In a highly anticipated decision the California Supreme Court recently invalidated Senate Bill 402, Code of Civil Procedure §§ 1299 et seq., which requires counties and local agencies to submit to binding arbitration economic issues that arise during negotiations with unions representing public safety employees. (County of Riverside v. Superior Court of Riverside County, (2003) 30 Cal.4th 278.
FACTS
When Riverside County (County) and the Riverside Sheriff’s Association (Union) reached an impasse in their negotiations over compensation for employees of the probation department, Union demanded binding arbitration pursuant to Senate Bill 402. County refused, arguing that the requirement of binding arbitration violates provisions of the California Constitution.
SUPREME COURT DECISION
When an impasse is reached during negotiations between a local agency and a union representing public safety employees, Senate Bill 402 allows the union to require the local agency to submit unresolved economic issues to binding arbitration. The Supreme Court concluded that Senate Bill 402 is unconstitutional because it violates the following two provisions of the California Constitution:
- Article XI, section 1(b): This provision states that a county’s “governing body shall provide for the . . . compensation of employees.” According to the Supreme Court, this “language is quite clear and quite specific: the county, not the state, not someone else, shall provide for the compensation of its employees.” Senate Bill 402 violates section 1(b) because, under certain circumstances, it requires an arbitration panel to determine employee compensation, thereby depriving the county of its authority to set employee salaries.
- Article XI, section 11(a): This provision prohibits the Legislature from delegating “to a private person or body” the power to interfere with county or municipal money or the power to perform municipal functions. According to the Court, Senate Bill 402 violates section 11(a) because it delegates to a private body, i.e., an arbitration panel, (1) the power to interfere with county money by potentially requiring the county to pay higher salaries than it may choose, and (2) the power to perform the municipal function of determining compensation for county employees.
Although it determined that the Legislature cannot compel counties to involuntarily submit to binding arbitration, the Court noted that counties may voluntarily submit compensation issues to arbitration.