Employee Relations Services – Human Resources Division

 Date:  November 2000                                                        No. 2


"I understand that Governor Davis signed a Bill (SB 402) that provides for binding interest arbitration.  What does that mean for Monterey County?”

There are two types of contract (MOU) disputes; Interest disputes are disagreements over the terms of an MOU that is currently being negotiated; Rights disputes are disagreements over the interpretation or application of provisions of an existing MOU.

SB 402 deals with Interest disputes between local governments and bargaining units representing law enforcement officers. 

If Meet and Confer with any of the above units results in impasse, the union can request taking unresolved economic issues to arbitration.  Arbitration is a hearing held before a panel of three arbitrators.  The union appoints one arbitrator, the County appoints one arbitrator and those two arbitrators select a third. 

Prior to commencement of the arbitration hearing each party is to submit their “last best and final offer” to the arbitration panel, on either an issue-by-issue basis or for the entire MOU.  The arbitration panel will then hear evidence and reach a decision choosing one proposal or the other.  There is no compromise in this procedure.  Hopefully, this will cause the parties to submit realistic proposals.

Following the arbitration panel’s decision, the parties have five days to meet and mutually agree to changes; otherwise the panel’s decision will become final.

SB 402 will go into effect January 1, 2001.

Employee Relations Bulletins are intended to provide an overview of subjects of interest.  For more detailed information contact Employee Relations.