Agenda Item 7.1
November 23, 20lO
Introduction
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
I
/
n
Robert H. Drummer, Senior Legislative AttomeYiW
Introduction:
Expedited Bi1l57-lO, Personnel- Collective Bargaining - Impasse
Procedures
Expedited Bill 57-lO, Collective Bargaining - Impasse Procedures, sponsored by Council
Vice President Ervin, Council President Floreen, and Councilmembers Andrews, Berliner,
EIrich, and Knapp, Navarro, Trachtenberg, and Leventhal, is scheduled to be introduced on
November 23, 20lO. A public hearing is tentatively scheduled for December 7 at 1:30 p.m.
All 3 County collective bargaining laws resolve an impasse through final offer by
package arbitration where the arbitrator selects the entire final offer covering all disputed issues
submitted by one of the parties. The arbitrator is a private sector labor professional jointly
selected by the Executive and the union. Bill 57-lO would modify the criteria for an impasse
neutral or mediator/arbitrator to evaluate before issuing an arbitration award.
Under current law, the arbitrator makes an award after considering 6 factors, including
the County's ability to pay as only one of the 6 factors. The law does not require the arbitrator to
place greater weight on anyone of the 6 factors and does not require the arbitrator to consider all
6 of the factors. For example, an arbitrator is free to value a union's comparison with higher
wages and benefits paid by another public employer greater than the County's financial ability to
match them. Bill 57-lO would require the arbitrator to evaluate and give the highest priority to
the County's ability to pay for economic provisions before considering the other 5 factors. A
copy of Council Vice President Ervin's memorandum explaining the need for this Bill is at ©10.
This packet contains:
Expedited Bill 57-lO
Legislative Request Report
Council Vice President Memorandum
Circle
#
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Expedited Bill No.
_~57~-...:.;1O~
_ _ __
Concerning: Personnel
Collective
Bargaining - Impasse Procedures
Revised: November
22. 2010
Draft No.
--=.9~-.--_-:---=-:--=-::-:-=
_ _
Introduced:
November
23.2010
Expires:
May
23.2010
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
_N~o~n~e~
_ _ _ _ __
Ch, _ _ Laws of Mont. Co. _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council Vice President Ervin, Council President Floreen, and Councilmembers Andrews,
Berliner, EIrich, Knapp, Navarro, Trachtenberg, and Leventhal
AN EXPEDITED ACT
to:
(1)
modify the criteria for an impasse neutral and a mediator/arbitrator to evaluate
before issuing an arbitration award; and
(2)
generally amend County collective bargaining laws.
By amending
Montgomery County Code
Chapter 33, Personnel and Human Resources
Sections 33-81,33-108, and 33-153
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
*
* *
Heading or defined term
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law uncif.fected by bill.
The County Council for Montgomery County, Maryland approves the following Act.'
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EXPEDITED BILL NO.57-10
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Sec. 1. Sections 33-81,33-108, and 33-153 are amended as follows:
33-81.
Impasse procedure.
*
(b) (1 )
*
*
During the course of collective bargaining, either party may
declare an impasse and request the services of the impasse
neutral. If the parties have not reached agreement by January 20,
an impasse [shall be deemed to exist] exists.
*
(5)
*
*
On or before February 1 [or prior thereto], the impasse neutral
[shall] must select, as a whole, the more reasonable, in the
impasse neutral's judgment, of the final offers submitted by the
parties.
(A) The Impasse neutral [may take into account only the
following factors] must first evaluate and give the highest
priority to the ability of the County to
ill!Y.
for additional
short-term and long-term expenditures
Qy
considering:
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ill
Oi)
the limits on the County's ability to raise taxes
under State law and the County Charter;
the added burden on County taxpayers, if any.,
resulting from increases in revenues needed to fund
~
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fmal offer; and
(iii) the County's ability to continue to provide the
current standard of all public services.
an
After e'Yaluating the ability of the County to
ill!Y.
under
subparagraph
®
the impasse neutral may only consider:
ill
the interest and welfare of County taxpayers and
service recipients;
-&
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ExPEDITED BILL NO.57-10
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[a.] (ii) [Past] past collective bargaining contracts between
the parties, including the (past] bargaining history
that led to [such contracts, or the pre-collective
bargaining history of employee wages, hours,
benefits and working conditions] each contract;
[b.] (iii) [Comparison]
~
comparison of wages, hours,
benefits.,. and conditions of employment of similar
employees of other public employers in the
Washington Metropolitan Area and in Maryland;
[c.] (iv) [Comparison]
~
comparison of wages, hours,
benefits.,. and conditions of employment of other
Montgomery County (personnel] employees; and
[d.]
