This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0550 - Collective Bargaining For Public Employees
L.R. NO. 2370-01
BILL NO. SB 550
SUBJECT: Labor, Employees and Employers
TYPE: Original
DATE: January 19, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue ($2,382,337)or ($3,691,626)or ($3,278,142)or
(Partial Net) ($23,332,337) ($59,966,626) ($64,621,892)
Road ($48,419) ($76,411) ($78,350)
Highway ($5,349) ($8,491) ($8,705)
Conservation
Commission ($49,495) ($76,715) ($78,664)
Insurance
Dedicated ($49,495) ($76,715) ($78,664)
Public Service
Commission ($49,495) ($76,715) ($78,664)
Total Estimated
Net Effect on All ($2,584,590)or ($4,006,673)or ($3,593,359)or
State Funds ($23,534,590) ($60,281.673) ($64,937,109)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 or $0 or $0 or
($20,950,000) ($56,275,000) ($61,343,750)
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Labor & Industrial Relations' (DOLIR) State
Board of Mediation (SBM) assume that this proposal would require their office
to assist in resolving disputes between public employees and public
employers.
SBM officials assumed that the start-up costs of administering public sector
collective bargaining in Missouri would be high initially due to
representation elections, but should stabilize after a few years.
SBM staff stated that they would request per diem costs for four (4) board
members plus expenses incurred in the performance of their duties under the
provisions of this proposal.
SBM would also request: one (1) General Counsel; one (1) Research Analyst II
to collect data and conduct studies relating to unionization trends in public
sector in Missouri and make comparisons to other states with public sector
labor laws, compile and maintain the list of mediators and arbitrators, and
collect the pay and benefit data as required by this proposal; one (1) Labor
Relations Specialist to assist in establishing labor-management cooperative
programs and evaluating their progress, researching grants available for the
labor-management cooperative programs, writing grant applications to develop
them, and assist in identifying problem areas and developing recommendations
presented to the board; four (4) Hearing Officers (Administrative Law Judges)
(ALJ's) to act as an ALJ to hear disputed issues of fact in representation
proceedings, take evidence and make recommendations to the Board (the
evidence, transcript and brief would be presented to the board members for a
final decision of the Board), receive cross training on the duties of the
investigators; four (4) Investigator II's to perform some of the same duties
as the Chairman with the exception of chairing board hearings and
administrative duties, to communicate with the parties to determine if a
question of representation existed and if it could be resolved without a
hearing, and after the determination of the unit had been made and a formal
decision issued, the investigator would conduct the election (Objections to
the election would be appealed to the Board), investigate objections to
elections conducted by co-workers, receive cross-training on the duties of
hearing officers; one (1) Budget Analyst to develop the agency budget under
the direction of the Chairman, estimate fiscal impact of proposed
legislation, track budget expenditures and reconcile appropriated and actual
expenditures, attend legislative budget hearings with the Chairman; six (6)
Secretaries; and four (4) Clerk Typist II's. Expense and equipment and
rental space costs for additional FTE's would also be requested.
Officials of the Department of Labor & Industrial Relations stated they would
need 1.5 General Counsel FTEs, one Labor Relations Specialist, and one
Secretary along with related equipment and expense in order to implement
this proposal.
Office of Administration (OA) officials state that the staffing suggested for
sixteen (16) agencies under the jurisdiction of the Governor is predicated on
the assumption that OA would supply the primary representation to the
agencies for labor relations activity. OA might or might not supply primary
representation for the four (4) agencies that are headed by elected officials
and for the State Courts Administrator's Office. This would be decided by
the Governor and each elected official. Each agency would handle their own
day to day contract administration and grievance arbitration.
OA staff assumes that the Division of Personnel would handle all labor
relations matters before the State Board of Mediation (i.e., unit hearings,
election procedures, unfair practice proceedings) for all state agencies; act
as chief spokesperson representing all state agencies concerning wages,
fringe benefits; provide representation during contract negotiations;
coordinate training for state supervisors and managers; represent agencies
that would be involved in contract arbitrations; and coordinate labor
relations efforts for state agencies.
OA officials estimate that the Division of Personnel would need an additional
twenty-three (23) FTE. Estimates were based on staffing patterns established
in Iowa, Michigan and Ohio, where the central labor function has been
designated for state coordination.
