Public Act 312 Frequently Asked Questions

Transcription

1 Public Act 312 Frequently Asked Questions Throughout the discussion of reforming Public Act 312, misinformation continues to be perpetuated. The following document is brief, but sets the record straight about what PA 312 does and why it is important to the public safety of all Michigan residents. WHAT IS PA 312 AND WHY WAS IT CREATED? In the 1960s, a series of strikes by police officers and firefighters put public safety at risk in communities across Michigan, including the following communities: Pontiac, Lansing, Saginaw and Kalamazoo. PA 312 ensures that police officers and firefighters have an option to negotiate labor agreements fairly and equitably with municipalities. In fact, because of PA 312, police and fire departments have not gone on strike in Michigan in the last 40 years. HOW CAN PA 312 BE EFFECTIVE WHEN ABILITY TO PAY ISN T CONSIDERED? PA 312 has been effective because ability to pay is considered during arbitration. As it is written, in Section 9 of PA 312, it is clearly stated that an arbitrator MUST consider the ability of the community to pay in its finding, opinion and award. The statute is followed by arbitrators and this criteria, as defined, is considered in each award. WHAT EFFECT WILL THE ELIMINATION OF PA 312 HAVE ON OUR COMMUNITIES? The elimination of PA 312 would set the state back decades. PA 312 was carefully studied, tested and analyzed before Gov. George Romney signed it into law. Without PA 312, negotiations between police and firefighters and their respective units of government, may result in regular strikes and labor impasses which are a threat to public safety. Each and every community would be at risk without PA 312. PA 312 keeps police and firefighters on the job while labor disputes are settled though the binding arbitration process. HOW OFTEN IS PA 312 USED? In 2010, out of the thousands of instances when counties, cities and townships negotiated agreements in good faith with police officers and firefighters, only 28 entered into binding arbitration a small fraction. In reality, binding arbitration is only used as a last resort by police officers and firefighters, usually when negotiations are at an impasse or when communications between both parties break down. ARE BENEFITS ALWAYS INCREASED DURING ARBITRATION? No. In fact, nearly 60 percent of the time, municipalities win issues before arbitrators. As a result of PA 312, a fair negotiation process has been developed that evaluates the needs of police and firefighters as well as the best interest of the communities that they serve.

2 Message Points PA 312 and Binding Arbitration FIRST TIER MESSAGES When responding to a crime or rushing into a blazing building, the last thing Michigan s finest and bravest need to have on their minds is a protracted and unsettling labor dispute with a local unit of government. PA 312 better known as binding arbitration was created to keep cops and firefighters on the streets, keeping us safe and protecting our communities. Over the course of 40 years, PA 312 has worked to keep contract disagreements in the background, keeping the focus clearly on what matters most to Michigan citizens making public safety the number 1 priority. In the 1960s, a series of strikes by police officers and firefighters put public safety at risk in communities across Michigan, including the following communities: Pontiac, Lansing, Saginaw and Kalamazoo. PA 312 was specifically designed to prevent police and fire entities from striking in the future, and it has worked admirably Michigan cops and firefighters have not gone on strike in nearly four decades. Eliminating PA 312 sets the state back decades. That action could take Michigan back to a time where constant strikes and labor impasses threatened public safety. That's not good public policy. The threat of public safety officials on strike puts every community at risk, which is why PA 312 must be maintained in its current form. In almost all labor negotiations between police officers and firefighters and their respective unit of government, PA 312 is rarely invoked. In 2010, out of the thousands of instances when counties, cities, and townships negotiated agreements in good faith with police officers and firefighters, only 28 entered into binding arbitration a small fraction. And of those cases, the municipality, not the public safety entities, won nearly 60 percent of the time. In reality, binding arbitration is only used as a last resort by police officers and firefighters, usually when negotiations are at an impasse, communications between both parties break down, or when management refuses to be reasonable with police officers and firefighters.

3 SECOND TIER MESSAGING Binding arbitration or Public Act 312 is a critical tool that emergency service personnel must have at their disposal to ensure that they are treated in good faith by municipalities at all levels. PA 312 has helped to ensure that police officers and firefighters have an option to negotiate labor agreements fairly and equitably with municipalities in fact, PA 312 has helped to ensure that police and fire department have not gone on strike in Michigan in the last 40 years. More importantly, units of government should focus on broader concerns than a rarely used labor negotiations tool elected officials have a duty to maintain critical levels of emergency service personnel to ensure that communities are protected responsibly. And Michigan citizens agree: While finding efficiencies in government is important, especially in challenging budget times, those efficiencies should never come at the expense of sacrificing public safety. Police and fire services already under consideration for budget cuts in many communities should be the last place our leaders should look to balance their books. Municipalities can cry foul in terms of the cost of binding arbitration, but their claim does not ring true this cost is currently shared equally by the state of Michigan, the unit of government, and emergency service personnel. Maintaining that Michigan s economy does not warrant the costs associated with this rarely used practice is nothing more than a scare tactic used by municipalities that are unwilling to bring all parties to the table to frankly discuss budgetary challenges at every level of government. Many cities, counties, and townships need to improve their communications with the individuals that are primarily responsible for maintaining public safety at the local level the men and women that tirelessly serve as police officers and firefighters deserve honesty and respect from their community s leaders. What is most important in negotiating agreements between labor and management is maintaining a constructive and open dialogue. Unions that represent police officers and firefighters, like the Fraternal Order of Police and the Professional Fire Fighters Union, provide members across the state with training and in service designed to ensure that members keep the lines of communication continually open with management.

