REPORT TITLE:
Collective Bargaining


DESCRIPTION:
Creates a Hawaii salary board to determine cost item compensation
of state or county employees.

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


                   A  BILL  FOR  AN  ACT

RELATING TO COLLECTIVE BARGAINING. 


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

 1      SECTION 1.  Chapter 89, Hawaii Revised Statutes, is amended
 
 2 by adding a new part to be appropriately designated and to read
 
 3 as follows:
 
 4                   "PART  .  HAWAII SALARY BOARD
 
 5      §89-A  Declaration of purpose.  The purpose of this part is
 
 6 to establish new procedures for determining compensation of state
 
 7 or county employees.  It is the policy of the State that the
 
 8 fixing of pay for employees be based on the principles that there
 
 9 be equal pay for equal work within each local pay area, that pay
 
10 rates be comparable with pay rates for the same levels of work
 
11 within the State, and that any existing pay disparities between
 
12 State and non-state employees should be considered.  It is the
 
13 intent of this part that salaries and other cost items not be
 
14 subject to collective bargaining, that salary adjustments be
 
15 proposed by a newly established salary board, and proposed pay
 
16 scales be approved by the legislature and governor.
 
17      89-B  Hawaii salary board.  (a)  There is created the Hawaii
 
18 salary board within the department of human resources development
 
19 for administrative purposes.  The board shall be composed of
 

 
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 1 seven members.  Four members shall be appointed by the mayors of
 
 2 each county, and the city and county of Honolulu, subject to
 
 3 confirmation by the respective county councils and city council.
 
 4 Three members shall be appointed by the governor, subject to
 
 5 confirmation by the senate.  The members of the Hawaii salary
 
 6 board shall be appointed for four-year terms.  Each member shall
 
 7 continue to hold office after expiration of the member's term
 
 8 until a successor has been appointed.
 
 9      Persons appointed shall have clearly demonstrated an
 
10 interest and belief in the merit principle, an understanding of
 
11 business and economics, shall not hold any other employment with
 
12 the State, shall not have been an officer of a political party
 
13 for a period of one year immediately prior to the appointment,
 
14 and shall not be or become a candidate for partisan elective
 
15 public office during the term to which they are appointed.
 
16 Members of the board shall devote full time to their duties as
 
17 members or the board.
 
18      (b)  Effective January 1,     , and January 1,      , the
 
19 salary of the chairperson of the board shall be set by the
 
20 governor within the range from $           to $           and
 
21 $           and $          a year, respectively, and the salary
 
22 of each of the other members shall be ninety-five per cent of the
 
23 chairperson's salary.  Members of the board shall also be
 

 
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 1 reimbursed for travel expenses incurred in the discharge of their
 
 2 official duties.
 
 3      (c)  At its first meeting following the appointment of all
 
 4 of its members, and annually thereafter, the board shall elect a
 
 5 chair and vice chair from among its members to serve one year.
 
 6 The presence of at least two members of the board shall
 
 7 constitute a quorum to transact business.  A written public
 
 8 record shall be kept by the board of all actions of the board.
 
 9 The director shall serve as secretary.
 
10      89-C  Employee participation in policy and rule making,
 
11 administration, etc.; publication of board rules.  The Hawaii
 
12 salary board shall adopt rules under chapter 91 to provide for
 
13 employee participation in the development and administration of
 
14 pay policies, including pay plans.
 
15      89-D  Rules of board; mandatory subjects.  The board shall
 
16 adopt rules pursuant to chapter 91, consistent with the purposes
 
17 and provisions of this chapter, and with the best standards of
 
18 personnel administration, regarding the basis and procedures to
 
19 be followed for:
 
20      (1)  Adoption and revision of state and county salary
 
21           schedules and all other cost items by comparing wages,
 
22           hours, and conditions of employment of the employees
 
23           involved with the wages, hours, and conditions of
 

 
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 1           employment of other persons performing similar services
 
 2           in Hawaii; provided that with respect to a bargaining
 
 3           unit that has historically recruited on a national
 
 4           level, the comparison shall be with the wages, hours,
 
 5           benefits, and other conditions of employment of other
 
 6           persons performing similar services across the nation;
 
 7      (2)  Incremental increases within the series of steps for
 
 8           each pay grade based on length of service for all
 
 9           employees whose standards of performance are such as to
 
10           permit them to retain job status in the classified
 
11           service; and
 
12      (3)  Optional lump sum relocation compensation approved by
 
13           the agency director, whenever it is reasonably
 
14           necessary that a person make a domiciliary move in
 
15           accepting a transfer of other employment with the
 
16           State; provided that an agency shall provide lump sum
 
17           compensation within existing resources; provided
 
18           further that if the person receiving the relocation
 
19           payment terminates or causes termination with the
 
20           State, for reasons other than layoff, disability
 
21           separation, or other good cause as determined by an
 
22           agency director, within one year of the date of the
 
23           employment, the State shall be entitled to
 

 
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 1           reimbursement of the lump sum compensation from the
 
 2           person.
 