Missouri state government currently has one Employee Relations Manager
dealing full-time with the seven unions which have eleven agreements. While
these eleven agreements affect over 22,000 state employees, these agreements
are not collectively bargained but are finalized by meet and confer.
OA staff assume that under collective bargaining, approximately 15,000 to
20,000 additional employees would unionize under the terms of this proposal,
bringing the total to approximately 40,000 employees eligible for collective
bargaining. Collective bargaining with mediation and arbitration would take
considerably more time. All salaries, fringe benefits and those matters
which have uniform applicability to all state employees would be negotiated
on a statewide basis under 36.510, RSMO.
Therefore, OA would request six (6) new Labor Relations Specialists and three
(3) support staff to work full-time and year around with the union business
representatives and management. The issues would be: who should be able to
be in a union or not; what should be in a labor contract and after the
contract is settled, how does it apply to each situation; and negotiations on
many other labor issues. OA would request one (1) Staff Attorney and one
(1) support staff to advise on legal matters, which would be many, to
present cases before the State Board of Mediation, contract arbitration cases
and the courts. The requested attorney would work for OA-General Counsel,
thereby being able to do background work on a year around basis.
OA would also request one (1) Budget Analyst to work out of the Division of
Budget and Planning and work with two (2) Personnel Analysts and one (1)
support staff on the cost of the union proposals. The other two (2)
requested Personnel Analysts and one (1) support staff would be following up
on requests that the union would demand like additional wage surveys and cost
as well as reclassification checks on hundreds of employees. The six (6)
Training Technicians would train the department trainers and the department
employees by giving classes on labor relations, correct grievance handling,
dealing with union stewards, and managing employees. After three years only
three trainers would be needed to continue the process.
OA officials stated that the cost estimates include one time equipment costs
for FY 1997 and consultant expenses for training and data processing
estimated to be $75,000 in FY 97 $50,000 in FY 98 and $25,000 in FY 99
Contract arbitrations are estimated to cost $40,000 annually beginning in FY
1998 (8 arbitrations x $5,000 each). Office rental to house 23 FTE would
also be included.
Local Government:
In response to a similar fiscal note, OA officials stated that by request of
the Oversight Subcommittee of the Committee on Legislative Research, OA had
prepared a response which estimated the fiscal impact that this proposal
would have on local units of government, and the effect that binding
arbitration would have on state and local personnel cost.
Local Units of Government:
OA officials stated that in 1985 and 1986 their office asked local units of
government what effect collective bargaining with binding arbitration would
have on their political subdivisions. The numbers used in this response are
the same numbers received in 1985 and 1986. Inflation costs have not been
added.
There are 3,100 governmental units in Missouri as identified by the U.S.
Census Bureau. With this many units it is not expected that all would
experience the same level of activity during the first year. Therefore, OA
will base their assumptions on the Iowa experience (1975 to 1980) and add the
Illinois experience (1983 to 1988) for this response.
There would be over 450 governmental units with over 1,200 labor contracts to
be negotiated in Missouri. It can be expected that 1,330 cases of one kind
or another would be processed, ranging from unit hearings to contract
negotiations to unfair practice complaints. It is assumed that
administrative, legal and bargaining costs would average $10,000 for each of
these actions. The $13,300,000 costs incurred could be borne by the State
beginning July 1, 1997.
Assuming that each bargaining unit had three (3) grievance arbitration cases
per year, and the average cost per case is $10,000, the cost would be
($10,000 X 3 cases X 1200 contracts) $36,000,000. Arbitrations have a cost
range of $3,000 to $20,000.
It can also be expected that all the governmental bodies that had a labor
union would seek and/or participate in training programs for their elected
officials, and managerial and supervisory staffs. OA officials estimate that
$2,000 would be spent on an average by each governmental unit during the
first year to learn how to cope with the impact of the proposal. There would
be a cost of $500 per year for each unit of government that has a labor union
to continue to update their employees in labor relations.
It was also assumed that the governmental bodies would either hire staff or
employ consultants or counsel to advise them on a continuing basis on labor
relations issues. OA has identified a cost of $3,000 to $50,000 with a
$15,000 average annual cost for the staff or consulting and have further
assumed that an average of one (1) person would be employed in 250 of the
largest units as permanent full-time even though this would increase
overtime.
