Bill Text: NJ A1736 | 2010-2011 | Regular Session | Introduced
Bill Title: Permits labor peace agreements in projects in which public entities have proprietary interests.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Labor Committee [A1736 Detail]
Download: New_Jersey-2010-A1736-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Mercer)
Co-Sponsored by:
Assemblyman DeAngelo
SYNOPSIS
Permits labor peace agreements in projects in which public entities have proprietary interests.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act permitting labor peace agreements in connection with certain projects in which public entities have proprietary interests.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares:
a. The New Jersey State Constitution and federal labor law guarantees workers the right to form or select any labor organization to act as their exclusive representative for the purpose of collective bargaining with their employer, or to refrain from such activity;
b. The United States Court of Appeals held in Hotel Employees and Restaurant Employees Union, Local 57 v. Sage Hospitality Resources, LLC, 390 F.3d 206 (3rd Cir. 2004) that a public entity's decision to condition a grant of tax increment financing to a developer of a hotel construction project upon the developer's acceptance of a labor neutrality agreement constitutes "market participation" that falls within the exception from preemption by federal labor law provided in Building and Construction Trades Council v. Associated Builders and Contractors, 507 U.S. 218 (1993), commonly referred to as the Boston Harbor decision, because the public entity acted as reasonable investor in applying conditions to its investment in the project;
c. New Jersey has a compelling interest to ensure that a funding condition serves to advance or preserve the public entity's proprietary interest in a construction project or other project as an investor, owner or financier and that the scope of the funding condition is specifically tailored to the proprietary interest;
d. New Jersey has a compelling interest in having labor disputes in connection with construction projects or other projects in which a public entity has a proprietary interest as an investor, owner or financier resolved without strikes, lock-outs or other disruptions;
e. Labor peace agreements make possible legally enforceable guarantees that projects will be carried out in an orderly and timely manner, without strikes, lock-outs or slowdowns;
f. Labor peace agreements also make it possible to provide for peaceful, orderly, and mutually binding procedures for resolving labor issues, thus promoting harmonious and productive work environments;
g. Labor peace agreements also protect New Jersey worker rights guaranteed under the New Jersey Constitution.
2. For the purposes of this Act:
"Bargaining Unit" means an appropriate group of workers for the purpose of collective bargaining as determined, if necessary, by the New Jersey State Board of Mediation, Division of Private Employment Dispute Settlement.
"Construction" means any construction, reconstruction, demolition, alteration, custom fabrication, repair, or maintenance work, including, but not limited to, any work in which workers are required to be paid prevailing wage rates established pursuant to the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), and including any work subject to any other State law which requires the payment of the prevailing wage rates set pursuant to that act.
"Labor peace agreement" means an agreement entered into pursuant to this act between any employer employing workers in connection with the construction or operation of a project in which a public entity has a proprietary interest, and one or more labor organizations which represent those workers or, in the case of workers in the project not represented by a labor organization, a labor organization which seeks to represent those workers.
"Project in which a public entity has a proprietary interest" means any project, including a project involving the construction or operation of a hotel or other facility, in which a public entity has a proprietary interest as a financier, investor, lessee or owner of the project, the facility, or the property on which the project or facility is located.
"Public entity" means the State, any of its political subdivisions, any authority created by the Legislature and any instrumentality or agency of the State or any of its political subdivisions.
3. A public entity may include, on a project-by-project basis, a labor peace agreement in a project in which a public entity has a proprietary interest if the public entity determines that the agreement serves to advance or preserve that proprietary interest, that the scope of the labor peace agreement is specifically limited to that proprietary interest, and that the agreement meets the requirements of sections 4 and 5 of this act. If the public entity makes these determinations with respect to a particular project, any requirement that the labor peace agreement be included in the project shall not be deemed to unduly restrict competition and any bidder for the project refusing to comply with the requirement for a labor peace agreement shall not be regarded as a responsible bidder.
4. Any labor peace agreement entered into pursuant to this act between a construction manager, contractor or developer and one or more labor organizations shall be binding on all construction managers, contractors, subcontractors, developers or operators who employ workers in connection with the construction, but no construction manager, contractor, subcontractor, developer or operator shall be required to be a party to a collective bargaining agreement or labor peace agreement with the labor organizations other than for the construction covered by the labor peace agreement. Any labor peace agreement entered into pursuant to this act between a developer or operator of a project in which a public entity has a proprietary interest, including a hotel project, and any labor organization shall be binding on the developer and operator, but the developer or operator shall not be required to be a party to a collective bargaining agreement or labor peace agreement other than for the project covered by the labor peace agreement. No labor peace agreement entered into pursuant to this act between a developer or operator of a project and one or more unions shall apply after the time during which the public entity has a proprietary interest in the project as a financier, investor, lessee or owner of the project, including the duration of any loan for a project made, guaranteed, subsidized, administered or authorized by the public entity and including the duration of any contract with the public entity for a developer or operator to operate a facility in connection with the project.
