Public Contracts

Requires public contractors of service contracts to retain the
previous contractor's workers.

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

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that upon the conclusion
 2 of a service contract with the State or the counties, public
 3 bidding potentially results in the awarding of a service contract
 4 to a different contractor.  The new contracts often involve
 5 anticipated changes in different managerial skills, new
 6 technology or techniques, new themes or presentations, or lower
 7 costs.  However, despite the desired changes brought about
 8 through the process of entering into new contracts, it is the
 9 experience of government that reasons for change do not
10 necessarily include a need to replace workers presently
11 performing services who already have useful knowledge about the
12 workplace where the services are performed.
13      Specifically, incumbent workers have already invaluable
14 knowledge and experience with the work schedules, practices, and
15 clients.  The benefits of replacing these workers without such
16 experiences decrease, resulting in a disservice to the public.
17      Furthermore, the legislature finds that retaining existing
18 service workers when a change in contractors occurs reduces the
19 likelihood of labor disputes and disruptions.  The reduction of

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                                     H.B. NO.           

 1 the likelihood of labor disputes and disruptions results in the
 2 assured continuity of services to the public.
 3      The purpose of this Act is to require public contractors
 4 supplying services to the State or counties to retain the workers
 5 of the previous contractor for a period of ninety days.
 6      SECTION 2.  Section 103-55, Hawaii Revised Statutes, is
 7 amended by amending subsection (a) to read as follows:
 8      "(a)  Before any offeror enters into a contract to perform
 9 services in excess of $25,000 for any governmental agency, the
10 offeror shall certify that the services to be performed will be
11 performed under the following conditions:
12      Wages.  The services to be rendered shall be performed by
13 employees paid at wages or salaries not less than the wages paid
14 to public officers and employees for similar work.
15      Compliance with labor laws.  All applicable laws of the
16 federal and state governments relating to workers' compensation,
17 unemployment compensation, payment of wages, and safety will be
18 fully complied with.
19      Worker retention.  The offeror shall retain for at least
20 ninety days into the new contract period any employees of the
21 former contractor who were continuously employed by the former
22 contractor for twelve months prior to the termination of the
23 former contract with the purchasing agency; provided that if the

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                                     H.B. NO.           

 1 offeror determines that fewer employees are required to perform
 2 the new contract than were required by the former contractor, the
 3 offeror shall retain the former contractor's employees by
 4 seniority within a job classification.  During the ninety-day
 5 period, the offeror shall not discharge any such employees of the
 6 former contractor without cause.  At the end of the first ninety
 7 days into the new contract, the offeror shall offer to those
 8 employees of the former contractor who display satisfactory job
 9 performances continued employment with the offeror under the
10 terms and conditions of the offeror's own contract with the
11 purchasing agency."
12      SECTION 3.  New statutory material is underscored.
13      SECTION 4.  This Act shall take effect upon its approval.
15                       INTRODUCED BY:  ___________________________