GLASS Report: Legislative Action Alert: House Bill 1845: Regular Session 2013-2014

Text [History] [Votes]

Short Title: An Act amending the act of June 24, 1968 (P.L.237, No.111), referred to as the Policemen and Firemen Collective Bargaining Act, further providing for right to collectively bargain, for duty to exert reasonable efforts, for commencement of collective bargaining, for board of arbitration, for notice, for powers and procedures, for determination of board of arbitration, for costs and expenses, for applicability, for severability, for repeals and for effective date; and making editorial changes.

Prime Sponsor: Representative KAUFFMAN

Last Action: Referred to LOCAL GOVERNMENT, March 25, 2014 [House]

Memo: Act 111 Legislation

Printer's No.	Text	(H) Amendments	(S) Amendments	(H) Fiscal Note	(S) Fiscal Note
3240*

MEMORANDUM

Posted:	October 22, 2013 09:09 AM
From:	Representative Rob Kauffman
To:	All House members
Subject:	Act 111 Legislation

In the near future I will be introducing legislation to reform and modernize Act 111 of 1968 (Policemen and Firemen Collective Bargaining Act).   I ask that you consider joining me as a co-sponsor on this legislation, which currently enjoys widespread bipartisan support from statewide municipal leaders, business leaders and community development organizations. These reforms will inject fairness into the Act 111 process.  Municipal leaders have identified this as one of the greatest cost-drivers for their budgets, underfunded pensions and one of the key reasons many communities slide towards fiscal distress and sometimes Act 47 status. My bill and its companion in the Senate (S.B. 1111) maintain binding arbitration rights for uniformed union while leveling the playing field for employers. It would:   Penalize either party for failing to engage in good faith bargaining; Must show ability to pay through justification and consideration of new costs; Start arbitrator selection process between both parties by coin toss; Expand the list from which a neutral arbitrator is selected from 3 to 7; Require the cost of arbitration be shared equally between both parties; Start collective bargaining earlier in the year and require arbitration be requested earlier; Require evidentiary hearings to be open to the public (sunshine law); Clarify avenue for appeal process and municipal relief; Prohibit post-retirement health care and pension benefits from being subjects of collective bargaining. While news reports in recent years have identified numerous adverse and costly Act 111 decisions for larger cities in the Commonwealth, smaller townships and boroughs are suffering similar results.  The non-partisan, Pennsylvania Economy League, has reported that roughly 40% of our PA’s population lives in a fiscally distressed community.  Such alarming trends cannot be disregarded as municipal mismanagement because even the best managed communities are vulnerable to unfair and costly Act 111 decisions. In my district, the Borough of Chambersburg just completed a costly 19-month Act 111 process. The taxpayers picked up the tab for a neutral arbitrator who had no ties to the community and unilaterally rejected the significant cost strain to the borough. The resulting decision means a significant and unsustainable pay increase for paid firefighters, well above the region’s average resident salary range.  In addition, the arbitrator mandated minimum manning requirements that do not comply with Act 111 and which our elected municipal leaders documented as unnecessary and fiscally unsustainable. The Chambersburg Act 111 decision effectively prohibits our elected town council from managing its fire department through the end of the current contract in 2016 and flies in the face of common sense considering that non-union, volunteer firefighters make up the bulk of fire responses in Chambersburg.  Now, taxpayers face a 14% increase in real estate taxes.  This is just one example of why a flawed, 45-year-old law must be reformed. Act 111 decisions across the Commonwealth limit the managerial authority of our local elected officials, force tax hikes and cuts to community staffing (including, often, non-uniformed union personnel), and exacerbate municipal budget stress.  Various groups have voiced strong support for these reforms.  To date, over 25 chambers of commerce, professional and community development groups, the Pennsylvania Municipal League, the Pennsylvania State Association of Township Commissioners, the Pennsylvania State Association of Township Supervisors, the Pennsylvania State Association of Boroughs, and the County Commissioners Association of Pennsylvania all support these reforms. I would be pleased to have you join me in cosponsoring this important legislation.