SENATE BILL REPORT

SB 5353

BYSenators Warnke, Conner, Bender and Vognild

Providing for continuity of labor agreements.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 24, 1987; March 5, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Tanner, Vognild, Williams, Wojahn.

Senate Staff:Mark McDermott (786-7429); Dave Cheal (786-7576)

                  March 5, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 5, 1987

BACKGROUND:

When ownership of an employer's business, which is a party to a collective bargaining agreement, is transferred, two significant labor relations questions arise:  (1) Is the new or successor employer required to recognize the union and bargain in good faith?  (2) Is the successor bound by the terms of the existing collective bargaining agreement?

Questions also arise as to whether the new owner is a "successor".

SUMMARY:

Existing collective bargaining agreements are made binding on successor employers.  However, within the first 30 days after the transfer of the business, the successor employer can give notice that negotiations shall begin for a new collective bargaining agreement.  Then, if the new collective bargaining agreement so provides, it will supersede the old collective bargaining agreement before the old agreement expires.  Thus, replacement of the old agreement is made possible, provided it is done through the bargaining process, and provided there are no gaps between the new and old agreements.

Subsection (3) defines "successor employer" for the purposes of this act, as any purchaser, assignee, or transferee who conducts substantially the same business, provides the same service, and uses the same physical facilities as the predecessor employer.

The Public Employees Relations Commission is given the responsibility of administering and enforcing the act.

Fiscal Note:      requested

Senate Committee - Testified: Bert Lysen, UFCW 1105; Joe Daniels UFCW 1001; Andy Sanderson, UTC 977; Terry Brossett, SEIU 123; Clif Finch, AWB; Bob Seeber, Restaurant Association