sr-101282-11ff f°
007 1 2 1982
CA : RP1P1: KMr4 : rt
Council Meeting 10-12-32 Santa tlonica, California
S'T'AFF REPORT
T0: Piayor and City Council
FROb4: City Attorney
SUBJECT: Relevance of Labor Dispute Between Group S+7 and
Employees to Pending Franchise Issues
IN"_'RC DLI CT I ON
On August 3, 1932, the City
the current labor dispute between
arising from the election of
Theatrical and Stage Employees
City Council referred to the
whether the matter was relevant
before the City Council or the
the City Manager.
Council considered the issue of
Group P7 Cable and its employees
the International Alliance of
CATSE) as bargaining agent. The
City Attorney the question of
to the franchise issues pending
issues presently under study by
BACKGROUP7D
Cn June 1, 1937_, the City Attorney transmitted a staff
report to the City Council regarding Theta's request for approval
of the merger between its parent company, Teleprompter, and Group
W, a subsidiary of Westinghouse Corp. The staff report raised
several issues, including a possible breach of franchise by
Theta. The City Council set the matter for a public hearing.
1 ~~-
00T 1 2 1982
Between the time of the staff report and the date for public
hearing, city staff teas contacted by representatives of Theta and
several meetings ieere held. At these meetings, Theta proposed
that the issues of franchise breach and the approval of merger be
deferred pending broad-ranging discussions including franchise
extension.
The City Council agreed to defer the legal issues and
consider the issues raised by Theta. Consequently, consideration
of the matters presented in the City Attorney's staff report were
suspended, and the public hearing thereon postponed, while these
nece issues were being explored. Consideration of these issues is
being handled by the City PZanager's office. That process is
described in a staff report transmitted to the City Council for
its meeting of July 27, 1932.
Because of the complexity and importance of the issues, the
City Council approved staff recommendation for the formation of a
Cable Communications Task Force that would study the issues,
encourage public education and participation, and advise the City
Council on policy.
Several months before the issue of possible breach of
franchise was considered by the City Council, a majority of Theta
employees voted to `orm a bargaining unit to be affiliated with
IATSE. Union representatives claim that Theta group 'v~l) has
refused to recognize the union as its employees' representative.
Since about February, 193?_, the employees have been on strike and
have been urging a boycott of Group bV. Representatives of the
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employees' group have urged the City Council to take cognizance
of the labor dispute and support the union's position.
mhe franchise agreement bet~oeen the City and Theta does not
make any mention of labor. matters or the personnel policies of
the franchisee. mhe potential breach by mheta raised in the
earlier staff report relates to covenants and conditions
contained in the franchise agreement and does not pertain to
labor practices of of the franchisee.
Labor difficulties and unfair labor practices can he
relevant to the City Council in the process of awarding,
renewing, or extending a franchise. Such issues, which may
affect the qualifications of applicants as caell as the quality
and continuity of service, may be considered. See, e.g., Golden
State Transit Corp. v. City of Los Angeles, 82 Daily Appellate
Report 2589 (9th Cir., Sept. 7, 1982). Thus, in renewing or
renegotiating the franchise with Group w, the City Council may
consider the instant labor matters to the extent they might
impact upon the performance required by the franchisee under the
franchise agreement.
Likewise, the same considerations go to the issue of the
pending request for approval of the Theta - Group W merger. As
noted in the first staff report on this subject, character
qualifications play an important part in FCC licensing decisions.
Similarly, they would be relevant to a decision by the Council
regarding the franchise transfer.
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The labor issue, however, is irrelevant to the question of
whether or not Theta has breached the existing franchise
agreement. The determination of cahether or not a breach has
occurred depends upon the application of specific terms of the
franchise agreement.
Although the City Council might validly consider Croup G^7's
labor practices in the context of approval of transfer, such
issues are presently suspended pending negotiations and study by
the City Manager and the task force. The matters currently under
consideration relate to types of service, quality of programming,
community access, and related issues. The labor issue would
interject legal and collateral matters that might. cloud the
charge of the task force.
RE COMM Et1DAT I02I
For the foregoing reasons, it is respectfully recommendeds
1. The Cable Communications Task Force not inquire into or
consider matters relating to current labor dispute betcaeen Croup
47 and its employees.
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2. ^hat at such time that City Council considers the
approval of the transfer request or the renecaal or extension of
the franchise that the labor practices of the franchisee be
considered to such extent as the City Council deems appropriate.
Prepared by: Robert P2, t4yers, City Attorney
~:arl C4. tlanheim, Deputy City Attorney
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