BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2126
Norma Torres, Chair HEARING DATE: June 23, 2014
AB 2126 (Bonta) as amended 5/23/14 FISCAL: YES
MYERS-MILIAS-BROWN ACT: MEDIATION AND FACTFINDING
HISTORY :
Sponsor: American Federation of State, County and
Municipal Employees (AFSCME)
California Professional Firefighters (CPF),
Co-Sponsors
Service Employees International Union (SEIU),
Co-Sponsors
Other legislation:SB 979 (Beale) 2014
Currently in Senate PE&R Committee
AB 616 (Bocanegra) 2013
Held in Senate Appropriations
Committee
AB 778 (Bocanegra) 2013
Died in Assembly Appropriation Committee
AB 537 (Bonta),
Chapter 785, Statutes of 213
AB 1606 (Perea),
Chapter 314, Statutes of 2012
AB 646 (Atkins),
Chapter 680, Statutes of 2011
ASSEMBLY VOTES :
PER & SS 5-1 4/02/14
Appropriations 12-5 5/23/14
Assembly Floor 54-22 5/29/14
SUMMARY :
1)allows either party in collective bargaining between a
public agency and its recognized employee organization to
request mediation after providing the other party with a
written declaration of impasse and requires the parties to
agree on a mediator within 5 days of a request for
mediation. If the parties fail to agree upon the selection
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Date: June 13, 2014 Page
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of a mediator within 5 days, the bill requires PERB to
appoint a mediator no later than 5 days after the receipt
of either party's request for a mediator. The bill also
exempts from the requirement for mediation, as specified,
those public agencies that have a binding arbitration
process.
2)provides, with respect to factfinding procedures, that the
employee organization's request for factfinding is not
limited to impasse negotiation over an MOU or a successor
MOU, and may include differences that arise from any
dispute over any matter within the scope of representation.
The bill also provides more flexibility to factfinders in
weighing the criteria for making their findings and
recommendations and allows an employee organization to
voluntarily waive, in writing, its procedural right to
request a factfinding panel.
3)declares that the provisions respecting factfinding
procedures are clarifying amendments declarative of
existing law.
BACKGROUND AND ANALYSIS :
1)Existing law :
a) establishes the Meyers-Milias-Brown Act (MMBA), which
provides a statutory framework for local government
employer-employee relations by providing a reasonable
method of resolving disputes regarding wages, hours, and
other terms and conditions of employment between local
public employers and public employee organizations.
b) under MMBA, authorizes local public agencies to adopt
reasonable rules and regulations after consultation in
good faith with representatives of an employee
organization or organizations.
c) provides that if, after a reasonable amount of time,
representatives of the public agency and the employee
organization fail to reach agreement, the two parties
may mutually agree on the appointment of a mediator and
equally share the cost.
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d) creates a statutory framework and process for
factfinding, defining the duties and rights of the
parties.
e) allows an employer to implement its last, best, and
final offer after any applicable mediation and
factfinding procedures have been exhausted. A
recognized employee organization retains the right to
meet and confer each year with the employer despite the
implementation of the last, best and final offer.
f) requires factfinders, in arriving at their findings
and recommendations, to consider weigh, and be guided by
all of the following criteria:
i) State and federal laws that are applicable to the
employer.
ii) Local rules, regulations, or ordinances.
iii) Stipulations of the parties.
iv) The interests and welfare of the public and the
financial ability of the public agency.
v) Comparison of the wages, hours, and conditions of
employment of the employees involved in the
factfinding proceeding with the wages, hours, and
conditions of employment of other employees performing
similar services in comparable public agencies.
vi) The consumer price index for goods and services,
commonly known as the cost of living.
vii) The overall compensation presently received by the
employees, including direct wage compensation,
vacations, holidays, and other excused time, insurance
and pensions, medical and hospitalization benefits,
the continuity and stability of employment, and all
other benefits received.
viii) Any other facts not confined to those specified in
paragraphs (1) to (7), inclusive, which are normally
or traditionally taken into consideration in making
the findings and recommendations.
g) provides that the procedural right of an employee
organization to request a factfinding panel cannot be
expressly or voluntarily waived.
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1)This bill : makes changes to the Meyers-Milas-Brown Act
(MMBA) with respect to mediation, impasse procedures, and
factfinding. Specifically, this bill does the following:
a) Mediation (GC) 3505.2 (a)
AB 2126 changes the mediation process in the MMBA from
one requiring mutual consent to enter mediation to one
where either party can require the parties enter
mediation by providing the other party with a written
declaration of impasse and requesting mediation.
