HOUSE BILL REPORT
SSB 5140
BYSenate Committee on Ways & Means (originally sponsored by Senators McCaslin and DeJarnatt; by request of Governor)
Changing provisions relating to state personnel administration.
House Committe on State Government
Majority Report: Do pass with amendments. (8)
Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; Hankins, R. King, Morris, O'Brien, Rector and Sayan.
Minority Report: Do not pass. (2)
Signed by Representatives McLean, Ranking Republican Member; and Silver.
House Staff:Barbara McLain (786-7135); Chris Cordes (786-7117)
Rereferred House Committee on Appropriations
Majority Report: Do pass as amended by Committee on State Government. (17)
Signed by Representatives Grant, Vice Chair; H. Sommers, Vice Chair; Appelwick, Braddock, Brekke, Bristow, Dorn, Ebersole, Hine, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.
Minority Report: Do not pass. (11)
Signed by Representatives Locke, Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Belcher, Bowman, Brough, Ferguson, May, McLean, Nealey and Padden.
House Staff: Randy Acker (786-7136)
AS REPORTED BY COMMITTEE ON APPROPRIATIONS
APRIL 1, 1989
BACKGROUND:
Collective Bargaining: Classified employees under the state civil service system and the higher education personnel system have the right to collectively bargain on grievance procedures and on personnel matters over which state agencies may legally exercise discretion. Because the State Personnel Board and the Higher Education Personnel Board adopt rules covering most major personnel matters (recruitment, hiring, discipline, sick and vacation leave, salary schedules, etc.), collective bargaining is limited.
Personnel Administration: The State Personnel Board, composed of three members appointed by the Governor, sets overall policy for the civil service system and the Department of Personnel by adopting the Merit System Rules. The Board also has some appeals authority, but the bulk of civil service appeals are heard by the Personnel Appeals Board.
The Director of the Department of Personnel has responsibility for the administrative and technical aspects of the Department. The Governor appoints the Director from a list of three names submitted by the Board, which selects candidates based on a competitive examination. The Director may be removed for cause.
The Higher Education Personnel Board (HEPB) is also composed of three members appointed by the Governor and, like the State Personnel Board, sets policies by adopting rules which cover classified employees of four-year institutions and community colleges. However, administration of the higher education personnel laws is the responsibility of each individual institution, and the HEPB hears all appeals of the higher education personnel rules.
Exempt Positions and Career Executives: A position in the civil service system can be designated exempt either by statute, or by the State Personnel Board upon request of the Governor or another elected executive. Classified employees whose positions are made exempt or who accept an exempt position may revert within four years (with a possible additional four-year extension) to civil service status in the highest class of position previously held, or in a position of similar nature and salary.
The Career Executive Program was established in 1980 to promote excellence in managerial skills. The Program is not to exceed 1 percent of the total number of state civil service employees and currently has 336 participants.
SUMMARY:
BILL AS AMENDED:
PART I: COLLECTIVE BARGAINING
Employees affected. The Higher Education Personnel Board is abolished, and classified employees under its jurisdiction are transferred to the jurisdiction of the State Personnel Board and the Department of Personnel. Bargaining is authorized for all classified employees under the consolidated personnel system.
The Personnel Appeals Board is also eliminated, and the State Personnel Board is authorized to hear and determine personnel appeals.
Scope of bargaining. Collective bargaining is authorized over wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under an agreement. Bargaining may not include matters pertaining to recruitment and rating of candidates for employment or to retirement benefits. The parties may not agree to any provision that is inconsistent with the principle of comparable worth.
In case of any conflict with civil service law or merit system rules, the provisions of the collective bargaining law or agreement prevail.
Administration and enforcement. A new State Employees' Relations Commission (SERC) is created to provide administration and adjudication of the collective bargaining provisions. The Governor appoints the three member commission.
The commission must appoint a director who will perform administrative functions and to whom the commission may delegate authority with respect to various commission duties, including representation elections, unfair labor practices, mediation, and arbitration.
Negotiations. The first round of negotiations under the new collective bargaining provisions commences on July 1, 1990 for an agreement to take effect July 1, 1991. Contracts run for two years, to coincide with the fiscal biennium. Collective bargaining agreements, except for supplemental agreements, are negotiated with the Governor's office. Supplemental agreements on matters that uniquely affect employees in part of a bargaining unit may be negotiated with state agencies.
Compensation and fringe benefit provisions must be submitted to the Legislature for approval. The provisions are considered approved if the Legislature fails to act by March 31. If the Legislature rejects the provisions, either party may reopen all or part of the agreement. The agreement may also be reopened if a significant revenue shortfall occurs.
Grievances. Agreements must provide for final and binding arbitration of grievances arising under the agreement.
Right to strike. The right to strike is granted to non-essential employees if: (1) the employees are represented by a certified exclusive bargaining representative; (2) the employer and the bargaining representative have not mutually agreed to submit the dispute to final and binding arbitration; (3) the parties have participated in good faith mediation; and (4) the employees have given 10 days' notice of the strike. A strike may not restrict access to the workplace for essential employees.
Binding interest arbitration. Final and binding interest arbitration is authorized for essential employees (any employee performing functions so essential that the interruption of the function would constitute a clear and present danger to the health and safety of the state). Essential employees are not permitted to strike.
Rights of employees and management. Classified employees have the right to self-organization, to join employee organizations, to bargain collectively, and to engage in other lawful activities for mutual aid and protection, or to refrain from such activities except for a fee requirement under a union security provision.
The employer has the right to carry out the statutory mandates and goals of an agency and is not required to bargain over matters of inherent management policy.
Union security. Union shop fees are required as a condition of employment upon designation of an exclusive bargaining representative. However, employees may request that any part of the fee that represents expenditures for purposes other than collective bargaining be rebated, and persons asserting a right of nonassociation may designate their fee for a program within the employee organization that is in harmony with their conscience.
