AB751: Bill Text

LRB-2904/3

RAC:kjf:pg

2003 - 2004 LEGISLATURE

2003 Assembly BILL 751

January 14, 2004 - Introduced by Representatives Bies, Albers, Balow, Berceau, Black, Colon, Hebl, Kreuser, J. Lehman, Miller, Molepske, Musser, Owens, Petrowski, Plouff, Pocan, Pope-Roberts, Richards, Schooff, Sherman, Shilling, Sinicki, Staskunas, Steinbrink, Taylor, Turner, Van Akkeren, Vruwink and Zepnick, cosponsored by Senators Hansen, Breske, Erpenbach, Risser and Wirch. Referred to Committee on Labor.

AB751,1,11 An Act to repeal 111.70 (1) (dm), 111.70 (1) (fm), 111.70 (1) (nc), 111.70 (4) (cm) 5s., 111.70 (4) (cm) 7., 111.70 (4) (cm) 7g., 111.70 (4) (cm) 8m. b., 111.70 (4) (cm) 8p., 111.70 (4) (cm) 8s. and 118.245; to consolidate, renumber and amend 111.70 (4) (cm) 8m. a. and c.; to amend 111.70 (4) (cm) 5., 111.70 (4) (cm) 6. a., 111.70 (4) (cm) 6. am., 111.70 (4) (cm) 6. b., 111.70 (4) (cm) 6. c., 111.70 (4) (cm) 6. d., 111.70 (4) (cm) 6. g., 111.70 (4) (cm) 7r. (intro.), 111.70 (4) (d) 2. a., 111.70 (4) (L), 111.71 (5) and 119.04 (1); and to create 111.70 (4) (cm) 6. ar., 111.70 (4) (cm) 6. bm., 111.70 (4) (cm) 6. cm., 111.70 (4) (cm) 7r. ie., 111.70 (4) (cm) 7r. ir. and 111.71 (5m) of the statutes; relating to: the collective bargaining process affecting school district professional employees under the Municipal Employment Relations Act.

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 seven 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 seven 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 employees if WERC determines, subsequent to an investigation, that the employer has submitted a qualified economic offer (QEO). Under current law, a QEO consists of a proposal to maintain the percentage contribution by the employer to the employees' existing fringe benefit costs and the employees' existing fringe benefits and to provide 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 employees in the collective bargaining unit plus any fringe benefit savings. Fringe benefit savings is that amount, if any, by which 1.7% of the total compensation and fringe benefit costs for all municipal employees in a collective bargaining unit for any 12-month period covered by a proposed collective bargaining agreement exceeds the increased cost required to maintain the percentage contribution by the municipal employer to the municipal employees' existing fringe benefit costs and to maintain all fringe benefits provided to the municipal employees.

This bill eliminates the QEO exception from the arbitration process and, instead, provides that if a dispute involves a collective bargaining unit consisting of school district professional employees, the arbitrator may determine individually all issues in dispute involving mandatory subjects of bargaining that were included in the parties' initial bargaining offers. In this regard, the arbitrator is not limited to choosing the final offer of one party over the other party. In addition, the bill provides that WERC must randomly choose an arbitrator to resolve disputes involving collective bargaining units consisting of school district professional employees. Finally, the bill requires that, if at all possible, the WERC must appoint a permanent or temporary reserve judge as the arbitrator to resolve such disputes.

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 employees, the cost of living, the overall compensation and benefits that the employees 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 additional 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 and, instead, requires that the arbitrator or arbitration panel simply considers these as factors.

3. Finally, the bill eliminates a 3.8% cap imposed on salary fringe benefit annual increases for all nonrepresented professional school district employees.

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:

AB751, s. 1 Section 1. 111.70 (1) (dm) of the statutes is repealed.

AB751, s. 2 Section 2. 111.70 (1) (fm) of the statutes is repealed.

AB751, s. 3 Section 3. 111.70 (1) (nc) of the statutes is repealed.