1,330 cases x $10,000 = $13,300,000 each contract year
$2,000 (training cost) x 450 governmental units = $900,000 first year
$500 (training cost) x 450 governmental units = $225,000 each year after
first year
$15,000 (salary) x 450 governmental units = $6,750,000 each year
The cost of collective bargaining would be $20,950,000 the first year and
would be $20,275,000 each year after, plus inflation. Additionally, with
binding grievance arbitration, starting the second year and each year after,
there would be additional costs of $36,000,000 to local governments.
Without binding arbitration of grievances or contracts there would be no
grievance arbitration costs of $36,000,000 and the cost of the 1,330 cases
would be reduced to, perhaps, a total cost of under $20,000,000 for local
governments.
Effect of Collective Bargaining on State and Local Personnel Cost:
State governments and large city governments that have collective bargaining
that end with binding arbitration and/or the right to strike, as a rule,
settle their agreements, 1% to 1.1% higher than would be settled in
non-collective bargaining states like Missouri.
OA staff further assumes, for example, the current Governor has offered a pay
package which would cost Missouri 3% or $18,700,000 in general revenue plus
$17,700,000 in other funds, and if Missouri had collective bargaining, the
unions would ask for more and OA would settle for about 4%, and 1% more
equals $6,270,000 in general revenue plus $5,910,000 in other funds, or
negotiations would go to binding arbitration.
Department of Elementary and Secondary Education (DESE) officials assume that
the expenses of all arbitrations under Section 1 to 23 of this act would be
borne equally by the parties and the General Assembly would appropriate funds
to one agency, such as OA, to pay the cost of arbitration.
DESE officials state that their agency would handle negotiations/
arbitrations in concert with OA for a staff of 2,000 employees which includes
the 38 state schools for severely handicapped; the School for the Blind in
St. Louis; the School for the Deaf in Fulton; and 33 district offices for
vocational rehabilitation and disability determinations statewide.
DESE officials would request one (1) Director and one (1) Clerk Typist III
due to this proposal. There would be a one-time cost for equipment for FY
1996 only.
Local Cost
DESE officials state that there could be cost for local school districts.
Officials state that 150 school districts would need to hire consultants/
lawyers with expertise in union negotiations. They estimate that the average
cost of negotiations would be $20,000 x 150 districts for a cost of
$3,000,000. Officials estimate that 100 districts would experience disputes
that would require arbitration. Officials assume that the average cost of
arbitration would be $10,000 x 100 districts for an annual cost of
$1,000,000. Annual costs are estimated to increase 4.5%.
DESE officials state that this mandated increase in cost could require state
reimbursement under Article X, Section 21 of the Missouri State Constitution.
An argument could be made that increases in Foundation Program could be
considered as qualifying as paying for the increase in cost.
Missouri Department of Health (DOH) officials assume that contract
negotiations, implementing monitoring, grievances and arbitration would
request one (1) Labor Relations Specialist one (1) Personnel Officer I and
two (2) Clerk Typist II. DOH officials assume that there would be an average
of three (3) arbitrations annually at a cost of $750 per case, and that
training costs for 200 managers/supervisors would be $100 per person.
Department of Social Services (DOSS) officials stated that the costs for
staff and equipment and expenses are based on estimates from the Personnel
and Labor Relations Section. Additional staff would be used to facilitate
activities necessary for DOSS to comply with the provisions of the proposed
legislation. All staff and equipment costs were estimated using the standard
fiscal note guidelines. Costs for management training were based on 1,000
DOSS managers and supervisors at statewide DOSS offices. Based upon
discussions with the Office of Administration - Division of Personnel, it is
estimated that training cost would be $200 per manager for the first year and
$100 per manager in the second and third years.
DOSS interprets the wording in the proposed legislation as giving public
employees the grounds to take cases to arbitration when the bargaining agent
and employee believe the employer is in violation of the contract, or in
those cases where the parties disagree as to the appropriate interpretation
of the contract. The DOSS Labor Relations Specialist (existing) and staff
requested in association with this fiscal note are required to prepare and
defend most cases.
