Senate Approves Subcontracting, Arbitration Bills

As reported by New Jersey School Boards - The following legislation hampers district's ability at the table as it weakens the bargaining process for management as leverage taken away with respect to cost containment in salary and other terms and conditions of the contract that permit sustained continuation of employment for select groups.  I for one have never been a strong proponent of outsourcing with respect to custodial/maintenance operations; however as the Chief Financial Officer for the district, often I state the obvious when dealing with represented groups, "Do not price yourself out of a job!" 

Absent the ability to subcontract or outsource at will, district's loose a credible option and key bargaining chip at the table. 

http://www.njsba.org/news/sbn/20130319/senate-approves-subcontracting-arbitration-bills.php


The state Senate on Monday passed by a 22-15 vote a bill that would limit the ability of school districts and higher education institutions to enter into subcontracting agreements for services such as busing, custodial or cafeteria services.
The bill, S-1191, would make subcontracting much more difficult by making such decisions a mandatory subject of negotiations. The bill also places significant obstacles in front of school boards that have not yet subcontracted services, but desire to do so.
S-1191 would impose onerous, pro-union requirements such as extensive notice and comment periods, as well as transitional employment for affected employees, which appear intended to preclude school districts from privatizing food or custodial services altogether, regardless of whether such a decision makes sense from a managerial or fiscal standpoint.
NJSBA opposes the bill. In 2009, the Association performed a survey into subcontracting. Approximately 40 percent of school districts responded, reporting savings through subcontracting that totaled at least $34.3 million annually.
Sample Resolution Available NJSBA has created a sample resolution that boards can adopt to demonstrate their opposition to the bill. NJSBA’s position statement on the legislation contains additional information.
The Assembly version of the bill, A-3627, is in position for a vote by the full Assembly.
However, the Senate version was substantially changed and its language now differs from the Assembly version. The new text in the Senate bill would allow county governments that have created a countywide purchasing agreement for custodial or food services to unilaterally force school boards to take part in the county program. NJSBA opposes the new provisions, as it would compromise local control by allowing counties to compel school district participation in a countywide agreement – even if the district has already subcontracted food or custodial services, and regardless of whether the district negotiated a better deal on its own.
Because the Senate and Assembly versions differ, the focus is now on the Assembly, which would most likely need to amend its version of the bill to conform to its Senate counterpart before the legislation goes to the governor’s desk.
Arbitration Approved By a 24-16 vote, the full Senate on Monday also passed a bill that concerns binding arbitration for certain non-teaching staff, such as teacher assistants, bus drivers, security guards, and cafeteria aides. The measure, S-2163, would give these employees the right to submit to binding arbitration virtually any disciplinary action imposed on them, including reprimands, withholding of increments, lack of continuation of employment, or the termination or non-renewal of an employment contract.
The bill includes language that grants employees the right to submit to binding arbitration, regardless of any negotiated or contractual provision to the contrary and irrespective of the reasoning behind a school district’s action.
NJSBA opposes this bill, as it inhibits a district’s ability to efficiently and effectively manage employee conduct and performance, undermines the collective bargaining process, and ignores any economic rationale behind appropriate school district decisions.

NJSBA’s position statement on S-2163 can provide information for local school boards to use when contacting legislators about the bill or drafting a resolution opposing the bill.