SB564: Bill Text

SB564,,3 Analysis by the Legislative Reference Bureau

Under current law, the only subject that most state and municipal employees may collectively bargain over is a percentage increase in base wages that does not exceed the percentage increase in the consumer price index. This bill removes that limitation so that state and municipal employees may bargain over any increase in wages.

Also, under current law, certain protective occupation participants under the Wisconsin Retirement System, known as public safety employees, and certain municipal transit employees may collectively bargain wages, hours, and conditions of employment. Under the bill, most state and general municipal employees may collectively bargain hours and conditions of employment.

The bill also allows all municipal employers and labor organizations to agree to a dispute settlement procedure, including binding interest arbitration, to resolve an impasse over the terms of a collective bargaining agreement under the Municipal Employment Relations Act.

Under current law, representatives for most municipal and state employee bargaining units must be selected by at least 51 percent of the employees in the bargaining unit. The bill changes that requirement to a simple majority of the employees voting in the collective bargaining unit.

Finally, under current law, representatives for most municipal and state employee bargaining units must be certified annually by receiving at least 51 percent of the vote of the employees in the bargaining unit. The bill repeals this certification requirement.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

SB564,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB564,1 Section 1. 20.425 (1) (i) of the statutes is amended to read:

SB564,,6 20.425 (1) (i) Fees, collective bargaining training, publications, and appeals. The amounts in the schedule for the performance of fact-finding, mediation, certification, and arbitration functions, for the provision of copies of transcripts, for the cost of operating training programs under ss. 111.09 (3), 111.71 (5m) (5), and 111.94 (3), for the preparation of publications, transcripts, reports, and other copied material, and for costs related to conducting appeals under s. 230.45. All moneys received under ss. 111.09 (1) and (2), 111.70 (4) (d) 3. b., 111.71 (1) and (2), 111.83 (3) (b), 111.94 (1) and (2), and 230.45 (3), all moneys received from arbitrators and arbitration panel members, and individuals who are interested in serving in such positions, and from individuals and organizations who participate in other collective bargaining training programs conducted by the commission, and all moneys received from the sale of publications, transcripts, reports, and other copied material shall be credited to this appropriation account.

SB564,2 Section 2. 66.0506 of the statutes is repealed.

SB564,3 Section 3. 66.0508 of the statutes is repealed.

SB564,4 Section 4. 66.0509 (1m) of the statutes is repealed.

SB564,5 Section 5. 73.03 (68) of the statutes is repealed.

SB564,6 Section 6. 111.70 (1) (a) of the statutes is amended to read:

SB564,,12 111.70 (1) (a) “Collective bargaining” means the performance of the mutual obligation of a municipal employer, through its officers and agents, and the representative of its municipal employees in a collective bargaining unit, to meet and confer at reasonable times, in good faith, with the intention of reaching an agreement, or to resolve questions arising under such an agreement, with respect to wages, hours, and conditions of employment for public safety employees or transit employees and with respect to wages for general municipal employees, and with respect to a requirement of the municipal employer for a municipal employee to perform law enforcement and fire fighting services under s. 60.553, 61.66, or 62.13 (2e) and for a school district with respect to any matter under sub. (4) (n), except as provided in sub. (4) (mb) and (mc) and s. 40.81 (3) and except that a municipal employer shall not meet and confer with respect to any proposal to diminish or abridge the rights guaranteed to any public safety employees under ch. 164. Collective bargaining includes the reduction of any agreement reached to a written and signed document.

SB564,7 Section 7. 111.70 (1) (cm) of the statutes is repealed.

SB564,8 Section 8. 111.70 (3) (a) 5. of the statutes is amended to read:

SB564,,15 111.70 (3) (a) 5. To violate any collective bargaining agreement previously agreed upon by the parties with respect to wages, hours, and conditions of employment affecting public safety employees or transit municipal employees, including an agreement to arbitrate questions arising as to the meaning or application of the terms of a collective bargaining agreement or to accept the terms of such arbitration award, where previously the parties have agreed to accept such award as final and binding upon them or to violate any collective bargaining agreement affecting general municipal employees, that was previously agreed upon by the parties with respect to wages.

