AN ACT Relating to public health care labor relations; and adding a new chapter to Title 41 RCW.

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

NEW SECTION. Sec. 1. The intent and purpose of this chapter is to recognize that there exists a public policy in the state of Washington in favor of the settlement of collective bargaining impasses between health care employers and labor organizations that represent employees of such employers, without resort to strikes, lockouts, or other work stoppages; and that there should exist an effective, adequate, and prompt alternative means of settling disputes.

NEW SECTION. Sec. 2. As used in this chapter:

(1) "Health care employer" means a public hospital district under chapter 70.44 RCW and any other officer, board, commission, council, institution, person, or body that provides health care services which is under the jurisdiction of the public employment relations commission.

(2) "Labor organization" means an organization that has as one of its primary purposes the representation of employees of health care employers in their employment relations with employers and that (a) has been recognized by a health care employer as the exclusive bargaining representative of any grouping of its employees, or (b) has been certified under chapter 41.56 RCW as the exclusive bargaining representative of a unit of such employees.

(3) "Commission" means the public employment relations commission.

NEW SECTION. Sec. 3. At the request of either a health care employer or labor organization that is engaged in collective bargaining negotiations, the commission shall appoint a mediator who shall meet with the representatives of the parties, either jointly or separately, and take such other steps as the mediator may deem appropriate in order to persuade the parties to resolve their differences and effect an agreement. However, the mediator does not have a power of compulsion. By mutual agreement, the parties may waive mediation and proceed directly to interest arbitration.

NEW SECTION. Sec. 4. If an agreement has not been reached following a reasonable period of negotiation and mediation and the mediator finds that the parties remain at impasse, or if the parties waive mediation, then an interest arbitrator shall be chosen to resolve the dispute. The parties may agree to the selection of an interest arbitrator, or either party may apply to the commission, the federal mediation and conciliation service, or the American arbitration association to provide a list of five qualified arbitrators from which the interest arbitrator shall be chosen. The commission shall immediately resolve any disagreements between the parties concerning which organization shall be used to provide a list and the method of selection from the list. The interest arbitrator shall be selected within seven days following receipt of a list by the parties or decision by the commission. If one party does not participate in selecting an arbitrator, the other party after the seven-day period has passed may select the interest arbitrator. The fees and expenses of the interest arbitrator shall be shared equally between the parties.

NEW SECTION. Sec. 5. The interest arbitrator shall promptly establish a date, time, and place for a hearing and shall provide reasonable notice thereof to the parties to the dispute. A hearing, which shall be informal, shall be held, and each party shall have the opportunity to present evidence and make argument. The rules of evidence prevailing in judicial proceedings may be considered but are not binding, and any oral testimony or documentary evidence or other data deemed relevant by the interest arbitrator may be received in evidence. A recording of the proceedings shall be taken. The interest arbitrator has the power to administer oaths, require the attendance of witnesses, and require the production of such books, papers, contracts, agreements, and documents deemed by the interest arbitrator to be material to a just determination of the issues in dispute. If any person refuses to obey a subpoena issued by the interest arbitrator or refuses to be sworn or to make an affirmation to testify, or any witness, party, or attorney for a party is guilty of contempt while in attendance at any hearing held under this section, the interest arbitrator may invoke the jurisdiction of the superior court in the county in which the labor dispute exists, and the court has jurisdiction to issue an appropriate order. Any failure to obey the order may be punished by the court as a contempt thereof. The hearing conducted by the interest arbitrator shall be concluded within twenty days following the selection of the interest arbitrator unless the parties agree to a longer period.

The interest arbitrator, within thirty days following the conclusion of the hearing or longer upon mutual agreement of the parties, shall make written findings of fact and a written determination of the issues in dispute based on the evidence presented. A copy thereof shall be served on the commission and the parties.

NEW SECTION. Sec. 6. The interest arbitrator shall determine all issues not earlier resolved in collective bargaining. The interest arbitrator shall consider the following factors:

(1) The constitutional and statutory authority of the health care employer;

(2) Stipulations of the parties;

(3) Comparison of the wages, hours, and conditions of employment of personnel involved in the proceedings with the wages, hours, and conditions of employment of like personnel of other health care employers, hospitals, providers of health care, and similar employers;

(4) The average consumer prices for goods and services, commonly known as the cost of living;

(5) Changes in any of the foregoing circumstances during the pendency of the proceedings; and

(6) 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.

NEW SECTION. Sec. 7. During the pendency of mediation, selection of an interest arbitrator, and proceedings before the interest arbitrator, existing wages, hours, and other conditions of employment shall not be changed by action of either party without the consent of the other party, but a party may so consent without prejudice to its rights or position under this chapter. In the event a party does change wages, hours, or other conditions of employment in violation of this section, the other party may apply for immediate injunctive or other relief in the superior court for the county in which the dispute exists and such court shall have jurisdiction to issue an appropriate order. The court shall award a reasonable attorney's fee and costs to the party making the application if the court grants substantial relief in that party's favor.

NEW SECTION. Sec. 8. If the labor organization or the health care employer refuses to submit to the procedures set forth in sections 3, 4, and 5 of this act, either party may invoke the jurisdiction of the superior court for the county in which the labor dispute exists and such court shall have jurisdiction to issue an appropriate order. A decision of the interest arbitrator shall be final and binding on the parties and may be enforced at the instance of either party in the superior court for the county in which the dispute arose. The court shall enforce the decision unless the court finds that the decision was arbitrary or capricious. The court shall award a reasonable attorney's fee and costs to the party seeking to compel or enforce interest arbitration if the court grants substantial relief in that party's favor.

NEW SECTION. Sec. 9. In a case involving a health care employer which submits its budget for approval by the hospital commission under chapter 70.39 RCW, the commission shall recognize the decision of the interest arbitrator as an approved cost of the health care employer for which the employer is entitled to collect revenue. The commission shall not otherwise reduce or limit the employer's budget because of costs attributable to implementation of the decision of the interest arbitrator.

NEW SECTION. Sec. 10. The interest arbitrator selected under section 4 of this act, in the performance of his or her duties under this chapter, exercises a state function and is, for the purposes of this chapter, a state agency. Chapter 34.04 RCW does not apply to proceedings before an interest arbitrator under this chapter.

NEW SECTION. Sec. 11. The provisions of this chapter are intended to be additional to other remedies and shall be liberally construed to accomplish their purpose.

NEW SECTION. Sec. 12. Sections 1 through 11 of this act shall constitute a new chapter in Title 41 RCW.