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Unions Unhappy With EFM Law, But More Concerned About Binding Arbitration

Local union leaders say preservation of Public Act 312 is a higher priority than protesting the recently passed emergency financial manager legislation.

Though Michigan’s unions have been the most vocal opponents of the emergency financial manager legislation, Dearborn firefighters say they’re more troubled by efforts to repeal or change Public Act 312.

On March 18, Gov. Rick Snyder signed into law House Bill 4214, which grants broad powers to emergency financial managers–including dissolution of local political leadership and union contracts if they see it fit. Emergency financial managers can be put in place by Gov. Snyder at any time.

For union members like Dearborn Federation of Teachers President Chris Sipperly, the law is a slap in the face to unions that have been struggling with contract agreements.

The DFT has been in negotiations with the Dearborn Board of Education for two years, and appears to be close to reaching an agreement after going into fact-finding earlier this year.

But all of that could be for naught if Dearborn were declared to be in a state of financial emergency.

"This law is something that makes us angry," Sipperly said. "It's ridiculous. It's as if the state is purposely setting up the school to fail, and the district as well. The unions are right to be concerned about it."

Though the DFT hasn’t made a showing at any recent protests against the piece of legislation championed by Gov. Snyder, several members of the Professional Firefighters of Dearborn union have, despite the fact that the largest protests went on while they were all in promotions testing for their jobs.

Union president Joey Thorington said that five of his members went to Lansing, and that the union as a whole is concerned about the implications of the legislation.

“It’s very concerning,” he said. “The rights (emergency financial managers) have can completely disintegrate collective bargaining agreements. I recognize that something has to be changed in the way some of the cities are handled, but it just opens the door for a lot of corruption. When one person is in control, they’re more easily influenced and it takes power out of the people’s hands.

“The person is not held accountable to the public.”

Thorington acknowledges that he doesn’t see the legislation affecting Dearborn any time soon, but that his concern is that calling the shots on EFM in-statement is completely out of the city’s hands.

“It’s totally in the governor’s hands where that line is,” he said. “This governor may have the best intentions, but the next one may not. The next one may look at these cities that are doing OK, but struggling a little bit and … send somebody in.”

But of greater concern to the firefighters union than the emergency financial manager legislation is the possibility that Public Act 312–which calls for binding arbitration in contract disputes between municipalities and unions–may soon be a thing of the past.

Legislation to repeal PA 312 was introduced in the state House on Feb. 8 by Rep. Joe Haveman, R-Holland. If HB 4205 is passed, it will repeal the act in its entirety.

Gov. Rick Snyder, in a March 21 message to the state legislature, outlined his plan for local government reform. Included in that was a suggestion that PA 312 should be reformed, although Snyder did not go so far as to call for its repeal.

“The concept of binding arbitration is not the problem–the problem is the way it is applied,” Snyder wrote. “Binding arbitration should be viewed as the last option and not the inevitable last step in a collective bargaining process.”

Snyder suggested that amendments be made to the act so that

  • A community’s ability to pay should be a fundamental factor in an arbitrator’s decision.
  • Internal salary and benefit comparisons should also be considered by an arbitrator.
  • Both sides should be required to submit a last best offer before entering into binding arbitration.
  • The process of binding arbitration should last no more than 90 days.

When word of the possible repeal got out, local fire and police union members at Dearborn –and then in –against the bill.

The bill has not made any movement through the House in over a month.

Thorington is hopeful that PA 312 will remain intact–a matter he says is much more important to fire and police unions than the emergency financial manager legislation.

“Public Act 312 is more of a critical issue for us,” he said. “They’re both critical, but Public Act 312 is a direct influence every time we go to negotiations, where as (EFM legislation) is only when cities get in trouble.  That won’t affect every bargaining decisions that are made. Public Act 312 will.”