SB564,9 Section 9. 111.70 (3) (a) 7. of the statutes is created to read:

SB564,,17 111.70 (3) (a) 7. To refuse or otherwise fail to implement an arbitration decision lawfully made under sub. (4) (cm).

SB564,10 Section 10. 111.70 (3) (a) 7m. of the statutes is repealed.

SB564,11 Section 11. 111.70 (3) (b) 6. of the statutes is created to read:

SB564,,20 111.70 (3) (b) 6. To refuse or otherwise fail to implement an arbitration decision lawfully made under sub. (4) (cm).

SB564,12 Section 12. 111.70 (3) (b) 6m. of the statutes is repealed.

SB564,13 Section 13. 111.70 (4) (c) (title) of the statutes is amended to read:

SB564,,23 111.70 (4) (c) (title) Methods for peaceful settlement of disputes; public safety employees law enforcement and fire fighting personnel.

SB564,14 Section 14. 111.70 (4) (c) 1. of the statutes is renumbered 111.70 (4) (c) 1m. and amended to read:

SB564,,25 111.70 (4) (c) 1m. ‘Mediation.’ The commission may function as a mediator in labor disputes involving a collective bargaining unit containing a public safety employee. Such mediation may be carried on by a person designated to act by the commission upon request of one or both of the parties or upon initiation of the commission. The function of the mediator is to encourage voluntary settlement by the parties but no mediator has the power of compulsion.

SB564,15 Section 15. 111.70 (4) (c) 1g. of the statutes is created to read:

SB564,,27 111.70 (4) (c) 1g. ‘Applicability.’ This paragraph applies only to municipal employees who are engaged in law enforcement or fire fighting functions.

SB564,16 Section 16. 111.70 (4) (c) 2. of the statutes is amended to read:

SB564,,29 111.70 (4) (c) 2. ‘Arbitration.’ Parties to a dispute pertaining to the meaning or application of the terms of a written collective bargaining agreement involving a collective bargaining unit containing a public safety employee may agree in writing to have the commission or any other appropriate agency serve as arbitrator or may designate any other competent, impartial and disinterested person to so serve.

SB564,17 Section 17. 111.70 (4) (c) 3. (intro.) of the statutes is amended to read:

SB564,,31 111.70 (4) (c) 3. ‘Fact-finding.’ (intro.) Unless s. 111.77 applies, if a dispute involving a collective bargaining unit containing a public safety employee has not been settled after a reasonable period of negotiation and after the settlement procedures, if any, established by the parties have been exhausted, and the parties are deadlocked with respect to any dispute between them arising in the collective bargaining process, either party, or the parties jointly, may petition the commission, in writing, to initiate fact-finding, and to make recommendations to resolve the deadlock, as follows:

SB564,18 Section 18. 111.70 (4) (cg) of the statutes is repealed.

SB564,19 Section 19. 111.70 (4) (cm) (title) of the statutes is amended to read:

SB564,,34 111.70 (4) (cm) (title) Methods for peaceful settlement of disputes; general municipal employees other personnel.

SB564,20 Section 20. 111.70 (4) (cm) 1. of the statutes is renumbered 111.70 (4) (cm) 1m. and amended to read:

SB564,,36 111.70 (4) (cm) 1m. ‘Notice of commencement of contract negotiations.’ For the purpose of advising the commission of the commencement of contract negotiations involving a collective bargaining unit containing general municipal employees, whenever either party requests the other to reopen negotiations under a binding collective bargaining agreement, or the parties otherwise commence negotiations if no such agreement exists, the party requesting negotiations shall immediately notify the commission in writing. Upon failure of the requesting party to provide such notice, the other party may so notify the commission. The notice shall specify the expiration date of the existing collective bargaining agreement, if any, and shall set forth any additional information the commission may require on a form provided by the commission.

