State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2001-017

  DATE:
  May 9, 2001

  TO:
  Accounting Officers
  Employee Relations Officers
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Labor Relations Division

  SUBJECT:
  Amendment of Dills Act

  CONTACT:
  Wayne Heine, Assistant Chief of Labor Relations
  (916) 324-0431, CALNET 454-0431
  FAX: (916) 322-0765
   
  Email: WayneHeine@dpa.ca.gov


  The Dills Act is the current law that provides for 
  collective bargaining for State employees and includes 
  provisions that pertain to the good faith negotiations of 
  wages, hours and other terms and conditions of employment.  
  With the passage of SB 683 the Dills Act was amended to 
  allow for certain provisions of an expired Memorandum of 
  Understanding (MOU) to remain in effect if the Governor and 
  the recognized employee organization have not agreed to a 
  new MOU and have not reached impasse in negotiations.  
  Specifically, SB 683 requires that provisions of an expired 
  MOU are to remain in effect. This includes provisions that 
  supersede existing law, and provisions relating to 
  arbitration, no strike, the Fair Labor Standards Act, and 
  the deduction of fair share fees. 
  
  When the parties to the collective bargaining process do 
  not reach agreement, either party may request the Public 
  Employment Relations Board (PERB) to determine that an 
  impasse exists.  Prior to 1992, the State employer believed 
  that the Dills Act provided for the unilateral 
  implementation of the last, best and final offer after 
  impasse was determined by PERB.  However, in 1992, the 
  court determined that where a term of the agreement is the 
  subject of a Government Code section, which is superceded 
  by the MOU, the Government Code section will take effect 
  once the contract has 
  
  expired.  Therefore, the State could only implement its 
  last, best and final offer for those terms not covered by a 
  superceded Government Code.  SB 683 has amended the Dills 
  Act to provide that if the parties reach impasse in 
  negotiations, the State may implement any and all of its 
  last, best and final offer.  However, any proposal in the 
  offer that conflicts with existing statutes or requires an 
  expenditure of funds must be presented to the Legislature 
  for approval. 
  
  Prior to the passage of SB 683, the Dills Act provided that 
  fair share fee deductions shall remain in effect for three 
  years from the effective date of the agreement or duration 
  of the agreement, whichever comes first.  With the passage 
  of SB 683 the Dills Act has been amended to provide that 
  fair share fee deductions continue after the expiration of 
  the agreement until the effective date of a successor 
  agreement or implementation of the State's last, best and 
  final, whichever comes first.  Further, SB 683 provides 
  that provisions of an expired MOU shall remain in effect 
  including, but not limited to, all provisions that 
  supersede existing law, any arbitration clause negotiated 
  into a collective bargaining agreement, any no strike 
  provision and any agreements regarding matters covered in 
  the Fair Labor Standards Act.  
  
  Should you have questions or require additional 
  information, please contact Wayne Heine, Assistant Chief, 
  Labor Relations Division at 
  (916) 324-0431.  
  
  
  
  
  
  Wayne Heine
  Assistant Chief of Labor Relations