SCOPE OF REPRESENTATION – Contracting Out

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* * * OVERRULED IN PART ON OTHER GROUNDS by County of Sacramento (2013) PERB Decision No. 2315-M. * * *

Contracting out is within the scope of representation when: (1) the employer simply replaces its employees with those of a contractor to perform the same services under similar circumstances; or (2) the decision was motivated substantially by potential savings in labor costs. Charge failed to establish that the State’s closure of acute care unit at veterans’ home and layoff of unit employees was the result of contracting out. Charge did not allege facts showing that the State contracted with private hospitals to perform acute care services for home residents that had previously been performed by bargaining unit members. Medi-Cal payments to private hospitals for home residents’ acute care services did not establish that the State contracted out bargaining unit work.