AB751, s. 4 Section 4. 111.70 (4) (cm) 5. of the statutes is amended to read:

AB751,3,14 111.70 (4) (cm) 5. `Voluntary impasse resolution procedures.' In addition to the other impasse resolution procedures provided in this paragraph, a municipal employer and labor organization may at any time, as a permissive subject of bargaining, agree in writing to a dispute settlement procedure, including authorization for a strike by municipal employees or binding interest arbitration, which is acceptable to the parties for resolving an impasse over terms of any collective bargaining agreement under this subchapter. A copy of such agreement shall be filed by the parties with the commission. If the parties agree to any form of binding interest arbitration, the arbitrator shall give weight to the factors enumerated under subds. 7., 7g. and subd. 7r.

AB751, s. 5 Section 5. 111.70 (4) (cm) 5s. of the statutes is repealed.

AB751, s. 6 Section 6. 111.70 (4) (cm) 6. a. of the statutes is amended to read:

AB751,4,17 111.70 (4) (cm) 6. a. If in any collective bargaining unit a dispute relating to one or more issues, qualifying for interest arbitration under subd. 5s. in a collective bargaining unit to which subd. 5s. applies, has not been settled after a reasonable period of negotiation and after mediation by the commission under subd. 3. and other settlement procedures, if any, established by the parties have been exhausted, and the parties are deadlocked with respect to any dispute between them over wages, hours, and conditions of employment to be included in a new collective bargaining agreement, either party, or the parties jointly, may petition the commission, in writing, to initiate compulsory, final, and binding arbitration, as provided in this paragraph. At the time the petition is filed, the petitioning party shall submit in writing to the other party and the commission its preliminary final offer containing its latest proposals on all issues in dispute. Within 14 calendar days after the date of that submission, the other party shall submit in writing its preliminary final offer on all disputed issues to the petitioning party and the commission. If a petition is filed jointly, both parties shall exchange their preliminary final offers in writing and submit copies to the commission at the time the petition is filed.

AB751, s. 7 Section 7. 111.70 (4) (cm) 6. am. of the statutes is amended to read:

AB751,6,13 111.70 (4) (cm) 6. am. Upon receipt of a petition to initiate arbitration involving a collective bargaining unit consisting of municipal employees other than school district professional employees, the commission shall make an investigation, with or without a formal hearing, to determine whether arbitration should be commenced. If in determining whether an impasse exists the commission finds that the procedures set forth in this paragraph have not been complied with and such compliance would tend to result in a settlement, it may order such compliance before ordering arbitration. The validity of any arbitration award or collective bargaining agreement shall not be affected by failure to comply with such procedures. Prior to the close of the investigation each party shall submit in writing to the commission its single final offer containing its final proposals on all issues in dispute that are subject to interest arbitration under this subdivision or under subd. 5s. in collective bargaining units to which subd. 5s. applies. If a party fails to submit a single, ultimate final offer, the commission shall close the investigation based on the last written position of the party. The municipal employer may not submit a qualified economic offer under subd. 5s. after the close of the investigation. Such final offers may include only mandatory subjects of bargaining, except that a permissive subject of bargaining may be included by a party if the other party does not object and shall then be treated as a mandatory subject. No later than such time, the parties shall also submit to the commission a stipulation, in writing, with respect to all matters which are agreed upon for inclusion in the new or amended collective bargaining agreement. The commission, after receiving a report from its investigator and determining that arbitration should be commenced, shall issue an order requiring arbitration and immediately submit to the parties a list of 7 arbitrators. Upon receipt of such list, the parties shall alternately strike names until a single name is left, who shall be appointed as arbitrator. The petitioning party shall notify the commission in writing of the identity of the arbitrator selected. Upon receipt of such notice, the commission shall formally appoint the arbitrator and submit to him or her the final offers of the parties. The final offers shall be considered public documents and shall be available from the commission. In lieu of a single arbitrator and upon request of both parties, the commission shall appoint a tripartite arbitration panel consisting of one member selected by each of the parties and a neutral person designated by the commission who shall serve as a chairperson. An arbitration panel has the same powers and duties as provided in this section for any other appointed arbitrator, and all arbitration decisions by such panel shall be determined by majority vote. In lieu of selection of the arbitrator by the parties and upon request of both parties, the commission shall establish a procedure for randomly selecting names of arbitrators. Under the procedure, the commission shall submit a list of 7 arbitrators to the parties. Each party shall strike one name from the list. From the remaining 5 names, the commission shall randomly appoint an arbitrator. Unless both parties to an arbitration proceeding otherwise agree in writing, every individual whose name is submitted by the commission for appointment as an arbitrator shall be a resident of this state at the time of submission and every individual who is designated as an arbitration panel chairperson shall be a resident of this state at the time of designation.

