Report Title:

Labor unions; organization



Requires that contracts subject to certain wage requirements contain provisions allowing employees to organize.



H.B. NO.














relating to labor.





     SECTION 1.  Section 103-55, Hawaii Revised Statutes, is amended to read as follows:

     "§103-55  Wages, hours, and working conditions of employees of contractors performing services.  (a)  Before any offeror enters into a contract to perform services in excess of $25,000 for any governmental agency, the offeror shall certify that the services to be performed will be performed under the following conditions:

     Wages.  The services to be rendered shall be performed by employees paid at wages or salaries not less than the wages paid to public officers and employees for similar work.

     Compliance with labor laws.  All applicable laws of the federal and state governments relating to workers' compensation, unemployment compensation, payment of wages, and safety will be fully complied with.

     (b)  No contract to perform services for any governmental contracting agency in excess of $25,000 shall be granted unless all the conditions of this section are met.  Failure to comply with the conditions of this section during the period of contract to perform services shall result in cancellation of the contract, unless such noncompliance is corrected within a reasonable period as determined by the procurement officer.  Final payment of a contract or release of bonds or both shall not be made unless the procurement officer has determined that the noncompliance has been corrected.

     It shall be the duty of the governmental contracting agency awarding the contract to perform services in excess of $25,000 to enforce this section.

     (c)  This section shall apply to all contracts to perform services in excess of $25,000, including contracts to supply ambulance service and janitorial service.

This section shall not apply to:

     (1)  Managerial, supervisory, or clerical personnel[.];

     (2)  Contracts for supplies, materials, or printing[.];

     (3)  Contracts for utility services[.];

     (4)  Contracts to perform personal services under paragraphs (2), (3), (12), and (15) of section 76-16, paragraphs (7), (8), and (9) of section 46-33, and paragraphs (7), (8), and (12) of section 76-77[.];

     (5)  Contracts for professional services[.];

     (6)  Contracts to operate refreshment concessions in public parks, or to provide food services to educational institutions[.]; and

     (7)  Contracts with nonprofit institutions.

     (d)  Any bid specification offered or contract entered into by a governmental body under this section shall contain the following:

     (1)  A provision requiring the contractor to ensure the right of all employees under relevant state or federal law to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to exercise these legal rights without interference;

     (2)  A provision that, if at any time during the contract period, a labor organization or any employee of the contractor seeks to organize employees of the contractor, the contractor shall commit no act or make any statement that will directly or indirectly state or imply the contractor's preference or non-preference for unionization of its employees in general or for recognition of any bona fide labor organization as the exclusive representative of the employees working on contracts covered by this section;

     (3)  A provision that, if at any time during the contract period, a labor organization or any employee of the contractor seeks to organize employees of the contractor, the contractor shall grant access to its employees by any bona fide labor organization in the employee lunchrooms, lounges, or other non-public areas on the contractor's premises during employee off-work periods, for organizational purposes; provided that there is no interference with normal work operations; and

     (4)  A provision that, if during the contract period, a bona fide labor organization requests recognition within an appropriate bargaining unit, a disinterested neutral party selected by the director of labor and industrial relations shall conduct a review of employee authorization cards submitted by any labor organization in support of its claim to represent a majority of employees in an appropriate bargaining unit.  If a majority of employees within a unit has designated the signatory labor organization to represent them, the contractor shall recognize that labor organization as the exclusive representative of the designated bargaining unit and negotiations will commence for a collective bargaining agreement.

     (e)  Any contractor found in violation of this section shall pay a fine of $5,000 per violation to the governmental body, in addition to attorney's fees and costs, to the governmental body or the affected employees.

     (f)  Any employer who violates any provision of this section shall be liable to the employee or employees affected for the amount of their unpaid wages or compensation, and in case of wilful violation, for an additional amount equal to the liquidated damages."

     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.