BILL ANALYSIS �
SB 1113
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Date of Hearing: July 3, 2012
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
SB 1113 (Evans) - As Amended: April 23, 2012
SENATE VOTE : 36-0
SUBJECT : Memorandum of understanding: fiscal analysis.
SUMMARY : Requires the Department of Human Resources (CalHR),
when submitting a memorandum of understanding (MOU) to the
Legislative Analyst for review to also include an analysis of
the financial obligation required to address salary parity and
wage compaction for related managerial and exempt employees who
are not covered under the provisions of the MOU.
EXISTING LAW :
1)Merges, effective July 1, 2013, the Department of Personnel
Administration (DPA) and the administrative functions of the
State Personnel Board (SPB) to form CalHR, which among other
duties serves as the representative for the Governor in all
state collective bargaining activities.
2)Requires that CalHR and each of the state's 21 collective
bargaining units meet and confer and enter into contracts over
wages and working conditions for represented employees.
3)Requires that, upon reaching a collective bargaining agreement
or MOU with a state bargaining unit, CalHR submit to the
Legislative Analyst's Office (LAO) and the Legislature an
analysis of the agreement or MOU, including a fiscal analysis
of any related costs or cost savings, and requires that the
agreement or MOU be approved by the Legislature before being
implemented.
4)Requires that CalHR set salaries for excluded and exempt
employees, and allows excluded employee representatives to
meet and confer with CalHR, but does not otherwise make the
state employer or excluded employees subject to collective
bargaining requirements.
FISCAL EFFECT : According to the Senate Appropriations
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Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : Often, when an agreement or MOU is reached with a
state bargaining unit, certain provisions of the agreement or
MOU are also extended to related classes of employees who are
excluded from bargaining (mostly managers and supervisors). For
example, if represented employees are given a salary increase of
three percent that same increase is often extended to excluded
employees in related classes.
However, CalHR sets compensation for excluded employees. There
is no statutory requirement to extend, to excluded employees, a
pay package that was bargained for represented employees, or to
study the impact of the MOU on related excluded classes.
According to CalHR, they do not routinely do compaction studies
upon reaching a MOU agreement, nor do they routinely include
estimated costs or savings of extending MOU provisions to
related excluded classes when submitting the MOU package to the
Legislature and LAO.
According to the sponsor, The California Correctional
Supervisors Organization, this is a transparency bill, intended
to ensure that legislators receive a complete picture of the
potential financial ramifications of a MOU.
Supporters state, "Wage compaction occurs where percentage
compensation increases for employee groups do not include
considerations of the supervisors who are charged with the
responsibility of directing that work force to carry out its
mission."
Supporters conclude, "Wage compaction typically does not result
from overt decisions, but rather from bad planning. Memoranda
of understanding between the employer and the rank and file
organization are typically conducted in a vacuum where the
issues on the table are the available resources of the employer
and the economic and benefit requests of the rank and file
organization. Missing from any of these discussions is a
consideration of possible compaction issues."
The Committee is informed that the author will be offering
amendments in Committee that delete the current provisions of
the bill and instead require CalHR to address salary compaction
and parity concerns when determining salaries for supervisory
and managerial employees. Additionally, CalHR would be required
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to provide the Legislature with existing salary data, as
specified, when revenues do not allow CalHR to implement a
salary increase for excluded and exempt employees.
REGISTERED SUPPORT / OPPOSITION :
Support
California Correctional Supervisors Organization (Sponsor)
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957