AB751, s. 8 Section 8. 111.70 (4) (cm) 6. ar. of the statutes is created to read:

AB751,7,9 111.70 (4) (cm) 6. ar. Upon receipt of a petition to initiate arbitration involving a collective bargaining unit consisting of school district employees, the commission shall make an investigation, with or without a formal hearing, to determine whether arbitration should be commenced. If in determining whether an impasse exists the commission finds that the procedures set forth in this paragraph have not been complied with and such compliance would tend to result in a settlement, it may order such compliance before ordering arbitration. The validity of any arbitration award or collective bargaining agreement shall not be affected by failure to comply with such procedures. Prior to the close of the investigation, each party shall submit to the commission a stipulation, in writing, with respect to all matters which are agreed upon for inclusion in the new or amended collective bargaining agreement. The commission, after receiving a report from its investigator and determining that arbitration should be commenced, shall issue an order requiring arbitration and shall randomly appoint an arbitrator. The commission shall first seek to appoint a permanent or temporary reserve judge, appointed under s. 753.075 (2), to serve as an arbitrator under this subd. 6. ar. If a permanent or temporary reserve judge is not available for appointment as an arbitrator, the commission may then appoint any individual eligible to serve as an arbitrator under subd. 6. am. Unless both parties to an arbitration proceeding otherwise agree in writing, every individual who is appointed as an arbitrator shall be a resident of this state.

AB751, s. 9 Section 9. 111.70 (4) (cm) 6. b. of the statutes is amended to read:

AB751,7,22 111.70 (4) (cm) 6. b. The arbitrator appointed under subd. 6. am. shall, within 10 days of his or her appointment, establish a date and place for the conduct of the arbitration hearing. Upon petition of at least 5 citizens of the jurisdiction served by the municipal employer, filed within 10 days after the date on which the arbitrator is appointed, the arbitrator shall hold a public hearing in the jurisdiction for the purpose of providing the opportunity to both parties to explain or present supporting arguments for their positions and to members of the public to offer their comments and suggestions. The final offers of the parties, as transmitted by the commission to the arbitrator, shall serve as the basis for continued negotiations, if any, between the parties with respect to the issues in dispute. At any time prior to the arbitration hearing, either party, with the consent of the other party, may modify its final offer in writing.

AB751, s. 10 Section 10. 111.70 (4) (cm) 6. bm. of the statutes is created to read:

AB751,8,10 111.70 (4) (cm) 6. bm. The arbitrator appointed under subd. 6. ar. shall, within 10 days of his or her appointment, establish a date and place for the conduct of the arbitration hearing. Upon petition of at least 5 citizens of the jurisdiction served by the municipal employer, filed within 10 days after the date on which the arbitrator is appointed, the arbitrator shall hold a public hearing in the jurisdiction for the purpose of providing the opportunity to both parties to explain or present supporting arguments for their positions and to members of the public to offer their comments and suggestions. The initial bargaining offers of the parties submitted under subd. 2., as transmitted by the commission to the arbitrator, shall serve as the basis for continued negotiations, if any, between the parties with respect to the issues in dispute. At any time prior to the arbitration hearing, either party, with the consent of the other party, may modify its initial bargaining offer in writing.

AB751, s. 11 Section 11. 111.70 (4) (cm) 6. c. of the statutes is amended to read:

AB751,8,21 111.70 (4) (cm) 6. c. Prior to the arbitration hearing under subd. 6. b., either party may, within a time limit established by the arbitrator, withdraw its final offer and mutually agreed upon modifications thereof, if any, and shall immediately provide written notice of such withdrawal to the other party, the arbitrator and the commission. If both parties withdraw their final offers and mutually agreed upon modifications, the labor organization, after giving 10 days' written advance notice to the municipal employer and the commission, may strike. Unless both parties withdraw their final offers and mutually agreed upon modifications, the final offer of neither party shall be deemed withdrawn and the arbitrator shall proceed to resolve the dispute by final and binding arbitration as provided in this paragraph.

