REPORT TITLE:
Collective Bargaining


DESCRIPTION:
Deems cost items rejected if the legislature adjourns or the
county's calendar year ends without approving the appropriation
request. Requires the arbitration panel to explain fully and
completely the factors considered in their final decision.
Substitutes the Hawaii Labor Relations Board for the American
Arbitration Association in selecting an impartial third
arbitrator if the prior two members fail to select the third.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3014
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO CIVIL SERVICE.



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

 1      SECTION 1.  Section 89-10, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  All cost items shall be subject to appropriations by
 
 4 the appropriate legislative bodies.  The employer shall submit
 
 5 within ten days of the date on which the agreement is ratified by
 
 6 the employees concerned all cost items contained therein to the
 
 7 appropriate legislative bodies, except that if any cost items
 
 8 require appropriation by the state legislature and it is not in
 
 9 session at the time, the cost items shall be submitted for
 
10 inclusion in the governor's next operating budget within ten days
 
11 after the date on which the agreement is ratified.  The state
 
12 legislature or the legislative bodies of the counties acting in
 
13 concert, as the case may be, may approve or reject the cost items
 
14 submitted to them, as a whole.  [If the state legislature or the
 
15 legislative body of any county rejects any of the cost items
 
16 submitted to them, all] All cost items submitted shall be deemed
 
17 rejected and returned to the parties for further bargaining[.]
 
18 if:
 
19      (1)  The state legislature or the legislative body of any
 

 
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 1           county rejects any of the cost items submitted to them;
 
 2      (2)  The state legislature adjourns the regular session or
 
 3           special session without approving the appropriation
 
 4           request for cost items; or
 
 5      (3)  The calendar year ends without a county's approval of
 
 6           the appropriation request."
 
 7      SECTION 2.  Section 89-11, Hawaii Revised Statutes, is
 
 8 amended by amending subsection (d) to read as follows:
 
 9      "(d)  If a dispute between a public employer and the
 
10 exclusive representative of appropriate bargaining unit (2),
 
11 supervisory employees in blue collar positions; appropriate
 
12 bargaining unit (3), nonsupervisory employees in white collar
 
13 positions; appropriate bargaining unit (4), supervisory employees
 
14 in white collar positions; appropriate bargaining unit (6),
 
15 educational officers and other personnel of the department of
 
16 education under the same salary schedule; appropriate bargaining
 
17 unit (8), personnel of the University of Hawaii and the community
 
18 college system, other than faculty; optional appropriate
 
19 bargaining unit (9), registered professional nurses; optional
 
20 appropriate bargaining unit (10), institutional, health, and
 
21 correctional workers; optional appropriate bargaining unit (11),
 
22 firefighters; optional appropriate bargaining unit (12), police
 
23 officers; or optional appropriate bargaining unit (13),
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 professional and scientific employees, other than registered
 
 2 professional nurses, exists over the terms of an initial or
 
 3 renewed agreement more than ninety working days after written
 
 4 notification by either party to initiate negotiations, either
 
 5 party may give written notice to the board that an impasse exists
 
 6 and the board shall assist in the voluntary resolution of the
 
 7 impasse by appointing a mediator within three days after the date
 
 8 of impasse.  If the dispute continues to exist fifteen working
 
 9 days after the date of impasse, the dispute shall be submitted to
 
10 arbitration proceedings as provided herein.
 
11      The board shall immediately determine whether the parties to
 
12 the dispute have mutually agreed upon an arbitration procedure
 
13 and whether the parties have agreed upon a person or persons whom
 
14 the parties desire to be appointed as the arbitrator or as a
 
15 panel of arbitrators, as the case may be.
 
16      If the board determines that an arbitration procedure
 
17 mutually agreed upon by the parties will result in a final and
 
18 binding decision, and that an arbitrator or arbitration panel has
 
19 been mutually agreed upon, it shall appoint such arbitrator or
 
20 arbitration panel and permit the parties to proceed with the
 
21 arbitration procedure mutually agreed upon.
 
22      If, after eighteen working days from the date of impasse,
 
23 the parties have not mutually agreed upon an arbitration
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 procedure and an arbitrator or arbitration panel, the board shall
 
 2 immediately notify the employer and the exclusive representative
 
 3 that the issues in dispute shall be submitted to a three-member
 
 4 arbitration panel who shall follow the arbitration procedure
 
 5 provided herein.
 
 6      Within twenty-one working days from the date of impasse, two
 
 7 members of the arbitration panel shall be selected by the
 
 8 parties; one shall be selected by the employer and one shall be
 
 9 selected by the exclusive representative.  The impartial third
 
10 member of the arbitration panel shall be selected by the two
 
11 previously selected panel members and shall chair the arbitration
 
12 panel.
 
13      In the event that the two previously selected arbitration
 
14 panel members fail to select an impartial third arbitrator within
 
15 twenty-four working days from the date of impasse, the board
 
16 shall [request the American Arbitration Association, or its
 
17 successor in function, to] furnish a list of five qualified
 
18 arbitrators from which the impartial arbitrator shall be
 
19 selected.  The board may request the assistance of the American
 
20 Arbitration Association, or any other organization of
 
21 arbitrators, to furnish a list of five qualified arbitrators, all
 
22 of whom, as determined by the board, shall have had substantial
 
23 experience in arbitration labor disputes involving Hawaii
 

 
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 1 employers and employees.  Within five calendar days after receipt
 
 2 of such list, the parties shall alternately strike names
 
 3 therefrom until a single name is left, who shall be immediately
 
 4 appointed by the board as the impartial arbitrator and
 
 5 chairperson of the arbitration panel.
 
