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HomeMy WebLinkAboutCC 12 LEG ACT AB 1721 06-01-81DATE: May 27, 1981 6-1-81 Inter -Corn TO: FROM: SUBJECT: Honorable Mayor & City Council Roy Gonzales, Personnel Director Legislative Action AB 1721 AB 1721 (Lockyer) was passed recently by the Assembly Public Employees and Retire- ment Co~nittee and will be sent to the Assembly Committee on Ways & Means. Among other changes in current law concerning employee negotiations, this bill provides for binding arbitration in case of an empasse and agency/closed shop or maintenance of membership as a negotiations item. In addition, it places local governments under the jurisdiction of the Public Employees Relations Board for administration of local government collective bargaining. All of these items have potentially serious consequences for local governments. Binding arbitration takes final resolution of an item out of the hands of the City and places it into the hands of an impartial third party. Arbitrators in the past have not been bound by financial limitations which might exist in the local agency, and, though impartial have handed down costly decisions which must be paid for by the agency to the exclusion of other programs. While binding arbitration is an option which may be agreed to in a specific impasse situation, we would not want to have it included as a prescribed course of action in all situations. Agency/Closed Shop also works to the benefit of unions and associations by increasing their numbers and guaranteeing a minimum level of income based on number of employees rather than number of members. This bill further requires Agency Shop if supervisory personnel are to be removed from the association. While this would not seriously impact Tustin, many local agencies would be negatively impacted. The Public Employment Relations Board (PEP=B) does not currently have jurisdic- tion over cities. This bill would place us under the PERB for decisions of all negotations/contract implementation questions. The PERB has not demonstrated any special sensitivity to employer's needs in their work with school districts and state agencies. The City of Tustin has nothing to gain by being placed under PERB, but could incur delays and extra costs due to their decisions. This bill is being actively pursued by the AFL-CIO and other labor organizations, and has successfully passed the first hurdle, in the assembly. A dispute between two labor facticns which had threatened passage has been settled and a unified labor front ~s currently working on passage of the bill. Honorable Mayor and City Council. May 27, 1981 Page Two The League of California Cities (LCC) has urged cities to actively oppose this bill. Based upon an evaluation of the bill and it's effects, I would concur with their position and urge the council to take a stand against this bill, actively opposing it at each level through the legislative process. Recommendation That the City Council take a stand in opposition to AB 1721 and authorize the Mayor to send letters stating such opposition to the appropriate officials at each stage of the legislative process. RPG/kaf DRAFT LETTER AB 1721 This is to voice the opposition of the City Council of the City of Tustin to AB 1721. After due consideration, it is felt that this bill works against the interests of local governments, especially smaller agencies, by taking away a measure of control over the negotiations process and placing it with a third party with no vested interest in the financial well being of the agency. The current meet and confer process established under the Meyers-Milias-Brown act has worked very well in Tustin and the City Council would be actively opposed to any bill which weakens the City's position concerning employee negotations. AB 1721 is such a bill. We would, therefore, urge you to vote against AB 1721 and any such legislation which shifts the balance of power in labor negotiations toward labor. This issue is one which carries significant financial implications in a time of reduced finding for local agencies and any bill which adds significant costs to the operation of local governments without providing a method for recovery should be opposed by the legislature.