Public Employer

Amends collective bargaining laws to conform to the National
Labor Relations Act, to make both benefits and contributions to
the public employees health fund negotiable, and to make
adjustments concerning the University of Hawaii.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 89-2, Hawaii Revised Statutes, is
 2 amended as follows:
 3      1.  By amending the definition of "collective bargaining" to
 4 read:
 5      ""Collective bargaining" means the performance of the mutual
 6 obligations of the public employer and the exclusive
 7 representative to meet at reasonable times, to confer and
 8 negotiate in good faith, and to execute a written agreement with
 9 respect to [wages, hours, amounts of contributions by the State
10 and counties to the Hawaii public employees health fund, and
11 other terms and conditions of employment, except that by any such
12 obligation neither party shall be compelled to agree to a
13 proposal, or be required to make a concession.] topics within the
14 scope of bargaining."
15      2.  By amending the definition of "impasse" to read:
16      ""Impasse" means [failure of a public employer and an
17 exclusive representative to achieve agreement in the course of
18 negotiations.] progress in collective bargaining has ceased, or

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 1 has been precluded by the legal or illegal action or position of
 2 one or both of the parties, and that progress will not
 3 foreseeably be resumed."
 4      SECTION 2.  Section 89-6, Hawaii Revised Statutes, is
 5 amended by amending subsection (b) to read as follows:
 6      "(b)  For the purpose of negotiations, the public employer
 7 of an appropriate bargaining unit shall mean the governor or the
 8 governor's designated representatives of not less than three
 9 together with not more than two members of the board of education
10 in the case of units (5) and (6), [the governor or the governor's
11 designated representatives of not less than three together with
12 not more than two members of] the board of regents of the
13 University of Hawaii in the case of units (7) and (8), and the
14 governor or the governor's designated representatives together
15 with the mayors of all the counties or their designated
16 representatives in the case of the remaining units.  The
17 designated employer representatives for units (5), (6), (7), and
18 (8) shall each have one vote and in the case of the remaining
19 units, the governor shall be entitled to four votes and the mayor
20 of each county shall each have one vote, which may be assigned to
21 their designated representatives.  Any decision to be reached by
22 the applicable employer group shall be on the basis of simple
23 majority."

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 1      SECTION 3.  Section 89-9, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "89-9 Scope of negotiations.(a)  The employer and the
 4 exclusive representative shall meet at reasonable times,
 5 including meetings in advance of the employer's budget-making
 6 process, and shall negotiate in good faith with respect to wages,
 7 hours, [the number of incremental and longevity steps and
 8 movement between steps within the salary range, the amounts of
 9 contributions by the State and respective counties to the Hawaii
10 public employees health fund to the extent allowed in subsection
11 (e), and other terms and conditions of employment which are
12 subject to negotiations under this chapter and] the terms and
13 conditions of employment as may be provided from time to time in
14 the National Labor Relations Act, and health fund and retirement
15 benefits and costs, which are to be embodied in a written
16 agreement, or any question arising thereunder, but such
17 obligation does not compel either party to agree to a proposal or
18 make a concession[; provided that the parties may not negotiate
19 with respect to cost items as defined by section 89-2 for the
20 biennium 1999 to 2001, and the cost items of employees in
21 bargaining units under section 89-6 in effect on June 30, 1999,
22 shall remain in effect until July 1, 2001].
23      (b)  The employer or the exclusive representative desiring

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 1 to initiate negotiations shall notify the other in writing,
 2 setting forth the time and place of the meeting desired and
 3 generally the nature of the business to be discussed, and shall
 4 mail the notice by certified mail to the last known address of
 5 the other party sufficiently in advance of the meeting.
 6      (c)  Except as otherwise provided herein, all matters
 7 affecting employee relations, including those that are, or may
 8 be, the subject of a regulation promulgated by the employer or
 9 any personnel director, are subject to consultation with the
10 exclusive representatives of the employees concerned.  The
11 employer shall make every reasonable effort to consult with the
12 exclusive representatives prior to effecting changes in any major
13 policy affecting employee relations.
14      (d)  Excluded from the subjects of negotiations are matters
15 of classification and reclassification, [benefits of but not
16 contributions to the Hawaii public employees health fund,
17 retirement benefits except as provided in section 88-8(h),] and
18 the salary ranges now provided by law; provided that the number
19 of incremental and longevity steps, the amount of wages to be
20 paid in each range and step, and movement between steps within
21 the salary range shall be negotiable.  The employer and the
22 exclusive representative shall not agree to any proposal which
23 would be inconsistent with merit principles or the principle of

