BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 104|
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                                      VETO


          Bill No:  SB 104
          Author:   Steinberg (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM  :  5-2, 03/09/11
          AYES:  Lieu, DeSaulnier, Leno, Padilla, Yee
          NOES:  Wyland, Runner

           SENATE APPROPRIATIONS COMMITTEE  :  6-3, 03/17/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Runner

           SENATE FLOOR  :  24-14, 3/31/11
          AYES:  Alquist, Calderon, Corbett, Correa, De Le�n, 
            DeSaulnier, Evans, Hancock, Kehoe, Leno, Lieu, Liu, 
            Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, 
            Simitian, Steinberg, Vargas, Wolk, Wright, Yee
          NOES:  Anderson, Berryhill, Blakeslee, Cannella, Dutton, 
            Emmerson, Gaines, Harman, Huff, La Malfa, Runner, 
            Strickland, Walters, Wyland
          NO VOTE RECORDED:  Fuller, Hernandez

           ASSEMBLY FLOOR  :  51-26, 5/16/11 - See last page for vote


           SUBJECT  :    Labor representatives:  elections

           SOURCE  :     United Farm Workers


           DIGEST  :    This bill permits agricultural employees, as an 
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          alternative procedure, to select their labor 
          representatives by submitting a petition to the 
          Agricultural Labor Relations Board (ALRB) accompanied by 
          representation cards signed by a majority of the bargaining 
          unit.  This bill also extends existing prohibitions and 
          penalties to employers who engage 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:

          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 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 

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            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.

          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:

            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 

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               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, and the regional 
              boards are required to maintain a record of the labor 
              organizations that request the issuance of cards and 
              make such records available to any person.

            2.  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 
              foreperson, the employee's crew number, the signature 
              of the person witnessing the employee that signed the 
              card, and the date that the card was signed.

            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, and that a labor organization may fill out 
              all of the information on the representation card, 
              except the signature.

            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 respond to the petition 
              and personally serve the labor organization with the 
              petition the same day the ALRB receives it.

            6.  The employer response must include a complete and 
              accurate list of all of the employees in the bargaining 
              unit.  For each day that the employer fails to provide 
              a completely and timely response, the ALRB must access 
              a fine of up to $10,000.

            7.  Requires ALRB, upon receipt of a petition for 
              "majority signup election," to immediately commence an 

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              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.

            8.  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.

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

            10. 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 

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            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.

            1.  Prohibits the ALRB from considering a majority signup 
              election petition for the same employer until the board 
              determines if the petition should be certified unless 
              the second petition alleges the first petition was 
              filed because of the employer's unlawful involvement 
              with the labor organization that filed the first 
              petition.  If the ALRB finds that the labor 
              organization that filed the first petition did so with 
              unlawful employer involvement, that labor organization 
              is prohibited from filing any further petitions for a 
              year and the second petition will be considered.

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

            3.  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 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.

           Prior Legislation
           
          SB 1474 (Steinberg) of 2010, as introduced, was very 
          similar to this bill.  It was significantly amended in the 

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          Assembly to address situations where agricultural employers 
          engaged in willful misconduct in labor representation 
          elections.  SB 1474 was vetoed by Governor Schwarzenegger.

          SB 789 (Steinberg) of 2009, was very similar 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 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 789.  
          That legislation was vetoed by Governor Schwarzenegger.  

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

                          Fiscal Impact (in thousands)

           Major Provisions                2011-12     2012-13     2013-14  
           Fund
           Alternative electionPotentially significant reduction in 
          cost      General
          procedure           compared to current election procedure

          Investigation of filings                          Unknown 
          new costs potentially in the                             
          General
          unfair labor practicesrange of $120 in the first year; 
          likely decreasing
                              in future years; unknown increase, if 
                         any, in 
                              penalty revenues

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           SUPPORT  :   (Verified  3/30/11)