According to DOSS officials, the Office of Administration, Division of
Personnel advised that labor relations trends reflect an average of two
arbitration cases per year per 500 employees. DOSS currently has 6,034
employees eligible for membership in the bargaining unit, therefore, DOSS
officials project 24 arbitration cases per year. NOTE: Arbitration costs
would not be incurred until FY 98 and later.
DOSS officials estimate that the average cost of arbitration to be $6,550 per
case. This is based on sharing one-half of the cost of arbitration. 24
cases X $6,550 per case would be $157,200, the cost of arbitration beginning
July 1, 1997.
DOSS would request four (4) Personnel Officer II's and four (4) Clerk Typist
II's to implement this proposal.
Office of State Attorney General (AG) officials assume that their office
would need a "labor unit" to represent the State of Missouri in
certification, decertification and arbitration proceedings. AG staff assume
they would request two (2) Assistant Attorney General II's plus expense and
equipment and rental costs for those two requested FTE to represent the State
Board of Mediation and to defend claims against the state for violations of
this proposal.
Department of Natural Resources (DNR) officials reported that their personnel
department would require 3 FTE and that there would be additional costs for
training 450 managers/supervisors at an estimated cost of $100 per person x
450 people = $45,000; and mediation costs based on the assumption that there
would be twelve (12) mediations annually at a cost of $6,550 per mediation
with a total cost of $78,600. DNR would request one (1) Labor Relations
Specialist, one (1) Personnel Officer I and one (1) Clerk Typist II to
implement this proposal. Training and mediation expenses are reflected in
expense and equipment estimates.
Department of Public Safety (DPS) officials responded to a similar fiscal
note last session and reported that there would be costs involving
arbitration, training, and that one (1) Labor Relations Specialist, one (1)
Personnel Analyst and one Clerk Typist II would be requested.
DPS officials would assume: training costs of $100 per year for each
supervisory position (500 supervisors); travel costs for one conference a
year for two staff members at $1,000 per conference; and arbitration costs
for four arbitrations per year for every 1,000 unionized employees (assumed
2,000 unionized employees and $6,550 per arbitration).
Officials from the Missouri State Water Patrol they would need a Water Patrol
Sergeant and a .5 FTE Clerk Typist in order to implement this proposal.
Officials of the Department of Revenue (DOR) stated that they would request
one (1) Assistant Counsel in order to implement this proposal.
Department of Agriculture (DOA) officials assume that they would request one
(1) Labor Relations Specialist and one (1) Clerk Typist II due to this
proposal. DOA staff assume that education for the specialist and sixteen
individuals in pertinent key positions would commence as soon as possible.
In FY 97, forty-six (46) managers and supervisors would receive training and
in FY 98, five would receive training.
Missouri Highways and Transportation (DH&T) officials assume that future
unknown costs, such as court fees, arbitration fees, and the consequences
from binding arbitration would depend on employee actions and therefore
cannot be estimated. For example, there are 1,389 maintenance workers at an
average salary of $1,708. If an arbitrator decided that this classification
should be raised one monthly pay grade, to an average salary of $1,782, the
increased cost for one year would be $1,233,432. Pay increases, depending on
the job classification, would affect the Highway Road, Federal, and General
Revenue Funds. DH&T officials assume that they would request one (1) Labor
Relations Specialist, one (1) support staff (human resources), one (1)
Attorney and one (1) support staff (legal) due to this proposal.
Officials of the Missouri Department of Conservation (MDC) assume that they
would request one (1) Senior Labor Relations Specialist, one (1) Labor
Relations Specialist and one (1) Administrative Secretary as a result of this
proposal.
Officials of the State Tax Commission stated that a full collective
bargaining bill with binding arbitration could effect their agency, but they
could not determine the fiscal impact due to this proposal.
Officials of Central Missouri State University assume that they would request
one (1) Labor Relations Coordinator and one (1) Secretary to implement this
proposal.
Officials of the University of Missouri stated the cost to the University
would far exceed $100,000.
Missouri Western State College officials assume that they would request one
(1) Negotiator in addition to legal fees due to this proposal.
Officials of the Department of Insurance (DOI) assume that they would request
one (1) Labor Relations Specialist and one (1) Clerk Typist III as a result
of this proposal.
Officials of the State Courts Administrator (COURTS) assume the proposed
legislation would provide for collective bargaining for public employees.