5. Each labor peace agreement executed pursuant to the provisions of this act shall include provisions:
a. Which guarantee against strikes, lock-outs, or other similar actions which may cause economic disruption of the project in which the public entity has a proprietary interest;
b. Which guarantee that employers maintain neutrality with respect to the rights of workers working on the project to choose a labor organization to be their collective bargaining representative, including guarantees that no employer will take any action nor make any statement that directly or indirectly states or implies any opposition by the employer to the selection by those workers of a collective bargaining representative;
c. That a labor organization is guaranteed the right to obtain recognition as the exclusive collective bargaining representative by demonstrating to an agreed-upon, neutral third-party or the New Jersey State Board of Mediation, Division of Private Employment Dispute Settlement that a majority of workers in the bargaining unit have shown their preference to have the labor organization be their representative by signing authorization cards indicating that preference;
d. Setting forth effective, immediate, and mutually binding procedures for resolving all disputes relating to employment conditions or negotiations thereof, including a provision that any dispute over what constitutes an appropriate bargaining unit will be determined by the New Jersey State Board of Mediation, Division of Private Employment Dispute Settlement; and
e. Which make the agreement binding on all construction managers, contractors, subcontractors, developers or operators employing workers on the project through the inclusion of appropriate bid specifications in all relevant bid documents.
6. A labor organization signatory to a labor peace agreement may institute an action in a court of competent jurisdiction to obtain an injunction to enforce the terms of the labor peace agreement and to reimburse the labor organization for damages caused by any violation of the provisions of this act plus reasonable costs and attorney fees of the action.
7. Any employer who refuses to provide information requested by the New Jersey State Board of Mediation, Division of Private Employment Dispute Settlement, or otherwise acts to prevent the Board from carrying out its responsibilities pursuant to this act shall have violated this act and shall be liable to a fine of not more than $1,000, to be recovered under the "Penalty Enforcement Law of 1999," P.L.1999, C.274 (C.2A:58-10, et seq.) in the name of the Board and to be used by the Board for costs of implementing this Act.
8. This act shall take effect immediately.
STATEMENT
This bill provides that any public entity, that is, the State or any of its authorities, political subdivisions, agencies or instrumentalities, may include, on a project-by-project basis, a labor peace agreement in a project in which a public entity has a proprietary interest as a financier, owner or investor if the public entity determines that the agreement serves to advance or preserve that proprietary interest, that the scope of the labor peace agreement is specifically limited to that proprietary interest, and that the agreement meets the requirements of the bill. If the public entity makes these determinations with respect to a particular project, any requirement that the labor peace agreement be included in the project shall not be deemed to unduly restrict competition and any bidder for the project refusing to comply with the requirement for a labor peace agreement shall not be regarded as a responsible bidder. Labor peace agreements may apply to construction and other projects in which the State has a proprietary interest.
The bill requires that each labor peace agreement include provisions:
1. Which guarantee against strikes, lock-outs, or other similar actions which may cause economic disruption of the project in which the public entity has a proprietary interest;
2. Which guarantee that employers maintain neutrality with respect to the rights of workers working on the project to choose a labor organization to be their collective bargaining representative;
3. That a labor organization is guaranteed the right to obtain recognition as the exclusive collective bargaining representative by demonstrating to an agreed-upon, neutral third-party or the New Jersey State Board of Mediation that a majority of workers in the bargaining unit have shown their preference to have the labor organization be their representative by signing authorization cards indicating that preference;
4. Setting forth effective, immediate, and mutually binding procedures for resolving all disputes relating to employment conditions or negotiations thereof, including a provision that any dispute over what constitutes an appropriate bargaining unit will be determined by the New Jersey State Board of Mediation; and
5. Which make the agreement binding on all contractors, subcontractors, construction managers, developers or operators working on the project through the inclusion of appropriate bid specifications in all relevant bid documents.
A labor peace agreement entered into in connection with construction does not require any employer to be a party to a collective bargaining agreement or labor peace agreement with the labor organizations other than for the construction covered by the labor peace agreement. Likewise, a developer or operator of a project who enters into labor peace agreements is not be required by the bill to be a party to a collective bargaining agreement or labor peace agreement other than for the project covered by the labor peace agreement. A labor peace agreement for a project applies only during the time in which the public entity has a proprietary interest in the project as a financier, investor or owner, including the duration of any loan for the project made, guaranteed, subsidized, authorized or administered by the public entity and including the duration of any contract with the public entity for the developer or operator to operate a facility in connection with the project.