          United Farm Workers (source)
          American Federation of State, County and Municipal 
          Employees, AFL-CIO
          Brotherhood of Teamsters Local Union No. 70
          California Employment Lawyers Association
          California Federation of Teachers
          California Labor Federation
          California Nurses Association
          California Rural Legal Assistance Foundation
          California Teamsters Local 911
          California Teamsters Public Affairs Council
          International Longshore & Warehouse Union Ship Clerks' 
          Association,
            Local 34
          International Union, United Automobile, Aerospace & 
          Agricultural Implement Workers of America 
          National Nurses Organizing Committee
          Northern California District Council International 
          Longshore & Warehouse
            Union
          Southern California District Council of Laborers
          Teamsters Local No. 481
          Teamsters, Chauffeurs, Warehousemen & Helpers Local Union 
          399
          Teamsters, Chauffeurs, Warehousemen, Industrial & Allied 
          Workers of America Local Union No. 166
          The International Alliance of Theatrical State Employees 
          Local 80
          United Food & Commercial Workers Union Local No. 324
          United Food & Commercial Workers Western States Council
          United Nurses Association of California/Union of Healthcare 
          Professionals

           OPPOSITION  :    (Verified  3/30/11)

          Agricultural Council of California
          Associated Builders and Contractors of California
          California Association of Wine Grape Growers
          California Chamber of Commerce
          California Farm Bureau Federation
          California Grocers Association

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          California Hotel & Lodging Association
          California Independent Grocers Association
          California Manufacturers & Technology Association
          California Newspaper Publishers Association
          California Restaurant Association 
          California Retailers Association
          Greater San Fernando Valley Chamber of Commerce
          National Right to Work Committee
          Palm Desert Chamber of Commerce
          Pleasanton Chamber of Commerce
          Redondo Beach Chamber of Commerce
          San Jose Silicon Valley Chamber of Commerce
          Valley Industry and Commerce Association
          Western Growers Association
          Wine Institute

           ARGUMENTS IN SUPPORT  :    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.

           ARGUMENTS IN OPPOSITION  :    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.   
           

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           GOVERNOR'S VETO MESSAGE:
           
               "To the Members of the California State Senate: 

               In 1975, it was my privilege to sign into law our 
               nation's first agricultural labor relations act, the 
               'ALRA.'  This monumental achievement came only after a 
               decade of intense conflict and violence in the fields. 


               The movement created by the United Farm Workers 
               provided the political basis for the legislative 
               process that made the ALRA possible.  In previous 
               years, all attempts at passing a farm labor bill had 
               failed, caught in the cross pressures generated by the 
               profound differences that divided the Teamsters, the 
               growers and the UFW.  The final bill was not the 
               product of one side but a hard fought compromise.  It 
               came after months of meetings and the participation of 
               literally thousands of people.  I personally spent 
               hundreds of hours-often late into the night-listening 
               and arguing with lawyers and representatives of all 
               the sides. 

               Thirty-six years later, the ALRA is still recognized 
               as the best labor relations act in the country.  Under 
               its protections, tens of thousands of agricultural 
               workers have voted for unionization or otherwise 
               expressed their choice as to how their interests 
               should be advanced. 

               Yet, the disputes never quite stopped and today there 
               are serious complaints that workers are deprived of 
               their rights through a variety of unfair, improper and 
               illegal acts.  The proponents of SB 104 argue that the 
               ALRA no longer works and must be drastically changed. 

               SB 104 is indeed a drastic change and I appreciate the 
               frustrations that have given rise to it.  But, I am 
               not yet convinced that the far reaching proposals of 
               this bill--which alter in a significant way the 
               guiding assumptions of the ALRA-are justified.  Before 
               restructuring California's carefully crafted 

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               agricultural labor law, it is only right that the 
               legislature consider legal provisions that more 
               faithfully track its original framework.  The process 
               should include all those who are affected by the ALRA. 


               I am deeply committed to the success of the ALRA and 
               stand ready to engage in whatever discussions-public 
               and private-that will accomplish the appropriate 
               changes. 

               As at the beginning, all parties must be heard and, 
               before any product emerges, a wide array of opinions 
               and experiences should be fairly considered. Besides 
               being personally involved, I will direct my Labor and 
               Agricultural Secretaries to reach out to all those who 
               can help us achieve a fair and just result. 

               I am returning Senate Bill 104 without my signature."


           ASSEMBLY FLOOR  :  51-26, 05/16/11
          AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, 
            Furutani, Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez, 
            Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel P�rez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman, 
            Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, 
            Morrell, Nestande, Nielsen, Olsen, Silva, Smyth, Valadao, 
            Wagner
          NO VOTE RECORDED: Galgiani, Gorell, Norby


          PQ:nl  1/4/12   Senate Floor Analyses 
        
                         SUPPORT/OPPOSITION:  SEE ABOVE

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