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 1 equal pay for equal work pursuant to sections 76-1, 76-2, 77-31,
 2 and 77-33, or which would interfere with the rights of a public
 3 employer to (1) direct employees; (2) determine qualification,
 4 standards for work, the nature and contents of examinations,
 5 hire, promote, transfer, assign, and retain employees in
 6 positions and suspend, demote, discharge, or take other
 7 disciplinary action against employees for proper cause; (3)
 8 relieve an employee from duties because of lack of work or other
 9 legitimate reason; (4) maintain efficiency of government
10 operations; (5) determine methods, means, and personnel by which
11 the employer's operations are to be conducted; and take such
12 actions as may be necessary to carry out the missions of the
13 employer in cases of emergencies; provided that the employer and
14 the exclusive representative may negotiate procedures governing
15 the promotion and transfer of employees to positions within a
16 bargaining unit, procedures governing the suspension, demotion,
17 discharge or other disciplinary actions taken against employees,
18 and procedures governing the layoff of employees; provided
19 further that violations of the procedures so negotiated may be
20 the subject of a grievance process agreed to by the employer and
21 the exclusive representative.
22      [(e)  Negotiations relating to contributions to the Hawaii
23 public employees health fund shall be for the purpose of agreeing

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 1 upon the amounts which the State and counties shall contribute
 2 under section 87-4, toward the payment of the costs for a health
 3 benefits plan, as defined in section 87-1(8), and group life
 4 insurance benefits, and the parties shall not be bound by the
 5 amounts contributed under prior agreements; provided that section
 6 89-11 for the resolution of disputes by way of fact-finding or
 7 arbitration shall not be available to resolve impasses or
 8 disputes relating to the amounts the State and counties shall
 9 contribute to the Hawaii public employees health fund.]"
10      SECTION 4.  Section 89-10, Hawaii Revised Statutes, is
11 amended by amending subsections (b) and (c) to read as follows:
12      "(b)  All cost items shall be subject to appropriations by
13 the appropriate legislative bodies.  The employer shall submit
14 within ten days of the date on which the agreement is ratified by
15 the employees concerned all cost items contained therein to the
16 appropriate legislative bodies, except that if any cost items
17 require appropriation by the state legislature and it is not in
18 session at the time, the cost items shall be submitted for
19 inclusion in the governor's next operating budget within ten days
20 after the date on which the agreement is ratified.  The state
21 legislature or the legislative bodies of the counties acting in
22 concert, as the case may be, may approve or reject the cost items
23 submitted to them, as a whole.  If the state legislature or the

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 1 legislative body of any county rejects any of the cost items
 2 submitted to them, all cost items submitted shall be returned to
 3 the parties for further bargaining.
 4      Agreements covering employees of the University of Hawaii
 5 shall not be contingent upon subsequent appropriations, and shall
 6 not be binding upon the parties when they are ratified and
 7 executed, with the sole exception of agreements regulating
 8 contributions by the State to the Hawaii public employees health
 9 fund, which, although bargained by the board of regents as
10 employer, shall be subject to appropriation by the legislature.
11      (c)  Because effective and orderly operations of government
12 are essential to the public, it is declared to be in the public
13 interest that in the course of collective bargaining, the public
14 employer and the exclusive representative for each bargaining
15 unit shall by mutual agreement include provisions in the
16 collective bargaining agreement for that bargaining unit for an
17 expiration date which will be on June 30th of an odd-numbered
18 year.
19      The parties may include provisions for the reopening date
20 during the term of a collective bargaining agreement, provided
21 that such provisions shall not allow for the reopening of cost
22 items as defined in section 89-2.
23      Agreements covering employees of the University of Hawaii

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                                     H.B. NO.           

