Local government leaders in Michigan report that their employees’ unions made concessions in negotiations this year more frequently than the jurisdictions did on pay, benefits, staffing and work rules, according to a U-M survey.
By far, the biggest giveback according to the poll by the Gerald R. Ford School of Public Policy was on fringe benefits: 69 percent of local leaders report their employees’ unions made concessions in this area, while just 5 percent report the jurisdiction made concessions. Another 5 percent say each side made concessions, while 17 percent say neither side made concessions.
Due in part to declining local government revenue and pressures to cut costs, many public sector labor unions came to the table ready to make concessions. In addition, new state policies may have driven some of the reductions in employee benefits. Public Act 152 of 2011 limits how much jurisdictions can contribute toward the health care costs of their employees, and the state’s new Economic Vitality Incentive Program uses revenue sharing incentives to encourage limits on both health care and retirement benefits.
The poll, part of the Michigan Public Policy Survey series at the Ford School’s Center for Local, State, and Urban Policy, reports that:
• According to local leaders, the overall relationship with their employees’ unions is positive: 16 percent say the relationship is excellent, while 50 percent say it is good. By contrast, 29 percent say relations are fair, and just 5 percent say they are poor.
• Statewide, only 27 percent of local governments have a public sector labor union. Among them, 78 percent negotiated with their unions in the past 12 months.
• Looking ahead, 60 percent of jurisdictions with unions expect to seek new concessions in negotiations in the coming year.
