Stories indexed with the term ‘right to work’

Washtenaw County board of commissioners meeting (April 3, 2013): With a third of the board absent, commissioners were briefed on the county’s 2012 audit – with a look toward changes that will impact future financial statements. The audit was clean.

The county’s finance staff, along with the auditor, Mark Kettner of Rehmann, highlighted several points, including a relatively dramatic increase in the general fund balance over the last few years – from $9.7 million in 2009 to $16.8 million at the end of 2012. Kettner also explained upcoming accounting changes that will require unfunded liabilities from the county’s pension and retirement healthcare plans – now totaling nearly $250 million – to be recorded in a different way, with more disclosure.

The new accounting changes – required by the Governmental Accounting Standards Board (GASB) – won’t begin until 2015, but commissioner Dan Smith (R-District 2) wondered whether the county could implement the changes sooner. It might be possible, Kettner replied, but “I don’t know why you’d want to do it.” He suggested that the board hold a working session to go over the upcoming changes in more detail.

Kettner also pointed out that the changes will affect government entities in different ways. For example, it’s likely that there will be more impact on the city of Ann Arbor, because of how its many “enterprise” funds might be affected and the implications that would have on outstanding bonds. At minimum, the changes will mean more work for finance staff.

Also at the April 3 meeting, commissioners voted to add 39 new jobs in the community support and treatment service (CSTS) department, which provides mental health and substance abuse services to county residents. The work is primarily funded by the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Most of the new jobs are union positions. Dan Smith expressed concern about adding to the county’s payroll, but supported the resolution along with other commissioners in a unanimous vote.

The board also took an initial vote to dissolve The Washtenaw Ride. That Act 196 authority is a remnant of a failed attempt to create a countywide transit system last year. Efforts to expand the current reach of the Ann Arbor Transportation Authority are still underway, but don’t require the structure that was put in place under Act 196.

The topic of public transportation was raised later in the meeting as well, as Ronnie Peterson (D-District 6) asked about the county’s role in the southeast regional transit authority (RTA). The RTA was formed by the state legislature last year to coordinate regional transit in the city of Detroit and counties of Wayne, Macomb, Oakland and Washtenaw. There was not uniform support for Washtenaw County to be part of this effort, and it’s not yet clear what the impact will be on the AATA.

In other discussion, Yousef Rabhi (D-District 8) highlighted a proposal in front of the Ann Arbor city council regarding possible ordinance changes governing the Ann Arbor Downtown Development Authority. Depending on what the council decides, there might be implications for the county, he said, so he wanted to put it on the board’s radar. For background on this issue, see Chronicle coverage: “DDA Tax Capture Change Gets Initial OK” and “DDA Ramps Up PR after First Council Vote.”

Also briefly mentioned was a discussion that occurred at a late March county pension commission meeting, raising questions about the new labor contracts that the board approved on March 20, 2013. At issue is whether the county complied with a state law requiring supplemental actuarial analysis before pension benefit changes are adopted. The county administration subsequently conferred with outside legal counsel, and confirmed their view that no new actuarial analysis was necessary.

And although it wasn’t discussed at the April 3 board meeting, the recent labor contracts resulted in another issue related to compliance with state law: Elimination of the county’s healthcare benefits for domestic partners. [Full Story]

The University of Michigan reports that five unions representing about 11,000 workers have ratified contracts, the longest ones running through June 30, 2018. The unions with new contracts are AFSCME, the Michigan Nurses Association, Graduate Employees’ Organization, Lecturers’ Employee Organization, and House Officers Association. The ratification has occurred prior to March 28, when the state’s right-to-work legislation takes effect. [Source]

The Ann Arbor city council has approved a new contract with its major labor union, Local 369 of the International Union of the American Federation of State, County, and Municipal Employees, AFL-CIO (AFSCME). The slightly less than five-year deal would go through 2017, and includes a wage increase of at least 1% each year starting in 2014.

The council took its vote at a special meeting held on March 25, 2013. The AFSCME union voted to approve the contract on March 21, according to Robyn Wilkerson, the city’s human resources director.

