Report Title:

Fairness in collective bargaining.

Description:

Limits any arbitration award t no more than 1 1/2% across the board per fiscal year. The limitation does not apply to bargaining units (9), (11), (12) and any other unit with a membership consisting entirely of individuals that perform a law enforcement function.

THE SENATE

S.B. NO.

2801

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO FAIRNESS IN COLLECTIVE BARGAINING.

 

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

SECTION 1. The purpose of this Act is to limit and prevent runaway arbitration awards rendered under section 89-11(f), Hawaii Revised Statutes. The intent of the legislature is to give the unions the opportunity to decide whether to stay at the bargaining table to resolve negotiable items or to stop bargaining and choose arbitration to resolve differences. By limiting the size and scope of arbitration awards, this Act will level the playing field and promote fairness in the collective bargaining negotiation process by fostering active, substantive, and meaningful negotiations with employers, which will ultimately benefit the taxpayers throughout the State of Hawaii.

SECTION 2. Section 89-11, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) An arbitrator or 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; provided that the employer's ability to fund cost items 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 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;

(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[.]; and

(11) That any arbitration award shall be limited to no more than one and one-half per cent across the board, which is all pay rates with that particular bargaining unit's salary schedule, per fiscal year, based on filled positions only. Alternatively, the arbitration award may allow for a step movement in the respective pay range and any other wage seniority, longevity, or other wage differential or bonus that does exceed a total, per fiscal year amount of one and one-half per cent across the board. The combined total of any cost items for any arbitration award arising from this process shall be no more than an amount equivalent to one and one-half per cent across the board. This limitation shall not apply to bargaining units (9), (11), (12), and any other bargaining unit whose membership consists entirely of individuals that perform a law enforcement function."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST