STAND. COM. REP. NO. 1206

Honolulu, Hawaii

, 2005

RE: H.B. No. 266

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 266, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LABOR,"

begs leave to report as follows:

The purpose of this measure is to amend the law relating to collective bargaining by changing certain subject matter areas that are currently excluded from negotiation into permissible subjects of collective bargaining negotiations.

Specifically, this measure:

(1) Deletes the prohibition on any provision within a collective bargaining agreement that:

(A) Is inconsistent with the merit principle or the principle of equal pay for equal work; or

(B) Would interfere with the rights and obligations of the employer under various circumstances; and

(2) Authorizes negotiations between employers and an exclusive representative of a bargaining unit over matters relating to the merit principle, the principle of equal pay for equal work, work standards and examination contents, efficiency and productivity in government operations, methods and means of government operations, and emergency actions.

Your Committee finds that pursuant to Act 399, Session Laws of Hawaii 1988, the Legislature amended subsection 89-9(d), Hawaii Revised Statutes (HRS), to expand the scope of collective bargaining in the public sector. The amendment was intended to protect contract provisions that would otherwise be considered to be invalid due to a literal interpretation of what are considered to be management rights. Under current collective bargaining agreements, provisions regarding standards, criteria, and procedures relating to employee hiring, promotions, transfer, assignment, retention, suspension, demotion, discharge, disciplinary actions, layoffs, and displacement for lack of work and other similar personnel actions are widely incorporated and utilized. However, the current law unnecessarily restricts negotiations over many of these areas. Therefore, your Committee believes that the law must evolve to better facilitate labor-management negotiations in a more pragmatic manner.

However, your Committee acknowledges the concerns raised by the interested parties, and seeks to strike a balance between the interests of the employers and the employees. As a result, the current prohibition against only the agreement on provisions that would interfere with the rights and obligations of an employer to hire, promote, transfer, assign, and retain employees in positions; suspend, demote, discharge, or take other disciplinary action against employees for proper cause; and relieve an employee from duties because of lack of work or other legitimate reason should be eliminated.

Accordingly, your Committee has amended this measure by:

(1) Deleting the contents of subsection 89-9(g), HRS, and replacing it with language that restores the prohibition deleted from subsection 89-9(d), HRS, that prohibits public employers from agreeing on provisions that:

(A) Are inconsistent with the merit principle or the principle of equal pay for equal work; or

(B) Materially interfere with their rights and obligations to maintain efficiency in government;

except that all references to hire, promote, transfer, assign, and retain employees in positions; suspend, demote, discharge, or take other disciplinary action against employees for proper cause; and relieve an employee from duties because of lack of work or other legitimate reason are excluded in order to avoid literal application by the courts;

(2) Prohibiting public employers from challenging provisions of collective bargaining agreements after negotiations have been completed; and

(3) Changing the effective date of the Act from upon approval to July 1, 2050 to promote further discussion on the matter.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 266, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 266, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

BRIAN KANNO, Chair