Client Alert from the Labor and Employment Group - March 2011
Proposed Amendments to the
Ohio Collective Bargaining Laws for
Public Employers and Employees
By Christopher L. Gibbon
Recently introduced in the Ohio State Senate, Senate Bill 5 (SB5) proposes significant amendments to the Ohio Collective Bargaining laws for public employers and employees. SB5 is expected to be the subject of intense lobbying and negotiations and undoubtedly will be revised as it proceeds through the Ohio General Assembly.
SB5 proposes to eliminate collective bargaining for state workers and to make major changes to collective bargaining for local government and school employees.
The following is a summary of some of the proposed changes which, if enacted in the current or an amended form, will significantly impact the negotiations and resulting agreements between public employers and employees, including teachers, public safety forces and others.
- Future Tax Increases - Only the financial status of the public employer at the time period surrounding the negotiations may be considered in determining the ability of a public employer to pay for the terms agreed to during collective bargaining. Potential future tax increases shall not be considered in determining a public employer's ability to pay.
- Health Care Benefits - Health care benefits other than the amount of premium to be paid by employer and employee have been removed as a matter for collective bargaining. Employees must cover at least 20 percent of the costs of health care premiums and employers may not pay more than 80 percent of the health care premiums. This proposal would also extend to other forms of insurance including, but not limited to, vision and dental.
- Existing Provisions in Contract - Continuation, modification or deletions of provisions in a current contract are not mandatory subjects for subsequent collective bargaining.
- Employee Pension Contribution - Public employers may not pay (i.e., "pick up") employee pension contributions.
- Binding Arbitration for Safety Forces - If negotiations are unsuccessful with safety forces, binding arbitration is not an option. Instead, the prior union contract is automatically extended for one year.
- Permanent Replacement of Striking Workers - If public employees engage in a work stoppage ("strike"), the employer may permanently replace those striking employees.
- Public Disclosure - Prior to any mediation, fact-finding or other formal settlement procedure, the last offer of each party is to be made public.
- Lay-Offs - Public employers cannot agree to use length of service as the sole factor to determine which public employees are laid off in a reduction of force.
- Fiscal Emergency - A fiscal emergency declared by the State Auditor permits termination, modification or negotiation of an existing collective bargaining agreement.
- Compensation of Non-Union Employees - In alternate dispute resolution, the mediator or arbitrator shall take into account the wages of the public employer's non-union employees.
- Mandatory Leave - State-mandated leave and sick day policies for teachers are eliminated.
- Management Powers - Bargaining away certain management powers by school districts is prohibited, including any proposed restriction on class size. In addition, school districts would be prohibited from issuing future continuing contracts to teachers; all contracts entered into after the law's effective date would be required to be for a term of one year only.
- Automatic Pay Increases - Automatic pay increases based upon experience and education are eliminated in favor of "merit"-based compensation systems.
It is uncertain which, if any, of these or any of the other proposed changes to the Collective Bargaining laws will be enacted, or what their applicability to current negotiations or existing contracts will be. Public employers, however, should be mindful of the proposed changes when they conduct negotiations, and consult with their legal counsel as to their potential impact on current negotiations.
The information in this Client Alert is a summary of often complex legal issues and may not cover all of the "fine points" of a specific situation or court jurisdiction. Accordingly, it is not intended to be legal advice, which should always be obtained in consultation with an attorney. The lawyers in Walter & Haverfield's Labor and Employment Law Group will be pleased to assist with any questions about this new development in the law.
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