COURTS staff stated that currently, employees of the judicial branch do not
have unions. It is not known if, as a result of this legislation, judicial
branch employees would organize. Administrative costs would increase if
employees were organized and, depending upon the facts in any year,
arbitration needs and costs could vary. Some training of administrative
staff would be necessary.
COURTS officials assume depending upon circumstances, it could be necessary
to add management staff to deal with collective bargaining. However, it is
not clear when or how much costs could increase. It is doubtful that
administrative costs to the judiciary as an employer would exceed $100,000
per year.
COURTS staff stated it is not possible to predict any increased payroll cost
which could occur as a result of or in connection with collective bargaining.
In terms of workload impact upon the courts, there is a potential for an
increase in litigation, depending upon how the proposal is implemented by the
large number of public employers.
If there is a significant increase in cases as a result of the proposal,
COURTS officials would expect a corresponding budget impact.
Officials from the Secretary of State stated they would need a Labor
Relations Specialist and a Clerk Typist II in order to implement this
proposed legislation.
The following offices, departments or agencies state that this proposal would
have no fiscal impact on their budgets; Governor, State Auditor, House of
Representatives, State Treasurer, Highways and Transportation Retirement
System, Missouri State Highway Patrol, Missouri Capitol Police, Missouri
Veterans Commission, State Emergency Management Agency, Southwest Missouri
State University, Missouri Gaming Commission, Coordinating Board for Higher
Education, Northeast Missouri State University, and the Department of
Labor-Division of Employment Security.
Officials of the Missouri Municipal League (MML) stated that the provisions
of this proposal would require significant expenditure of funds for labor
negotiators, attorneys, mediators, arbitrators, etc. For example, in 1993,
the City of Belleville, Illinois spent $46,000 for labor negotiators and
almost $20,000 for arbitration fees. MML officials noted that Article X,
Section 21 of the Missouri Constitution would require that the state
reimburse local governments or other political subdivisions for expenses
incurred as a result of this proposal.
St. Charles County believes this proposal would involve substantial cost for
the county. Additional staff time and possibly outside legal counsel would be
required to implement the legislation. Additional appropriations would be
required to fund monetary awards. The total cost to the county is unknown.
Greene County currently has two bargaining units. They believe they would
need to add one full-time staff person and overall personnel cost would be 2%
higher.
The City of Springfield believes this bill would result in continuing cost of
$175,000 to $200,000 including a full-time labor attorney.
The following offices, departments or agencies have not responded to the
request for fiscal note, therefore Oversight has based fiscal estimates for
these agencies per the recommendations of the Oversight Subcommittee on a
similar proposal (Labor Relations Specialist - $34,647; Clerk Typist II -
$16,750): Public Safety, Economic Development, Mental Health; Corrections;
Lottery Commission; Harris-Stowe State College; Lincoln University; Missouri
Southern State College; Northwest Missouri State University; Southeast
Missouri State University; State Fair Community College.
At a hearing of the Oversight Subcommittee held March 30, 1993, the
Subcommittee determined that the Fiscal Note for SB 333 with SCA's 1 and 2
from the 87th General Assembly, First Regular Session, be revised as follows:
1) the Office of Administration-Personnel request be reduced from 30 FTE to
9 FTE: 4 Labor Relations Specialists, 3 Staff Attorneys, 1 Paralegal
Assistant and 1 Clerk Stenographer III;
2) The Attorney General's request for 3 FTE for a "labor unit" within his
office be removed;
3) Each executive department and each public college and university be
allowed 2 FTE (a labor relations specialist and a clerical assistant)
for internal grievance resolution; and
4) The Public Employee Relations Board consist of 12 FTE as requested by
the current State Board of Mediation which would become the Public
Employee Relations Board.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(6 Mo.)