A staff memo accompanying the council’s resolution indicates the city’s intention by July 2014 to offer an alternative retirement plan to employees. It would be different from the current plan, which … [Full Story]

Groundbreaking contracts with 15 of Washtenaw County’s 17 bargaining units were authorized by the county board of commissioners at its March 20, 2013 meeting. The deals, which take effect March 21, come a week before Michigan’s right-to-work law takes effect, and guarantee that employees will not be subject to the law until the contracts expire. The board also voted to approve comparable compensation and benefits for its non-union workers.

The majority of contracts run through Dec. 31, 2023 and are the longest-term labor agreements ever authorized by the Washtenaw County government, which employs about 1,300 workers. One of the unions agreed to a shorter-term contract: The contract for AFSCME 3052 lasts five years, through Dec. 31, 2017.

Typically, such agreements last two to five years. About 85% of county workers belong to a union.

In broad strokes, the agreements provide for annual wage increases, a cap on employee healthcare contributions, and the elimination of “banked leave” days. Banked leave days have been used in recent years to help balance the budget by cutting labor costs. The days are unpaid, but don’t affect retirement calculations.

Some of the major changes relate to benefits for employees hired after Jan. 1, 2014. Those employees will participate in a defined contribution retirement plan, compared to the current defined benefit plan – the Washtenaw County Employees’ Retirement System (WCERS). In defined benefit plans, retirees receive a set amount per month during their retirement. In defined contribution plans, employers pay a set amount into the retirement plan while a person is employed. The most common of these defined contribution plans is the 401(k). [Full Story]

Washtenaw County board of commissioners meeting (March 6, 2013): Following a brief public portion of their meeting, commissioners held a two-hour closed session to discuss a new contract with the county’s labor unions, which has been negotiated over the past few weeks.

This was the third consecutive meeting that’s included a lengthy closed session on this topic, as the administration has been conducting accelerated negotiations with its union to reach a new contract before March 27. That’s the date when Michigan’s right-to-work legislation – enacted late last year – takes effect. At the board’s Feb. 20, 2013 meeting, commissioners gave final approval to a resolution opposing the legislation, with a clause that directed the county administration to renegotiate union contracts.

Several union leaders attended the March 6 meeting. However, they did not formally address the board, and left before commissioners ended the closed session.

The board took no action after emerging from the closed session. The new long-term agreements are expected to be brought forward for a vote at the board’s March 20 meeting, and would also need to be ratified by union membership.

A new union contract is likely to have a significant impact on the county’s budget, which will be the focus of a board retreat on Thursday, March 7. Board chair Yousef Rabhi briefed commissioners on the agenda for that retreat. The discussion will focus on six key areas: (1) labor force sustainability/internal equity; (2) environmental impact and mobility in Washtenaw County; (3) economic development; (4) human services/safety net; (5) mandated service provision/resources; and (6) long-term fiscal stability.

Also impacting county operations are automatic sequestration-related federal budget cuts that were activated on March 1. Rabhi read aloud a letter from the U.S. Dept. of Housing & Urban Development, which alerted the county to an anticipated 5% reduction in HUD funding during the current fiscal year for programs supporting low-income housing and emergency assistance to the homeless, among others. The full impact of federal cuts across all county departments – including public health and the office of community & economic development – is not yet known, according to the county’s finance director.

The light agenda on March 6 included three items related to public health: (1) a move toward setting a $75 fee for the county’s training course to certify drinking water operators; (2) giving initial approval to the county public health department’s plan of organization, as mandated by the state of Michigan; and (3) making two appointments to the Washtenaw Community Health Organization (WCHO) board.

Rabhi also reported that the county’s new food policy council, on which he serves, might make a funding request soon to hire a staff member, who would help carry out the council’s work. The council was formed in 2012 to support the local food economy. [Full Story]

Washtenaw County board of commissioners meeting (Feb. 20, 2013): In a meeting with few new action items, the board gave final approval to a resolution protesting the state’s right-to-work law, and spent more than an hour in executive closed session to discuss collective bargaining strategies.

The resolution taking a stance against the state law was approved on a 6-2 vote, with dissent from the board’s two Republican commissioners – Dan Smith (District 2) and Alicia Ping (District 3). Felicia Brabec (D-District 4) was absent. Though Smith had stated his objections on Feb. 6, when an initial vote had been taken, there was no discussion on the item at the Feb. 20 meeting.

The resolution directed the administration to negotiate new four-year contracts “to protect and extend each bargaining unit’s union security provisions.” Current contracts with most of the 17 unions representing county employees expire at the end of 2013. New contracts, if completed before the right-to-work law takes effect in March, would not be required to comply with the new law, which makes it illegal to require employees to support unions financially as a condition of their employment.

Negotiations with the unions began earlier this month.

In other action at the Feb. 20 meeting, the board appointed Dan Smith to the Washtenaw County parks & recreation commission – the third county commissioner to be appointed to that 10-member board. Ronnie Peterson (D-District 6) raised concerns about having too many commissioners serve on that entity, noting that Smith was filling a slot designated for the general public.

Yousef Rabhi, who as board chair made the nomination, responded to Peterson’s comments, saying that he and Smith had discussed this issue – because Smith had the same concerns as Peterson. Rabhi assured Peterson that the commission will continue to provide opportunities for citizens to serve, and that the slot filled by Smith would remain designated as one for the general public for future appointments. Five members of the general public currently serve on the parks & rec commission.

In communications to the board, Rabhi noted that he planned to form a task force to explore establishing a county land bank. A land bank is a mechanism for the county to take temporary ownership of tax- or mortgage-foreclosed land while working to put it back into productive use. The board had previously voted to establish a land bank at its Sept. 1, 2010 meeting, but never took the next step of funding it or getting approval from the state. Only three commissioners from that period – Ronnie Peterson, Rolland Sizemore Jr. and Conan Smith – still currently serve on the board.

Among the other items handled at the Feb. 20 meeting included: Resolutions of appreciation for two Chelsea organizations – Purple Rose Theatre and Chelsea Lanes; a final vote to authorize borrowing up to $40 million against the amount of delinquent property taxes in all Washtenaw County jurisdictions; and final approval to add the Detroit Region Aerotropolis board to the list of boards, committees and commissions that are eligible for commissioners to receive stipend payments.

The Feb. 20 meeting was attended by several students, including nursing students from the University of Michigan who were observing the proceedings as part of a psychiatric nursing course. [Full Story]

A Civic News Ticker reported an incorrect vote tally on a resolution opposing the Michigan’s right-to-work law, passed by the Washtenaw County board of commissioners on Feb. 20, 2013. The vote was 6-2, with dissent from Dan Smith (R-District 2) and Alicia Ping (District 3). Felicia Brabec (D-District 4) was absent. We note the error here, and have corrected the original item.

Washtenaw County commissioners gave final approval to a resolution opposing Michigan’s new right-to-work legislation, with a clause that directs the county administration to renegotiate union contracts. The action took place at the board’s Feb. 20, 2013 meeting. Initial approval had been given on Feb. 6, with a 6-1 vote. The dissenting vote was cast by Dan Smith (R-District 2), who also voted against the resolution on Feb. 20. Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3) were absent at that Feb. 6 meeting.

On Feb. 20, the final vote was 8 6-2, with dissent from the board’s two Republican commissioners – Dan Smith and Alicia Ping (District 3). Felicia Brabec (D-District 4) was absent.

In addition to condemning the … [Full Story]

Washtenaw County board of commissioners meeting (Feb. 6, 2013): In an evening capped by a nearly three-hour closed session to discuss labor negotiation strategies, a majority of county commissioners affirmed their support of union labor and pushed back against the state’s recent right-to-work legislation, which takes effect in March.

On a 6-1 vote – over dissent by Republican Dan Smith – the county board passed a resolution directing the administration to negotiate new four-year contracts “to protect and extend each bargaining unit’s union security provisions.” The resolution also directs negotiations for a separate letter of understanding to cover a 10-year period. The letter would relate to agency fees paid by non-union members based on the idea that they benefit from the union’s representation of their interests during collective bargaining.

