SCOPE OF REPRESENTATION – Subcontracting

Single Topic for Decision 2610H

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In addition to the test for negotiability set forth in Anaheim Union High School District (1981) PERB Decision No. 177, where an employer contemporaneously decides to terminate bargaining unit work and replace employees with those of an independent contractor to do the same work under similar conditions, such decisions do not involve a change in the scope and direction of the enterprise or a core entrepreneurial decision beyond the scope of the collective bargaining obligation. When this kind of subcontracting is involved, there is thus no need to inquire into labor costs or to apply Anaheim or any other tests for negotiability, as the U.S. Supreme Court, the NLRB, and PERB have all concluded that, as a matter of law, such decisions are negotiable. (p. 37.)