizes the new contractor/subcontractor to retain fewer
employees than the prior contractor, if necessary. In such a
situation, the employees shall be retained by seniority
within the given job classification.
7) Authorizes employees who have not been offered employment or
who have been discharged in violation of the provisions of
this bill to bring suit against the contractor/subcontractor
in superior court.
8) Provides for remedy in the form of reinstatement, back pay,
benefits and attorney's fees and costs.
9) Obliges an awarding authority, after public hearing, to
terminate a contract substantially breached by a
contractor/subcontractor.
10)Provides that such a terminated contractor/subcontractor is
ineligible to bid or be awarded a contract/subcontract with
the terminating awarding authority for between one and three
years, to be determined by the awarding authority.
11)Provides for employment retention protection for employees of
janitorial and building maintenance contractors, as
specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, unknown state reimbursable mandated costs to extend a
current bid preference to solid waste handling and recycling
contractors.
COMMENTS : Existing law already establishes a 10% bidding
preference for public transit service contractors and
subcontractors who agree to retain employees of the previous
contractor for a period of at least 90 days. That requirement
was enacted by Senate Bill 158 (Alarc�n), Chapter 103, Statutes
of 2003. AB 508 (Swanson) would simply extend those
requirements to contractors and subcontractors who submit bids
for solid waste handling and recycling services.
This bill is co-sponsored by the California Labor Federation,
AFL-CIO and the California Teamsters Public Affairs Council.
AB 508
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The sponsors state that this bill is intended to reduce
unemployment by keeping workers from being displaced when a
city's contract for garbage and recycling changes companies.
The sponsors argue that when cities and counties contract for
services like garbage and recycling disposal, they are often
focused on the costs of the bids, the level of service provided,
and the type of diversion offered. In many cases, the workers
fall through the cracks when contracts change hands. The
existing workforce, trained and experienced, is summarily laid
off and replaced. These mass layoffs hurt individual families,
but also impact the local economy. Promoting a stable workforce
allows workers to invest in and contribute to their community.
It means people can stay in their homes, kids can stay in their
schools, and families can retain health insurance. It also
means fewer workers relying on unemployment benefits or other
taxpayer-funded programs.
Opponents contend that this bill is designed to ensure that a
union, who has been elected as the bargaining representative
through the proper procedures for the prior contractor, will
remain the bargaining representative for the subsequent
employer. Since this bill mandates that subsequent
employers/contractors, who want to obtain a bid preference for a
public contract, must agree to hire the predecessor's employees,
opponents argue that it basically forces a successor
employer/contractor into a union workforce. Refusal to make
such a promise will basically eliminate that contractor from the
bidding process to obtain the contract. Opponents believe the
decision of whether or not to have a union in the workplace
should be left to the employers and employees, after following
the proper procedures outlined by the National Labor Relations
Act.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0000880