Report Title:

Binding Arbitration.

Description:

Revised factors that an arbitration panel must consider in public employee binding arbitration decisions. Specifically, the following new factors must be considered: (1) the impact of the additional potential costs if the cost item was applied to all other bargaining units; (2) the employer's ability to fund the cost item is based on applicable constitutional, statutory, and county ordinance provisions; and (3) a comparison of wages, hours conditions of employment and overall compensation of private sector employees in the State.

HOUSE OF REPRESENTATIVES

H.B. NO.

2328

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO BINDING ARBITRATION.

 

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

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

"(f) An 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;

(2) Stipulations of the parties;

(3) The interests and welfare of the public;

(4) The financial ability of the employer to meet these costs[;] and the additional potential costs as if the arbitration cost item parameters were to be applied to all other bargaining units; provided that the employer's ability to fund cost items shall be based on constitutional, statutory, and ordinance provisions governing appropriations and budgeting, and 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;

(6) Comparison of wages, hours, [and] conditions of employment, and overall compensation, as defined in paragraph (8) below, of the employees involved in the arbitration proceeding with the wages, hours, and conditions of employment of other persons performing similar services [,and] of other state and county employees in Hawaii[;], and of private sector employees in the State;

(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; and

(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, arbitration, or otherwise between the parties, in the public service or in private employment."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST