AB681,1,8 1An Act to repeal 111.70 (1) (dm), 111.70 (1) (nc), 111.70 (4) (cm) 5s., 111.70 (4)
2(cm) 7., 111.70 (4) (cm) 7g., 111.70 (4) (cm) 8m. b., 111.70 (4) (cm) 8p. and 111.70
3(4) (cn); to renumber and amend 111.70 (4) (cm) 7r.; to consolidate,
4renumber and amend
111.70 (4) (cm) 8m. a. and c.; and to amend 111.70 (1)
5(b), 111.70 (4) (cm) 5., 111.70 (4) (cm) 6. a., 111.70 (4) (cm) 6. am., 111.70 (4) (cm)
68s. and 111.70 (4) (d) 2. a. of the statutes; relating to: dispute settlement
7procedures in local government employment other than law enforcement and
8fire fighting employment.
Analysis by the Legislative Reference Bureau
This bill does all of the following:
1. Under current law, in local government employment other than law
enforcement and fire fighting employment, if a dispute relating to the terms of a
proposed collective bargaining agreement has not been settled after a reasonable
period of negotiation and after mediation by the Wisconsin employment relations
commission (WERC), either party, or the parties jointly, may petition WERC to
initiate compulsory, final and binding arbitration with respect to any dispute
relating to wages, hours and conditions of employment. If WERC determines, after
investigation, that an impasse exists and that arbitration is required, WERC must

submit to the parties a list of 7 arbitrators, from which the parties alternately strike
names until one arbitrator is left. As an alternative to a single arbitrator, WERC may
provide for an arbitration panel that consists of one person selected by each party and
one person selected by WERC. As a further alternative, WERC may also provide a
process that allows for a random selection of a single arbitrator from a list of 7 names
submitted by WERC. Under current law, an arbitrator or arbitration panel must
adopt the final offer of one of the parties on all disputed issues, which is then
incorporated into the collective bargaining agreement.
Under current law, however, this process does not apply to a dispute over
economic issues involving a collective bargaining unit consisting of school district
professional employes if WERC determines, subsequent to an investigation, that the
employer has submitted a qualified economic offer. Under current law, a qualified
economic offer consists of a proposal to maintain the percentage contribution by the
employer to the employes' existing fringe benefit costs and the employes' existing
fringe benefits and to generally provide, with certain exceptions, for an annual
average salary increase having a cost to the employer at least equal to 2.1% of the
existing total compensation and fringe benefit costs for the employes in the collective
bargaining unit.
This bill eliminates the qualified economic offer exception from the compulsory,
final and binding arbitration process.
2. Current law provides that in reaching a decision, the arbitrator or
arbitration panel must give weight to many factors, including the lawful authority
of the municipal employer, the stipulations of the parties, the interest and welfare
of the public and the financial ability of the unit of government to meet the costs of
the proposed agreement, comparison of wages, hours and conditions of employment
with those of other public and private sector employes, the cost of living, the overall
compensation and benefits that the employes currently receive and other similar
factors. But, under current law, the arbitrator is required to give greater weight to
economic conditions in the jurisdiction of the employer and the greatest weight to any
state law or directive that places expenditure or revenue limitations on an employer.
This bill eliminates the authorization for the arbitrator or arbitration panel to
give any weight to economic conditions in the jurisdiction of the employer or to any
state law or directive that places expenditure or revenue limitations on an employer.
3. Under current law, every collective bargaining agreement covering school
district professional employes must expire on June 30 of the odd-numbered years.
For all other local government employes, the term of a collective bargaining
agreement must be 2 years, except for an initial agreement and except as the parties
otherwise agree, and in no case may exceed 3 years. This bill treats the terms of
collective bargaining agreements for school district professional employes the same
as those of other local government employes.
4. Finally, under current law, school district professional employes are required
to be placed in a collective bargaining unit that is separate from the units of other
school district employes. This bill eliminates this requirement.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB681, s. 1 1Section 1. 111.70 (1) (b) of the statutes is amended to read:
AB681,3,52 111.70 (1) (b) "Collective bargaining unit" means a unit consisting of municipal
3employes who are school district professional employes or of municipal employes who
4are not school district professional employes
that is determined by the commission
5to be appropriate for the purpose of collective bargaining.
AB681, s. 2 6Section 2. 111.70 (1) (dm) of the statutes is repealed.
AB681, s. 3 7Section 3. 111.70 (1) (nc) of the statutes is repealed.
AB681, s. 4 8Section 4. 111.70 (4) (cm) 5. of the statutes is amended to read:
AB681,3,189 111.70 (4) (cm) 5. `Voluntary impasse resolution procedures.' In addition to the
10other impasse resolution procedures provided in this paragraph, a municipal
11employer and labor organization may at any time, as a permissive subject of
12bargaining, agree in writing to a dispute settlement procedure, including
13authorization for a strike by municipal employes or binding interest arbitration,
14which is acceptable to the parties for resolving an impasse over terms of any
15collective bargaining agreement under this subchapter. A copy of such agreement
16shall be filed by the parties with the commission. If the parties agree to any form of
17binding interest arbitration, the arbitrator shall give weight to the factors
18enumerated under subds. subd. 7., 7g. and 7r.
AB681, s. 5 19Section 5. 111.70 (4) (cm) 5s. of the statutes is repealed.
AB681, s. 6 20Section 6. 111.70 (4) (cm) 6. a. of the statutes is amended to read:
AB681,4,16
1111.70 (4) (cm) 6. a. If in any collective bargaining unit a dispute relating to one
2or more issues, qualifying for interest arbitration under subd. 5s. in a collective
3bargaining unit to which subd. 5s. applies,
has not been settled after a reasonable
4period of negotiation and after mediation by the commission under subd. 3. and other
5settlement procedures, if any, established by the parties have been exhausted, and
6the parties are deadlocked with respect to any dispute between them over wages,
7hours and conditions of employment to be included in a new collective bargaining
8agreement, either party, or the parties jointly, may petition the commission, in
9writing, to initiate compulsory, final and binding arbitration, as provided in this
10paragraph. At the time the petition is filed, the petitioning party shall submit in
11writing to the other party and the commission its preliminary final offer containing
12its latest proposals on all issues in dispute. Within 14 calendar days after the date
13of that submission, the other party shall submit in writing its preliminary final offer
14on all disputed issues to the petitioning party and the commission. If a petition is
15filed jointly, both parties shall exchange their preliminary final offers in writing and
16submit copies to the commission at the time the petition is filed.
AB681, s. 7 17Section 7. 111.70 (4) (cm) 6. am. of the statutes is amended to read:
AB681,6,1118 111.70 (4) (cm) 6. am. Upon receipt of a petition to initiate arbitration, the
19commission shall make an investigation, with or without a formal hearing, to
20determine whether arbitration should be commenced. If in determining whether an
21impasse exists the commission finds that the procedures set forth in this paragraph
22have not been complied with and such compliance would tend to result in a
23settlement, it may order such compliance before ordering arbitration. The validity
24of any arbitration award or collective bargaining agreement shall not be affected by
25failure to comply with such procedures. Prior to the close of the investigation each

1party shall submit in writing to the commission its single final offer containing its
2final proposals on all issues in dispute that are subject to interest arbitration under
3this subdivision or under subd. 5s. in collective bargaining units to which subd. 5s.
4applies
. If a party fails to submit a single, ultimate final offer, the commission shall
5close the investigation based on the last written position of the party. The municipal
6employer may not submit a qualified economic offer under subd. 5s. after the close
7of the investigation.
