HB-6112, As Passed House, June 26, 2008

HOUSE BILL No. 6112

May 13, 2008, Introduced by Reps. Miller, Rick Jones, Nofs, Elsenheimer, Stakoe, Sheltrown, Palsrok, Ward, David Law, Meisner, Byrum, Simpson, Gillard and McDowell and referred to the Committee on Labor.

A bill to provide for compulsory arbitration of labor disputes

in public corrections facilities; to provide for the selection of

members of arbitration panels; to prescribe the procedures and

authority of arbitration panels; and to provide for the enforcement

and review of decisions of the arbitration panels.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"corrections officer compulsory arbitration act".

Sec. 2. It is the public policy of this state that in public

corrections facilities, where the right of employees to strike is

prohibited by law, it is requisite to the high morale of the

employees and the efficient operation of those public corrections

facilities to afford an alternate, expeditious, effective, and

House Bill No. 6112 as amended June 26, 2008

binding procedure for the resolution of disputes, and to that end

the provisions of this act, providing for compulsory arbitration,

shall be liberally construed.

Sec. 3. As used in this act:

(a) "Commission" means the employment relations commission

created in section 3 of 1939 PA 176, MCL 423.3.

(b) "Corrections officer" means any individual employed by or

under the authority of a county sheriff who is engaged in the

supervision, control, or management of individuals in the custody

of a county sheriff.

facility, [ ] used to house or detain

individuals in the custody of the county sheriff, that has

employees engaged as corrections officers and that is established

by a county; county sheriff; or any authority, district, board, or

any other entity created independently or jointly by or between 1

or more governmental bodies, whether created by statute, charter,

ordinance, resolution, delegation, or any other mechanism.

Sec. 4. (1) In mediating a public corrections facility

employee dispute that is not a dispute concerning the

interpretation or application of an existing agreement, each party

shall submit a last offer of settlement on all issues in dispute to

the mediator and the other party within the time limit the mediator

prescribes. A last offer of settlement shall not be modified after

it is submitted without written consent of both parties.

(2) If the dispute has not been resolved to the agreement of

both parties within 30 days after submitting the last offer of

settlement, the employees or employer may initiate binding

arbitration proceedings by submitting a written request to the

employment relations commission and a copy to the other party.

Sec. 5. Within 10 days after the end of the 30-day period, the

employer shall choose a delegate, and the employees' designated or

selected exclusive collective bargaining representative, or if

none, their previously designated representative in the prior

mediation procedure, shall choose a delegate to a panel of

arbitration as provided in this act. The employer and employees

shall promptly advise the other of their selected delegate.

Sec. 6. Within 7 days after a request from 1 or both parties,

the employment relations commission shall select from the Michigan

employment relations commission panel of arbitrators established

under section 5(2) of 1969 PA 312, MCL 423.235, 3 persons as

nominees for impartial arbitrator 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 of the arbitration panel.

Sec. 7. Upon appointment, the impartial arbitrator shall

proceed to act as chairperson of the 3-person arbitration panel,

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

of the time and place of the hearing. Before the hearing, the

commission shall provide the chairperson with the final offer of

settlement that each party submitted during mediation. Upon

application, for good cause shown, and upon terms and conditions

that are just, the arbitration panel shall grant leave to intervene

to a person, labor organization, or governmental unit that has a

substantial interest in the dispute. The arbitration panel may

receive into evidence any oral or documentary evidence or other

data that it considers relevant. The proceedings shall be informal.

Technical rules of evidence do not apply, and the failure to comply

with technical rules of evidence does not impair the competency of

the evidence. 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 transcripts are not necessary for a decision by

the arbitration panel. The commission shall establish the expense

of the proceedings in advance, including a fee to the chairperson.

The parties shall bear that expense equally. 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 date it begins. Actions and rulings of a majority of

the arbitration panel are considered the actions and rulings of the

entire panel.

Sec. 8. The arbitration panel may administer oaths and issue

subpoenas to require the attendance of witnesses and the production

of books, papers, contracts, agreements, and documents that it

considers material to a just determination of the issues in

dispute. If any person refuses to obey a subpoena or refuses to be

sworn or to testify, or if any witness, party, or attorney is

guilty of any contempt while attending any hearing, the arbitration

House Bill No. 6112 as amended June 26, 2008

panel may, or the attorney general if requested shall, invoke the

aid of any circuit court for the county within which the hearing is

being held, which court shall issue an appropriate order. Failure

to obey the order may be punished by the court as contempt.

Sec. 9. At any time before the panel renders an award, the

chairperson may remand the dispute to the parties for further

collective bargaining for a period not to exceed 3 weeks. The time

provisions of this act shall be extended for a time period equal to

that of the remand. The chairperson of the arbitration panel shall

notify the employment relations commission of the remand.