SB564,21 Section 21. 111.70 (4) (cm) 1g. of the statutes is created to read:

SB564,,38 111.70 (4) (cm) 1g. ‘Application.’ a. Chapter 788 does not apply to arbitration proceedings under this paragraph.

SB564,,39 b. This paragraph does not apply to labor disputes involving municipal employees who are engaged in law enforcement or fire fighting functions.

SB564,22 Section 22. 111.70 (4) (cm) 2., 3. and 4. of the statutes are amended to read:

SB564,,41 111.70 (4) (cm) 2. ‘Presentation of initial proposals; open meetings.’ The meetings between parties to a collective bargaining agreement or proposed collective bargaining agreement under this subchapter that involve a collective bargaining unit containing a general municipal employee and that are held for the purpose of presenting initial bargaining proposals, along with supporting rationale, shall be are open to the public. Each party shall submit its initial bargaining proposals to the other party in writing. Failure to comply with this subdivision is not cause to invalidate a collective bargaining agreement under this subchapter.

SB564,,42 3. ‘Mediation.’ The commission or its designee shall function as mediator in labor disputes involving general municipal employees upon request of one or both of the parties, or upon initiation of the commission. The function of the mediator shall be to encourage voluntary settlement by the parties. No mediator has the power of compulsion.

SB564,,43 4. ‘Grievance arbitration.’ Parties to a dispute pertaining to the meaning or application of the terms of a written collective bargaining agreement involving a collective bargaining unit containing a general municipal employee may agree in writing to have the commission or any other appropriate agency serve as arbitrator or may designate any other competent, impartial and disinterested person to so serve.

SB564,23 Section 23. 111.70 (4) (cm) 5. of the statutes is created to read:

SB564,,45 111.70 (4) (cm) 5. ‘Voluntary impasse resolution procedures.’ In addition to the other impasse resolution procedures provided in this paragraph, a municipal employer and labor organization may, as a permissive subject of bargaining, agree in writing to a dispute settlement procedure, including binding interest arbitration, that is acceptable to the parties for resolving an impasse over terms of any collective bargaining agreement under this subchapter. The parties shall file a copy of the agreement with the commission. If the parties agree to any form of binding interest arbitration, the arbitrator shall give weight to the factors enumerated under subds. 7. and 7g. for a collective bargaining unit consisting of municipal employees who are not school district employees and under subd. 7r. for a collective bargaining unit consisting of municipal employees.

SB564,24 Section 24. 111.70 (4) (cm) 6. of the statutes is created to read:

SB564,,47 111.70 (4) (cm) 6. ‘Interest arbitration.’ a. If in any collective bargaining unit a dispute relating to any issue has not been settled after a reasonable period of negotiation and after mediation by the commission under subd. 3. and other settlement procedures, if any, established by the parties have been exhausted, and the parties are deadlocked with respect to any dispute between them over wages, hours, or conditions of employment to be included in a new collective bargaining agreement, either party, or the parties jointly, may petition the commission, in writing, to initiate compulsory, final, and binding arbitration, as provided in this paragraph. At the time the petition is filed, the petitioning party shall submit in writing to the other party and the commission its preliminary final offer containing its latest proposals on all issues in dispute. Within 14 calendar days after the date of that submission, the other party shall submit in writing its preliminary final offer on all disputed issues to the petitioning party and the commission. If a petition is filed jointly, both parties shall exchange their preliminary final offers in writing and submit copies to the commission at the time the petition is filed.

