Municipal Statute Does Not Violate California Labor Law: Ruling

Menlo Park, CA It's been an interesting journey in California labor law for both employees and taxpayers in one municipality in the state??"and that is the right for those paying the bills to have some input into the pension benefits of municipal employees.

At issue is 'Measure L,' a statute voted on in 2010 by the voters of Menlo Park which gave taxpayers a voice they might not of otherwise had in the debate over pension issues related to City employees. According to the Palo Alto Daily News (5/9/12), Measure L raises the retirement age of new City employees by five years from 55 to 60, and caps pension payouts to two percent of the highest base salary earned over three consecutive years, multiplied by years of service.

That's down from 2.7 percent, which grandfathered employees??"City staff hired prior to Measure L coming into effect??"are not affected by. Police officers are also not impacted to the new measures.

Unions representing affected Menlo Park employees cried foul, citing violations to California labor code. They responded with a California labor lawsuit, and on May 4 Superior Court Judge George Miram ruled in favor of the measure after hearing arguments from both sides.

The right to unencumbered collective bargaining is a right entrenched in California and labor law. To that end, two of the unions representing Menlo Park employees??"Service Employees International Union (SEIU) and American Federation of State, County and Municipal Employees (AFSCME)??"claimed Measure L compromises that right, suggesting the capacity for voters to impact issues related to employee compensation is illegal when, in the union's view, only City Council has the authority to do so.

In his nine-page opinion on the California Labor employment law issue, Judge Miram disagreed with the union's contention that Measure L constrained the ability for elected council officials to bargain with unions in good faith. "The city continues to have the duty to negotiate in good faith, albeit within the constraints provided by Measure L," he wrote.

The unions which launched the California employee labor lawsuit expressed disappointment in the ruling, stating: "SEIU and AFSCME stand by our opinion that workers rights that are protected by the state Constitution shouldn't be subject to the whims of political currents."

The State of California has suffered from numerous budget woes over the last several years, and has sought concessions from unions and state employees to help with the fiscal pressure. Presumably, municipalities also feel the pinch and look for ways to economize within the confines of the California labor code.

To this end, Measure L falls within the municipality's rights, according to the ruling, under California state labor laws. It is not known if the unions plan to appeal.