Sec. 10. At the conclusion of the hearing held under section

7, each party shall present oral argument [or, at the request of both

parties, the panel shall direct the parties to submit posthearing briefs] in support of the last

offer of settlement, which shall be made part of the record. At the

conclusion of oral argument [or after the submission of posthearing

briefs], the hearing shall be closed and no

further oral or documentary evidence or argument shall be presented

by either party without unanimous agreement of the arbitration

panel. Within 30 days after the conclusion of the hearing or after

any further additional periods to which the parties agree, 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 of the opinion and order to the parties and

their representatives and to the employment relations commission.

The arbitration panel shall adopt the party's entire last offer of

settlement that, in the opinion of the arbitration panel, more

nearly complies with the applicable factors prescribed in section

11. The findings, opinion, and order shall be based upon the

applicable factors prescribed in section 11.

Sec. 11. If the parties have no agreement or have begun

negotiations or discussions involving a new or amended agreement in

which wage rates or other conditions of employment are in dispute,

the arbitration panel shall base its findings, opinions, and order

upon the following factors, as applicable:

(a) The lawful authority of the employer.

(b) Stipulations of the parties.

ability of the unit of government to meet the costs.

(d) Comparison of the wages, hours, and conditions of

employment of the employees involved in the arbitration proceeding

with those 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) The average consumer prices for goods and services,

commonly known as the cost of living.

(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.

(g) Changes in circumstances concerning any of the factors in

subdivisions (a) to (f) while the arbitration proceedings are

pending.

(h) Other factors that are normally or traditionally taken

into consideration in determining 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.

Sec. 12. A majority decision of the arbitration panel, if

supported by competent, material, and substantial evidence on the

whole record, is final and binding upon the parties. Either party

or the arbitration panel may enforce the decision in the circuit

court for the county in which the dispute arose or in which a

majority of the affected employees reside. The beginning of a new

municipal fiscal year after arbitration proceedings are initiated,

but before the arbitration decision is rendered or enforced, does

not render the dispute moot or impair the jurisdiction or authority

of the arbitration panel or the validity of its decision. Increases

in rates of compensation or other benefits may be awarded

retroactively to the beginning of any period in dispute, any other

statute or charter provisions to the contrary notwithstanding. At

any time the parties may, by stipulation, amend or modify an award

of arbitration.

Sec. 13. If an employee organization recognized under 1947 PA

336, MCL 423.201 to 423.217, as the bargaining representative of

employees subject to this act willfully disobeys a lawful order a

court issues as provided in section 12 or willfully encourages or

offers resistance to that order, whether by a strike or otherwise,

the court may impose a fine of not more than $250.00 for each day

that the contempt persists. If an employer willfully disobeys a

lawful court order of enforcement or willfully encourages or offers

House Bill No. 6112 as amended June 26, 2008

resistance to the order, the court may impose a fine against the

employer of not more than $250.00 for each day that the contempt

persists.

Sec. 14. Orders of the arbitration panel are reviewable by the

circuit court for the county in which the dispute arose or in which

a majority of the affected employees reside, but only on the basis

that the arbitration panel was without or exceeded its

jurisdiction; the order is unsupported by competent, material, and

substantial evidence on the whole record; or the order was procured

by fraud, collusion, or other similar and unlawful means. Review

proceedings do not automatically stay the order of the arbitration

panel.

Sec. 15. (1) While proceedings are pending before the

arbitration panel, a party shall not change existing wages, hours,

or other conditions of employment without the consent of the other

party. A party may consent to proposed modifications without

prejudice to rights or positions under this act.

(2) A charge that a violation of subsection (1) has occurred

shall be filed with the employment relations commission. [The commission

shall call a hearing and render a decision within 45 days of the filing.] The

commission may remedy the violation as provided in section 16 of

1947 PA 336, MCL 423.216.

(3) A charge filed under subsection (2) does not automatically

stay proceedings before the arbitration panel.

(4) A party aggrieved by a final order of the commission that

grants or denies, in whole or in part, the relief sought under this

section may obtain review of the order in the court of appeals as

provided in section 16(e) of 1947 PA 336, MCL 423.216. Appeal to

the court does not automatically stay the order of the commission.

Sec. 16. (1) This act does not apply to a dispute between a

labor organization representing corrections officers and a public

employer provided that the parties are operating under a collective

bargaining agreement that provides for disputes to be submitted to

binding interest arbitration.

(2) This act is supplementary to 1947 PA 336, MCL 423.201 to

423.217, and does not amend or repeal any of its provisions. The

fact-finding procedures of that act are inapplicable to disputes

subject to arbitration under this act.

(3) The employment relations commission shall grant whatever

relief is necessary to enforce the provisions of this act, except

in those matters expressly reserved in this act to the circuit

court.

Sec. 17. A person shall not be sentenced to a term of

imprisonment for any violation of this act or an order of the

arbitration panel.