 3      89-E  Classification and salary schedules; wage and fringe
 
 4 benefits surveys.(a)  In preparing classification and salary
 
 5 schedules the Hawaii salary board shall give full consideration
 
 6 to prevailing rates in other public employment and in private
 
 7 employment in this State.  For this purpose the board shall
 
 8 undertake comprehensive salary and fringe benefit surveys, with
 
 9 the surveys to be conducted every year.  This survey shall
 
10 measure average salary and fringe benefit movement for broad
 
11 occupational groups that has occurred since the last
 
12 comprehensive salary and fringe benefit survey was conducted.
 
13 The results of each comprehensive and trend salary and fringe
 
14 benefit survey shall be completed and forwarded by            
 
15 with a recommended salary schedule for the state and each county,
 
16 to the legislature, county and city councils, governor, mayors,
 
17 and director of finance for their use in preparing budgets to be
 
18 submitted for the succeeding legislature and county and city
 
19 council budget hearings.  A copy of the data and supporting
 
20 documentation shall be furnished by the salary board to the
 
21 standing committees for appropriations of the senate and house of
 
22 representative.
 
23      (b)  For the comprehensive salary and fringe benefit
 

 
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 1 surveys, the board shall furnish the following supplementary data
 
 2 in support of its recommended salary schedules:
 
 3      (1)  A total dollar figure which reflects the recommended
 
 4           increase or decrease in state salaries as a direct
 
 5           result of the specific salary and fringe benefit survey
 
 6           that has been conducted and which is categorized to
 
 7           indicate what portion of the increase or decrease is
 
 8           represented by salary survey data and what portion is
 
 9           represented by fringe benefit survey data;
 
10      (2)  An additional total dollar figure which reflects the
 
11           impact of recommended increases or decreases to state
 
12           salaries based on other factors rather than directly on
 
13           prevailing rate data obtained through the survey
 
14           process and which is categorized to indicate the
 
15           sources of the requests for deviation from prevailing
 
16           rates and the reasons for the changes;
 
17      (3)  A list of class codes and titles indicating recommended
 
18           monthly salary ranges for all state and county classes
 
19           under control of the department of human resources
 
20           development or county department of personnel services
 
21           with those salary ranges which do not substantially
 
22           conform to the prevailing rates developed from the
 
23           salary and fringe benefit survey distinctly marked and
 

 
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 1           an explanation of the reason for the deviation
 
 2           included;
 
 3      (4)  A supplemental salary which indicates the additional
 
 4           salary to be paid state and county employees for
 
 5           hazardous duties or other considerations requiring
 
 6           extra compensation under specific circumstances;
 
 7           provided that additional compensation for these
 
 8           circumstances shall not be included in the basic salary
 
 9           schedule but shall be maintained as a separate pay
 
10           schedule for purposes of full disclosure and
 
11           visibility; and
 
12      (5)  A supplemental salary schedule that indicates those
 
13           cases where the board determines that prevailing rates
 
14           do not provide similar salaries for positions that
 
15           require or impose similar responsibilities, judgment,
 
16           knowledge, skills, and working conditions.  This
 
17           supplementary salary schedule shall contain proposed
 
18           salary adjustments necessary to eliminate any such
 
19           dissimilarities in compensation; provided that
 
20           additional compensation needed to eliminate the salary
 
21           dissimilarities shall not be included in the basic
 
22           salary schedule but shall be maintained as a separate
 
23           salary schedule for purposes of full disclosure and
 

 
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 1           visibility.
 
 2      (c)  Requests for funds to support recommendations for
 
 3 salary deviations from the prevailing rate survey data shall be
 
 4 kept to a minimum, and the requests shall be fully documented
 
 5 when forwarded by the department of human resources development
 
 6 or county department of personnel services.  Salary and fringe
 
 7 benefit survey information collected from private employers which
 
 8 identify a specific employer with the salary and fringe benefit
 
 9 rates which that employer pays to its employees shall not be
 
10 subject to public disclosure.  The first comprehensive salary and
 
11 fringe benefit survey required by this section shall be completed
 
12 and forwarded to the governor, the mayors of each county and
 
13 city, and the director of finance by September 30, 2001.  The
 
14 first trend salary and fringe benefit survey required by this
 
15 section shall be completed and forwarded to the governor and the
 
16 director of finance by September 30, 2002.
 
