HOUSE BILL No. 4522

 

April 12, 2011, Introduced by Rep. Farrington and referred to the Committee on Government Operations.

 

     A bill to amend 1969 PA 312, entitled

 

"An act to provide for compulsory arbitration of labor disputes in

municipal police and fire departments; to define such public

departments; to provide for the selection of members of arbitration

panels; to prescribe the procedures and authority thereof; and to

provide for the enforcement and review of awards thereof,"

 

by amending sections 2, 3, 5, 6, 8, 9, and 10 (MCL 423.232,

 

423.233, 423.235, 423.236, 423.238, 423.239, and 423.240).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) Public police and fire departments department

 

employee means any of the following:

 

     (a) An employee of a department of a city, county, village, or

 

township, having employees district, board, or any other entity

 

created in whole or in part by the authorization of 1 or more of

 


those governing bodies, whether created by statute, ordinance,

 

contract, resolution, delegation, or any other mechanism, who is

 

engaged as policemen, a police officer or in fire fighting or

 

subject to the hazards thereof. , emergency

 

     (b) Emergency medical service personnel employed by a public

 

police or fire department. , or an

 

     (c) An emergency telephone operator, but only if directly

 

employed by a public police or fire department.

 

     (2) Emergency medical service personnel for purposes of this

 

act includes a person an individual who provides assistance at

 

dispatched or observed medical emergencies occurring outside a

 

recognized medical facility including instances of heart attack,

 

stroke, injury accidents, electrical accidents, drug overdoses,

 

imminent childbirth, and other instances where there is the

 

possibility of death or further injury; initiates stabilizing

 

treatment or transportation of injured from the emergency site; and

 

notifies police or interested departments of certain situations

 

encountered including criminal matters, poisonings, and the report

 

of contagious diseases. Emergency telephone operator for the

 

purpose of this act includes a person an individual employed

 

directly by a police or fire department for the purpose of relaying

 

emergency calls to police, fire, or emergency medical service

 

personnel.

 

     (3) This act shall does not apply to persons individuals

 

employed by a private emergency medical service company who work

 

under a contract with a governmental unit or personnel working in

 

an emergency service organization whose duties are solely of an

 


administrative or supporting nature and who are not otherwise

 

qualified under subsection (2).

 

     Sec. 3. (1) Whenever in the course of mediation of a public

 

police or fire department employee's dispute, except a dispute

 

concerning the interpretation or application of an existing

 

agreement (a "grievance" dispute), the dispute has not been

 

resolved to the agreement of both parties within 30 days of the

 

submission of the dispute to mediation, or within such any further

 

additional periods to which the parties may agree, the employees or

 

employer may initiate binding arbitration proceedings by prompt

 

request, therefor, in writing, to the other, with copy to the

 

mediator and the employment relations commission.

 

     (2) Upon receipt of a written request for binding arbitration,

 

the mediator shall, in consultation with the parties, create and

 

transmit to both parties a list of each of the issues in dispute.

 

Within 30 days after receipt of the written request, the parties

 

shall meet with the mediator to present in writing and explain

 

proposed contract language to resolve each issue, including any

 

issues previously discussed by the parties but omitted from the

 

mediator's list, and to engage in any further discussion or

 

negotiation as the parties agree. Except in cases in which the

 

parties agree to a longer period because of continuing

 

negotiations, the mediator shall transmit the final list of issues

 

in dispute and both parties' proposed contract language to the

 

employment relations commission for hearing no more than 14 days

 

after receiving the written proposed contract language. The parties

 

retain the right to meet and negotiate, with or without the

 


mediator, to attempt to resolve some or all of the disputed issues

 

at any time before the arbitration panel issues an award pursuant

 

to this act.

 

     Sec. 5. (1) Within 7 days of a request from 1 or both parties

 

receiving a list of issues in dispute and proposed contract

 

language from the mediator pursuant to section 3, the employment

 

relations commission shall select from its panel of arbitrators, as

 

provided in subsection (2), 3 persons as nominees for impartial

 

arbitrator or chairman chair of the arbitration panel. Within 5

 

days after the selection each party may peremptorily strike the

 

name of 1 of the nominees. Within 7 days after this 5-day period,

 

the commission shall designate 1 of the remaining nominees as the

 

impartial arbitrator or chairman chair of the arbitration panel.

 

     (2) The employment relations commission shall establish and

 

appoint a panel of arbitrators, who shall be known as the Michigan

 

employment relations commission panel of arbitrators. The

 

commission shall appoint members for indefinite terms. Members

 

shall be impartial, competent, and reputable citizens of the United

 

States and residents of the state, and shall qualify by taking and

 

subscribing the constitutional oath or affirmation of office. The

 

commission may at any time appoint additional members to the panel

 

of arbitrators, and may remove existing members without cause.

 

     Sec. 6. Upon the appointment of the arbitrator, he or she

 

shall proceed to act as chairman chair of the panel of arbitration,

 

call a hearing, to begin within 15 days, and give reasonable notice

 

of the time and place of the hearing. The chairman chair shall

 

preside over the hearing and shall take testimony. Upon application

 


and for good cause shown, and upon such terms and conditions as

 

that are just, a person, labor organization, or governmental unit

 

having a substantial interest therein in the matter may be granted

 

leave to intervene by the arbitration panel. Any oral or

 

documentary evidence and other data deemed relevant by the

 

arbitration panel considers relevant may be received in evidence.

