Bill Text: MN HF1765 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Labor peace agreements required for state-funded construction projects.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-03 - Second reading [HF1765 Detail]
Download: Minnesota-2013-HF1765-Engrossed.html
1.2 relating to publicly financed projects; requiring labor peace agreements for
1.3certain state-funded construction projects;proposing coding for new law in
1.4Minnesota Statutes, chapter 16C.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16C.50] LABOR PEACE AGREEMENTS.
1.7 Subdivision 1. Definitions. For the purposes of this section:
1.8(1) the state has a "proprietary interest" in a project where it finances the project in
1.9whole or in part by any of the following: providing a grant; providing a loan; guaranteeing
1.10any payment under any loan, lease, or other obligation; contributing revenue on general
1.11obligation bond; or providing a tax abatement, reduction, deferral, or credit;
1.12(2) the state acts as a "market participant" in a project when it is the owner of the
1.13project; is an equity investor in the project; or donates, sells, or leases real property,
1.14personal property, or infrastructure in support of the project;
1.15(3) "qualifying project" means a project that is located in a city of the first class as
1.16defined under section 410.01, and includes the construction or development of:
1.17(i) a hotel;
1.18(ii) a food and beverage operation that is integral to a hotel, a major league or minor
1.19league sports facility, a convention center, or a civic center;
1.20(iii) a cultural venue with catering or cafeteria facilities; or
1.21(iv) infrastructure constructed specifically to support a project in item (i), (ii), or (iii);
1.22(4) "hospitality workers" means all full-time or regular part-time employees of
1.23hotels and their integral food and beverage operations, as well as all full-time or regular
1.24part-time employees providing food and beverage, concession, catering, cafeteria, or
2.1merchandise services at sports facilities, convention centers, civic centers, or cultural
2.2venues, excluding supervisors, managers, and guards;
2.3(5) "employer of hospitality workers" means an employer of hospitality workers who
2.4will be employed as a result of a qualifying project, and includes a developer of a state or
2.5local government-owned facility that is all or part of a qualifying project and a developer
2.6of a facility benefiting from state financial participation in a qualifying project; and
2.7(6) "labor peace agreement" means a valid contract that sets forth agreements by
2.8and between an employer of hospitality workers and any labor organization seeking to
2.9represent hospitality workers on the process the employer and union will follow as the
2.10hospitality workers who will be employed as a result of the project choose whether or not
2.11to organize as a unit for collective bargaining with the employer.
2.12 Subd. 2. Labor peace agreement required. Any employer of hospitality workers
2.13on a qualifying project must have negotiated and executed a labor peace agreement with
2.14any interested labor organization prior to, and as a condition precedent of, the execution of
2.15a contract, project, agreement, grant agreement, or other agreement for financial assistance
2.16that causes the state to hold a proprietary interest in the project. When the state acts as a
2.17market participant in the project, any employer of hospitality workers must have a signed
2.18labor peace agreement with any interested labor organization prior to, and as a condition
2.19precedent to, its contract with the state.
2.20 Subd. 3. Labor peace agreement provisions. To fulfill the condition precedent to
2.21state financial participation, a labor peace agreement must contain:
2.22(1) a provision prohibiting the labor organization and its members from engaging
2.23in any picketing, work stoppages, boycotts, or any other economic interference with
2.24the employer's hospitality operations on the qualifying project for the duration of the
2.25state government's ongoing financial interest in the qualifying project or for five years,
2.26whichever is greater;
2.27(2) a provision requiring that during the duration of the agreement, all disputes
2.28relating to employment conditions or the negotiation thereof shall be submitted to final
2.29and binding arbitration; and
2.30(3) a provision requiring the employer of hospitality workers to incorporate the
2.31terms of the labor peace agreement in any contract, subcontract, lease, sublease, operating
2.32agreement, concessionaire agreement, franchise agreement, or other agreement or
2.33instrument giving a right to any other employer of hospitality workers to own or operate
2.34the project or activities within the project.
2.35 Subd. 4. Binding arbitration. If the employer of hospitality workers and the
2.36interested labor organization reach impasse in negotiating a labor peace agreement,
3.1following mediation, either party may petition the commissioner of the Bureau of
3.2Mediation Services for binding arbitration. The procedural rules of section 179A.16
3.3shall be followed in the selection of the arbitration panel. The question to be certified
3.4for arbitration shall be whether the interested labor organization has placed arbitrary
3.5or capricious conditions upon the negotiation of the labor peace agreement. If the
3.6arbitrator answers in the affirmative, the employer of hospitality workers is relieved of the
3.7obligations of this section.
3.8 Subd. 5. Existing agreements. If an employer of hospitality workers has valid
3.9collective bargaining agreements with recognized unions that cover, or will cover, the
3.10hospitality workers that will be employed as a result of the qualifying project, those
3.11agreements satisfy the requirements of this section.
3.12 Subd. 6. Exemption. This section shall not apply to projects that receive funds,
3.13property, goods, guarantees, or allowances of less than $2,000,000 of the total cost of the
3.14project from state sources.
3.15 Subd. 7. Limitations. Nothing in this section requires an employer to recognize a
3.16particular labor organization. This section is not intended to enact or express any generally
3.17applicable policy regarding labor management relations or to regulate those relations in
3.18any way. This section is not intended to favor any particular outcomes in the determination
3.19of employee preference regarding union representation.