17      89-F  Comprehensive salary and fringe benefit survey plan
 
18 required.(a)  The salary fringe benefit surveys shall be
 
19 undertaken in a manner consistent with statistically accurate
 
20 sampling techniques.  For this purpose, a comprehensive salary
 
21 and fringe benefit survey plan shall be submitted to the state
 
22 director of finance, each county department of personnel
 
23 services, employee organizations, and the standing committees for
 

 
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 1 appropriations of the senate and house of representatives for the
 
 2 state and the county directors of finance, employee
 
 3 organizations, and the county and city councils of each county
 
 4 six months before the beginning of each periodic survey required
 
 5 before regular legislative sessions and county and city council
 
 6 budget hearings.  This comprehensive plan shall include, but is
 
 7 not be limited to, the following:
 
 8      (1)  A complete explanation of the technical, statistical
 
 9           process to be used in the salary and fringe benefit
 
10           survey including the percentage of accuracy expected
 
11           from the planned statistical sample chosen for the
 
12           survey and a definition of the term "prevailing rates"
 
13           that is to be used in the planned survey;
 
14      (2)  A comprehensive salary and fringe benefit survey model
 
15           based on scientific statistical principles that:
 
16           (A)  Encompasses the interrelationships among the
 
17                various elements of the survey sample including
 
18                sources of salary and fringe benefit data by
 
19                organization type, size, and regional location;
 
20           (B)  Is representative of private and public employment
 
21                in this State;
 
22           (C)  Ensures that, wherever practical, data from
 
23                smaller, private firms are included and
 

 
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 1                proportionally weighted in the survey sample; and
 
 2           (D)  Indicates the methodology to be used in
 
 3                application of survey data to job classes used by
 
 4                state government; and
 
 5      (3)  A prediction of the increase or decrease in total
 
 6           funding requirements expected to result from the
 
 7           pending salary and fringe benefit survey based on
 
 8           consumer price index information and other available
 
 9           trend data pertaining to state salaries and fringe
 
10           benefits.
 
11      (c)  Every comprehensive survey plan shall fully consider
 
12 fringe benefits as an element of compensation in addition to
 
13 basic salary data.
 
14      (d)  Interim or special surveys shall conform when possible
 
15 to the statistical techniques and principles developed for
 
16 regular periodic surveys under this section.
 
17      (e)  As used in this section, "fringe benefits", in
 
18 conjunction with salary surveys, shall include, but are not
 
19 limited to, compensation for:
 
20      (1)  Leave time, including vacation, holiday, civil, and
 
21           personal leave;
 
22      (2)  Employer retirement contributions; and
 
23      (3)  Health and insurance payments, including life,
 

 
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 1           accident, and health insurance, workers' compensation,
 
 2           and sick leave.
 
 3      89-G  Salary surveys; criteria.  Salary surveys shall be
 
 4 conducted according to the following criteria in addition to any
 
 5 other provisions under this chapter:
 
 6      (1)  Adjustments of state and county salaries to prevailing
 
 7           rates in Hawaii private industries and other
 
 8           governmental units shall be determined by comparisons
 
 9           of weighted averages of salaries, including weighted
 
10           averages of salaries from out-of-state sources when
 
11           necessary to obtain statistically valid salary surveys;
 
12           and
 
13      (2)  Determination of state salary changes from prevailing
 
14           rate data collected in salary surveys shall be based on
 
15           occupational group averages containing related job
 
16           classes where appropriate rather than on comparisons of
 
17           survey data to individual state job classes."
 
18      SECTION 2.  Section 89-1, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§89-1 Statement of findings and policy.  The legislature
 
21 finds that joint decision-making is the modern way of
 
22 administering government.  Where public employees have been
 
23 granted the right to share in the decision-making process
 

 
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 1 affecting wages and working conditions, they have become more
 
 2 responsive and better able to exchange ideas and information on
 
 3 operations with their administrators.  Accordingly, government is
 
 4 made more effective.  The legislature further finds that the
 
 5 enactment of positive legislation establishing guidelines for
 
 6 public employment relations is the best way to harness and direct
 
 7 the energies of public employees eager to have a voice in
 
 8 determining their conditions of work, to provide a rational
 
 9 method for dealing with disputes and work stoppages, and to
 
10 maintain a favorable political and social environment.
 
11      The legislature declares that it is the public policy of the
 
12 State to promote harmonious and cooperative relations between
 
13 government and its employees and to protect the public by
 
14 assuring effective and orderly operations of government.  These
 
15 policies are best effectuated by (1) recognizing the right of
 
16 public employees to organize for the purpose of collective
 
17 bargaining, (2) requiring the public employers to negotiate with
 
18 and enter into written agreements with exclusive representatives
 
19 on matters of [wages,] hours, and other conditions of employment,
 
20 while, at the same time, (3) maintaining merit principles and the
 
21 principle of equal pay for equal work among state and county
 
22 employees pursuant to sections 76-1[,] and 76-2, [77-31, and
 
23 77-33,] and (4) creating a Hawaii salary board and a labor
 

 
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 1 relations board to administer the provisions of chapters 89 and
 
 2 377."
 
