All notes for Subtopic 1000.02026 – Contracting Out

DecisionDescriptionPERC Vol.PERC IndexDate
2659M * * * JUDICIAL APPEAL PENDING * * * County of Kern and Kern County Hospital Authority
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
PERB generally finds that subcontracting decisions are within the scope of bargaining. To prevail in showing that the Richmond Firefighters balancing test warrants finding a particular subcontracting decision to have been bargainable, a union generally must establish one of three circumstances: (1) the employer’s reasons for subcontracting included labor costs, personnel issues or other issues that are amenable to bargaining; (2) the subcontractors performed substantially the same duties as that traditionally or historically performed by unit employees, even absent evidence of the employer’s motivation; or (3) where the employer unilaterally alters the terms of a written policy or agreement, or applies such policy or agreement in a new way. While the union need only establish one viable theory to bring the employer’s subcontracting decision within the scope of bargaining, the Board found that the union prevailed under all three where the employer began using contract medical assistants to staff newly-opened clinics, without notifying the union or giving it an opportunity to bargain,Just as a union has no need to establish the employer’s motivation for subcontracting when the employer replaces existing bargaining unit employees with employees of an outside organization, the same is true when an employer opens new operations, if the nature of the subcontracted job duties is sufficiently similar to the duties that bargaining unit employees already perform for the employer. (Mi Pueblo Foods (2014) 360 NLRB 1097, 1098-1099; Overnite Transportation Co. Overnite Transportation Co. (2000) 330 NLRB 1275, 1276, affd. in part, reversed in part mem. (3d Cir. 2000) 248 F.3d 1131.) more or view all topics or full text.
08/06/19
2443M City of Milpitas
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Although a decision to subcontract work may constitute a managerial decision at the core of entrepreneurial control and be based on factors not amenable to negotiation, decisions to outsource which are based on labor costs, viz., overall enterprise costs, are within scope of representation because the union has control over some enterprise costs (labor costs) and may make concessions through the bargaining process that may substantially mitigate the concerns underlying the employer’s decision, thereby convincing the employer to rescind its decision. Outsourcing decisions based on enterprise (labor) costs are peculiarly suitable for resolution through the collective bargaining framework. more or view all topics or full text.
403607/29/15
2110S State of California (Department of Veterans Affairs) * * * OVERRULED IN PART by County of Sacramento (2013) PERB Decision No. 2315-M
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
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. more or view all topics or full text.
349006/01/10
1839H Trustees of the California State University * * * OVERRULED IN PART by County of Kern and Kern County Hospital Authority (2019) PERB Decision No. 2659-M
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
There is no duty to bargain where Respondent did not transfer bargaining unit work out of the unit or substitute one group of employees for another. There was no evidence that any unit employees ever performed work at that campus. That some student housing services at other campuses were performed by bargaining unit employees does not of itself mandate that housing services be performed by bargaining at this campus. more or view all topics or full text.
3011805/12/06
1547E Ventura County Community College District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Community college district and local sheriff unilaterally entered into an agreement to allow sheriff’s employees to teach criminal justices for students who would receive college credit. Board found that the agreement was not a subcontracting decision since District maintained the primary right of control over the sheriff’s employees. Instead, Board analyzed the agreement as akin to a transfer of work and found that the decision to utilize sheriff’s employees as instructors was within the scope of representation. more or view all topics or full text.
2713309/24/03
1440E Lucia Mar Unified School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Unilateral change found where school employer unlawfully failed to negotiate over its decision to replace its transportation employees with those of contractor, where district kept same basic transportation system in place and offered same basic transportation services to students of district. No need to apply further test about labor costs to determine decision is negotiable. more or view all topics or full text.
253207305/24/01

1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Unfair practice committed when employer unilaterally shifts work by means of contracting the services previously done by its employees to an outside entity. [223 Cal.App.3d at 1133] As district terminated classes before public pressure caused it to contract with outside entity to provide classes, the former district employees suffered no detriment. Absent some showing that union members were terminated because of the decision to contract out their jobs, court declines to hold that decision to contract out was a subject of mandatory negotiation. [223 Cal.App.3d at 1134] more or view all topics or full text.
1320E Ocean View School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Under Education Code section 38020, a school district may lawfully contract out transportation services subject to its good faith bargaining obligation under EERA; p. 3, warning letter. School District's contract with parent-owned company to provide transportation services (with parent volunteers driving) previously performed by District employees properly analyzed as contracting out rather than transfer of bargaining unit work; p. 2, dismissal letter. more or view all topics or full text.
233008003/22/99
1163E Arcata Elementary School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Contracting out decisions based on a change in the nature and direction of a significant facet of business are not negotiable, but contracting out decisions based on labor cost considerations fall within the scope of representation; p. 7. more or view all topics or full text.
202712006/26/96
1138E Barstow Unified School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
The Board has held that when an employer's decision to contract out work turns upon labor costs, the decision is within the scope of representation; p. 11. more or view all topics or full text.
202704402/20/96
1138Eb Barstow Unified School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
EERA's mandatory subjects of bargaining include the employer's decision to contract out work to reduce labor costs; p. 23. more or view all topics or full text.
212806803/20/97
0789E Beverly Hills Unified School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Contracting out of former duties of laid off unit member negotiable, as decision based primarily, if not exclusively, by labor costs and decision amenable to bargaining; pp. 14-15, proposed dec. Fact that no additional funds given to contractor for provision of new services does not change conclusion that unit work was contracted out; p. 13. more or view all topics or full text.
142104201/19/90
0754E Calexico Unified School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
The diminution of overtime opportunities constitutes a change in wages and is subject to negotiations; p. 22, proposed dec. more or view all topics or full text.
132015907/17/89
0648S State of California (Department of Personnel Administration)
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
A union proposal containing a blanket prohibition on subcontracting unit work, including contracting out for reasons other than labor costs, is outside the scope of representation. Management decisions to contract out unit work for reasons other than labor costs are nonnegotiable, but the effects of such decisions are within scope. more or view all topics or full text.
132001312/18/87
0580E Roseville Joint Union High School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Contracting out possible under contract only where not "prohibited by law" and violation occurred to extent actions by District are characterized as contracting out. Analysis of Willits 243 Cal App 2d 776 and its effect on contracting out. more or view all topics or full text.
101713606/30/86
0574S State of California (Department of Personnel Administration)
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Contracting out proposals during negotiations are within the scope of representation under SEERA. more or view all topics or full text.
101711106/03/86
0556E Stanislaus County Department of Education
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Cessation of direct operation of migrant child education program a managerial prerogative and continuation of role as administrator did not constitute contracting out. more or view all topics or full text.
101703912/31/85
1955H Trustees of the California State University (San Diego)
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
The employer did not unlawfully contract out work when its decision to discontinue staffing remedial mathematics and writing classes was made independent of its decision to contract with a third party to teach these classes. more or view all topics or full text.
327404/24/08
0375E Healdsburg Union High School District and Healdsburg Union School District/San Mateo City School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Contracting out negotiable; p. 86. more or view all topics or full text.
81502101/05/84
0360E Arcohe Union School District
1000.2026: SCOPE OF REPRESENTATION; Contracting Out
Subcontracting custodial services is within scope. more or view all topics or full text.
71429411/23/83