AB751, s. 12 Section 12. 111.70 (4) (cm) 6. cm. of the statutes is created to read:

AB751,9,8 111.70 (4) (cm) 6. cm. Prior to the arbitration hearing under subd. 6. bm., either party may, within a time limit established by the arbitrator, withdraw its initial bargaining offer and mutually agreed upon modifications thereof, if any, and shall immediately provide written notice of such withdrawal to the other party, the arbitrator, and the commission. If both parties withdraw their initial bargaining offers and mutually agreed upon modifications, the labor organization, after giving 10 days' written advance notice to the municipal employer and the commission, may strike. Unless both parties withdraw their initial bargaining offers and mutually agreed upon modifications, the initial bargaining offer of neither party shall be deemed withdrawn and the arbitrator shall proceed to resolve the dispute by final and binding arbitration as provided in this paragraph.

AB751, s. 13 Section 13. 111.70 (4) (cm) 6. d. of the statutes is amended to read:

AB751,9,25 111.70 (4) (cm) 6. d. Before issuing his or her arbitration decision, the arbitrator shall, on his or her own motion or at the request of either party, conduct a meeting open to the public for the purpose of providing the opportunity to both parties to explain or present supporting arguments for their complete offer on all matters to be covered by the proposed agreement. The If the dispute does not involve a collective bargaining unit consisting of school district professional employees, the arbitrator shall adopt without further modification the final offer of one of the parties on all disputed issues submitted under subd. 6. am., except those items that the commission determines not to be mandatory subjects of bargaining and those items which have not been treated as mandatory subjects by the parties, and including any prior modifications of such offer mutually agreed upon by the parties under subd. 6. b., which decision shall be final and binding on both parties and shall be incorporated into a written collective bargaining agreement. If the dispute involves a collective bargaining unit consisting of school district professional employees, the arbitrator may determine individually all issues in dispute involving mandatory subjects of bargaining that are included in the parties' initial bargaining proposals submitted under subd. 2., and the arbitrator's decision shall be final and binding and shall be incorporated into a written collective bargaining agreement. The arbitrator shall serve a copy of his or her decision on both parties and the commission.

AB751, s. 14 Section 14. 111.70 (4) (cm) 6. g. of the statutes is amended to read:

AB751,10,13 111.70 (4) (cm) 6. g. If a question arises as to whether any proposal made in negotiations by either party is a mandatory, permissive or prohibited subject of bargaining, the commission shall determine the issue pursuant to par. (b). If either party to the dispute petitions the commission for a declaratory ruling under par. (b), the proceedings under subd. 6. c. or cm., whichever is applicable, and d. shall be delayed until the commission renders a decision in the matter, but not during any appeal of the commission order. The arbitrator's award shall be made in accordance with the commission's ruling, subject to automatic amendment by any subsequent court reversal thereof.

AB751, s. 15 Section 15. 111.70 (4) (cm) 7. of the statutes is repealed.

AB751, s. 16 Section 16. 111.70 (4) (cm) 7g. of the statutes is repealed.

AB751, s. 17 Section 17. 111.70 (4) (cm) 7r. (intro.) of the statutes is amended to read:

AB751,10,19 111.70 (4) (cm) 7r. `Other factors Factors considered.' (intro.) In making any decision under the arbitration procedures authorized by this paragraph, the arbitrator or arbitration panel shall also give weight to the following factors:

AB751, s. 18 Section 18. 111.70 (4) (cm) 7r. ie. of the statutes is created to read:

AB751,10,24 111.70 (4) (cm) 7r. ie. Any state law or directive lawfully issued by a state legislative or administrative officer, body, or agency which places limitations on expenditures that may be made or revenues that may be collected by a municipal employer.

AB751, s. 19 Section 19. 111.70 (4) (cm) 7r. ir. of the statutes is created to read:

AB751,11,2 111.70 (4) (cm) 7r. ir. Economic conditions in the jurisdiction of the municipal employer.

AB751, s. 20 Section 20. 111.70 (4) (cm) 8m. a. and c. of the statutes are consolidated, renumbered 111.70 (4) (cm) 8m. and amended to read: