Report Title:

Collective Bargaining Agreements; Arbitration Criteria

 

Description:

Restricts an arbitration panel's ability to factor in certain sources of revenue when determining salary and wage adjustments in collective bargaining agreements. (SB849 HD2)

 

THE SENATE

S.B. NO.

849

TWENTY-FIRST LEGISLATURE, 2001

S.D. 1

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

relating to collective bargaining.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 89-11, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) If a dispute between a public employer and the exclusive representative of appropriate bargaining unit (2), supervisory employees in blue collar positions; appropriate bargaining unit (3), nonsupervisory employees in white collar positions; appropriate bargaining unit (4), supervisory employees in white collar positions; appropriate bargaining unit (6), educational officers and other personnel of the department of education under the same salary schedule; appropriate bargaining unit (8), personnel of the University of Hawaii and the community college system, other than faculty; optional appropriate bargaining unit (9), registered professional nurses; optional appropriate bargaining unit (10), institutional, health, and correctional workers; optional appropriate bargaining unit (11), firefighters; optional appropriate bargaining unit (12), police officers; or optional appropriate bargaining unit (13), professional and scientific employees, other than registered professional nurses, exists over the terms of an initial or renewed agreement more than ninety working days after written notification by either party to initiate negotiations, either party may give written notice to the board that an impasse exists and the board shall assist in the voluntary resolution of the impasse by appointing a mediator within three days after the date of impasse. If the dispute continues to exist fifteen working days after the date of impasse, the dispute shall be submitted to arbitration proceedings as provided herein.

The board shall immediately determine whether the parties to the dispute have mutually agreed upon an arbitration procedure and whether the parties have agreed upon a person or persons whom the parties desire to be appointed as the arbitrator or as a panel of arbitrators, as the case may be.

If the board determines that an arbitration procedure mutually agreed upon by the parties will result in a final and binding decision, and that an arbitrator or arbitration panel has been mutually agreed upon, it shall appoint such arbitrator or arbitration panel and permit the parties to proceed with the arbitration procedure mutually agreed upon.

If, after eighteen working days from the date of impasse, the parties have not mutually agreed upon an arbitration procedure and an arbitrator or arbitration panel, the board shall immediately notify the employer and the exclusive representative that the issues in dispute shall be submitted to a three-member arbitration panel who shall follow the arbitration procedure provided herein.

Within twenty-one working days from the date of impasse, two members of the arbitration panel shall be selected by the parties; one shall be selected by the employer and one shall be selected by the exclusive representative. The impartial third member of the arbitration panel shall be selected by the two previously selected panel members and shall chair the arbitration panel.

In the event that the two previously selected arbitration panel members fail to select an impartial third arbitrator within twenty-four working days from the date of impasse, the board shall request the American Arbitration Association, or its successor in function, to furnish a list of five qualified arbitrators from which the impartial arbitrator shall be selected. Within five calendar days after receipt of such list, the parties shall alternately strike names therefrom until a single name is left, who shall be immediately appointed by the board as the impartial arbitrator and chairperson of the arbitration panel.

Upon the selection and appointment of the arbitration panel, each party shall submit to the panel, in writing, with copy to the other party, a final offer which shall include all provisions in any existing collective bargaining agreement not being modified, all provisions already agreed to in negotiations, and all further provisions other than those relating to contributions by the State and respective counties to the Hawaii public employees health fund which each party is proposing for inclusion in the final agreement.

Within twenty calendar days of its appointment, the arbitration panel shall commence a hearing at which time the parties may submit either in writing or through oral testimony, all information or data supporting their respective final offers. Nothing in this section shall be construed to prohibit the parties from reaching a voluntary settlement on the unresolved issues, with or without the assistance of a mediator, at any time prior to the conclusion of the hearing conducted by the arbitration panel.

Within thirty calendar days after the conclusion of the hearing, a majority of the arbitration panel shall issue a final and binding decision.

In reaching a decision, the arbitration panel shall give weight to the factors listed below and shall include in a written opinion an explanation of how the factors were taken into account in reaching the decision:

(1) The lawful authority of the employer[.], including but not limited to federal restrictions on the ability of the employer to access special funds or other restrictions on the ability of the employer to access funds that are authorized only to be used for a specific purpose, including but not limited to constraints set forth in article VII, section 8 of the Hawaii Constitution and section 37-69(c)(5)(B).

(2) Stipulations of the parties.

(3) [The] Due consideration to the interests and welfare of the public[.] that shall not be compromised or diminished because of the need to fund new or enhanced cost items by reallocating funds from current levels of services or programs previously authorized by the legislature.

(4) The financial ability of the employer to meet these costs[.], including the ramification these costs may have on remaining collective bargaining agreements not yet agreed to, and to meet the costs of collective bargaining agreements already agreed to, including additional appropriated costs attributable to the employers' contributions to the health fund; provided that the employer's ability to fund cost items shall not be predicated on the premise that the employer may increase or impose new taxes, fees, or charges, or develop other sources of revenue.