 6      Upon the selection and appointment of the arbitration panel,
 
 7 each party shall submit to the panel, in writing, with copy to
 
 8 the other party, a final offer which shall include all provisions
 
 9 in any existing collective bargaining agreement not being
 
10 modified, all provisions already agreed to in negotiations, and
 
11 all further provisions other than those relating to contributions
 
12 by the State and respective counties to the Hawaii public
 
13 employees health fund which each party is proposing for inclusion
 
14 in the final agreement.
 
15      Within twenty calendar days of its appointment, the
 
16 arbitration panel shall commence a hearing at which time the
 
17 parties may submit either in writing or through oral testimony,
 
18 all information or data supporting their respective final offers.
 
19 Nothing in this section shall be construed to prohibit the
 
20 parties from reaching a voluntary settlement on the unresolved
 
21 issues, with or without the assistance of a mediator, at any time
 
22 prior to the conclusion of the hearing conducted by the
 
23 arbitration panel.
 

 
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 1      Within thirty calendar days after the conclusion of the
 
 2 hearing, a majority of the arbitration panel shall issue a final
 
 3 and binding decision.
 
 4      In reaching a decision, the arbitration panel shall give
 
 5 weight to the factors listed below and shall include in a written
 
 6 opinion [an] a full and complete explanation of how the factors
 
 7 were taken into account in reaching the decision:
 
 8      (1)  The lawful authority of the employer[.] including, but
 
 9           not limited to, federal restrictions on the ability of
 
10           the employer to access special funds or other
 
11           restrictions on the ability of the employer to access
 
12           funds that are authorized to be used only for a
 
13           specific purpose.
 
14      (2)  Stipulations of the parties.
 
15      (3)  [The] Due consideration to the interests and welfare of
 
16           the public[.] that shall not be compromised or
 
17           diminished because of the need to fund new or enhanced
 
18           cost items by reallocating funds from current levels of
 
19           services or programs previously authorized by the
 
20           legislature.
 
21      (4)  The financial ability of the employer to meet these
 
22           costs[.]; provided that the employer's ability to fund
 
23           cost items shall not be predicated on the premise that
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1           the employer may increase or impose new taxes, fees, or
 
 2           charges, or develop other sources of revenues.
 
 3      (5)  The present and future general economic condition of
 
 4           the counties and the State[.]; provided that any
 
 5           revenue estimates exceeding the latest council of
 
 6           revenue estimates reported pursuant to section 37-11,
 
 7           which are used by the state executive branch to prepare
 
 8           the State's financial plan, shall not be considered. 
 
 9      (6)  Comparison of wages, hours, and conditions of
 
10           employment of the employees involved in the arbitration
 
11           proceeding with the wages, hours, and conditions of
 
12           employment of other persons performing similar
 
13           services[,] in Hawaii, and of other state and county
 
14           employees in Hawaii[.]; provided that with respect to a
 
15           bargaining unit that has historically recruited on a
 
16           national level, the comparison shall be with the wages,
 
17           hours, benefits, and other conditions of employment of
 
18           other persons performing similar services across the
 
19           nation.
 
20      (7)  The average consumer prices for goods or services,
 
21           commonly known as the cost of living[.], including
 
22           comparison of the rate of change in Hawaii with the
 
23           rate of change nationally.
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1      (8)  The overall compensation presently received by the
 
 2           employees, including direct wage compensation,
 
 3           vacation, holidays and excused time, insurance and
 
 4           pensions, medical and hospitalization benefits, the
 
 5           continuity and stability of employment, and all other
 
 6           benefits received.
 
 7      (9)  Changes in any of the foregoing circumstances during
 
 8           the pendency of the arbitration proceedings.
 
 9     (10)  Such other factors, not confined to the foregoing,
 
10           which are normally or traditionally taken into
 
11           consideration in the determination of wages, hours, and
 
12           conditions of employment through voluntary collective
 
13           bargaining, mediation, fact-finding, arbitration, or
 
14           otherwise between the parties, in the public service or
 
15           in private employment.
 
16      The decision of the arbitration panel shall be final and
 
17 binding upon the parties on all provisions submitted to the
 
18 arbitration panel.  If the parties have reached agreement with
 
19 respect to the amounts of contributions by the State and counties
 
20 to the Hawaii public employees health fund by the tenth working
 
21 day after the arbitration panel issues its decision, the final
 
22 and binding agreement of the parties on all provisions shall
 
23 consist of the panel's decision and the amounts of contributions
 

 
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                                     S.B. NO.           
                                                        
                                                        

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

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 arbitration panel and the amounts of contributions by the State
 
 2 and counties to the Hawaii public employees health fund, as
 
 3 provided herein, shall not be subject to ratification by the
 
 4 employees concerned.  All items requiring any moneys for
 
 5 implementation shall be subject to [appropriations] approval by
 
 6 the appropriate legislative bodies [and the employer shall submit
 
 7 all such items within ten days after the date on which the
 
 8 agreement is entered into as provided herein, to the appropriate
 
 9 legislative bodies.] pursuant to section 89-10(b).
 
10      The costs for mediation shall be borne by the board.  All
 
11 other costs incurred by either party in complying with these
 
12 provisions, including the costs of its selected member on the
 
13 arbitration panel, shall be borne by the party incurring them,
 
14 except that all costs and expenses of the impartial arbitrator
 
15 shall be borne equally by the parties."
 
16      SECTION 3.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 4.  This Act shall take effect upon its approval.
 
19 
 
20                       INTRODUCED BY:  ___________________________