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F I S C A L I M P A C T R E P O R T

SPONSOR Moore

ORIGINAL DATE

LAST UPDATED

1-24-06

HJM

008

SHORT TITLE

STUDY BULLYING IN NM WORKPLACES

SB

ANALYST Lucero

SOURCES OF INFORMATION

LFC Files

Workplace Bullying: Introduction to the “Silent Epidemic” by Gary Namie, PhD and Ruth Namie,

PhD

Canadian Centers for Occupational Health and Safety

Responses Received From

Department of Labor (DL)

Children, Youth and Families Department (CYFD)

Human Services Department (HSD)

State Personnel Office (SPO)

Economic Development Department (EDD)

SYNOPSIS

HJM 8 resolves that the Labor Department be requested to convene a task force to study the many

facets of workplace bullying in New Mexico and the ways to reduce it. The memorial further re-

solves that the task force be comprised of one representative each designated by the Secretary of

Labor; the Secretary of Human Services; the Secretary of Children, Youth and Families; the Secre-

tary of Economic Development; the Director of the Risk Management Division of the General

Services Department; and the Director of the State Personnel Office. HJM requests that the task

force report to the interim legislative Health and Human Service committee by its October 2006

meeting with recommendations on strategies to decrease the incidence of workplace bullying in

New Mexico

HJM 8 further resolves copies of this memorial be transmitted to Secretary of Labor; the Secretary

of Human Services; the Secretary of Children, Youth and Families; the Secretary of Economic De-

velopment; the Director of the Risk Management Division of the General Services Department;

and the Director of the State Personnel Office.

SIGNIFICAN ISSUES

House Joint Memorial 8 addresses bullying in the workplace, and the stress-related problems that

occur when employees are bullied. Also stated in the memorial are the negative consequences of

House Joint Memorial 8 – Page

2

ignoring bullies in the workplace including, the effect on the health and economic status of an em-

ployee and the costs of increased health care premiums to the employer due to increased health

care utilization by employees.

Other states are addressing this issue through legislation and education. HJM8 would create a task

force to study the facets of workplace bullying in New Mexico and ways to reduce it. The task

force would consist of a representative from six State agencies chosen by the Secretary of each

agency. The task force will be expected to report its findings and strategies to decrease the inci-

dence of workplace bullying to the interim legislative health and human services committee by its

October 2006 meeting.

FISCAL IMPLICATIONS

From Workplace Bullying: Introduction to the “Silent Epidemic” by Gary Namie, PhD and Ruth

Namie, PhD:

Several reasons for employers to address workplace bullying:

•

It is 3 times more prevalent than sexual harassment.

•

It is costly: Turnover is expensive. Increased health care utilization can result in heftier

premium costs borne by employers

•

Data to prevent bullying-related losses exist (HR systems hear the complaints)

•

Fear-driven workplaces with poor morale undermine commitment and productivity of all

employees.

•

Employee recruitment and retention are made more difficult when the employer’s reputa-

tion is harmed.

This memorial does not have an amount set forth to pay for mileage and per diem for at-tendance

at such meetings.

SIGNIFICANT ISSUES

From Workplace Bullying: Introduction to the “Silent Epidemic” by Gary Namie, PhD and Ruth

Namie, PhD:

“Until recently, Workplace Bullying, the imported British term, was unfamiliar to most

Americans. Yet one in six US workers experiences its adverse consequences. Workplace

Bullying, the term coined by a British journalist, is defined as “status-blind” interpersonal

hostility that is deliberate, repeated and sufficiently severe as to harm the targeted person’s

health or economic status.” “It rarely involves fighting, battery or homicide; so it is sub-

lethal, non-physical, psychological violence. It crosses boundaries of gender, race and or-

ganizational rank.”

“Remarkably, in only 25% of bullying cases does the target have protected group status,

potentially qualifying incidents as sexual harassment or racial discrimination. Bullying’s

lack of illegality makes it easy to ignore even though it is 3 times more prevalent than ille-

gal harassment.”

The task force would study the facets of workplace bullying in New Mexico and ways to

address it. The task force would report to the interim legislative health and human services

House Joint Memorial 8 – Page

3

committee and recommend strategies in decrease said incidents.”

“Employers establish the work environment, its culture, and are responsible for its health or

toxicity”, leaving the employer exposed to increased liability.

HJM8 appears to include not only public sector employers in New Mexico, but also private sector

employers. Obtaining this type of information may require extensive time and work on the part of

the representatives chosen for the task force since this information has not previously been gath-

ered.

There may be an opportunity to alleviate some workplace bullying issues through the use of alter-

native dispute resolution services. Currently, an Alternative Dispute Resolution (ADR) Council

established by Executive Order is preparing recommendations for the Governor on the potential

uses for ADR in state government.

ADMINISTRATIVE IMPLICATIONS

Support and commitment of participation from the Secretary of Labor, the Secretary of Human

Services, the Secretary of Children, Youth and Families; the Secretary of Economic Development,

the Director of Risk Management Division of the General Services Department and the Director of

the State Personnel Office is required in order to allocate sufficient time and effort to make knowl-

edgeable recommendations to the legislative committee.

The representative chosen could be required to spend a great deal of time working for the task

force hindering his/her ability to perform regular job duties, in turn affecting the rest of the divi-

sion’s work.

TECHNICAL ISSUES

The concerns of the Memorial are partially addressed in the Governor’s Executive Order 2005-

047, ADR Advisory Council. The ADR Advisory Council is in the process of developing a Cen-

tral State Office whose main purpose is to help resolve work place conflicts within state govern-

ment. The ADR Council is composed of representatives from 23 State entities and agencies. All

six Departments proposed in this Bill have designated representatives working with the ADR Ad-

visory Council.

A small number of discrimination complaints filed with NMDOL’s Human Rights Division (HRD)

also involve allegations of violence of threats of violence. HRD does not maintain statistics on

workplace violence.

OTHER SUBSTANTIVE ISSUES

The issue of workplace bullying should include a discussion of the implied employment contract.

The union representing state employees should also be involved in the task force.

From Workplace Bullying: Introduction to the “Silent Epidemic” by Gary Namie, PhD and Ruth

Namie, PhD:

“State legislatures in California, Oklahoma and Washington have considered protecting all

individuals against hostile workplaces, regardless of membership in a protected class.”

Bullying affects the overall health of an organization including (from Canadian Centers for Occu-

House Joint Memorial 8 – Page

4

pational Health and Safety; http//www.ccohs.ca/oshanswers/psychosocial/bullying.html):

1.

Increased absenteeism

2.

Increased turnover

3.

Increased stress

4.

Increased costs for employee assistance programs (EAPs), recruitment, etc

5.

increased risk for accidents/incidents

6.

decreased productivity and motivation

7.

decreased morale

8.

reduced corporate image and customer confidence

9.

poorer customer service

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If the task force is not created and the issues are not resolved, workplace bullying will continue to

cost both the employers and employees in increased health care premiums and stress-related prob-

lems which are detrimental to workforce productivity.

DL/nt