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HomeMy WebLinkAboutAgenda Report - May 15, 1985 (120)Cm COUNCIL MEE DiG MAY 15, 1985 SYNOPSIS OF DILLS BILL SB 1398 PRrSEN'ITD FOR COUNCIL'S PERUSAL Council 4iember- Snider presented a synopsis of Senator Dills\ Bili SB 1398 regarding comulsory and binding arbitration, indicating That in the near future he, will ask Council to f;,rmally oppose the bill. _ r CITY COUNCIL DAVID M. HINCHMAN, Mayor FRED M. REID Mayor Pro Tempore EVELYN M. OLSON JAMES W. PINKERTON, Jr. JOHN R. (Randy) SNIDER To: From: Subject: Date: CITY OF LORI CITY HALL, 221 WEST PINE STREET CALL SOX 3006 LODI, CALIFORNIA 95241-1910 (209) 334-5634 Honorable Mayor and Council Members Council Member John Randy Snider Synopsis of Senate Bill No. 1398 as introduced by Senator Dills May 14, 1985 THOMAS A. PETERSON City Manager ALICE M. REIMCHE City Clerk RONALD M. STEIN City Attorney Existing law contains provisions relating to employer-employee relations within the various local public agencies in the State of California, which presently provides that local public employees have a right to form, join and participate in the activities of employees organizations for the purpose of representation on all matte s of employer-employee relations. The chosen employee organization has a right to represent its members and the scope of representation includes wages, hours and other terms and conditions of employment. Representatives of the public employer are required in this connection to meet and confer in good faith and endeavor to reach agreement with the employee organization, and if agreement is reached, to prepare a non-binding memorandum of understanding and present it to the governing body of the public employer for determination. The public agency and the recognized employee organization or recognized employee organizations together are authorized to mutually agree on the appointment of a mediator for the purpose of settling any disputes between the parties. Also under existing law, firefighters are statutorily prohibited from engaging in strikes. The following are key provisions set forth under SB1398: 1. This bill would revise provisions of existing law with respect to certain peace officers and firefighters employed by a local agency to impose a state -mandated local program by providing that in situations where a mediator is unable to effect settlement of a controversy between an employer and the recognized employee organization representing peace officers or firefighters, either party may, pursuant to specific procedures have their differences on economic issues submitted to binding arbitration. 2. This bill would establish a specified procedure for settlement of controversies between the parties through the utilization of an arbitrator mutually agreed upon and chosen from a list submitted by the State Mediation and Conciliation Service pursuant to specified procedures. 3. This bill would provide that the jointly incurred costs of the arbitration proceeding shall be shared equally between the parties unless otherwise agreed to by the parties. 4. The bill would provide that any peace officer or firefighter willfully engaging in a strike is subject to immediate termination, suspension, demotion, reduction in pay or other disciplinary action. 5. This bill would impose a state -mandated local program by requiring local public agencies to implement compulsory and binding arbitration for peace officers and firefighters. ShNATE BILL No., 1398 Introduced by Senator Dills March 8, 1985 An act to add and repeal Chapter 4.5 (commencing with Section 1060) of Part 3 of Division 2 of the Labor Code, rel4ting to public safety labor disputes LEGISLATIVE COUNSEL'S DIGEST SB 1398, as introduced, Dills. Peace officer and firefighter labor disputes: binding arbitration. Existing law containsprovisions relating to employer-employee relations within the various local public - agencies in the State of 'California, which presently provide that local public employees have a right to form, join, and participate in the activities of employee organizations for the purpose of representation on all matters. of employer-employee relations. The chosen employee AOL organization has a right to represent its members, and the scope of representation includes wages, hours, and other terms and conditions of employment. Representatives of the public employer are required, in this connection, to meet and confer in good faith and endeavor to reach. agreement with the .employee organization, and, if agreement is reached, to prepare a nonbinding memorandum of understanding and present it to the governing body of the public employer for determination.. The public agency and, the recognized employee organization . or recognized employee organizations togetli.er are authorized to mutually agree on theap . pointme'nt of a mediat6i'for the. purpose of 'Settling any disputes , between the. parties... Also, under existing law, firefighters' are Statutorily prohibited from engaging in strikeso Thisbift would revise these provisions of existing law with respect to certain peace officers and firefighters employed by 99 so ....................... E SB 1398 would not apply to public agencies which, by_ charter, ordinance, or