SB564,,48 am. Upon receipt of a petition to initiate arbitration, the commission shall investigate, with or without a formal hearing, whether arbitration should be commenced. If in determining whether an impasse exists the commission finds that the procedures under this paragraph have not been complied with and that the compliance would tend to result in a settlement, it may order compliance before ordering arbitration. The validity of any arbitration award or collective bargaining agreement is not affected by failure to comply with the procedures. Prior to the close of the investigation, each party shall submit in writing to the commission its single final offer containing its final proposals on all issues in dispute that are subject to interest arbitration under this subdivision. If a party fails to submit a single final offer, the commission shall close the investigation based on the last written position of the party. Such final offers may include only mandatory subjects of bargaining, except that a permissive subject of bargaining may be included by a party if the other party does not object and shall then be treated as a mandatory subject. The parties shall also submit to the commission a written stipulation with respect to all matters that are agreed upon for inclusion in the new or amended collective bargaining agreement. The commission, after receiving a report from its investigator and determining that arbitration should be commenced, shall issue an order requiring arbitration and immediately submit to the parties a list of 7 arbitrators. The parties shall alternately strike names from the list until a single name is left, who shall be appointed as arbitrator. The petitioning party shall notify the commission in writing of the identity of the arbitrator selected. Upon receipt of the notice, the commission shall formally appoint the arbitrator and submit to him or her the final offers of the parties. The final offers are public documents and the commission shall make them available. In lieu of a single arbitrator and upon request of both parties, the commission shall appoint a tripartite arbitration panel consisting of one member selected by each of the parties and a neutral person designated by the commission who shall serve as a chairperson. An arbitration panel has the same powers and duties as provided in this section for any other appointed arbitrator, and all arbitration decisions by a panel shall be determined by majority vote. In place of selection of the arbitrator by the parties and upon request of both parties, the commission shall establish a procedure for randomly selecting names of arbitrators. Under the procedure, the commission shall submit a list of 7 arbitrators to the parties. Each party shall strike one name from the list. From the remaining 5 names, the commission shall randomly appoint an arbitrator. Unless both parties to an arbitration proceeding otherwise agree in writing, every individual whose name is submitted by the commission for appointment as an arbitrator must be a resident of this state at the time of submission and every individual who is designated as an arbitration panel chairperson must be a resident of this state at the time of designation.

SB564,,49 b. The arbitrator shall, within 10 days of his or her appointment, establish a date and place for the arbitration hearing. Upon petition of at least 5 citizens of the jurisdiction served by the municipal employer, filed within 10 days after the date on which the arbitrator is appointed, the arbitrator shall hold a public hearing in the jurisdiction to provide the opportunity to both parties to explain or present supporting arguments for their positions and to members of the public to offer their comments and suggestions. The final offers of the parties, as transmitted by the commission to the arbitrator, are the basis for any continued negotiations between the parties with respect to the issues in dispute. At any time prior to the arbitration hearing, either party, with the consent of the other party, may modify its final offer in writing.

SB564,,50 c. Prior to the arbitration hearing, either party may, within a time limit established by the arbitrator, withdraw its final offer and any mutually agreed upon modifications and shall immediately provide written notice of any withdrawal to the other party, the arbitrator, and the commission. If both parties withdraw their final offers and mutually agreed upon modifications, the labor organization, after giving 10 days’ written notice to the municipal employer and the commission, may strike. Unless both parties withdraw their final offers and mutually agreed upon modifications, the final offer of neither party is considered withdrawn and the arbitrator shall proceed to resolve the dispute by final and binding arbitration as provided in this paragraph.

SB564,,51 d. Before issuing his or her arbitration decision, the arbitrator shall, on his or her own motion or at the request of either party, conduct a meeting open to the public to provide to both parties the opportunity to explain or present supporting arguments for their complete offer on all matters to be covered by the proposed agreement. The arbitrator shall adopt without modification the final offer of one of the parties on all disputed issues submitted under subd. 6. am., except those items that the commission determines not to be mandatory subjects of bargaining and those items that have not been treated as mandatory subjects by the parties, and including any prior modifications of the offer mutually agreed upon by the parties under subd. 6. b. The decision is final and binding on both parties and shall be incorporated into a written collective bargaining agreement. The arbitrator shall serve a copy of his or her decision on both parties and the commission.

SB564,,52 e. Arbitration proceedings may not be interrupted or terminated by reason of any prohibited practice complaint filed by either party at any time.

