Urban Cooperation Act bills go to Governor with employer, employee support

This afternoon (Thursday, Nov. 3, 2011) when HBs 4309, 4311 and 4312 were concurred in the House, the legislation had sign off from the League, MPFFU, FOP and POAM. The legislation made changes to the Urban Cooperation Act and corresponding statutes to ensure a more efficient and effective process to share services.

For years the League has been pushing for changes to these statutes to remove language that stated that no employee may be harmed. The result of this language was that employees would (or could) be bumped up to the highest levels of wages and benefits in negotiations. This language has now been stricken from the Acts. In addition language that stated every employee must be transferred, potentially resulting in transfer of employees not necessary to a new authority, was also stricken.

The biggest sticking point in this process was what happens in the interim for both employers and employees before the new entity is formed. The bills spell out this procedure in a clearer way to ease the transition and aide in the creation of cost sharing authorities.

This legislation allows an authority to be effective 180 days before employees are transferred, and the participating municipalities must confirm which employees will be transferred. If those employees are represented by a bargaining unit, the terms and conditions of employment will be transferred to the new authority for 6 months or until a new bargaining agreement is reached - whichever is earlier. Negotiations must begin no later than 180 days before the creation of the authority.

If an employee is represented by a bargaining unit, the new language prescribes the procedure for continued representation by that same bargaining unit or another after transfer to the new entity.

In addition absent a mutual agreement the workforce will be joined using a single seniority list.

This new procedure greatly clarifies the transfer procedure. It provides certainty to both employers and employees while removing barriers that have existed for decades.

The legislation now heads to the Governor for his signature.

Samantha Harkins works for the Michigan Municipal League handling municipal services issues.  She can be reached at 517-908-0306 or email at sharkins@mml.org