3.20 Subd. 8. Prior financial assistance. Nothing in this section applies to any financial
3.21assistance for which a contract or project agreement was executed prior to July 1, 2014.
1.3certain state-funded construction projects;proposing coding for new law in
1.4Minnesota Statutes, chapter 16C.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16C.50] LABOR PEACE AGREEMENTS.
1.7 Subdivision 1. Definitions. For the purposes of this section:
1.8(1) the state has a "proprietary interest" in a project where it finances the project in
1.9whole or in part by any of the following: providing a grant; providing a loan; guaranteeing
1.10any payment under any loan, lease, or other obligation; contributing revenue on general
1.11obligation bond; or providing a tax abatement, reduction, deferral, or credit;
1.12(2) the state acts as a "market participant" in a project when it is the owner of the
1.13project; is an equity investor in the project; or donates, sells, or leases real property,
1.14personal property, or infrastructure in support of the project;
1.15(3) "qualifying project" means a project that is located in a city of the first class as
1.16defined under section 410.01, and includes the construction or development of:
1.17(i) a hotel;
1.18(ii) a food and beverage operation that is integral to a hotel, a major league or minor
1.19league sports facility, a convention center, or a civic center;
1.20(iii) a cultural venue with catering or cafeteria facilities; or
1.21(iv) infrastructure constructed specifically to support a project in item (i), (ii), or (iii);
1.22(4) "hospitality workers" means all full-time or regular part-time employees of
1.23hotels and their integral food and beverage operations, as well as all full-time or regular
1.24part-time employees providing food and beverage, concession, catering, cafeteria, or
2.1merchandise services at sports facilities, convention centers, civic centers, or cultural
2.2venues, excluding supervisors, managers, and guards;
2.3(5) "employer of hospitality workers" means an employer of hospitality workers who
2.4will be employed as a result of a qualifying project, and includes a developer of a state or
2.5local government-owned facility that is all or part of a qualifying project and a developer
2.6of a facility benefiting from state financial participation in a qualifying project; and
2.7(6) "labor peace agreement" means a valid contract that sets forth agreements by
2.8and between an employer of hospitality workers and any labor organization seeking to
2.9represent hospitality workers on the process the employer and union will follow as the
2.10hospitality workers who will be employed as a result of the project choose whether or not
2.11to organize as a unit for collective bargaining with the employer.
2.12 Subd. 2. Labor peace agreement required. Any employer of hospitality workers
2.13on a qualifying project must have negotiated and executed a labor peace agreement with
2.14any interested labor organization prior to, and as a condition precedent of, the execution of
2.15a contract, project, agreement, grant agreement, or other agreement for financial assistance
2.16that causes the state to hold a proprietary interest in the project. When the state acts as a
2.17market participant in the project, any employer of hospitality workers must have a signed
2.18labor peace agreement with any interested labor organization prior to, and as a condition
2.19precedent to, its contract with the state.
2.20 Subd. 3. Labor peace agreement provisions. To fulfill the condition precedent to
2.21state financial participation, a labor peace agreement must contain:
2.22(1) a provision prohibiting the labor organization and its members from engaging
2.23in any picketing, work stoppages, boycotts, or any other economic interference with
2.24the employer's hospitality operations on the qualifying project for the duration of the
2.25state government's ongoing financial interest in the qualifying project or for five years,
2.26whichever is greater;
2.27(2) a provision requiring that during the duration of the agreement, all disputes
2.28relating to employment conditions or the negotiation thereof shall be submitted to final
2.29and binding arbitration; and
2.30(3) a provision requiring the employer of hospitality workers to incorporate the
2.31terms of the labor peace agreement in any contract, subcontract, lease, sublease, operating
2.32agreement, concessionaire agreement, franchise agreement, or other agreement or
2.33instrument giving a right to any other employer of hospitality workers to own or operate
2.34the project or activities within the project.
2.35 Subd. 4. Binding arbitration. If the employer of hospitality workers and the
2.36interested labor organization reach impasse in negotiating a labor peace agreement,
3.1following mediation, either party may petition the commissioner of the Bureau of
3.2Mediation Services for binding arbitration. The procedural rules of section 179A.16
3.3shall be followed in the selection of the arbitration panel. The question to be certified
3.4for arbitration shall be whether the interested labor organization has placed arbitrary
3.5or capricious conditions upon the negotiation of the labor peace agreement. If the
3.6arbitrator answers in the affirmative, the employer of hospitality workers is relieved of the
3.7obligations of this section.
3.8 Subd. 5. Existing agreements. If an employer of hospitality workers has valid
3.9collective bargaining agreements with recognized unions that cover, or will cover, the
3.10hospitality workers that will be employed as a result of the qualifying project, those
3.11agreements satisfy the requirements of this section.
3.12 Subd. 6. Exemption. This section shall not apply to projects that receive funds,
3.13property, goods, guarantees, or allowances of less than $2,000,000 of the total cost of the
3.14project from state sources.
3.15 Subd. 7. Limitations. Nothing in this section requires an employer to recognize a
3.16particular labor organization. This section is not intended to enact or express any generally
3.17applicable policy regarding labor management relations or to regulate those relations in
3.18any way. This section is not intended to favor any particular outcomes in the determination
3.19of employee preference regarding union representation.
3.20 Subd. 8. Prior financial assistance. Nothing in this section applies to any financial
3.21assistance for which a contract or project agreement was executed prior to July 1, 2014.