4 Public Act 312 MYTH vs. FACT MYTH #1 As PA 312 is currently written, the arbitrator DOES NOT consider and is not required to consider ability to pay. The act does not allow arbitrators to consider whether a community can even afford the police and fire contract proposal that is on the table. FACT The arbitrator MUST consider ability to pay when making their decision on an award. This is expressly stated in the following statute: Findings and orders; Factors considered. Sec. 9 (c) the interests and welfare of the public and the financial ability of the unit of government to meet those costs. (Source, PA 312) MYTH #2 During negotiations, the arbitrator does not consider issues such as manufacturing loss in a community, new laws that have a financial impact on a community, GASBY 43 & 45 or pension loss. FACT The arbitrator considers all information provided to them on a city s ability (or inability) to pay. See the following excerpt from the City of Port Huron 312 Award from August 27, 2009 (Page 9 & 10) please note this is not a unique commentary by arbitrators regarding the arbitrator s consideration of ability to pay. (MERC CASE # D07 C 0310) City of Port Huron & Police Officers Association of Michigan MERC CASE # D07 C 0310 Section 9 of Act 312 lists a number of factors that a Panel must consider in its finding, Opinion and Award. Part of Section 9c includes the interest and welfare of the public and the financial ability of the unit of government to meet those costs. financing the requisite components of a Michigan city micro economic and macro economic analysis, it is apparent to the Panel that Port Huron isn t what it used to be. The factors that have resulted in this situation do not have to be attributable to the fault of any party to these proceedings. Rather, it comes about from a combination of factors some known, some agreed to, and some widely affecting not only Port Huron but all other federal, state, local and governmental entities. In part, the economic factors read as a litany of the downturn of the Michigan economic picture and, for the purposes of this award, relate in part specifically to the City of Port Huron. Healthcare costs are increasing significantly. The assets in the stock market in pension funds have been substantially reduced/ Unemployment in Michigan is at an all time high. Federal and State aid has been reduced for cities, towns and villages. The requirements of GASB 45 and 43 are requiring different funding requirements for pension plans and will do so significantly in the future. Home values have decreased and more foreclosed homes dot the landscape of Michigan cities. Port Huron has lost a great deal of manufacturing base and has not been able to replace it. Port Huron s obligations for a State of Michigan sewer separation project has (and will) result in unanticipated capital expenditures. Even with some reduction in the workforce in Port Huron, the cost of operating the city continue to increase.

5 MYTH #3 PA 312 is frequently used to settle contracts for police officers and firefighters. FACT There are approximately 1,500 police and fire bargaining units in Michigan. If the average contract lasts 3 years, one could assume that approximately 500 bargaining units would be eligible to go to PA 312 each year. After review of all the arbitration awards issued during the years , the data show less than 8% of the eligible bargaining units used the process to negotiate their contract. See provided binder for complete data. (Michigan State University Labor & Industrial Relations Library) Year Total Cases Year Total Cases MYTH #4 Organizations that represent police officers and firefighters are unwilling to make ANY amendments to PA 312. FACT The FOP, MPFFU, POAM and the POLC worked with the Senate Republicans to develop reforms to PA 312 last session. This is a 40 year old law that can be amended to benefit both police and fire from a cost efficiency standpoint. We do not believe that repealing or amending PA 312 to make it useless is the answer. See below for amendments proposed in SB 1072 of Includes newly formed authorities (this allows for consolidation of services) At conclusion of mediation both parties must submit a FINAL LIST of each issue in dispute. (this saves time and saves money) Expands the size of the panel of arbitrators and requires continuous training (this should improve the quality of arbitrators which could save time and money) Tightens timelines. (this should save time and money) State would no longer pay the 1/3 share of arbitration costs. (saves costs to state) MYTH #5 Police and Fire Fighter Unions prevail in PA 312 Arbitrations a majority of the time. FACT Over the last ten years, the actual data reflects that employers prevailed more than 50% of the time. And in 2008 and 2009, when the economy worsened, the percentage that employers prevailed actually jumped to well over 60% of the time. See provided binder for complete data. (Michigan State University Labor & Industrial Relations Library)