COMPULSORY ARBITRATION OF LABOR DISPUTES IN POLICE AND FIRE DEPARTMENTS (EXCERPT)
Act 312 of 1969
423.239 Findings, opinions, and orders; factors considered; financial ability of governmental unit to pay.
(1) If the parties have no collective bargaining agreement or the parties have an agreement and have begun negotiations or discussions looking to a new agreement or amendment of the existing agreement and wage rates or other conditions of employment under the proposed new or amended agreement are in dispute, the arbitration panel shall base its findings, opinions, and order upon the following factors:
(a) The financial ability of the unit of government to pay. All of the following shall apply to the arbitration panel's determination of the ability of the unit of government to pay:
(i) The financial impact on the community of any award made by the arbitration panel.
(ii) The interests and welfare of the public.
(iii) All liabilities, whether or not they appear on the balance sheet of the unit of government.
(iv) Any law of this state or any directive issued under the local financial stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, that places limitations on a unit of government's expenditures or revenue collection.
(b) The lawful authority of the employer.
(c) Stipulations of the parties.
(d) Comparison of the wages, hours, and conditions of employment of the employees involved in the arbitration proceeding with the wages, hours, and conditions of employment of other employees performing similar services and with other employees generally in both of the following:
(i) Public employment in comparable communities.
(ii) Private employment in comparable communities.
(e) Comparison of the wages, hours, and conditions of employment of other employees of the unit of government outside of the bargaining unit in question.
(f) The average consumer prices for goods and services, commonly known as the cost of living.
(g) The overall compensation presently received by the employees, including direct wage compensation, vacations, holidays, and other excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received.
(h) Changes in any of the foregoing circumstances while the arbitration proceedings are pending.
(i) Other factors that are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment through voluntary collective bargaining, mediation, fact-finding, arbitration, or otherwise between the parties, in the public service, or in private employment.
(j) If applicable, a written document with supplementary information relating to the financial position of the local unit of government that is filed with the arbitration panel by a financial review commission as authorized under the Michigan financial review commission act.
(2) The arbitration panel shall give the financial ability of the unit of government to pay the most significance, if the determination is supported by competent, material, and substantial evidence.
History: 1969, Act 312, Eff. Oct. 1, 1969
Am. 2011, Act 116, Imd. Eff. July 20, 2011
Am. 2014, Act 189, Imd. Eff. June 20, 2014
Constitutionality: This act is clearly constitutional. Local 1277, Metropolitan Council No 23, American Federation of State, County and Municipal Employees, AFL-CIO v City of Center Line, 414 Mich 642; 327 NW2d 822 (1982).
Popular Name: Act 312
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