Collective Bargaining; Factors

Requires arbitrators to specifically consider decision's fiscal
impact on state budget and to consider revenue estimates prepared
by the council on revenues rather than what similar units
received during collective bargaining.

THE SENATE                              S.B. NO.           2336
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT


 1      SECTION 1.  Section 37-112, Hawaii Revised Statutes, is
 2 amended by amending subsection (a) to read as follows:
 3      "(a)  The estimates prepared by the council shall be
 4 considered by the governor in preparing the budget, recommending
 5 appropriations and revenue measures, projecting revenues and
 6 controlling expenditures.  The legislature shall consider these
 7 estimates in appropriating funds and enacting revenue measures.
 8 The arbitration panel shall consider these estimates in issuing a
 9 final and binding decision in collective bargaining disputes.
10 The governor and legislature shall use the latest council
11 estimate as the base estimate against which their revenue
12 estimates shall be compared."
13      SECTION 2.  Section 89-11, Hawaii Revised Statutes, is
14 amended by amending subsection (d) to read as follows:
15      "(d)  If a dispute between a public employer and the
16 exclusive representative of appropriate bargaining unit (2),
17 supervisory employees in blue collar positions; appropriate
18 bargaining unit (3), nonsupervisory employees in white collar
19 positions; appropriate bargaining unit (4), supervisory employees
20 in white collar positions; appropriate bargaining unit (6),

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 1 educational officers and other personnel of the department of
 2 education under the same salary schedule; appropriate bargaining
 3 unit (8), personnel of the University of Hawaii and the community
 4 college system, other than faculty; optional appropriate
 5 bargaining unit (9), registered professional nurses; optional
 6 appropriate bargaining unit (10), institutional, health, and
 7 correctional workers; optional appropriate bargaining unit (11),
 8 firefighters; optional appropriate bargaining unit (12), police
 9 officers; or optional appropriate bargaining unit (13),
10 professional and scientific employees, other than registered
11 professional nurses, exists over the terms of an initial or
12 renewed agreement more than ninety working days after written
13 notification by either party to initiate negotiations, either
14 party may give written notice to the board that an impasse exists
15 and the board shall assist in the voluntary resolution of the
16 impasse by appointing a mediator within three days after the date
17 of impasse.  If the dispute continues to exist fifteen working
18 days after the date of impasse, the dispute shall be submitted to
19 arbitration proceedings as provided herein.
20      The board shall immediately determine whether the parties to
21 the dispute have mutually agreed upon an arbitration procedure
22 and whether the parties have agreed upon a person or persons whom
23 the parties desire to be appointed as the arbitrator or as a

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 1 panel of arbitrators, as the case may be.
 2      If the board determines that an arbitration procedure
 3 mutually agreed upon by the parties will result in a final and
 4 binding decision, and that an arbitrator or arbitration panel has
 5 been mutually agreed upon, it shall appoint such arbitrator or
 6 arbitration panel and permit the parties to proceed with the
 7 arbitration procedure mutually agreed upon.
 8      If, after eighteen working days from the date of impasse,
 9 the parties have not mutually agreed upon an arbitration
10 procedure and an arbitrator or arbitration panel, the board shall
11 immediately notify the employer and the exclusive representative
12 that the issues in dispute shall be submitted to a three-member
13 arbitration panel who shall follow the arbitration procedure
14 provided herein.
15      Within twenty-one working days from the date of impasse, two
16 members of the arbitration panel shall be selected by the
17 parties; one shall be selected by the employer and one shall be
18 selected by the exclusive representative.  The impartial third
19 member of the arbitration panel shall be selected by the two
20 previously selected panel members and shall chair the arbitration
21 panel.
22      In the event that the two previously selected arbitration
23 panel members fail to select an impartial third arbitrator within

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 1 twenty-four working days from the date of impasse, the board
 2 shall request the American Arbitration Association, or its
 3 successor in function, to furnish a list of five qualified
 4 arbitrators from which the impartial arbitrator shall be
 5 selected.  Within five calendar days after receipt of such list,
 6 the parties shall alternately strike names therefrom until a
 7 single name is left, who shall be immediately appointed by the
 8 board as the impartial arbitrator and chairperson of the
 9 arbitration panel.
10      Upon the selection and appointment of the arbitration panel,
11 each party shall submit to the panel, in writing, with copy to
12 the other party, a final offer which shall include all provisions
13 in any existing collective bargaining agreement not being
14 modified, all provisions already agreed to in negotiations, and
15 all further provisions other than those relating to contributions
16 by the State and respective counties to the Hawaii public
17 employees health fund which each party is proposing for inclusion
18 in the final agreement.
19      Within twenty calendar days of its appointment, the
20 arbitration panel shall commence a hearing at which time the
21 parties may submit either in writing or through oral testimony,
22 all information or data supporting their respective final offers.
23 Nothing in this section shall be construed to prohibit the

