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Communities Controlling Their Own Costs -
PA 312 and Mandatory Binding Arbitration

See the League's Inside 208 blog for Timely Updates on Related Legislation

After 40 years of struggle with PA 312, in June 2011 the legislature made critical reforms to PA 312. 

The bill makes the following changes:

• Makes ability to pay the primary factor an arbitrator must consider in an arbitration.
• Defines what an arbitrator has to consider for ability to pay.
• Requires an arbitrator to consider internal comparables as well as external.
• Shortens the process to 180 days.
• Moves up last best offer to be submitted following mediation.
• Includes future authorities in PA 312. It grandfathers existing authorities unless they are currently organized or under a union contract. If an existing authority expands it would be subject to PA 312.

 

House Bill 4522

Press Release: PA 312 Reforms Mark Victory for Taxpayers, Will Keep More Police Officers & Firefighters on the Job (PDF)
The Michigan Municipal League

 

Related Articles:

Why Proposed Changes to Michigan's Binding Arbitration Law are Good for Taxpayers
Grand Rapids Press Editorial Board, 7/1/11

Should Act 312 Stay or Go?
Cadillac News, 2/25/11

Legislature Considers Bill to Repeal PA 312
MI Capitol Confidential, 2/25/11

Editorial Encourages Changes to Public Act 312
Detroit News, 1/2/11

League calls arbitration bill ‘hollow and meaningless’
Associated Press, 6/24/10

Hurdles to government efficiency gain steam in Capitol
The Center for Michigan, 6/24/10

Jenks: Legislators ensure police, fire layoffs
Lansing State Journal, 6/24/10

House approves expansion of PA 312
Inside 208, 6/24/10

‘Better city managers’ key to PA 312 decisions???
Inside 208, 6/24/10

Kentwood mayor says state lawmakers sold out local governments with change in contract negotiations
Grand Rapids Press, 6/25/2010

Lansing fails again on public safety reform
Detroit News, 6/25/10

Binding arbitration bill passes house amid controversy
PR Newswire, 6/24/10

Senate bill pending in House could cause local government costs to climb
Michigan Capitol Confidential, 6/22/10

Guest column: Michigan Legislature waters down true opportunity for cost-saving reform
Jackson Citizen Patriot, 6/22/10

Counties, municipalities criticial of binding arbitration bills
Crain’s Detroit Business, 6/21/10

Pending legislation that would reform binding arbitration getting some bipartisan support
The Oakland Press, 6/18/10

House does NOT vote on PA 312 expansion
Inside 208, 6/17/10

Michigan Media Reports on League’s Fight Against Expansion of Public Act 312
Inside 208, 6/17/10

Know the difference between real reform and faux reform
The Center for Michigan, 6/17/10

Forum: Reform still absent in Lansing
Traverse City Record Eagle, 6/17/10

House passes binding arbitration ‘reform’ bills that will increase costs
Michigan Association of Counties, 6/17/10

House passes ‘reform’ bills that will increase costs
Michigan Association of Counties, 6/16/10

House reports bill to extend binding arbitration to county corrections
Inside 208, 6/16/10

House to soon take up legislation expanding PA 312; MAC in opposition
Michigan Association of Counties, 6/9/10

Critics Say Arbitration Bill 'Hollow' Without Amendment
Capitol Confidential, 2/24/2010

PA 312 continues to hamstring communities
Inside 208, 2/11/10

City of Flint Hamstrung by “Hollow” Arbitration Law
Flint Journal, 2/10/2010

Flint Police Unions Likely Headed for Arbitration
ABC News 12, 2/10/2010

Cities Push Hard on Act 312 and Cost Controls
Center for Michigan, 12/10/09

Municipal Leaders Call for Arbitration Reform
MIRS News, 12/08/09

Municipal League Seeks Changes to Arbitration
Gongwer News, 12/08/09

Ann Arbor officials Say Firefighters'
Unwillingness to Negotiate Partly to Blame for Layoffs
annarbor.com, 12/7/09


Standing up for PA 312
Detroit News, 10/29/09

Column- Where to Start Reform
Holland Sentinel, 10/28/09

How to Save Michigan's Local Communities
The Center for Michigan, 9/10/09

Budget Woes Lead to Talk of Eliminating Full-Time Fire Department 
The Grand Rapids Press, 8-18-09

How Localities Can Avoid Police and Firefighter Layoffs
Detroit Free Press, 8-16-09

County correction binding arbitration up for hearing
Michigan Association of Counties, 5/24/09

Old Law Ensures Less Bang for Taxpayers' Buck
Center for Michigan, 5/14/09

Special Report: The problems with police and firefighter negotiations
The Center for Michigan, 5/7/09

PA 312 Leads to Cuts in Public Safety
The Ann Arbor News, 5/12/09

Costly Move Expanding Arbitration
Grand Rapids Press, 6/22/08

Editorial: Mayors, Not Judges, Should Run Our Cities - Supreme Court Should Allow Detroit, Pontiac to Proceed with Layoffs
Detroit Free Press, 11/26/07

In Our Opinion: Negotiate Government Reforms
Detroit Free Press, 9/19/07

State Officials Look at Changing Arbitration Laws
Crain's Detroit Business, 6/18/07

Editorial: Repeal Laws Favoring Unions Over Taxpayers
Detroit News, 6/13/07

Pontiac Struggles with Depleted Police Force (PDF)
Oakland Press

Related Publications:

A Conversation with the Governor (PDF)
Live on WWJ News Radio 950

The Public Employment Relations Act: Conflicts & Possible Alternatives (PDF)
Citizen's Research Council of Michigan

Final Report to the Governor - 2006 (PDF)
The Task Force on Local Government Services and Fiscal Stability