 3      SECTION 3.  Section 89-3, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§89-3 Rights of employees.  Employees shall have the right
 
 6 of self-organization and the right to form, join, or assist any
 
 7 employee organization for the purpose of bargaining collectively
 
 8 through representatives of their own choosing on questions of
 
 9 [wages,] hours, and other terms and conditions of employment, but
 
10 not including cost items, and to engage in lawful, concerted
 
11 activities for the purpose of collective bargaining or other
 
12 mutual aid or protection, free from interference, restraint, or
 
13 coercion.  An employee shall have the right to refrain from any
 
14 or all of such activities, except to the extent of making such
 
15 payment of amounts equivalent to regular dues to an exclusive
 
16 representative as provided in section 89-4."
 
17      SECTION 4.  Section 89-9, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By amending subsection (a) to read:
 
20      "(a)  The employer and the exclusive representative shall
 
21 meet at reasonable times, including meetings in advance of the
 
22 employer's budget-making process, and shall negotiate in good
 
23 faith with respect to [wages, hours, the number of incremental
 

 
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 1 and longevity steps and movement between steps within the salary
 
 2 range,] the amounts of contributions by the State and respective
 
 3 counties to the Hawaii public employees health fund to the extent
 
 4 allowed in subsection (e), and other terms and conditions of
 
 5 employment which are subject to negotiations under this chapter
 
 6 and which are to be embodied in a written agreement, or any
 
 7 question arising thereunder, but such obligation does not compel
 
 8 either party to agree to a proposal or make a concession;
 
 9 provided that the parties may not negotiate with respect to cost
 
10 items as defined by section 89-2 for the biennium 1999 to 2001,
 
11 and the cost items of employees in bargaining units under section
 
12 89-6 in effect on June 30, 1999, shall remain in effect until
 
13 July 1, 2001."
 
14      2.  By amending subsection (d) to read:
 
15      "(d)  Excluded from the subjects of negotiations are matters
 
16 of classification and reclassification, benefits of but not
 
17 contributions to the Hawaii public employees health fund,
 
18 retirement benefits except as provided in section 88-8(h), and
 
19 the salary ranges now provided by law[; provided that the number
 
20 of incremental and longevity steps, the amount of wages to be
 
21 paid in each range and step, and movement between steps within
 
22 the salary range shall be negotiable].  The employer and the
 
23 exclusive representative shall not agree to any proposal which
 

 
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 1 would be inconsistent with merit principles or the principle of
 
 2 equal pay for equal work pursuant to sections 76-1[,] and 76-2,
 
 3 [77-31, and 77-33,] or which would interfere with the rights of a
 
 4 public employer to (1) direct employees; (2) determine
 
 5 qualification, standards for work, the nature and contents of
 
 6 examinations, hire, promote, transfer, assign, and retain
 
 7 employees in positions and suspend, demote, discharge, or take
 
 8 other disciplinary action against employees for proper cause; (3)
 
 9 relieve an employee from duties because of lack of work or other
 
10 legitimate reason; (4) maintain efficiency of government
 
11 operations; (5) determine methods, means, and personnel by which
 
12 the employer's operations are to be conducted; and take such
 
13 actions as may be necessary to carry out the missions of the
 
14 employer in cases of emergencies; provided that the employer and
 
15 the exclusive representative may negotiate procedures governing
 
16 the promotion and transfer of employees to positions within a
 
17 bargaining unit, procedures governing the suspension, demotion,
 
18 discharge or other disciplinary actions taken against employees,
 
19 and procedures governing the layoff of employees; provided
 
20 further that violations of the procedures so negotiated may be
 
21 the subject of a grievance process agreed to by the employer and
 
22 the exclusive representative."
 
23      SECTION 5.  Chapter 77, Hawaii Revised Statutes, is
 

 
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 1 repealed.
 
 2      SECTION 6.  In codifying this Act, the revisor shall
 
 3 substitute appropriate statutory designations for the letter
 
 4 designations in section 1 of this Act.
 
 5      SECTION 7.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 8.  No wage increases shall be approved for all
 
 8 public employees until the first trend salary and fringe benefit
 
 9 survey has been completed.
 
10      SECTION 9.  This Act shall take effect on July 1, 2000.
 
11 
 
12                       INTRODUCED BY:  ___________________________