Such final offers may include only mandatory subjects of
8bargaining, except that a permissive subject of bargaining may be included by a
9party if the other party does not object and shall then be treated as a mandatory
10subject. No later than such time, the parties shall also submit to the commission a
11stipulation, in writing, with respect to all matters which are agreed upon for
12inclusion in the new or amended collective bargaining agreement. The commission,
13after receiving a report from its investigator and determining that arbitration should
14be commenced, shall issue an order requiring arbitration and immediately submit
15to the parties a list of 7 arbitrators. Upon receipt of such list, the parties shall
16alternately strike names until a single name is left, who shall be appointed as
17arbitrator. The petitioning party shall notify the commission in writing of the
18identity of the arbitrator selected. Upon receipt of such notice, the commission shall
19formally appoint the arbitrator and submit to him or her the final offers of the
20parties. The final offers shall be considered public documents and shall be available
21from the commission. In lieu of a single arbitrator and upon request of both parties,
22the commission shall appoint a tripartite arbitration panel consisting of one member
23selected by each of the parties and a neutral person designated by the commission
24who shall serve as a chairperson. An arbitration panel has the same powers and
25duties as provided in this section for any other appointed arbitrator, and all

1arbitration decisions by such panel shall be determined by majority vote. In lieu of
2selection of the arbitrator by the parties and upon request of both parties, the
3commission shall establish a procedure for randomly selecting names of arbitrators.
4Under the procedure, the commission shall submit a list of 7 arbitrators to the
5parties. Each party shall strike one name from the list. From the remaining 5
6names, the commission shall randomly appoint an arbitrator. Unless both parties
7to an arbitration proceeding otherwise agree in writing, every individual whose
8name is submitted by the commission for appointment as an arbitrator shall be a
9resident of this state at the time of submission and every individual who is
10designated as an arbitration panel chairperson shall be a resident of this state at the
11time of designation.
AB681, s. 8 12Section 8. 111.70 (4) (cm) 7. of the statutes is repealed.
AB681, s. 9 13Section 9. 111.70 (4) (cm) 7g. of the statutes is repealed.
AB681, s. 10 14Section 10. 111.70 (4) (cm) 7r. of the statutes is renumbered 111.70 (4) (cm) 7.,
15and 111.70 (4) (cm) 7. (intro.), as renumbered, is amended to read:
AB681,6,1816 111.70 (4) (cm) 7. (title) `Other factors Factors considered.' (intro.) In making
17any decision under the arbitration procedures authorized by this paragraph, the
18arbitrator or arbitration panel shall also give weight to the following factors:
AB681, s. 11 19Section 11. 111.70 (4) (cm) 8m. a. and c. of the statutes are consolidated,
20renumbered 111.70 (4) (cm) 8m. and amended to read:
AB681,7,821 111.70 (4) (cm) 8m. `Term of agreement; reopening of negotiations.' Except for
22the initial collective bargaining agreement between the parties and except as the
23parties otherwise agree, every collective bargaining agreement covering municipal
24employes subject to this paragraph other than school district professional employes
25shall be for a term of 2 years. No, but in no case may a collective bargaining

1agreement for any collective bargaining unit consisting of municipal employes
2subject to this paragraph other than school district professional employes shall be
3for a term exceeding 3 years. c. No arbitration award may contain a provision for
4reopening of negotiations during the term of a collective bargaining agreement,
5unless both parties agree to such a provision. The requirement for agreement by both
6parties does not apply to a provision for reopening of negotiations with respect to any
7portion of an agreement that is declared invalid by a court or administrative agency
8or rendered invalid by the enactment of a law or promulgation of a federal regulation.
AB681, s. 12 9Section 12. 111.70 (4) (cm) 8m. b. of the statutes is repealed.
AB681, s. 13 10Section 13. 111.70 (4) (cm) 8p. of the statutes is repealed.
AB681, s. 14 11Section 14. 111.70 (4) (cm) 8s. of the statutes is amended to read:
AB681,8,812 111.70 (4) (cm) 8s. `Forms for determining costs.' The commission shall
13prescribe forms for calculating the total increased cost to the municipal employer of
14compensation and fringe benefits provided to school district professional employes.
