Peoria staff proposes voluntary ‘union vacation bank’ after Arizona Supreme Court ruling

Human-resources staff told the Peoria council at a study session on April 22 that the city will seek a city-code change allowing employees to voluntarily donate accrued vacation time into a union-managed bank that union representatives may use for union business.

Deputy HR director Brianne Nelson and HR manager Theresa Brenholt explained that Peoria historically provided “union release time” negotiated in memoranda of understanding — a pool of hours per labor group ranging from roughly 414 to 1,600 hours — that union leaders could use for representation, bargaining preparation, training or charity events. Nelson said the practice ended after the Arizona Supreme Court’s July 31, 2024 Gilmore/Gallego decision, which concluded that the prior municipal practice raised gift-clause concerns because the court found mere “goodwill” was not a sufficient tangible benefit to the city.

Brenholt told council that city negotiators subsequently removed references to union release time from collective bargaining agreements and met with labor groups to design an alternative. The staff proposal would add a new subsection H to city code section 6-5 authorizing voluntary gifts of accrued vacation time into a bank that union leaders could authorize employees to draw from for union business. Brenholt said the donation must be voluntary and that HR has drafted an implementing policy and documentation procedures. Staff said the code amendment is scheduled as a consent-agenda item (item 10C) on the next regular meeting and, if approved, HR will finalize the policy and begin implementation with the labor groups.

Why it matters: The change is a legal response to a state supreme-court decision that curtailed the city’s prior negotiated practice; the proposal aims to preserve a method for union representation while avoiding the constitutional gift-clause concern by making contributions voluntary and documenting municipal benefit and use.

What staff said: "So in summary, we are requesting to add subsection H and this would allow individuals to donate their accrued vacation time on a voluntary basis for union business," Brenholt said during the study session. Nelson added that the city stopped authorizing the previous leave banks in August 2024 and has been negotiating the new approach with labor groups since then.

Next steps: Staff told council the amendment will appear on the consent agenda for the next regular meeting for formal approval and, once adopted, HR will complete implementing rules in consultation with labor groups so authorized union business hours may resume under the new, donated-vacation model.