GENERAL REVENUE FUND
Cost-State Board of Mediation (SBM)
Personal Service (12 FTE) ($164,512) ($337,253) ($345,684)
Fringe Benefits (50,571) (103,672) (106,263)
Equipment and Expense (120,408) (140,960) (145,189)
_________ __________ __________
Total Cost to SBM ($335,491) ($581,885) ($597,136)
Cost-Office of Administration (OA)
Personal Service (9 FTE) ($144,423) ($296,066) ($303,468)
Fringe Benefits (44,397) (91,010) (93,286)
Equipment and Expense (173,422) (144,822) (110,680)
Contract Arbitrations 0 (40,000) (40,000)
Reimbursement to Local 0 0 0
Governments (Article 10 or or or
Section 21 State
Constitution) (20,950,000) (56,275,000) (61,343,750)
Total Cost to OA ($ 362,242) ($ 571,898) ($ 547,434)
or or or
($21,312,242) ($56,846,898) ($61,343,750)
Cost-Department of Elementary and Secondary Education (DESE)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DESE ($49,495) ($76,715) ($78,664)
Cost-Department of Mental Health (DMH)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DMH ($49,495) ($76,715) ($78,664)
Cost-Department of Corrections (DOC)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DOC ($49,495) ($76,715) ($78,664)
Cost-Department of Economic Development (DED)
Personal Service (2 FTE) ($26,340) ($53,999) ($53,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DED ($49,495) ($76,715) ($78,664)
Cost-Department of Health (DOH)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DOH ($49,495) ($76,715) ($78,664)
Cost-Department of Natural Resources (DNR)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DNR ($49,495) ($76,715) ($78,664)
Cost-Department of Public Safety (DPS)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DPS ($49,495) ($76,715) ($78,664)
Cost-Department of Social Services (DOSS)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DOSS ($49,495) ($76,715) ($78,664)
Cost-State Public Colleges/Universities
Personal Service (20 FTE) ($ 279,585) ($ 573,149) ($ 587,478)
Fringe Benefits (89,944) (176,186) (180,591)
Equipment and Expense (60,125) (124,458) (128,192)
Arbitration Costs (100,000) (100,000) (50,000)
Consultation/Training Costs (20,000) (20,000) 0
Initial Contact Negotiations
(4-year institutions) 0 (280,000) 0
Reimbursement to 12 Community
Colleges (Article 10,
Section 21 State Constitution) (540,000) (396,900) (400,671)
Cost to State Public Colleges/
Universities* ($1,089,654) ($1,670,693) ($1,346,932)
* State Public Colleges/Universities figures are from a 1992 response on
collective bargaining.
Cost-Department of Agriculture (DOA)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DOA ($49,495) ($76,715) ($78,664)
Cost-Department of Revenue (DOR)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DOR ($49,495) ($76,715) ($78,664)
Cost-State Courts Administrator (COURTS)
COURTS officials assume that administrative costs to the judiciary as an
employer would not exceed $100,000 per year.
PARTIAL ESTIMATED NET EFFECT
TO GENERAL REVENUE FUND ($2,382,337) ($3,691.626) ($3,278,142)
or or or
($23,332,337) ($59,966,626) ($64,621,892)
STATE ROAD FUND
Cost-Missouri State Highways and Transportation (DH&T)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (12,090) (24,786) (25,405)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DH&T* ($53,488) ($84,902) ($87,055)
* 90% of the cost would come from the State Road Fund and 10% would come from
the Highway Fund.
*ESTIMATED NET EFFECT TO
STATE ROAD FUND (90% of
Cost-DH&T) ($48,139) ($76,411) ($78,350)
*HIGHWAY FUND
(10% of Cost-DH&T)
*ESTIMATED NET EFFECT TO
HIGHWAY FUND ($5,349) ($8,491) ($8,705)
CONSERVATION COMMISSION FUND
Cost-Missouri Department of Conservation (MDC)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to MDC ($49,495) ($76,715) ($78,664)
ESTIMATED NET EFFECT TO
CONSERVATION COMMISSION FUND ($49,495) ($76,715) ($78,664)
INSURANCE DEDICATED FUND
Cost-Department of Insurance (DOI)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to DOI ($49,495) ($76,715) ($78,664)
ESTIMATED NET EFFECT TO
INSURANCE DEDICATED FUND ($49,495) ($76,715) ($78,664)
PUBLIC SERVICE COMMISSION FUND
Cost-Department of Economic Development
Public Service Commission (PSC)
Personal Service (2 FTE) ($26,340) ($53,999) ($55,349)
Fringe Benefits (8,097) (16,599) (17,014)
Equipment and Expense (15,058) (6,117) (6,301)
Cost to PSC ($49,495) ($76,715) ($78,664)
ESTIMATED NET EFFECT TO PUBLIC
SERVICE COMMISSION FUND ($49,495) ($76,715) ($78,664)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(6 Mo.)