Unions represent 85% of the 1,321 employees in Washtenaw County government.

The resolution was brought forward by Andy LaBarre (D-District 7), one of three Ann Arbor commissioners on the nine-member board. Two commissioners – Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3) – were absent.

Deliberations were relatively brief. Dan Smith, who said he found some of the language in the resolution offensive, also pressed for estimates on possible legal expenses, if the county is sued over these new labor agreements. Curtis Hedger, the county’s corporation counsel, was reluctant to speculate, indicating there are still too many unknowns. Diane Heidt, the county’s human resources and labor relations director, told commissioners that the 10-year letter of understanding would have a strong indemnification clause. The union would indemnify the employer for any legal challenges relative to the right-to-work agency shop issue.

The lengthy closed session at the end of the meeting reflected some urgency in negotiations, which must be completed before the new law takes effect in March.

Also at the Feb. 6 meeting, commissioners gave initial authorization to county treasurer Catherine McClary to borrow up to $40 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions. It’s a standard practice to help the local jurisdictions manage their cash flow. The estimated amount of delinquent taxes is lower than in recent years, possibly reflecting a recovering economy.

McClary also gave the board a year-end report for 2012. Her office brought in $9.96 million during the year from the following sources: delinquent taxes and fees ($5.046 million), accommodation tax ($4.067 million), investment earnings ($755,681), dog licenses ($59,748) and tax searches ($31,760). McClary reported that the county’s investment portfolio totaled $156.08 million at the end of 2012. The non-cash portion of that amount is $147.855 million, which brought in an average weighted yield of 0.456%.

In other action, the board voted to amend an interlocal agreement that will create the Southeast Michigan Regional Energy Office Community Alliance. The new alliance – affiliated with the Michigan Suburbs Alliance, led by county commissioner Conan Smith – is being formed to set up a Property Assessed Clean Energy (PACE) program. The community alliance includes six partners: Washtenaw County, and the cities of Lathrup Village (in Oakland County); Sterling Heights and Roseville (in Macomb County); and Lincoln Park and Southgate (in Wayne County). No other communities in Washtenaw County are part of this alliance. The city of Ann Arbor has already set up its own PACE program.

Also during the Feb. 6 meeting, Yousef Rabhi (D-District 8) reported that he was working with community members and human services providers to establish a Washtenaw County ID card. It would provide a way for residents who don’t have a driver’s license or other photo ID to access services that require such an identification card, such as opening a bank account.

Felicia Brabec reported from the Sustainable Revenue for Supportive Housing Services Task Force, on which she serves. The group is looking at the possibility of an endowment campaign. It’s estimated that about $17 million would be needed “so it’s a big undertaking for us,” she said. That amount would support an additional 116 units of supportive housing throughout the county. [Full Story]

On a 6-1 vote, Washtenaw County commissioners passed a resolution at their Feb. 6, 2013 meeting related to Michigan’s new right-to-work legislation – including direction to renegotiate union contracts. The resolution was brought forward by Andy LaBarre (D-District 7), one of three Ann Arbor commissioners on the nine-member board. [.pdf of LaBarre's resolution] Voting against the resolution was Dan Smith (R-District 2). Two commissioners – Ronnie Peterson (D-District 6) and Alicia Ping (R-District 3) – were absent.

In addition to condemning the right-to-work law and urging the state legislature to pass SB 95 and SB 96 – bills that would repeal the law – LaBarre’s resolution also “directs the county administrator and the director of human resources to engage in … [Full Story]

Washtenaw County commissioner Andy LaBarre intends to bring forward a resolution at the county board’s Feb. 6, 2013 meeting related to Michigan’s new right-to-work legislation – including direction to renegotiate union contracts. He emailed a copy of his resolution to fellow commissioners and the media on Jan. 30. [.pdf of LaBarre's resolution]

In addition to formally condemning the right-to-work law and urging the state legislature to pass SB 95 and SB 96 – bills that would repeal the law – LaBarre’s resolution also “directs the County Administrator and the Director of Human Resources to engage in expedited negotiations, as requested by the Unions, with the goal of reaching four (4) year agreements to protect and extend each bargaining unit’s union … [Full Story]

Ann Arbor Transportation Authority board meeting (Jan. 17, 2013): Despite the passage of a right-to-work law by the Michigan legislature in late 2012, a new agreement between the AATA and Transport Workers Union Local 171 (TWU) maintains the same kind of agency fees that the legislation eliminated.

