72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1754
 
                         Senate Bill 444
 
Sponsored by Senator HANNON, Representative BARKER; Senators
  BROWN, B STARR, Representative AVAKIAN
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Modifies criteria used by arbitrators in public collective
bargaining.
 
                        A BILL FOR AN ACT
Relating to arbitration criteria in public collective bargaining;
  creating new provisions; and amending ORS 243.746.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 243.746 is amended to read:
  243.746. (1) In carrying out the arbitration procedures
authorized in ORS 243.712 (2)(e), 243.726 (3)(c) and 243.742, the
public employer and the exclusive representative may select their
own arbitrator.
    { - (2) - }  { +  (2)(a) + }   { - Where - }   { + When + }
the parties have not selected their own arbitrator within five
days after notification by the Employment Relations Board that
arbitration is to be initiated, the board shall submit to the
parties a list of seven qualified, disinterested, unbiased
persons.  { + The board shall include + } a list of Oregon
interest arbitrations and fact-findings for which each person has
issued an award   { - shall be included - } . Each party shall
alternately strike three names from the list. The order of
striking shall be determined by lot. The remaining individual
shall be designated the 'arbitrator'  { - : - }  { + . + }
    { - (a) - }   { + (b) + } When the parties have not
designated the arbitrator and notified the board of their choice
within five days after receipt of the list, the board shall
appoint the arbitrator from the list. However, if one of the
parties strikes the names as prescribed in this subsection and
the other party fails to do so, the board shall appoint the
arbitrator only from the names remaining on the list.
    { - (b) - }   { + (c) + } The concerns regarding the bias and
qualifications of the person designated by lot or by appointment
may be challenged by a petition filed directly with the board.
 { + The board shall hold + } a hearing   { - shall be held by
the board - }  within 10 days of filing   { - of - }  the
petition and   { - the board - }  shall issue a final and binding
decision regarding the person's neutrality within 10 days of the
hearing.
  (3) The arbitrator shall establish dates and places of
hearings. Upon the request of either party or the arbitrator, the
board shall issue subpoenas. Not less than 14 calendar days prior
to the date of the hearing, each party shall submit to the other
party a written last best offer package on all unresolved
mandatory subjects, and neither party may change the last best
offer package unless pursuant to stipulation of the parties or as
otherwise provided in this subsection. The date set for the
hearing may thereafter be changed only for compelling reasons or
by mutual consent of the parties. If either party provides notice
of a change in its position within 24 hours of the 14-day
deadline, the other party will be allowed an additional 24 hours
to modify its position. The arbitrator may administer oaths and
shall afford all parties full opportunity to examine and
cross-examine all witnesses and to present any evidence pertinent
to the dispute.
  (4)   { - Where - }   { + When + } there is no agreement
between the parties, or   { - where - }   { + when + } there is
an agreement but the parties have begun negotiations or
discussions looking to a new agreement or amendment of the
existing agreement, unresolved mandatory subjects submitted to
the arbitrator in the parties' last best offer packages shall be
decided by the arbitrator. Arbitrators shall base their findings
and opinions on   { - these criteria giving first priority to
paragraph (a) of this subsection and secondary priority to
paragraphs (b) to (h) of this subsection as follows - }  { +  the
following criteria + }:
    { - (a) The interest and welfare of the public. - }
   { +  (a) The lawful authority of the employer.
  (b) The stipulations of the parties. + }
    { - (b) - }   { + (c) The interest and welfare of the public
and + } the reasonable financial ability of the unit of
government to meet the costs of the proposed contract
 { - giving due consideration and weight to the other services,
provided by, and other priorities of, the unit of government as
determined by the governing body - } . A reasonable operating
reserve against future contingencies, which does not include
funds in contemplation of settlement of the labor dispute,
 { - shall - }   { + may + } not be considered as available
toward a settlement.
    { - (c) The ability of the unit of government to attract and
retain qualified personnel at the wage and benefit levels
provided. - }
  (d) The overall compensation presently received by the
employees, including direct wage compensation, vacations,
holidays and other paid excused time, pensions, insurance,
benefits, and all other direct or indirect monetary benefits
received.
  (e) Comparison of the   { - overall compensation - }
 { + wages, hours and conditions of employment + } of other
employees performing similar services with the same or other
employees in comparable communities. As used in this paragraph,
'comparable'   { - is limited to - }   { + includes + }
communities of the same or nearest population range within Oregon
 { - . Notwithstanding the provisions of this paragraph, the
following additional definitions of 'comparable' apply in the
situations described as follows - }  { +  and + }:
  (A) For any city with a population of more than 325,000, '
comparable' includes comparison to out-of-state cities of the
same or similar size;
  (B) For counties with a population of more than 400,000, '
comparable' includes comparison to out-of-state counties of the
same or similar size; and
  (C) For the State of Oregon, 'comparable' includes comparison
to other states.
  (f) The   { - CPI-All Cities Index, - }   { + average consumer
prices for goods and services + } commonly known as the cost of
living.
    { - (g) The stipulations of the parties. - }
   { +  (g) Changes in any of the criteria in paragraphs (a) to
(f) of this subsection during the pendency of the arbitration
proceedings. + }
  (h) Such other factors, consistent with paragraphs (a) to (g)
of this subsection as are traditionally taken into consideration
in the determination of wages, hours, and other terms and
conditions of employment.   { - However, the arbitrator shall not
use such other factors, if in the judgment of the arbitrator, the
factors in paragraphs (a) to (g) of this subsection provide
sufficient evidence for an award. - }
  (5) Not more than 30 days after the conclusion of the hearings
or such further additional periods to which the parties may
agree, the arbitrator shall select only one of the last best
offer packages submitted by the parties and shall promulgate
written findings along with an opinion and order. The opinion and
order shall be served on the parties and the board. Service may
be personal or by registered or certified mail. The findings,
opinions and order shall be based on the criteria prescribed in
subsection (4) of this section.
  (6) The cost of arbitration shall be borne equally by the
parties involved in the dispute.
  SECTION 2.  { + The amendments to ORS 243.746 by section 1 of
this 2003 Act apply only to arbitrations initiated on or after
the effective date of this 2003 Act. + }
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