 

The proceedings shall be are informal. Technical rules of evidence

 

shall do not apply and do not impair the competency of the

 

evidence. shall not thereby be deemed impaired. A verbatim record

 

of the proceedings shall be made, and the arbitrator shall arrange

 

for the necessary recording service. Transcripts may be ordered at

 

the expense of the party ordering them, but the transcripts shall

 

are not be necessary for a decision by the arbitration panel. The

 

expense of the proceedings, including a fee to the chairman chair,

 

established in advance by the labor mediation board shall be borne

 

equally by each of the parties to the dispute. and the state. The

 

delegates, if public officers or employees, shall continue on the

 

payroll of the public employer at their usual rate of pay. The

 

hearing conducted by the arbitration panel may be adjourned from

 

time to time, but , unless otherwise agreed by the parties, shall

 

be concluded within 30 days of the time of its commencement. Its If

 

the parties agree, the chair may extend the time for the conclusion

 

of the hearing to no more than 120 days from the time the hearing

 

commences. The arbitration panel shall not waive the 120-day limit.

 

The arbitration panel's majority actions and rulings shall

 

constitute the actions and rulings of the arbitration panel.

 

     Sec. 8. At a hearing held pursuant to section 6, the

 


arbitrator shall address the merits of only those issues identified

 

by the mediator and submitted to the employment relations

 

commission under section 3. At or before the conclusion of the

 

hearing, held pursuant to section 6, the arbitration panel shall

 

identify the economic issues in dispute, and direct each of the

 

parties to submit, within such a time limit as the panel shall

 

prescribe the chair prescribes, to the arbitration panel chair and

 

to each other its last offer of settlement on each economic issue.

 

The determination of the arbitration panel as to the issues in

 

dispute and as to which of these the issues are economic shall be

 

is conclusive. The arbitration panel, within 30 days after the

 

conclusion of the hearing, or such further additional periods to

 

which the parties may agree, Within 30 days of the conclusion of

 

the hearing, or if the parties agree to an extension, within 90

 

days of the conclusion of the hearing, the arbitration panel shall

 

make written findings of fact and promulgate a written opinion and

 

order upon the issues presented to it and upon the record made

 

before it, and shall mail or otherwise deliver a true copy thereof

 

of the opinion to the parties and their representatives and to the

 

employment relations commission. As to each economic issue, the

 

arbitration panel shall adopt the last offer of settlement which

 

that, in the opinion of the arbitration panel, more nearly complies

 

with the applicable factors prescribed in section 9. The findings,

 

opinions, and order as to all other issues shall be based upon the

 

applicable factors prescribed in section 9. This section as amended

 

shall be applicable only to arbitration proceedings initiated under

 

section 3 on or after January 1, 1973.

 


     Sec. 9. (1) Where there is no agreement between the parties,

 

or where there is an agreement but the parties If the parties do

 

not have an agreement or 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, as applicable:

 

     (a) The interests and welfare of the public and the financial

 

ability of the unit of government to pay. In determining the

 

ability of the unit of government to pay, the arbitration panel

 

shall not consider unused millage or assessment capacity but shall

 

consider all of the following:

 

     (i) The financial impact on the community of any award made by

 

the arbitration panel over a minimum of 5 years from the date of

 

the award.

 

     (ii) All liabilities, whether or not they appear on the balance

 

sheet of the unit of government.

 

     (b) (a) The lawful authority of the employer.

 

     (c) (b) Stipulations of the parties.

 

     (c) The interests and welfare of the public and the financial

 

ability of the unit of government to meet those costs.

 

     (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) In public Public employment in comparable communities.

 

     (ii) In private Private employment in comparable communities.

 

     (e) The pay and benefits of other employees of the unit of

 

government outside of the bargaining unit in question.

 

     (f) (e) The average consumer prices for goods and services,

 

commonly known as the cost of living.

 

     (g) (f) 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) (g) Changes in any of the foregoing circumstances during

 

the pendency of while the arbitration proceedings are pending.

 

     (i) (h) Such other factors, not confined to the foregoing,

 

which 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.

 

     (2) The arbitration panel shall afford weight to the factors

 

listed in subsection (1), as follows:

 

     (a) A determination that the unit of government does not have

 

the financial ability to pay shall be a fundamental concern.

 

     (b) The internal comparable pay and benefits under subsection

 

(1)(e) shall be given more significance than that of the external

 

comparables under subsection (1)(d).

 

     (3) An arbitration award shall not require an increase in the

 


total economic cost to the local unit of government that exceeds

 

the lesser of the total percentage increase in the local unit of

 

government's general fund revenue, excluding reappropriation of

 

fund equity, or the increase in the percentage change in the

 

consumer price index, over the contract period. As used in this

 

subsection, "consumer price index" means the most comprehensive

 

index of consumer prices available for this state from the bureau

 

of labor statistics of the United States department of labor.

 

     Sec. 10. A majority decision of the arbitration panel, if

 

supported by competent, material, and substantial evidence on the

 

whole record, shall be final and binding upon the parties, and may

 

be enforced, at the instance of either party or of the arbitration

 

panel in the circuit court for the county in which the dispute

 

arose or in which a majority of the affected employees reside. The

 

commencement of a new municipal fiscal year after the initiation of

 

arbitration procedures under this act, but before the arbitration

 

decision, or its enforcement, shall not be deemed to does not

 

render a dispute moot , or to otherwise impair the jurisdiction or

 

authority of the arbitration panel or its decision. Increases Not

 

withstanding any other statute or charter provisions to the

 

contrary, increases in rates of compensation or other benefits may

 

be awarded retroactively to the commencement of any period(s)

 

period or periods in dispute. , any other statute or charter

 

provisions to the contrary notwithstanding. At any time the

 

parties, by stipulation, may amend or modify an award of

 

arbitration.