After months of negotiations, business, labor and Gov. Jared Polis failed to reach a compromise on a bill seeking changes to Colorado’s 80-year-old law that governs a key requirement before unions can impose fees on non-union members, sources said.

The sources earlier said the business community moved a lot in their efforts to find a compromise. A second source said the labor coalition had accepted an offer, though it was not clear exactly which one, although it was likely the governor’s position.

In an emailed statement late Saturday, Dennis Dougherty, co-chair of Colorado Worker Rights United and Colorado AFL-CIO executive director, said that business had “walked away from a meaningful compromise” and that labor would push ahead with the legislation.

Senate Bill 005 seeks to repeals the Colorado law‘s requirement for a second election in order for a union to establish a “union security” agreement at a workplace. Once agreed to by the company and the labor group, non-union workers would be required to pay union fees.           

Federal law governs union formation. In an election, a labor group must receive a simple majority to unionize — a related but separate issue than what’s before Colorado lawmakers.

Specifically, Colorado law requires a second election to allow a unionized workplace to negotiate over fees on non-union members. That election requires a higher threshold of a 75% “yes” vote to pass. The unions want to get rid of that second election.   

Business and labor have been divided on the measure since it was introduced early in the session. Polis told both groups he would not sign the measure into law unless they could reach a compromise, but as the end of session loomed, the governor pushed for a deal. 

All three sides — business, labor and the governor’s office — each put forth their own proposals:

• The business community agreed to lower the vote threshold in order to permit a union to begin negotiating over what labor groups called “representation fees” — the dues on non-union members. Under this offer, if, in the election to form a union, a simple majority of employees eligible to vote or 66% of workers who show up to cast a ballot say “yes,” then the labor group automatically gets the permission to negotiate over the fees. No second election is necessary. This position moves business from its starting point of a 75% threshold. 

• The labor coalition wanted a lower threshold: If 53% of the workers who show up to vote in the first election say yes, then the labor group is authorized to negotiate over the fees. Under that scenario, a second election is also unnecessary. If the labor group failed to clear that threshold in the first election, a second election is necessary, under which the union must only secure a simple majority — 50% plus 1 — of the workers who show up to vote. 

• The governor’s final offer has not been made public, but sources said it’s very similar to his previous offer, with some tweaks. For bargaining units of under 50 employees, 66% of those workers must show up to vote in the first election to unionize and 66% of ballots cast must vote in favor. For units with over 50 members, the threshold changes to 55%. If the thresholds are met, then a union is automatically permitted to pursue “union security.” That also applies if 50% plus one of the total workforce, regardless of workforce size, supports unionization.  

Dave Davia, president and CEO of Colorado Concern, which opposes Senate Bill 005, said he appreciates the work put in by all parties in trying to find a compromise. 

“We appreciate all the work by all parties that went into trying to find a compromise,” he said. “We thank the Governor and Speaker for their leadership and for trying to find a responsible compromise.”

He added: “Business put several material offers on the table, that were generous and addressed the unions stated objectives since our first meeting last November. One of our principles from the beginning, that a true compromise must mean a simple minority cannot compel mandatory payroll deductions from the majority of employees. We again thank the Governor, and ask that any bill that lands on his desk that doesn’t protect the majority of workers be vetoed.

The Metro Denver Chamber of Commerce, which also opposes the bill, said its executive committee stands in “unanimous opposition” to the governor’s offer.

“We remain committed to Colorado’s current Labor Peace Act that has served our economy so well for so many years,” said J.J. Ament, the chamber’s president and CEO.  

Senate Bill 005 is scheduled for debate on the House floor on Saturday afternoon. It passed through the Senate in February on a 22-12 party line vote.