SENATE BILL REPORT

SB 6001

BYSenators Warnke and Bauer

Relating to classified school district employees' benefits.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 27, 1987; March 2, 1987

Majority Report:  That Substitute Senate Bill No. 6001 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Dave Cheal (786-7576)

                  March 3, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):March 9, 1987

Majority Report:  That Substitute Senate Bill No. 6001 as recommended by Committee on Commerce & Labor be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Fleming, Kreidler, Moore, Owen, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams.

Minority Report:  Do not pass.

      Signed by Senators Bluechel, Cantu, Craswell, Hayner, Lee, McDonald, Saling.

Senate Staff:Charles Langen (786-7715)

                  March 13, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 9, 1987

BACKGROUND:

In an attempt to save money, some school districts have contracted for services which were previously performed by their own employees.  Examples are bus drivers and maintenance personnel.  On some occasions the new contracting employer hires the previous district employees, or a certain percentage of them.  As employees of the contractor, they experience a termination of school district pension benefits.  Even if the new employer were to offer some kind of pension benefits, the seniority built up by the previous school employees would be lost.  In a few cases, school districts have gone back to hiring their previous employees due to dissatisfaction with the level of service provided by the independent contractor.  Even though some of the same employees continue to work through both changes, their retirement rights would be adversely affected.

SUMMARY:

Senate Bill 6001 was introduced by title only.

EFFECT OF PROPOSED SUBSTITUTE:

Former school district employees working for service contractors to do a job for school districts previously performed as district employees are deemed to continue to be school employees for the purpose of retirement and pension benefits.  The school district pays the employer contributions to the retirement system.  These employees continue to receive credit for length of service.

Employers in this situation are obligated to assume existing labor contracts, employ as many of the former school district employees as are necessary to do the job, place them in comparable positions at a salary at least equal to their previous pay, provide an equal position with respect to their retirement, sick leave, vacation and seniority or other benefits, and provide vacation with pay equivalent to what the former school district employee would have received.

The contractor, not the school district, is responsible for administering day to day operating provisions of applicable collective bargaining agreements, such as grievance procedures.

The bill is expressly limited to prospective application.

Fiscal Note:      requested

Senate Committee - Testified: COMMERCE & LABOR:  Susan Johnson, Service Employees Union

Senate Committee - Testified: WAYS & MEANS: No one