resolution have adopted a mandatory arbitration procedure meeting specked requirements. This bill would impose a state -mandated local program by requiring local public agencies to implement compulsory and binding arbitration for peace officers and firefighters. The California Constitution requires the state to reimburse local agencies and school di-ricts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is -required by this act for a specified reason. This bill would also provide that if a final decision of a court finds that any costs incurred by a local agency as a result of participation in a binding arbitration proceeding pursuant to the bill are required to be reimbursed by the state, this bill, and any arbitration decision rendered pursuant to the bill, would have no further force or effect. This. bill would provide that any arbitration decision resulting from court-ordered arbitration shall nit become effective until after the final determination of a court that the costs of the arbitration are not required to be reimbursed by the state, and would prohibit a court from issuing an order to arbitrate until the final determination of a court that the costs of court-ordered arbitration are not required to be reimbursed by the state as "costs mandated by the state," or the Chief Justice of the California Supreme Court grants consent to issue an order to arbitrate pursuant to specified criteria. This bill would also state the intent of the Legislature in this regard. This bill, in compliance with Section 2231.5 of the Revenue and Taxation Code, would also repeal., as of January 1, 1992, the provisions contained in the bill for which state reimbursement is required. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. 99 100 SB 1398 a local public agency, to impose a state -mandated local program by providing that in situations where a mediator is unable to effect settlement of a controversy between an employer and the recognized employee organization >` representing peace officers or firefighters, or if the parties are rf unable to agree to appointment of a mediator under existing law, either party may, pursuant to specified procedures, have their differences on economic issues, as defined, submitted to binding arbitration. The bill would. establish a specified procedure for settlement of controversies between the parties through the utilization of an arbitrator mutuallyi agreed upon or chosen from a list submitted by the State = Mediation and Conciliation Service pursuant to specified procedures. The arbitrator appointed pursuant to these procedures would be required to meet with the parties or their representatives within 10 days after his or her selection, and to make inquiries and investigations, hold hearings, and take r any other action, including further mediation, that the 'appropriate. arbitrator deems At the commencement of arbitration hearings, each of the parties would be required to submit a last best offer of settlement on the unresolved issues as package. The arbitrator would decide the unresolved issues by selecting the last best offer package which most nearly complies with 01``� specified factors. There would -then be a waiting period of 10 days prior to public disclosure, or a longer period if agreed to, during which the parties could mutually amend the decision. At the end of that period, the amended agreement or the , arbitrator's decision would be disclosed, and would be binding' upon the parties. This bill would provide that the jointly incurred costs of the arbitration proceeding shall be shared equally between the parties, unless otherwise agreed to by the parties. The bill would provide that any peace officer or firefighter willfully engaging in a strike, as defined, against the public agency employer is subject to immediate termination, suspension, demotion, reduction in pay, or other disciplinary action. The provisions of the bill providing for binding arbitration :. 99 70 SB 1398 would not apply to public agencies which, by_ charter, ordinance, or resolution have adopted a mandatory arbitration procedure meeting specked requirements. This bill would impose a state -mandated local program by requiring local public agencies to implement compulsory and binding arbitration for peace officers and firefighters. The California Constitution requires the state to reimburse local agencies and school di-ricts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is -required by this act for a specified reason. This bill would also provide that if a final decision of a court finds that any costs incurred by a local agency as a result of participation in a binding arbitration proceeding pursuant to the bill are required to be reimbursed by the state, this bill, and any arbitration decision rendered pursuant to the bill, would have no further force or effect. This. bill would provide that any arbitration decision resulting from court-ordered arbitration shall nit become effective until after the final determination of a court that the costs of the arbitration are not required to be reimbursed by the state, and would prohibit a court from issuing an order to arbitrate until the final determination of a court that the costs of court-ordered arbitration are not required to be reimbursed by the state as "costs mandated by the state," or the Chief Justice of the California Supreme Court grants consent to issue an order to arbitrate pursuant to specified criteria. This bill would also state the intent of the Legislature in this regard. This bill, in compliance with Section 2231.5 of the Revenue and Taxation Code, would also repeal., as of January 1, 1992, the provisions contained in the bill for which state reimbursement is required. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. 99 100 SB 1398 SB 1398 The people of the State of California do enact as follows. 1 salaries, hours, and other forms of compensation such as 1 SECTION 1. Chapter 4.5 (commencing with Section 'Y 2 3 paid vacation, paid holidays, sick leave, insurance benefits,: and other economic benefits to employees. 2 1060) is added to Part 3 of Division 2 of the Labor Code, 4 "Economic issues" shall not include the right of the 3 to read: M5 public agency to determine its mission, set standards of 4 x s; 6 service to be offered to the public, and exercise control 5 CHAPTER 4.5. PEACE OFFICER AND FIREFIGHTER 7 and discretion over its organization and operations, the 6 LABOR DISPUTES 8 right of the public agency to hire, direct, assign, transfer, 7 8 1060. The Legislature hereby finds and declares that:, 9 promote, or discipline its employees, and the right of the determine by 10 public agency to the means and personnel 9 strikes and work stoppages by peace officers and Iia 11 which public agency operations are to be conducted. 10 firefighters are a matter of statewide concern and are not �.l 12 1062. (a) Any peace officer or firefighter who 11 in the public interest. The Legislature further finds and 13 willfully engages in a strike against his or her employer 12 declares that bindingarbitration is the a appropriate '" ,i;,: 14 shall be subject to immediate termination, suspension, 13 method for resolving disputes that lead to these strikes.; 15 demotion reduction in pay, cr other disciplinary action, 14 It is the intent of this chapter to prohibit strikes by ',' 16 pursuant to rules and regulations of the public agency. 15 peace officers and firefighters emp,oyed by any public '`' 17 (b) As used in this section, the term "strike" means 16 agency, as defined by subdivision c of Section 3501 of (} f ; 18 any concerted stoppage of work by employees and any 17 the Government Code, and to establish impasse tX }} 19 concerted slowdown or other concerted interruption of 18 remedies, including binding arbitration, in lieu of those `w 1 ' 20 operations by employees including, but not limited to, 19 strikes or work stoppages h these Y peace officers ars..' ' ":'` 21 the activities commonly described as "blue flu," "green 20 firefighters. It is further the intent of this chapter that 22 flu," "sick in," "sick out," or "work to rule." 21 these provisions shall be construed to apply to all charter 23 1063. (a) If a mediator agreed to by the parties is 22 cities, charter counties, and cities and counties in this ;, 24 unable to effect settlement of a controversy between the 23 state. It is also the intent of this chapter that binding x' 25 public agency and the representative of the certified 24 arbitration shall be restricted to economic issues. z 26 employee organization composed of peace office -s or 25 However, the parties may agree to binding arbitration of 27 firefighters within 10 days after his or her appointment, g Y pp 26 27 other issues pursuant to a memorandum of -) 28 or if the parties are unable tb agree to appointment of a understanding, or by local ordinance resolution, or29 mediator pursuant to Section 3505.2 of the Government 28 charter. It is not the intent of this chapter to alter the y, 30 Code, either party may, upon written notification to the 29 scope of representation provided for in Section 3504 of 4' 31 other that a controversy exists, regrest that their 30 the Government Code.' 32 differences on economic issues be submitted to binding 31 1061. (a) This chapter shall apply only to pp Y y peace �, 33 arbitration. The other party shall respond in writing 32 officers, as defined by subdivision (a) of Section 830.1 of 34 within five days of receipt of the notice. If that party 33 the Penal Code, and firefighters, who are employed by a 1 35 either fails to deliver a timely response or refuses to 34 public agency, as defined by subdivision (c) of Section 36 voluntarily submit the controversy to arbitration, then 35 3501 of the Government Code. 37 the notifying party may petition a court of competent 36 (b) As used in this chapter, "economic issues" 38 jurisdiction for an order to arbitrate. Failure to respond 37 includes, but is not limited to, those issues having a 39 in a timely manner shall be considered as a refusal to 38 relationship to employee income, including wages, �. 40" arbitrate. 99 1'20 99 140 SB 1398 1 (b) On petition of a party alleging that the`other party 2 refuses to arbitrate a controversy, the court shall order 3 the petitioner and the 'respondent to arbitrate the 4 controversy unless it finds one of the following: 5 (1) The right to request arbitration has been waived. 6 (2) The parties have resolved the controversy by 7 agreement. 8 (3) A controversy over economic issneF does not exist. 9 (4) The petitioner has not made a good faith effort to 10 exhaust the remedies referred to in subdivision (a). 11 (5) The petitioner is not qualified under this' -chapter 12 to request arbitration. 13 If the court determines that a controversy exists, an. 14 order to arbitrate the controversy shall not be refused on 15 the ground that the petitioner's contentions lack 16 substantive merit. Any petition filed pursuant to this 17 subdivision shall have priority over any other, business 18 . before the court, and shall be disposed -of quickly and 19 expediently. 20 (c) Within 10 days of the notification, within five days 21 of issuance of an order to arbitrate, or within any 22 additional period of time to which both parties agree, an 23 arbitrator shall be mutually agreed upon or be chosen 24 from a list submitted by the State Mediation and 25 Conciliation Service, as provided in subdivision (d) . 26 (d) The State Mediation and Conciliation Service shall 27 provide the parties with a list of five competent and 28 experienced arbitrators, familiar with matters of 29 employer-employee relations in the public employment 30 � sector, and certified by the service as arbitrators qualified 31 to carry out the duties and standards of this chapter. The 32 parties may mutually request a list containing more or 33 less names than five, so long as the number requested is 34 an otld number. The parties, if they cannot agree on 35 whicl: of the listed persons shall serve as arbitrator, shall 36 alternately strike names on this list, with the first party to 37 strike to be determined by lot. The last name remaining 38 on the list shall be the arbitrator. 39 (e) The Director of Industrial Relations °shall 40 promulgate rules and regulations by which the -State 99 160 2. 4 6 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 SB 1398 Mediatiorr and Conciliation Service shall determine the competence and experience of persons to be certified by the service to serve as arbitrators, and to carry out the duties, standards, and responsibilities described in this chapter.;:: (f) The arbitrator shall, within 10 days after his or her selection, meet with, the parties or their representatives, either jointly or separately, and shall make inquiries and investigations, hold hearings, and take such other action, including further mediation, that the arbitrator deems appropriate. 1064. For the purpose of its hearings, investigations, or inquiries, the arbitrator shall have the power to subpoena witnesses, administer oaths, take the testimony or deposition of any person, and issue subpoenas duces tecvmto require the production and examination of.any employer or employee organization's records, books, or papers relating to any subject matter,in dispute.'.In the event of refusal to obey a subpoena on the part of any person or persons, the arbitrator may bring an action to enforce the subpoena in a court of competent jurisdiction. 1065. , '(a) At the commencement of the arbitration hearings the arbitrator shall direct each of the parties to submit, within the time limit prescribed, a last best offer of settlement on the unresolved issues as a package. (b) The arbitrator, within 30 days after the conclusion of the hearing, or any additional periods to which the parties agree, shall decide on the unresolved -issues submitted by selecting the last best offer package which most nearly complies with the applicable factors described in subdivision (c). The arbitrator shall not modify either. of the offer- packages submitted by the parties—The arbitrator shall mail or otherwise deliver a true copy of the decision to the parties and their representatives. (c) ' The arbitrator shall base findings, opinions, and decisions upon the following factors, as applicable: (I ), The lawful adthority of the employer. (2) .Stipulations of the parties. 99 180 NEW SB 1398 1 (3) The interests and welfare of `the public.and the 2 financial ability. of the public agency to meet the .Costs - 3 (4) Comparison of the wages, hours, and conditioris'of 4 employment of other employees performing .,,:,,simiar 5 services and with other employees generally; ih :public 6 employment in comparable communities, and in private 7 employment in comparable communities. 8 (5) The average consumer prices for goods and 9 services, commonly known as the cost of liviMg' - 10 (6) The overall compensation presently received by 11 the employees, including direct wage compensation, 12 vacations, holidays and other excused time, insurance and .13 pensions, medical, dental, and hospitalization benefits, 14 the continuity and stability of employment, and all other 15 benefits received. 16 (7) Changes in any of the above factors which are 17 normally or traditionally taken into consideration in the 18 determination of wages, hours, and conditions. of 19 employment through voluntary collective bargaining, 20 mediation, fact finding, arbitration, or otherwise 21 between the parties, in the public service or in private 12 employment. 