Lee Jacobsen March 25, 2011 at 06:26 am
Governor Snyder's admendments to binding arbitration make a lot of sense. With these admendments, PA312
would surely be acceptable to all the unions that would like to see Dearborn move forward, rather than backward. •A community’s ability to pay should be a fundamental factor in an arbitrator’s decision. •Internal salary and benefit comparisons should also be considered by an arbitrator. •Both sides should be required to submit a last best offer before entering into binding arbitration. •The process of binding arbitration should last no more than 90 days. These admendments look pretty fair, do the unions concur? If not, be specific.
Outside looking in March 27, 2011 at 08:07 pm
The only thing that doesn't already exist in PA 312 is speeding up the arbitration process. I think the people wanting to make changes to PA 312 didn't bother to read it and if they did they must have a hard time with comprehension. It just goes to show how fair PA 312 was to begin with. Arbitration in under 90 days makes PA 312 an even better law.
MaintainServices-StayClean-StaySafe March 27, 2011 at 08:56 pm
This interview was taken during the attempt to repeal P.A. 312, prior to Governor Snyder's proposed changes. The assessment by "Outside looking in" is correct.
Lee Jacobsen March 28, 2011 at 04:01 am
So, can we agree that the proposed change(s) to PA 312 by Gov. Snyder is acceptable to the unions?
MaintainServices-StayClean-StaySafe March 28, 2011 at 07:14 pm
The way changes are interpreted by politicians can sometimes not be the way it appears written in plain English. I am cautiously optimistic in regards to Gov Snyder's P.A. 312 proposals.
Lee Jacobsen March 28, 2011 at 08:31 pm
Well said....I agree! Not to pick on lawyers, but plain English would sure reduce the confusion factor.

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Tom B June 18, 2013 at 07:42 pm
Way too much for a college having financial problems.
Daniel Lai (Editor) June 12, 2013 at 03:09 pm
Here is a copy of the terms of service. http://dearborn.patch.com/terms We will not tolerateRead More readers posting with curse words or attacking other readers. Thank you for your comments. Have a nice week. If you require further clarification, you are welcome to email me.
Gary Woronchak June 12, 2013 at 10:32 am
Hasn't even worked one day? Not one day in 15 years? Really? Not even credit for one day? When IRead More worked at the Press & Guide (which eliminated my position in a budget restructuring that has continued under various corporate owners at the P&G for a decade and a half, resulting in them moving their offices to Southgate and more recently just out-and-out eliminating their editor, sports editor and photographer) we had a policy of no anonymous letters to the editor. This was done because, while everyone has the right to express their opinion, putting a real name with an opinion meant people displayed more decorum and, well, less cowardice than is allowed in online comments from the shadows. Joseph, the benefit of post-employment health care after just eight years of service may have, in the early 1990s, been more acceptable in some way I can't figure (retention of key department heads has been cited as a reason, as was that it apparently mirrored a benefit for state officials), but it clearly was part of the excesses of Wayne County that was unjustifiable and unsustainable in the 2000s. This practice was ended two years ago by a resolution I introduced.
Daniel Lai (Editor) June 12, 2013 at 11:22 am
The original comment has been deleted because it violates our terms of service.
Joseph Borrajo June 13, 2013 at 10:08 am
Thank you Gary Woroncahk for the response.
laplateau June 11, 2013 at 11:28 am
Yeah, unless the drinking trough is filled with taxpayer water.
laplateau June 10, 2013 at 03:49 pm
Joseph, Are you bordering upon slander? Is this the reason for no more info? I hope you are not.Read More Perhaps you are picking up on some nasty rumors and repeating them here. You should know better than to do that. So, if you have real proof, tell it like it is and don't hedge. What you are saying in your post is dangerous to you and those who you are referring to, so, as the saying goes...put up or shut up.
Judith Lundy June 10, 2013 at 05:56 pm
Whether or not the facts of this opinion piece are true, I thoroughly believe Robert McNamara wasRead More the personal trainer for Kwame Kilpatrick. McNamera would have been spending a lot of time in prison if he didn't die. Ficano is a joke in my estimation. I know no one who wants him to remain in office. With today's survellience techniques and high tech gadgets, politicians can no longer get away with what they did in the past.
Joseph Borrajo June 10, 2013 at 10:19 pm
Follow the money!