(5) The present and future general economic condition of the counties and the State[.]; provided that any revenue estimates exceeding the latest council of revenue estimates reported pursuant to section 37-111, which is used by the state executive branch to prepare the state's financial plan, shall not be considered.

(6) Comparison of wages, hours, and conditions of employment of the employees involved in the arbitration proceeding with the wages, hours, benefits, and conditions of employment of other persons performing similar services, and of other state and county employees in Hawaii.

(7) The average consumer prices for goods or services, commonly known as the cost of living.

(8) The overall compensation presently received by the employees, including direct wage compensation, vacation, holidays and excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received.

(9) Changes in any of the foregoing circumstances during the pendency of the arbitration proceedings.

[(10) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment through voluntary collective bargaining, mediation, fact-finding, arbitration, or otherwise between the parties, in the public service or in private employment.]

The decision of the arbitration panel shall be final and binding upon the parties on all provisions submitted to the arbitration panel. If the parties have reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii public employees health fund by the tenth working day after the arbitration panel issues its decision, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions agreed to by the parties. If the parties have not reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii public employees health fund by the close of business on the tenth working day after the arbitration panel issues its decision, the parties shall have five days to submit their respective recommendations for such contributions to the legislature, if it is in session, and if the legislature is not in session, the parties shall submit their respective recommendations for such contributions to the legislature during the next session of the legislature. In such event, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions established by the legislature by enactment, after the legislature has considered the recommendations for such contributions by the parties. It is strictly understood that no member of a bargaining unit subject to this subsection shall be allowed to participate in a strike on the issue of the amounts of contributions by the State and counties to the Hawaii public employees health fund. The parties shall take whatever action is necessary to carry out and effectuate the final and binding agreement. The parties may, at any time and by mutual agreement, amend or modify the panel's decision.

Agreements reached pursuant to the decision of an arbitration panel and the amounts of contributions by the State and counties to the Hawaii public employees health fund, as provided herein, shall not be subject to ratification by the employees concerned. All items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies and the employer shall submit all such items within ten days after the date on which the agreement is entered into as provided herein, to the appropriate legislative bodies.

The costs for mediation shall be borne by the board. All other costs incurred by either party in complying with these provisions, including the costs of its selected member on the arbitration panel, shall be borne by the party incurring them, except that all costs and expenses of the impartial arbitrator shall be borne equally by the parties."

SECTION 2. Act 253, Session Laws of Hawaii 2000, section 100, is amended by amending subsection (f) of section 89-11, Hawaii Revised Statutes, to read as follows:

"(f) A fact-finding panel in making its report and an arbitrator or arbitration panel in reaching its decision shall give weight to the following factors and shall include in its written report or decision an explanation of how the factors were taken into account:

(1) The lawful authority of the employer, including [the ability of the employer to use special funds only for authorized purposes or under specific circumstances because of limitations imposed by federal or state laws or county ordinances, as the case may be] but not limited to federal restrictions on the ability of the employer to access special funds or other restrictions on the ability of the employer to access funds that are authorized only to be used for a specific purpose, including but not limited to constraints set forth in article VII, section 8 of the Hawaii Constitution and section 37-69(c)(5)(B).

(2) Stipulations of the parties.

(3) [The] Due consideration to the interests and welfare of the public[.] that shall not be compromised or diminished because of the need to fund new or enhanced cost items by reallocating funds from current levels of services or programs previously authorized by the legislature.

(4) The financial ability of the employer to meet these costs, including the ramification these costs may have on remaining collective bargaining agreements not yet agreed to, and to meet the costs of collective bargaining agreements already agreed to, including additional appropriated costs attributable to the employers' contributions to the health fund; provided that the employer's ability to fund cost items shall not be predicated on the premise that the employer may increase or impose new taxes, fees, or charges, or develop other sources of revenues.

(5) The present and future general economic condition of the counties and the State[.]; provided that any revenue estimates exceeding the latest council of revenue estimates reported pursuant to section 37-111, which is used by the state executive branch to prepare the state's financial plan, shall not be considered.

(6) Comparison of wages, hours, and conditions of employment of the employees involved in the arbitration proceeding with the wages, hours, benefits, and conditions of employment of other persons performing similar services, and of other state and county employees in Hawaii.

(7) The average consumer prices for goods or services, commonly known as the cost of living.

(8) The overall compensation presently received by the employees, including direct wage compensation, vacation, holidays and excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received.

(9) Changes in any of the foregoing circumstances during the pendency of the arbitration proceedings.

[(10) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment through voluntary collective bargaining, mediation, fact-finding, arbitration, or otherwise between the parties, in the public service or in private employment.]"

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.