Income-Local Governments
(not including school districts)
Reimbursement from General $ 0 $ 0 $ 0
Revenue or or or
$20,950,000 $56,275,000 $61,343,750
Cost-Local Governments
(not including school
districts) ($20,950,000) ($56,275,000) ($61,343,750)
NET EFFECT ON LOCAL GOVERNMENTS
(not including school districts) $ 0 $ 0 $ 0
or or or
($20,950,000) ($56,275,000) ($61,343,750)
Income-Community Colleges
Reimbursement from General $ 0 $ 0 $ 0
Revenue or or or
$ 540,000 $ 396,900 $ 400,671
Cost-Community Colleges
Personal Service (12 FTE), Fringe
Benefits, Equipment and Expense $ 300,000 $ 396,900 $ 400,671
Initial Contract Negotiations 240,000 0 0
Cost-Community Colleges ($ 540,000) ($ 396,900) ($ 400,671)
NET EFFECT ON 12 COMMUNITY
COLLEGES $ 0 $ 0 $ 0
or or or
($540,000) ($396,000) ($400,671)
Income-School Districts
There could be reimbursement from General Revenue for all local costs, but
DESE staff stated that as long as the state is increasing appropriations into
the state's Foundation Program, a case could be made that is the state's way
of paying for these increased costs. DESE did not assume that all costs
would be reimbursed for that reason and because there has been no court case
settling this issue.
Cost-School Districts
Consultants $ 0 $3,000,000 $3,000,000
Arbitration Cost 0 1,000,000 1,000,000
Cost-School Districts $ 0 ($4,000,000) ($4,000,000)
DESCRIPTION
This act provides for bargaining in good faith for public employees.
This act defines certain terms as they relate to collective bargaining.
Employees, except the Missouri National Guard and teachers in colleges and
universities, shall have the right to form and join labor unions. A public
body, as defined in the act, is required to bargain collectively in good
faith when presented with a proposal dealing with terms and conditions of
employment. The State Board of Mediation shall determine the bargaining unit
by referring to federal guidelines. The Board shall also conduct a secret
ballot election, if at least thirty percent of a unit's public employees so
petition, to determine if employees of that unit want an exclusive bargaining
representative. Any bargaining representative chosen must file copies of its
constitution and bylaws with the Board. The Board may invalidate a secret
ballot election in certain instances.
The act allows for coordinated bargaining by two or more units where the
focus of the bargaining impacts both units in the same way. A unit of public
employees may also decertify a representative by petition. This act requires
the Board to investigate any allegations made in a petition and to notify
interested public employees of the receipt of such petition. This act shall
not affect any collective bargaining agreement entered into prior to the
effective date of this act. The Board of Mediation shall adopt rules and
regulations pertaining to various procedures. None of these rules shall
become effective until approved by the Joint Committee on Administrative
Rules. Even if a rule is adopted, it may later be suspended by the General
Assembly.
The act allows public employees to refuse to participate in an employee
organization's activities, except that these employees must pay certain fees
necessitated by agreements between the public body and employee organization.
PROHIBITIONS AGAINST STRIKES - It shall be unlawful for public employees to
strike. If a strike occurs, the public body or any citizen within the public
body's jurisdiction may seek injunctive relief. It shall also be unlawful
for a public body or its officials to authorize, consent to or condone an
illegal strike. Failure to comply with a court injunction shall constitute
contempt. If an employee organization or any of its officers are held in
contempt, the employee organization shall immediately be decertified as the
exclusive bargaining representative. The court may suspend or modify such a
penalty. Any public employee who strikes shall be guilty of a Class A
misdemeanor.
NEGOTIATIONS - This act defines certain terms as they relate to negotiation
of disputes between a public body and an exclusive bargaining representative.
A representative must request negotiations in writing by September 1 for
collective bargaining agreements that take effect on July 1 of the next year.