Thereafter, the parties have 5 days to agree on a
mediator. If they fail to agree, either party can
request PERB to appoint a mediator which PERB must do
within 5 days of receiving the request.
b) Exception for Public Agencies with Binding
Arbitration GC 3505.2 (b)
The bill exempts from the requirement for mediation
those public agencies that have a procedure that applies
if an impasse has been reached between the public agency
and a bargaining unit and the procedure includes, at a
minimum, a process for binding arbitration.
c) Factfinding Not Limited to Issues from Bargaining
Impasse GC 3505.4 (a)(2)
The bill clarifies that differences between the parties
that are subject to a request by the employee
organization for submission to a factfinding panel may
include differences that arise from any dispute over any
matter within the scope of representation as to which an
obligation to meet and confer exists and are not limited
to negotiations after impasse after collective
bargaining for a new or successor memorandum of
understanding.
d) Flexibility for Factfinder Deliberations GC 3505.4
(d)
The bill gives factfinder panel members greater
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flexibility in arriving at their findings and
recommendations by providing that they need only
consider, weigh, and be guided by the criteria, as
specified, that the factfinders deem to be relevant to
the dispute.
e) Waiver of Procedural Right to Request Factfinding GC
3505.4 (e)
AB 2126 specifically provides that an employee
organization may voluntarily waive in writing the right
to request a factfinding panel. The provision reverses
current law's prohibition against the waiver.
f) Factfinding Provisions Are Declaration of Existing
Law
The bill finds and declares that the amendments made by
this act to provisions applicable to factfinding
procedures are clarifying and declaratory of existing
law.
FISCAL :
According to the Assembly Appropriations Committee:
Based on PERB estimates of staffing necessary to administer
the provisions of this bill, the fiscal impact of
administration is approximately $800,000 General Fund (GF).
Though the bill is not keyed a local mandate, there could
be substantial state mandated reimbursement of local costs.
The amount would depend on the number of requests for
mediation. Reimbursable costs could be in the millions of
dollars. PERB staff raised the possibility of exceeding
100 additional mediation cases annually. The Commission on
State Mandates has approved a test claim for any local
government subject to the jurisdiction of PERB that incurs
increased costs as a result of a mandate, meaning their
costs are eligible for reimbursement.
COMMENTS :
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1)Arguments in Support :
According to the author,
There is a need to conform the MMBA to the other employee
relations Acts in a manner that enables both employers and
employee organizations to be extended access to the
assistance and expertise of a mediator when either party
recognizes that their dispute could benefit from such
assistance and expertise.
According to the California Professional Firefighters,
Without conforming the mediation provisions of MMBA to the
mediation provisions of EERA, the Dills Act and HEERA,
obstructionist parties governed by MMBA will continue to
employ tactics to reject compromise or rush to impasse,
thereby blocking the other party's attempt to request
mediation in an effort to resolve their differences.
Further, conforming the law in the manner proposed by AB
2126 will ensure that all parties remain at the bargaining
table while receiving valuable mediation assistance up to
the point where either an agreement is reached or one of
the parties declares an impasse.
According to AFSCME,
By allowing either negotiating party to request mediation,
this bill will reduce the likelihood of a deadlock and
allow local government employees to continue working under
a fairly negotiated agreement.
2)Arguments in Opposition :
According to the League of California Cities,
Under AB 2126, factfinders would only have to be guided
by criteria "that the factfinders deem relevant to the
dispute." In other words, with a 2-1 vote, the
factfinders could focus only on comparing wages, hours,
and conditions with other agencies, and not -for
instance - deem relevant the local agency's financial
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condition.
The net effect of this measure is to erode incentives
for employee organizations to work with public employers
to reach agreement in good-faith collective bargaining.
PERB nominated mediators and factfinders will be
inclined to be sympathetic with employee perspectives
and have no responsibility for the financial health and
stewardship of the affected local agency.
3)SUPPORT :
American Federation of State, County and Municipal
Employees (AFSCME), Sponsor
California Professional Firefighters (CPF), Co-Sponsors
Service Employees International Union (SEIU), Co-Sponsors
Association for Los Angeles Deputy Sheriffs
California Association of Professional Employees (CAPE)
California School Employees Association (CSEA), AFL-CIO
California Federation of Teachers (CFT)
California Fraternal Order of Police
California Professional Firefighters (CPF)
California Teamsters Public Affairs Council
Glendale City Employees Association
Long Beach Police Officers Association
Los Angeles County Professional Peace Officers Association
Los Angeles Police Protective League
Los Angeles Probation Officers' Union, AFSCME, Local 685
Organization of SMUD Employees
Riverside Sheriffs' Association
Sacramento County Deputy Sheriffs Association
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Ana Police Officers Association
Santa Rosa City Employees Association
4)OPPOSITION :
Association of California Cities - Orange County (ACC-OC)
Association of California Healthcare Districts (ACHD)
Butte County Board of Supervisors
California Association of Sanitation Agencies (CASA)
California Special Districts Association (CSDA)
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California State Association of Counties (CSAC)
City and County of San Francisco
City of Palo Alto
City of Redwood City
City of Salinas
Contra Costa County
County of San Bernardino
Fresno County Board of Supervisors
Kings County Board of Supervisors
League of California Cities
Napa County Board of Supervisors
Rural County Representatives of California (RCRC)
San Joaquin County Board of Supervisors
San Luis Obispo County Board of Supervisors
Sonoma County Board of Supervisors
Urban Counties Caucus (UCC)
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