SB564,,53 f. The parties shall equally divide the costs of arbitration. The arbitrator shall submit a statement of his or her costs to both parties and to the commission.

SB564,,54 g. If a question arises as to whether any proposal made in negotiations by either party is a mandatory, permissive, or prohibited subject of bargaining, the commission shall determine the issue under par. (b). If either party to the dispute petitions the commission for a declaratory ruling under par. (b), the proceedings under subd. 6. c. and d. may not occur until the commission renders a decision in the matter and the decision is final. The arbitrator’s award shall be made in accordance with the commission’s ruling, subject to automatic amendment by any subsequent court reversal.

SB564,25 Section 25. 111.70 (4) (cm) 7. of the statutes is created to read:

SB564,,56 111.70 (4) (cm) 7. ‘Factor given greatest weight.’ In making any decision under the arbitration procedures authorized by this paragraph, except for any decision involving a collective bargaining unit consisting of school district employees, the arbitrator or arbitration panel shall give the greatest weight to any state law or directive lawfully issued by a state legislative or administrative officer, body, or agency that limits expenditures that may be made or revenues that may be collected by a municipal employer. The arbitrator or arbitration panel shall give an accounting of the consideration of this factor in the decision.

SB564,26 Section 26. 111.70 (4) (cm) 7g. of the statutes is created to read:

SB564,,58 111.70 (4) (cm) 7g. ‘Factor given greater weight.’ In making any decision under the arbitration procedures authorized by this paragraph, except for any decision involving a collective bargaining unit consisting of school district employees, the arbitrator or arbitration panel shall give greater weight to economic conditions in the jurisdiction of the municipal employer than to any of the factors specified in subd. 7r.

SB564,27 Section 27. 111.70 (4) (cm) 7r. of the statutes is created to read:

SB564,,60 111.70 (4) (cm) 7r. ‘Other factors considered.’ In making any decision under the arbitration procedures authorized by this paragraph, the arbitrator or arbitration panel shall give weight to the following factors:

SB564,,61 a. The lawful authority of the municipal employer.

SB564,,62 b. Stipulations of the parties.

SB564,,63 c. The interests and welfare of the public and the financial ability of the unit of government to meet the costs of any proposed settlement.

SB564,,64 d. Comparison of wages, hours, and conditions of employment of the municipal employees involved in the arbitration proceedings with the wages, hours, and conditions of employment of other employees performing similar services.

SB564,,65 e. Comparison of the wages, hours, and conditions of employment of the municipal employees involved in the arbitration proceedings with the wages, hours, and conditions of employment of other employees generally in public employment in the same community and in comparable communities.

SB564,,66 f. Comparison of the wages, hours, and conditions of employment of the municipal employees involved in the arbitration proceedings with the wages, hours, and conditions of employment of other employees in private employment in the same community and in comparable communities.

SB564,,67 g. The average consumer prices for goods and services, commonly known as the cost of living.

SB564,,68 h. The overall compensation presently received by the municipal employees, including direct wage compensation, vacation, holidays and excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received.

SB564,,69 i. Changes in any of the foregoing circumstances during the pendency of the arbitration proceedings.

SB564,,70 j. Factors, not included in subd. 7r. a. to i., which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment through voluntary collective bargaining, mediation, fact-finding, arbitration, or otherwise between the parties, in the public service, or in private employment.

SB564,28 Section 28. 111.70 (4) (cm) 8. of the statutes is created to read:

SB564,,72 111.70 (4) (cm) 8. ‘Rule making.’ The commission shall adopt rules for the conduct of all arbitration proceedings under subd. 6., including rules for all of the following:

SB564,,73 a. The appointment of tripartite arbitration panels when requested by the parties.

SB564,,74 b. The expeditious rendering of arbitration decisions, such as waivers of briefs and transcripts.

SB564,,75 c. The removal of individuals who have repeatedly failed to issue timely decisions from the commission’s list of qualified arbitrators.

SB564,,76 d. Proceedings for the enforcement of arbitration decisions.

