PUBLIC SECTOR UNION CONTRACTS                                                        S.B. 280 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 280 (Substitute S-1 as reported)

Sponsor:  Senator Marty Knollenberg

Committee:  Commerce

CONTENT

The bill would amend the public employment relations Act to prohibit a public employer or an officer or agent of a public employer, on or after the bill's effective date, from entering into or renewing a bargaining agreement that required or allowed paid release time for a union officer or bargaining representative to conduct union business if the release time were paid by the public employer. The bill would not apply to a bargaining agreement for employees subject to compulsory arbitration under Public Act 312 of 1969, or for corrections officers employed by a county sheriff in a county jail, work camp, or other facility maintained by a county that houses adult prisoners.

(Public Act 312 of 1969 provides for compulsory arbitration of labor disputes in municipal police and fire departments, establishes the procedures for arbitration, and provides for the enforcement and review of arbitration awards.)

The bill would take effect 90 days after its enactment.

MCL 423.210                                                                   Legislative Analyst:  Jeff Mann

FISCAL IMPACT

The bill would have an indeterminate fiscal impact on the State and local units of government.  Under the bill, employer-paid leave or release time for union officers would no longer be allowable as part of a collective bargaining agreement (CBA) between a union and a public employer. A total of 67 school districts in Michigan have these types of provisions in the collective bargaining agreements with their respective labor unions, and the cost associated totals about $2.7 million per year. If these provisions were simply eliminated outright from future CBAs, school districts would see total cost savings of $2.7 million on those contracts relative to otherwise identical contracts that contained the provisions in question. On the other hand, if other concessions were negotiated in lieu of union leave time provisions, the potential savings could be reduced or new costs could be created if the alternative concessions were more expensive than the union leave time provisions would have been.

Date Completed:  11-6-15                                                     Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.