The AATA board ratified the 10-year agreement on agency fees in an accord that is separate from a 4.5-year agreement covering wages and benefits. The board approved both agreements at its Jan. 17 meeting. The agreement on agency fees takes advantage of the fact that the right-to-work law does not take effect until late March, and thus does not apply to agreements that are in place before then. It appears to be a strategy that employers statewide might use as a response to right-to-work, to the extent that they are willing to continue current agency fee arrangements. Agency fees are paid by non-union members based on the idea that they benefit from the union’s representation of their interests during collective bargaining.

The board’s vote on the two labor agreements was not unanimous. Eli Cooper dissented, based at least in part on the fact that the text of the two agreements was not available to all board members before they were asked to vote. David Nacht expressed support for Cooper’s point, but joined other board members in voting for the agreements.

Another vote that did not achieve unanimous support came on a resolution that expressed an intent to work with the board of the newly created southeast Michigan regional transportation authority (RTA) – which includes the counties of Washtenaw, Wayne, Macomb and Oakland, as well as the city of Detroit. The AATA board ultimately voted to table the resolution, with Jesse Bernstein and Anya Dale dissenting. Board members who were in favor of tabling felt that such a resolution was somewhat premature, pending the possible amendment of the RTA legislation, which passed late last year during the lame duck session of the state legislature.

The amendment desired by the AATA – which is supported by the Ann Arbor city council, the Washtenaw County board of commissioners, and the Michigan Public Transit Association – is for Washtenaw County to be excluded from the RTA at this time. AATA board discussion indicated that the window of opportunity for amending the legislation is likely to be the 90-day period for appointing RTA board members, which will close in mid-March.

In other business, the AATA board adopted a revised policy to be used in responding to requests made under the Freedom of Information Act. The board also adopted its categorical and capital grant program through fiscal 2017.

The treasurer’s report indicated a disparity between increasing ridership numbers and the amount of passenger fare revenue – a difference that is significant enough to warrant further inquiry.

Public commentary at the meeting featured a voice that was new to AATA board meetings but familiar as the film critic of the now defunct Ann Arbor News – Christopher Potter. Potter praised the quality of AATA’s service, but asked for weekend buses to run later than they do. [Full Story]

The Ann Arbor Transportation Authority has ratified a four-and-a-half-year contract with the Transport Workers Union Local 171 (TWU). The contract, which removes all language that deals with agency shop fees and dues, goes through June 30, 2017. Removal of the language is related to “right-to-work” legislation passed by the Michigan state legislature in late 2012.

The AATA and TWU are reaching an agreement separate from the labor contract that covers agency shop fees and dues – which runs for 10 years, through 2023. The contract resets the full wage for newly hired drivers after three years to $21.50 per hour. The wage for current drivers with at least three years of experience is $24.50 per hour. The contract calls for a … [Full Story]

Washtenaw County board of commissioners special working session (Jan. 3, 2013): In a wide-ranging discussion – driven in large part by Ann Arbor Democrat Conan Smith – county commissioners addressed how the recent state right-to-work legislation might impact Washtenaw County’s economy as well as the employees of county government.

The working session included presentations by one of the county’s Lansing lobbyists; labor attorney Paul Gallagher; and Mary Kerr – president of the Ann Arbor Convention & Visitors Bureau. Kerr told commissioners that Washtenaw County brings in an estimated $12 million annually from the training conferences held here by three major unions. She said the CVB – which is funded through an accommodations tax levied by the county – will work to ensure that the unions feel welcome, but she has not had any conversations yet to gauge their reactions to the new right-to-work law.

Gallagher was less circumspect, saying he’s concerned about the potential loss of business if unions decide to move their training to a state that doesn’t have right-to-work laws.