SB564,29 Section 29. 111.70 (4) (cm) 8m. of the statutes is amended to read:

SB564,,78 111.70 (4) (cm) 8m. ‘Term of agreement; reopening of negotiations.’ Except for the initial collective bargaining agreement between the parties and except as the parties otherwise agree, every collective bargaining agreement covering general municipal employees subject to this paragraph shall be for a term of one year and may not be extended 2 years, but in no case may a collective bargaining agreement for any collective bargaining unit consisting of municipal employees subject to this paragraph other than school district employees be for a term exceeding 3 years nor may a collective bargaining agreement for any collective bargaining unit consisting of school district employees subject to this paragraph be for a term exceeding 4 years. No arbitration award may contain a provision for reopening of negotiations during the term of a collective bargaining agreement covering general municipal employees may be reopened for negotiations unless both parties agree to reopen the collective bargaining agreement. The requirement for agreement by both parties does not apply to a provision for reopening of negotiations with respect to any portion of an agreement that is declared invalid by a court or administrative agency or rendered invalid by the enactment of a law or promulgation of a federal regulation.

SB564,30 Section 30. 111.70 (4) (d) 1. of the statutes is amended to read:

SB564,,80 111.70 (4) (d) 1. A representative chosen for the purposes of collective bargaining by a majority of the public safety employees or transit municipal employees voting in a collective bargaining unit shall be the exclusive representative of all employees in the unit for the purpose of collective bargaining. A representative chosen for the purposes of collective bargaining by at least 51 percent of the general municipal employees in a collective bargaining unit shall be the exclusive representative of all employees in the unit for the purpose of collective bargaining. Any individual employee, or any minority group of employees in any collective bargaining unit, shall have the right to present grievances to the municipal employer in person or through representatives of their own choosing, and the municipal employer shall confer with the employee in relation thereto, if the majority representative has been afforded the opportunity to be present at the conferences. Any adjustment resulting from these conferences may not be inconsistent with the conditions of employment established by the majority representative and the municipal employer.

SB564,31 Section 31. 111.70 (4) (d) 2. a. of the statutes is amended to read:

SB564,,82 111.70 (4) (d) 2. a. The commission shall determine the appropriate collective bargaining unit for the purpose of collective bargaining and shall whenever possible avoid fragmentation by maintaining as few collective bargaining units as practicable in keeping with the size of the total municipal workforce. The commission may decide whether, in a particular case, the municipal employees in the same or several departments, divisions, institutions, crafts, professions, or other occupational groupings constitute a collective bargaining unit. Before making its determination, the commission may provide an opportunity for the municipal employees concerned to determine, by secret ballot, whether they desire to be established as a separate collective bargaining unit. The commission may not decide, however, that any group of municipal employees constitutes an appropriate collective bargaining unit if the group includes both professional employees and nonprofessional employees, unless a majority of the professional employees vote for inclusion in the unit. The commission may not decide that any group of municipal employees constitutes an appropriate collective bargaining unit if the group includes both school district employees and general municipal employees who are not school district employees. The commission may not decide that any group of municipal employees constitutes an appropriate collective bargaining unit if the group includes both public safety employees and general municipal employees, if the group includes both transit employees and general municipal employees, or if the group includes both transit employees and public safety employees. The commission may not decide that any group of municipal employees constitutes an appropriate collective bargaining unit if the group includes both craft employees and noncraft employees unless a majority of the craft employees vote for inclusion in the unit. The commission shall place the professional employees who are assigned to perform any services at a charter school, as defined in s. 115.001 (1), in a separate collective bargaining unit from a unit that includes any other professional employees whenever at least 30 percent of those professional employees request an election to be held to determine that issue and a majority of the professional employees at the charter school who cast votes in the election decide to be represented in a separate collective bargaining unit.

SB564,32 Section 32. 111.70 (4) (d) 3. a. and c. of the statutes are consolidated and renumbered 111.70 (4) (d) 3.

SB564,33 Section 33. 111.70 (4) (d) 3. b. of the statutes is repealed.