August 27, 2004

Three labor measures slated for November ballot

By Supervisor Pete McHugh
Special to the Times

Under state election laws, Aug. 6 was the deadline for local governments to place measures on the ballot for the Nov. 2 election. As a result, the agenda for the regular Santa Clara County Board of Supervisors’ meeting on Aug. 3 included four proposed ballot measures.

The board certified a compulsory binding arbitration petition and placed two other labor-related county charter amendments on the ballot. It also referred a proposed measure to increase sales taxes to a board committee for further discussion with a report due back within nine months.

Since enough voters signed a petition to amend the county’s charter to establish binding arbitration, the board placed the measure before the voters. If passed, this measure would give county employees represented by the Correctional Peace Officers Association (CPOA), Government Attorneys Association (GAA) and Registered Nurses Professional Association (RNPA) binding arbitration during their contract negotiations.

For this dispute resolution process, they would give up the right to strike, but they may still refuse to cross picket lines. If the county and one of these unions reach an impasse during negotiations, the measure would require selecting a three-member arbitration panel. The panel must choose the last offer that either the county or the union submitted on the issue at impasse.

The board also unanimously placed two other county labor measures on the November ballot. The first establishes Charter Section 715 only if the binding arbitration measure passes. The second modifies Charter Section 709 that defines and requires prevailing wages.

If voters pass Section 715, it would allow the board of supervisors to review any arbitration panel’s decision. The board could determine that a decision costs more than the county’s last offer, or that it interferes with the board’s ability to manage effectively the county’s finances.

Where it makes such a determination, the board could submit the arbitration decision to voters in the next general election. If voters approved, the panel’s decision would go into effect within 30 days of the election. Any proposed contract provision that they disapprove would become nullified, after which the disputing parties could resume the bargaining process anew.

Typically, the county and a union determine employee salaries and benefits through a negotiated labor agreement. If they are unable to reach an agreement, the board may establish the salaries. County Charter Section 709, however, requires the county to pay the prevailing wage. The section does not specify whether the prevailing wage includes comparison with the private sector and the employer’s cost for pensions and benefits.

The proposed measure amends the section to specify that the comparison must be on the total compensation of public employees in the county. If too few comparable public employees work in the county, the county would add the employees who work in the other five most populous Bay Area counties.

The fourth ballot measure came from the county executive, who proposed a sales tax increase. The county executive recommended either a 25-cent increase for county use only or a 50-cent increase to be split between the county (2/3) and the cities (1/3).

A 25-cent sales tax increase from 8.25 percent to 8.5 percent could generate enough revenues to close the $68 million deficit that the county anticipates for fiscal year 2005-2006. A sales tax increase to 8.75 percent could generate more than $90 million.

Without new revenues, the county must either reduce its mandated services or eliminate most of its non-mandated core safety net services. Cuts to these highly valued programs and services may not only result in higher county costs, but an overall decline in the quality of life for county residents as well.

On Aug. 3, however, the board did not vote on the measure but referred it to its Finance Committee. The board directed the committee to develop a plan within six to nine months with the goal of taking a sales tax measure to the voters in 2006.

Whatever the outcome, the three measures slated for the November ballot will have a long term and profound impact on the county’s financial future. To obtain more information about these complicated labor measures, please go to www.smartvoter.org. I encourage all registered voters to study the measures carefully and to vote on Nov. 2.