Court of Appeal Reaffirms That Management Rights Do Not Extend to Outsourcing Labor Performed by a Bargaining Unit
Absent a clear and unmistakable waiver in a collective bargaining agreement, the Meyers-Milias-Brown Act (“MMBA”) requires agencies to meet and confer about an outsourcing decision.
The MMBA authorizes collective bargaining for employees of most local governments. In L.A. County Professional Peace Officers Ass'n v. County of Los Angeles, the California Court of Appeal considered a memorandum of understanding (“MOU”) that allowed the County to contract with public or private employers to transfer functions being performed by the bargaining unit. The union sought to meet and confer over the outsourcing decision. The County argued that the MOU waived the union’s right to bargain over “reorganization” decisions including the outsourcing decision.
The court reaffirmed the longstanding principle that outsourcing is subject to mandatory bargaining under the MMBA because outsourcing does not fit in the definition of “reorganization.” As the MOU did not mention the meet and confer process for outsourcing, the court ruled that the agreement did not clearly and unmistakably waive the union’s right to bargain over the transfer of work to an outside contractor.
When negotiating the terms of your agency’s MOU, consider whether the terms accurately reflect the agency’s management rights, and ensure that relevant terms are properly defined. Any vagueness as to the scope of the management rights may later be challenged if the agency fails to bargain in good faith over its decision. As a general practice, it can be helpful to work with union representatives before making any decision that effects the terms and conditions of employment for the represented employees.
If you have any questions labor relations issues under the MMBA, please contact Katherine Read or anyone in RWG’s Labor and Employment Department.