If no agreement is reached by January 1, either party may request
mediation. The parties shall mutually agree to a mediator or a mediator
shall be selected by the State Board of Mediation. If no agreement or a
partial agreement is reached by January 21, either party shall submit the
unresolved issues to arbitration. In arbitration, each party shall submit
final offers on each item in dispute. For each item, the arbitrator will
choose between the public body's final offer and the representative's final
offer and incorporate these into the final agreement. In making his
determinations, the arbitrator shall consider various factors. All final
agreements shall contain a procedure to resolve grievances arising under the
agreement. If any provision of a collective bargaining agreement conflicts
with the state personnel law, the terms of the agreement will prevail. The
agreement shall remain in effect until superseded by a new agreement. Any
portion of an agreement that requires public funds or is in conflict with a
local ordinance will only take effect upon approval by the public body.
PUBLIC EMPLOYEES EXCLUDED FROM ACT - Certain public employees shall be
excluded from the provisions of this act including elected officials, public
officers and legislative personnel, students working part-time, temporary
employees, judges, and inmates employed by the state.
POWERS OF PUBLIC BODY IN ABSENCE OF COLLECTIVE BARGAINING AGREEMENT - If not
limited by the provisions of a collective bargaining agreement, a public body
may:
1) Direct, hire and fire public employees;
2) Determine qualifications for employment; and
3) Take any actions necessary in emergencies to carry out
that body's mission.
POWERS OF PUBLIC EMPLOYEES - Public employees may:
1) Organize, form, or assist any exclusive bargaining representative;
2) Negotiate collectively;
3) Engage in any other activities for bargaining or other protection not in
violation of this act or any other law.
PUBLIC BODY PROHIBITED FROM REFUSING TO BARGAIN IN GOOD FAITH - Public bodies
may not:
1) Interfere with or restrain public employees from exercising their rights
under this act;
2) Interfere in the work of any representative;
3) Encourage or discourage membership in any employee organization through
discrimination;
4) Refuse to collectively negotiate; and
5) Refuse to reduce a collective bargaining agreement to writing.
EXCLUSIVE BARGAINING REPRESENTATIVE- PROHIBITED PRACTICES -
Exclusive bargaining representatives may not:
1) Interfere with any public employee with respect to any of his rights
under this act; and
2) Refuse to bargain collectively with the public body.
A complaint alleging any of the above violations shall be filed with the
Board of Mediation within six months of the alleged violation. The Board may
investigate the charge and conduct a hearing. If the Board finds that the
accused party has committed a prohibited practice, the Board may order that
party to cease and desist such practice and may order affirmative relief.
All Board decisions are subject to judicial review. Such review will go
directly to the appellate court. Any order or decision of the Board may be
modified, reversed or set aside if:
1) The Board acts without or in excess of its authority;
2) The order was procured by fraud;
3) The facts found by the Board do not support the order; or
4) The order is not supported by substantial evidence on the record.
CERTAIN ITEMS EXCLUDED FROM CATEGORY OF PUBLIC RECORD - The following are not
within the definition of public records:
1) Discussions between executive officers and the
legislative body of the public body related to collected bargaining;
2) Certain collective bargaining negotiations; and
3) All work products developed by the public body in preparing for
negotiations and during negotiations.
STANDING TO SUE - Any employee organization and public body may sue or be
sued under this act. Any notice required under this act shall be in writing.
SEVERABILITY OF ACT - The provisions of this act shall be severable if any
are declared unconstitutional.
The act has an effective date of January 1, 1997.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of Administration
Department of Agriculture
Department of Conservation
Department of Natural Resources
Department of Elementary and Secondary Education
Department of Health
Department of Public Safety
Department of Higher Education
State Highway and Transportation Department
Department of Insurance
Department of Labor and Industrial Relations
Department of Revenue
Department of Social Services
State Courts Administrator
State Tax Commission
Missouri State Highway Patrol
Highway Department and Highway Patrol Employees Retirement System
House of Representatives
Secretary of the Senate
State Auditor
Attorney General
Governor
State Treasurer
St. Charles County
Southwest Missouri State University
Missouri Veterans Commission
Missouri Western State College
Missouri Gaming Commission
Central Missouri State University
Greene County
City of Springfield
Northeast Missouri State University
University of Missouri
Not Responding: Department of Economic Development, Department of Mental
Health, Department of Corrections, Department of Public Safety, Lottery
Commission, Harris-Stowe State College, Lincoln University, Missouri Southern
State College, Northwest Missouri State University, Southeast Missouri State
University, State Fair Community College