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 1 parties from reaching a voluntary settlement on the unresolved
 2 issues, with or without the assistance of a mediator, at any time
 3 prior to the conclusion of the hearing conducted by the
 4 arbitration panel.
 5      Within thirty calendar days after the conclusion of the
 6 hearing, a majority of the arbitration panel shall issue a final
 7 and binding decision.
 8      In reaching a decision, the arbitration panel shall give
 9 weight to the factors listed below and shall include in a written
10 opinion an explanation of how the factors were taken into account
11 in reaching the decision:
12      (1)  The lawful authority of the employer.
13      (2)  Stipulations of the parties.
14      (3)  The interests and welfare of the public.
15      (4)  The financial ability of the employer to meet these
16           costs.
17      (5)  The present and future general economic condition of
18           the counties and the State[.], which shall include
19           specific consideration of the decision's fiscal impact
20           on the state budget.
21      (6)  [Comparison of wages, hours, and conditions of
22           employment of the employees involved in the arbitration
23           proceeding with the wages, hours, and conditions of

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 1           employment of other persons performing similar
 2           services, and of other state and county employees in
 3           Hawaii.] Revenue estimates of the state government for
 4           the fiscal year in progress prepared by the council on
 5           revenues.
 6      (7)  The average consumer prices for goods or services,
 7           commonly known as the cost of living.
 8      (8)  The overall compensation presently received by the
 9           employees, including direct wage compensation,
10           vacation, holidays and excused time, insurance and
11           pensions, medical and hospitalization benefits, the
12           continuity and stability of employment, and all other
13           benefits received.
14      (9)  Changes in any of the foregoing circumstances during
15           the pendency of the arbitration proceedings.
16     (10)  Such other factors, not confined to the foregoing,
17           which are normally or traditionally taken into
18           consideration in the determination of wages, hours, and
19           conditions of employment through voluntary collective
20           bargaining, mediation, fact-finding, arbitration, or
21           otherwise between the parties, in the public service or
22           in private employment.
23      The decision of the arbitration panel shall be final and

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 1 binding upon the parties on all provisions submitted to the
 2 arbitration panel.  If the parties have reached agreement with
 3 respect to the amounts of contributions by the State and counties
 4 to the Hawaii public employees health fund by the tenth working
 5 day after the arbitration panel issues its decision, the final
 6 and binding agreement of the parties on all provisions shall
 7 consist of the panel's decision and the amounts of contributions
 8 agreed to by the parties.  If the parties have not reached
 9 agreement with respect to the amounts of contributions by the
10 State and counties to the Hawaii public employees health fund by
11 the close of business on the tenth working day after the
12 arbitration panel issues its decision, the parties shall have
13 five days to submit their respective recommendations for such
14 contributions to the legislature, if it is in session, and if the
15 legislature is not in session, the parties shall submit their
16 respective recommendations for such contributions to the
17 legislature during the next session of the legislature.  In such
18 event, the final and binding agreement of the parties on all
19 provisions shall consist of the panel's decision and the amounts
20 of contributions established by the legislature by enactment,
21 after the legislature has considered the recommendations for such
22 contributions by the parties.  It is strictly understood that no
23 member of a bargaining unit subject to this subsection shall be

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 1 allowed to participate in a strike on the issue of the amounts of
 2 contributions by the State and counties to the Hawaii public
 3 employees health fund.  The parties shall take whatever action is
 4 necessary to carry out and effectuate the final and binding
 5 agreement.  The parties may, at any time and by mutual agreement,
 6 amend or modify the panel's decision.
 7      Agreements reached pursuant to the decision of an
 8 arbitration panel and the amounts of contributions by the State
 9 and counties to the Hawaii public employees health fund, as
10 provided herein, shall not be subject to ratification by the
11 employees concerned.  All items requiring any moneys for
12 implementation shall be subject to appropriations by the
13 appropriate legislative bodies and the employer shall submit all
14 such items within ten days after the date on which the agreement
15 is entered into as provided herein, to the appropriate
16 legislative bodies.
17      The costs for mediation shall be borne by the board.  All
18 other costs incurred by either party in complying with these
19 provisions, including the costs of its selected member on the
20 arbitration panel, shall be borne by the party incurring them,
21 except that all costs and expenses of the impartial arbitrator
22 shall be borne equally by the parties."
23      SECTION 3.  Statutory material to be repealed is bracketed.

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                                     S.B. NO.           2336

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