 1 may expire or be reopened in whole or in part at any time, as to
 2 either cost or non-cost items, by mutual agreement of the
 3 parties."
 4      SECTION 5.  Section 89-11, Hawaii Revised Statutes, is
 5 amended by amending subsection (b) to read as follows:
 6      "(b)  A public employer shall have the power to enter into
 7 written agreement with the exclusive representative of an
 8 appropriate bargaining unit setting forth an impasse procedure
 9 culminating in a final and binding decision, to be invoked in the
10 event of an impasse over the terms of an initial or renewed
11 agreement.  In the absence of such a procedure, either party may
12 request the assistance of the board by submitting to the board
13 and to the other party to the dispute a clear, concise statement
14 of each issue on which an impasse has been reached together with
15 a certificate as to the good faith of the statement and the
16 contents therein.  The board, on its own motion, may determine
17 that an impasse exists on any matter in a dispute.  If the board
18 determines on its own motion that an impasse exists, it may
19 render assistance by notifying both parties to the dispute of its
20 intent.  The board of regents shall appoint a mediator to assist
21 the parties on their own motion at any time or upon request of
22 either party at any time, which mediation shall be confidential;
23 provided that, the board of regents may request and shall receive

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 1 the mediator's opinion as to whether the parties are at impasse,
 2 and if so, upon what issues.
 3      The board shall render assistance to resolve the impasse
 4 according to the following schedule:
 5      (1)  Mediation.  Assist the parties involved in a voluntary
 6           resolution of the impasse by appointing a mediator or
 7           mediators, representative of the public, from a list of
 8           qualified persons maintained by the board, within three
 9           days after the date of the impasse, which shall be
10           deemed to be the day on which notification is received
11           or a determination is made that an impasse exists.
12      (2)  Fact-finding.  If the dispute continues fifteen days
13           after the date of the impasse, the board shall appoint,
14           within three days, a fact-finding board of not more
15           than three members, representative of the public, from
16           a list of qualified persons maintained by the board.
17           The fact-finding board, shall, in addition to powers
18           delegated to it by the board, have the power to make
19           recommendations for the resolution of the dispute.  The
20           fact-finding board, acting by a majority of its
21           members, shall transmit its findings of fact and any
22           recommendations for the resolution of the dispute to
23           both parties within ten days after its appointment.  If

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 1           the dispute remains unresolved five days after the
 2           transmittal of the findings of fact and any
 3           recommendations, the board shall publish the findings
 4           of fact and any recommendations for public information
 5           if the dispute is not referred to final and binding
 6           arbitration.
 7      (3)  Arbitration.  If the dispute continues thirty days
 8           after the date of the impasse, the parties may mutually
 9           agree to submit the remaining differences to
10           arbitration, which shall result in a final and binding
11           decision.  The arbitration panel shall consist of three
12           arbitrators, one selected by each party, and the third
13           and impartial arbitrator selected by the other two
14           arbitrators.  If either party fails to select an
15           arbitrator or for any reason there is a delay in the
16           naming of an arbitrator, or if the arbitrators fail to
17           select a neutral arbitrator within the time prescribed
18           by the board, the board shall appoint the arbitrator or
19           arbitrators necessary to complete the panel, which
20           shall act with the same force and effect as if the
21           panel had been selected by the parties as described
22           above.  The arbitration panel shall take whatever
23           actions necessary, including but not limited to

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 1           inquiries, investigations, hearings, issuance of
 2           subpoenas, and administering oaths, in accordance with
 3           procedures prescribed by the board to resolve the
 4           impasse.  If the dispute remains unresolved within
 5           fifty days after the date of the impasse, the
 6           arbitration panel shall transmit its findings and its
 7           final and binding decision on the dispute to both
 8           parties.  The parties shall enter into an agreement or
 9           take whatever action is necessary to carry out and
10           effectuate the decision.  All items requiring any
11           moneys for implementation shall be subject to
12           appropriations by the appropriate legislative bodies,
13           and the employer shall submit all such items agreed to
14           in the course of negotiations within ten days to the
15           appropriate legislative bodies.
16 The time frame prescribed in the foregoing schedule may be
17 altered by mutual agreement of the parties, subject to the
18 approval of the board.
19      The costs for mediation and fact-finding shall be borne by
20 the board.  All other costs, including that of a neutral
21 arbitrator, shall be borne equally by the parties involved in the
22 dispute."
23      SECTION 6.  Statutory material to be repealed is bracketed.

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 1 New statutory material is underscored.
 2      SECTION 7.  This Act shall take effect upon its approval.
 4                       INTRODUCED BY:  ___________________________