(y)
[Wages] wages, benefits, hours and other working
conditions
of similar
employees
of private
employers in Montgomery County[;]
[e.
[f.
The interest and welfare of the public;]
The ability of the employer to fmance economIC
adjustments and the effect of the adjustments upon the
normal standard of public services by the employer].
(6)
The impasse neutral [shall] must:
(A)
not compromise or alter the fmal offer that he or she
selects; [. Selection of]
.an
!£)
select an offer [shall be] based on the contents of that offer;
[. No consideration shall be given to, nor]
not consider or receive [shall] any evidence or argument
[be received] concerning the history of collective
bargaining in this immediate dispute, including offers of
(j)
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EXPEDITED BILL NO.S7-10
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settlement not contained in the offers submitted to the
impasse neutral; and [.
shall]
CD)
consider all previously agreed [upon] on items integrated
with the specific' disputed items to determine the single
most reasonable offer.
However, the impasse neutral
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33-108.
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Bargaining, impasse, and legislative procedures.
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(f)
( 1)
If binding arbitration is invoked, the mediator/arbitrator must
require each party to submit a final offer, which must consist
either of a complete draft of a proposed collective bargaining
agreement
or
a
complete
package
proposal,
as
the
mediator/arbitrator directs. If only complete package proposals
are required, the mediator/arbitrator must require the parties to
submit jointly a memorandum of all items previously agreed
on.
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(4)
In
making a
*
determination
*
under this
subsection,
the
mediator/arbitrator [may consider only the following factors]
must first evaluate and give the highest priority to the ability of
the County to
~
for additional short-term and long-term
expenditures
Qy
considering:
CA)
the limits on the County's ability to raise taxes under State
law and the County Charter;
@
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EXPEDITED BILL
NO.57-10
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an
(Q
the added burden on County taxpayers, if any, resulting
from increases in revenues needed to fund
!!
[mal offer;
and
the County's ability to continue to provide the current
standard of all public services.
(5)
After evaluating the ability of the County to
p!!y
under paragraph
(11
the mediator/arbitrator may only consider:
(A)
the interest and welfare of County taxpayers and service
recipients;
[(A)]
ill)
[Past] past collective bargaining agreements between
the parties, including the past bargaining history that led
to [the agreements, or the pre-collective bargaining
history of employee wages, hours, benefits, and working
conditions] each
agreementr.]~
[(B)]
{g
[Comparison]
!!
comparison of wages, hours, benefits,
and conditions of employment of similar employees of
other public employers in the Washington Metropolitan
Area and in Maryland [
.]~
[(C)] (D) [Comparison]
!!
comparison of wages, hours, benefits,
and conditions of employment. of other Montgomery
County [personnel] employees[.]
~
and
[(D)] (ID [Wages] wages, benefits, hours, and other working
conditions of similar employees of private employers in
Montgomery County.
[(E)
(F)
The interest and welfare of the pUblic.
The ability of the employer to finance economIC
adjustments, and the effect of the adjustments upon the
o
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ExPEDllED BILL
NO.S7-10
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nonnal standard of public services provided by the
employer.]
®
The offer selected by the mediator/arbitrator, integrated with all
previously agreed on items, is the final agreement between the
employer and the certified representative, need not be ratified
by any party, and has the effect of a contract ratified by the
parties under subsection (c).
The parties must execute the
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agreement, and any provision which requires action in the
County budget must be included in the budget which the
employer submits to the County Council.
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33-153.
*
*
*
*
Bargaining, impasse, and legislative procedures.
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(i)
On or before February 1, unless that date is extended by written
agreement of the parties, the impasse neutral must select the final
offer that, as a whole, the impasse neutral judges to be the more
reasonable.
ill
In determining which final offer is the more reasonable, the
impasse neutral [may consider only the following factors] must
first evaluate and give the highest priority to the ability of the
County to
~
for additional short-tenn and long-tenn
expenditures
Qy
considering:
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CA)
the limits on the County's ability to raise taxes under State
law and the County Charter;
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ill)
the added burden on County taxpayers, if any, resulting
from increases in revenues needed to fund
f!
final offer;
and
®
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EXPEDITED BILL NO.57-10
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!£)
the County's ability to continue to provide the current
standard of all public services.
ill
After evaluating the ability of the County to
~
under paragraph
ill
the impasse neutral may only consider:
CA)
the interest and welfare of County taxpayers and service
recipients;
[(1)]
@
past collective bargaining agreements between the
parties, including the past bargaining history that led to
[the agreements, or the pre-collective bargaining history
of employee wages, hours, benefits, and working
conditions] each agreement;
[(2)]
(g
wages, hours, benefits and conditions of employment
of similar employees of other public employers in the
Washington Metropolitan Area and in Maryland;
[(3)]
CD)
wages, hours, benefits, and conditions of employment
of other Montgomery County employees; and
[(4)]
ill}
wages, benefits, hours, and other working conditions
of
similar
employees
of
private
employers
III
Montgomery County[;
(5)
(6)
the interest and welfare of the public; and
the ability of the employer to finance economic adjustments, and
the effect of those adjustments upon the normal standard of
public services provided by the employer).
*
Sec.2. Effective Date.
*
*
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
t:rJ
V
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ExPEDITED Bill NO.57-10
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becomes law.
Approved:
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Nancy Floreen, President, County Council
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Date
Approved:
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Isiah Leggett, County Executive
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Date
This is a correct copy ofCouncil action.
168
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 57-10
Personnel- Collective Bargaining -Impasse Procedures
DESCRIPTION:
The Bill would modifY the criteria that must be evaluated by the
impasse neutral or mediator/arbitrator before issuing an award
resolving a collective bargaining impasse.
Current law lists 6 factors for the impasse neutral to consider without
giving greater weight to any of them. The County's ability to pay is
not given enough emphasis in these factors.
To clarifY that an impasse neutral or mediator/arbitrator should give
the highest priority to the County's ability to pay for economic
provisions in a collective bargaining agreement when issuing an
arbitration award. The goal is to encourage the parties to resolve
impasses through negotiation rather than arbitration.
Office of Human Resources
To be requested.
To be requested.
To be requested.
To be researched.
Robert H. Drummer, 240-777-7895
Not applicable.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITmN
MUNICIPALITIES:
PENALTIES:
None.
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MONTGOMERY COUNTY COUNCIL
ROCKVILLE, MARYLAND
VALERIE ERVIN
COUNCILMEMBER
DISTRICT 5
M.EMORANDtJM
November
19,2010
TO:
FROM:
Councilmembers
\A/
Valerie Ervin, CouncH'Vice President
SUBJECT:
Bill
to Prioritize Collective Bargaining Impasse Factors
There are three separate laws that govern the County's collective bargaining with the
unions representing police, firefighters, and general govemment employees. All resolve an
impasse through arbitration where the arbitrator selects the entire final offer submitted by either
the County or the lU110n.
Under current law, the arbitrator makes an award after considering
six
factors.
These
inc1ude: past contracts and bargaining history; the wages, hours, benefits,
and
conditions of
employment of other County employees, public employees in the region
and
the
State,
and the
County's private sector; and the County's ability to pay for any changes. The current law gives
none of these factors greater weight than
any
other.
The FYI1 budget we approved
in
May, and the six-year balanced fiscal plan we
approved in June, are stark reminders of the severe short-tenn and long-term budget
pressmes
the County faces. An arbitrator's assessment affinal competing offers should be grounded in
this reality. I
will
introduce the attached bill to require
an
arbitrator to give the highest priority to
the County's ability to pay. The arbitrator then must evaluate other factors such
as the
interest
and welfare of County taxpayers and service recipients.
As one with more than a quarter century on the fi.-ont lines of the labor movement, I am
deeply committed to fairness for County employees. But fairness also requires that the County
can afford to honor its labor contracts. It also requires equitable treatment for taxpayers and
service recipients. This bUI
will
help achieve these goals.
I
welcome all my colleagues
as
co­
sponsors.
Attachment
STELLA B. WERNER OFFICE BUIl.DING
100
MARYLAND AVENUE, ROCKVILLE, MARYLAN.D
208~O
240/777'7960
OR
2.40/777-7900 •
TTY
240/777'7914 • FAX 2.40/717-7989
WWW.MONTGOMERYCOUNTyr-.lO.GOV/COUNCIL