Representation. SERC certifies exclusive bargaining representatives and conducts representation elections. The commission must certify an employee organization as the exclusive bargaining representative when the organization shows uncontested proof that it represents a majority of the employees. SERC may require an election if proof of representation is not satisfactory, or if an employee organization shows proof of at least 30 percent representation in the bargaining unit.
Bargaining units. SERC also determines bargaining unit disputes. No bargaining unit may contain both supervisors and non-supervisory employees, or employees from more than one institution of higher education. Employees from an old bargaining unit may not be included as part of a new one unless the employees vote to be included.
Unfair labor practices. Unfair labor practices for employers and exclusive bargaining representatives are enumerated. SERC is authorized to determine unfair labor practice complaints. Complaints must be filed within six months of the unfair labor practice.
Effective dates. The Governor must appoint the members of SERC by January 1, 1990. The new collective bargaining chapter takes effect January 1, 1990.
The elimination of the Higher Education Personnel Board and the Personnel Appeals Board, along with the consolidation of state personnel systems, occurs on July 1, 1991.
PART II: PERSONNEL ADMINISTRATION
Governance. The Director of Personnel is appointed by and serves at the pleasure of the Governor, subject to Senate confirmation.
Exempt positions. The list of statutorily exempt employees is expanded in agencies of 50 or more employees to include deputy agency heads, assistant or division directors, and not more than three policy assistants who report directly to an agency head or deputy agency head.
The four-year limit on the right of reversion to civil service status is eliminated. If an employee is fired for gross misconduct or malfeasance, that employee is denied the right of reversion.
Step increases for exempt positions whose salaries are set by the Personnel Board are to be granted only if specifically approved in writing by the employee's agency head.
Career executive. The Career Executive Program is expanded to include 2 percent of all state civil service employees.
Benefits. Exempt personnel in the executive branch who are not covered by the Fair Labor Standards Act are no longer eligible to receive overtime or compensatory time, and their vacation and sick leave are to be governed by Merit System Rules.
The Department of Personnel is directed to review overtime, compensatory time, and sick and vacation leave policies for all exempt personnel and all executive branch agencies. DOP will report its findings by January 1, 1990.
Effective dates. The provisions dealing with the Governor's appointment authority, expansion of statutory exempt positions and the career executive program, step increases for exempt employees, and reversion rights take effect July 1, 1990 only if none of the sections of the act pertaining to collective bargaining are vetoed.
The section directing DOP to study overtime and other benefits takes effect immediately.
AMENDED BILL COMPARED TO SUBSTITUTE: The following provisions are removed from the substitute bill: a) abolishing the State Personnel Board and transferring its appeals powers to the Personnel Appeals Board and its rule-making powers to the Director, b) adding six exempt positions to the Department of Personnel, c) creating a management performance recognition program with annual bonus payments for certain outstanding managers, d) increasing the number of names referred on registers to hiring agencies for managers' positions and for reemployment after layoff, and e) extending the probation period for classified employees.
Provisions are added, along with effective dates, that: a) expand, describe, or facilitate collective bargaining for classified state employees, b) establish the State Employees' Relations Commission and prescribe its duties, and c) consolidate the two personnel systems by abolishing the Higher Education Personnel Board and Personnel Appeals Board. The remaining provisions dealing with the Governor's appointment authority, expansion of exempt positions and the career executive program, step increases for exempt employees, and reversion rights take effect July 1, 1990 only if none of the sections of the bill pertaining to collective bargaining are vetoed.
CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS: None.
Fiscal Note: Requested March 30, 1989.
Effective Date:The bill contains an emergency clause and section 80 takes effect immediately. Sections 1 through 21 take effect January 1, 1990. Sections 74 through 79, 81, and 82 take effect July 1, 1990. The remainder of the bill takes effect July 1, 1991.
House Committee ‑ Testified For: (Testified for personnel administration provisions before State Government Committee) K. Collins Sprague, Association of Washington Business; Wendy Holden, Department of General Administration; and Joe Dear, Department of Labor & Industries.
(Testified for collective bargaining provisions before Commerce & Labor Committee) Gary Moore, Washington Federation of State Employees; Eugene St. John, Washington Public Employees Association; and other persons listed on Commerce & Labor bill report.
(Appropriations) Gary Moore, Washington Federation of State Employees.
House Committee - Testified Against: (Testified against personnel administration provisions before State Government Committee) Gary Moore, Washington Federation of State Employees; and Eugene St. John, Washington Public Employees Association.
(Testified against collective bargaining provisions before Commerce & Labor Committee) Listed on Commerce & Labor bill report.
(Appropriations) None Presented.
House Committee - Testimony For: (Testimony for personnel administration provisions before State Government Committee) The bill is about accountability, flexibility, efficiency and effective management. To users at all levels, the personnel system appears separate from its function: to aid delivery of quality service.
(Testimony for collective bargaining provisions before Commerce & Labor Committee) The state's procedure for setting state salaries is not equitable or credible. By expanding the scope of collective bargaining, state employees would have an opportunity to take part in the salary setting process.
(Appropriations) The current process for setting salaries of state employees is not equitable and does not allow opportunities for employee participation. Collective bargaining would provide those opportunities.
House Committee - Testimony Against: (Testimony against personnel administration provisions before State Government Committee) Before a full-scale reorganization, problems in the system must be identified, and they have not been. This sends an improper message to state employees and represents a return to the spoils system.
(Testimony against collective bargaining provisions before Commerce & Labor Committee) Although expanding the scope of collective bargaining may be a remedy for the salary setting process, the proposed bill does not provide a workable solution.
(Appropriations) None Presented.