23 A The decision of the arbitrator shall not be publicly 24 discussed, and shall n( -It be binding for a period of 10 days. 25 During that 10-dt'y period the parties may meet 26 privately, attempt to resolve their differences, and by 27 mutual agreement amend or modify the decision of the 28 arbitrator. At the conclusion of the 10 -day period, which 29 may be extended by the parties, the arbitrator's decision, 30 as amended by the parties, shall be publicly disclosed and 31 shall be binding on all parties. 32 (e) Unless otherwise agreed to by the parties, the 33 jointly incurred costs of the 'arbitration proceeding, 34 including the fees of the arbitrator, shall be shared 35 equally between the parties. 36 1066. Sections 1063, 1064, and 1065, shall not apply to 37 public agencies which, by charter, ordinance, or 38 resolution have adopted a mandatory arbitration 39 procedure which requires the submission --oof all 40 unresolved disputes relating towages, hours, and other 11 M 3 5 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 14 25 26 27 28 29 30 31 32 33 34 35 36 37 138 39 40 SB 1398 terms end- conditions of employment to an impartial, 'reputable, and competent neutral arbitration board, or neutral , and competent person, for binding determination. 1067 * Unless otherwise provided in this chapter, Title 9 (commencing with Section 1280) of Parti of the Code of Civil Prjcedure shall be applicable to any arbitration undertaken either pursuant to this chapter, or to the provisions of a local charter, ordinance, or resolution. 1068.This chapter shall remain in effect only until January 1, 1992, and as of that date is repealed, unless a later enacted statute, which is chaptered before January 1, 1992,,. deletes or extends that date. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the Legislature finds and declares that there are savings as well as costs in this act which, in the aggregate, do not result in additional net costs. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the Legislature finds and declares that any costs incurred by a local agency as a result of participation in a binding arbitration proceeding pursuant to this act are incurred either voluntarily, or in compliance with an order of the court, and shall be ,considered to be "costs mandated by the courts" within the meaning of Section 2205 of the Revenue and Taxation Code. If, notwithstanding this section, a final decision of - a court finds that any costs incurred by a local agency as a result of participation in a binding arbitration proceeding pursuant to this act are required to be reimbursed by the state because they are "costs mandated by the state," this entire act, and any arbitration decision rendered pursuant to this act, shall have no further force or effect. SEC. 4. Any arbitration decision resulting from court-ordered arbitration pursuant to this act shall not become effective until after the final determination of a court that the costs of the court-ordered arbitration are not required to be reimbursed by the state as "costs 99 200 99 230 SB 1398 I mandated by .the state.':'.:. 2 SEC. 5. Until the final- determination of acourt that 3 the costs of court-ordered arbitration"are not req4ired to, 4 be reimbursed by the state *s: "costs mandafed,"by. the 5 state," no court shall issue anorder to arbitrate pursuant rsuant ,6 to this act without requestin"g,and-receiving consent to 7 issue the order from the',(Nef Justice of the California 8 Supreme Court. The Chief Justice,shall grant only one 9 consent to issue an order to.arbitrate, and shallnot grant 10 an additional consent to issue an order to arbitrate unless 11 in the first case where consent was I given an arbitration 12 decision is not rendered.,It is the intent of the Legislature 13 in enacting this section to limit court-ordered arbitration 14 to one case which can be appealed to a court on the issue 15 of whether or not any costs, incurred by a local agency as 16 a result of court=ordered participation in a. binding 17 arbitration proceeding pursuant to this act are required 18 to be reimbursed by: -the state because they are "costs 19 mandated by the state." 6xi -7777. p`XF;. LLjj � trtE-:-'tom" r .eG lu, V A p`XF;. CITY COUNCIL DAVID M. HINCHMAN, Mayor FRED M. REID Mayor Pro Tempore EVELYN M. OLSON JAMES W. PINKERTON, Jr. JOHN R. (Randy) SNIDER CITY OF LODI CITY HALL, 221 WEST PINE STREET CALL BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 334-5634 ` L� }: t .t :ted June 4, 1985 Honorable Ralph C. Dills Senator State Capitol Sacramento, CA 95814 Dear Senator Dills: THOMAS A. PETERSON City Manager At«" EIMCHE City Clerk TEIN `y Attorney i Senate Bill No. 1398 imposes compulsory and binding arbitration for the settlement of economic issues. It applies to negotiations with police and fire unions. No appropriation for reimbursement of local costs is included in SB 1398, yet state action to mandate compulsory and binding arbitration is a major cost for which the State is responsible (The Legislative Counsel has ruled the State is responsible for the costs of the arbitration process plus the amount of an arbitration award above the employer's last best offer). Compulsory and binding arbitration removes over 50% of the City budget from. the control of the City Council and gives it to an outside, non -elected, unaccountable third party. The City Council of the City of Lodi opposes SB 1398. Very truly yours, David M. Hinchman Mayor DMH: j j