Sen. Steve Padilla (D-San Diego) announced on Sept. 14 that his Senate Bill 751, aimed at closing predatory loopholes in franchise agreements between municipalities and waste haulers, has been approved by the California Legislature. The legislation was prompted by an incident in 2022 when a waste hauler failed to reach an agreement with its workforce.
In 2022, a waste hauler failed to reach an agreement with its workforce that ultimately led to a strike, according to a press release for Padilla's office. However, the franchise agreement with the cities of San Diego and Chula Vista contained a provision that protected the company from liability in the event of a strike or work stoppage. As the strike persisted and workers demanded better wages, trash pickup was halted by the vendor, causing trash to accumulate throughout the city. This predatory loophole created a public health emergency.
According to the release, this provision, known as "force majeure," is typically intended to protect parties from uncontrollable circumstances, often defined as natural disasters or insurrections. These provisions are meant to cover actions beyond the control of both parties. However, the franchise agreement in question included labor disputes, which are entirely within a company's ability to negotiate, not uncontrollable circumstances.
“Private businesses cannot be allowed to abuse Act of God provisions to shield themselves from liability,” said Padilla in the release. “We need to close these loopholes so the public doesn't become the victim of a business's unwillingness to pay workers a fair wage."
Senate Bill 751 will prohibit any franchise contract, license or permit for solid waste handling services entered into or amended by a local agency on or after Jan. 1, 2024, from excusing the service provider from performing their duties in the event of a labor dispute. This legislation aims to prevent municipalities from entering into predatory agreements, ensuring that California can address a potential public health crisis before it emerges and safeguard the legal right of workers to strike and collectively bargain. It also maintains protections for circumstances beyond the control of both parties, the release stated.
"SB 751 will make sure that solid waste companies conduct themselves responsibly when entering into bargaining with their employees,” said Jaime Vasquez, Secretary-Treasurer of Teamsters Local 542, in the release. “For too long, companies have extended strikes to force their employees into accepting inadequate offers. This bill will now force companies to negotiate fairly and suffer the consequences if they do not act as responsible employers."
The bill passed the Senate with a 28 to 10 vote and the California Assembly with a 48 to 17 vote on Sept. 13. It will now proceed to Governor Newsom's desk for approval.
According to his website, Padilla represents the 18th Senate District, encompassing the communities of Chula Vista, the Coachella Valley, Imperial Beach, the Imperial Valley, National City and San Diego. Prior to his election to the Senate in 2022, Padilla made history as the first person of color elected to city office in Chula Vista, serving as the city's first Latino mayor and the first openly LGBT individual elected or appointed to city office.