The Michigan legislation – supported by the Republican-controlled House and Senate and Republican Gov. Rick Snyder – made it illegal to require employees to support unions financially as a condition of their employment. It’s viewed by Democrats as a way to undercut support for labor organizations that have historically backed the Democratic Party. On the Washtenaw County board of commissioners, seven of the nine commissioners are Democrats.

The legislation, which will take effect in March of 2013, received national attention and followed a failed ballot initiative by labor to protect collective bargaining rights in the state Constitution. That effort – Proposal 12-2 – was not supported by a majority of voters in the Nov. 6 election.

At the Jan. 3 working session, Conan Smith questioned Gallagher about details of state and federal labor laws, exploring the latitude that the county might have in supporting unions that represent 85% of the 1,321 employees in county government. He floated several ideas that commissioners might consider pursuing.

For example, most current union contracts expire on Dec. 31, 2013. Because the right-to-work law doesn’t take effect until March of this year, the county has until then to work with the unions and possibly extend their contracts beyond the end of 2013. If that happens before March, then the unions could continue to collect “agency fees” from employees who don’t want to join the union but who are still part of the bargaining unit that the union represents. Though the practice would be illegal for future contracts, it could remain in place for the duration of the extended agreements.

Additionally, Smith said there are items in the union contracts that might set the stage for a division of employees into three distinct groups. Two of those groups exist now: (1) unionized employees, and (2) non-union management employees. There’s the potential for a third group, Smith said: Non-union, non-management workers who have made the choice to opt-out of the union and the benefits that the union provides, be it economic, social, protective or anything else. Those benefits, in his opinion, shouldn’t accrue “to those people who don’t pay to play.”

Smith told commissioners: “I hope we are comparatively aggressive in our stance of supporting our labor partners and finding innovative ways that we can test this new world.” He hopes to make sure that the benefits of union membership are clear before people make the decision about whether to join. The point is not to coerce them to join or discourage them from joining, he said, but just to make sure they understand very clearly what opportunities they have as union members.

Smith said there are a number of places in the current union contracts where the county can make that “imminently clear.” And there are a number of places in the county’s practices where they can make that clear, too, he said. “I think if we do that through practice, undoubtedly we’ll be challenged – and I for one am quite comfortable taking that challenge forward and being the test case to determine the extent to which this law applies to our public employees.”

Smith – who is married to state Sen. Rebekah Warren – does not believe the majority of legislators would be willing to amend the right-to-work law, and that lobbying them to do so would probably be a waste of time.

Commissioners also heard from two labor leaders on Jan. 3: Caryette Fenner, president of the American Federation of State, County and Municipal Employees, AFL-CIO (AFSCME) Local 2733, the county government’s largest union with about 700 members; and Nancy Heine, president of AFSCME Local 3052, which represents about 50 supervisors. Both Fenner and Heine expressed concerns amid an uncertain future. “What could potentially happen with this law is that it will render us useless,” Heine said. “We will have no resources to defend any of our members.”

It’s unclear how far the majority of commissioners would be willing to go in challenging the right-to-work law. At the Jan. 2 board meeting, the two Republican commissioners – Dan Smith and Alicia Ping – indicated they did not want to debate the issue. However, there was more clear support for sending a signal to the labor unions that do their training in Washtenaw County that they are welcome here. Andy LaBarre, who led his first meeting as chair of the working session, offered to draft a resolution to that effect for the board to consider. [Full Story]

The Washtenaw County board of commissioners will hold a special working session on Thursday, Jan. 3 to discuss how “right to work” legislation – passed by the lame duck state legislature and signed into law by Gov. Rick Snyder in mid-December – will affect the county. The special session was set during the board’s first meeting of the year, on Jan. 2, 2013.

In an email sent to commissioners and commissioners-elect on Dec. 30, Yousef Rabhi – who was elected chair earlier at the Jan. 2 meeting – announced the intent to call a special session: “Second, there is a group of Commissioners (myself included) that wish to call a Special Working Session on January 3rd at 6:00 pm. Technically, this … [Full Story]