15The cost shall be determined based upon the total cost of compensation and fringe
16benefits provided to school district professional employes who are represented by a
17labor organization on the 90th day before expiration of any previous collective
18bargaining agreement between the parties, or who were so represented if the
19effective date is retroactive, or the 90th day prior to commencement of negotiations
20if there is no previous collective bargaining agreement between the parties, without
21regard to any change in the number, rank or qualifications of the school district
22professional employes. For purposes of such determinations, any cost increase that
23is incurred on any day other than the beginning of the 12-month period commencing
24with the effective date of the agreement or any succeeding 12-month period
25commencing on the anniversary of that effective date shall be calculated as if the cost

1increase were incurred as of the beginning of the 12-month period beginning on the
2effective date or anniversary of the effective date in which the cost increase is
3incurred. In each collective bargaining unit to which subd. 5s. applies, the municipal
4employer shall transmit to the commission and the labor organization a completed
5form for calculating the total increased cost to the municipal employer of
6compensation and fringe benefits provided to the school district professional
7employes covered by the agreement as soon as possible after the effective date of the
8agreement.
AB681, s. 15 9Section 15. 111.70 (4) (cn) of the statutes is repealed.
AB681, s. 16 10Section 16. 111.70 (4) (d) 2. a. of the statutes is amended to read:
AB681,9,1311 111.70 (4) (d) 2. a. The commission shall determine the appropriate collective
12bargaining unit for the purpose of collective bargaining and shall whenever possible,
13unless otherwise required under this subchapter, avoid fragmentation by
14maintaining as few collective bargaining units as practicable in keeping with the size
15of the total municipal work force. In making such a determination, the commission
16may decide whether, in a particular case, the municipal employes in the same or
17several departments, divisions, institutions, crafts, professions or other
18occupational groupings constitute a collective bargaining unit. Before making its
19determination, the commission may provide an opportunity for the municipal
20employes concerned to determine, by secret ballot, whether or not they desire to be
21established as a separate collective bargaining unit. The commission shall not
22decide, however, that any group of municipal employes constitutes an appropriate
23collective bargaining unit if the group includes both municipal employes who are
24school district professional employes and municipal employes who are not school
25district professional employes.
The commission shall not decide , however, that any

1other group of municipal employes constitutes an appropriate collective bargaining
2unit if the group includes both professional employes and nonprofessional employes,
3unless a majority of the professional employes vote for inclusion in the unit. The
4commission shall not decide that any group of municipal employes constitutes an
5appropriate collective bargaining unit if the group includes both craft employes and
6noncraft employes unless a majority of the craft employes vote for inclusion in the
7unit. The commission shall place the professional employes who are assigned to
8perform any services at a charter school, as defined in s. 115.001 (1), in a separate
9collective bargaining unit from a unit that includes any other professional employes
10whenever at least 30% of those professional employes request an election to be held
11to determine that issue and a majority of the professional employes at the charter
12school who cast votes in the election decide to be represented in a separate collective
13bargaining unit. Any vote taken under this subsection shall be by secret ballot.
AB681, s. 17 14Section 17. Nonstatutory provisions.
AB681,9,1915 (1) The employment relations commission may not accept any petition for
16arbitration filed under section 111.70 (4) (cm) 6. of the statutes, in any collective
17bargaining unit concerning a labor dispute about which the commission has, prior
18to the effective date of this subsection, already accepted a petition for arbitration
19filed under section 111.70 (4) (cm) 6. of the statutes.
AB681, s. 18 20Section 18. Initial applicability.
AB681,9,2321 (1) This act first applies to petitions for arbitration filed under section 111.70
22(4) (cm) 6. of the statutes, as affected by this act, on the effective date of this
23subsection.
AB681,9,2424 (End)
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