HB-5576, As Passed House, June 3, 2014HB-5576, As Passed Senate, June 3, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5576

     A bill to amend 1969 PA 312, entitled

"An act to provide for compulsory arbitration of labor disputes in

municipal police and fire departments; to define such public

departments; to provide for the selection of members of arbitration

panels; to prescribe the procedures and authority thereof; and to

provide for the enforcement and review of awards thereof,"

by amending section 9 (MCL 423.239), as amended by 2011 PA 116.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 9. (1) If the parties have no collective bargaining

agreement or the parties have an agreement and have begun

negotiations or discussions looking to a new agreement or amendment

of the existing agreement and wage rates or other conditions of

employment under the proposed new or amended agreement are in

dispute, the arbitration panel shall base its findings, opinions,

and order upon the following factors:

     (a) The financial ability of the unit of government to pay.

All of the following shall apply to the arbitration panel's

determination of the ability of the unit of government to pay:

     (i) The financial impact on the community of any award made by

the arbitration panel.

     (ii) The interests and welfare of the public.

     (iii) All liabilities, whether or not they appear on the balance

sheet of the unit of government.

     (iv) Any law of this state or any directive issued under the

local government and school district fiscal accountability act,

2011 PA 4, MCL 141.1501 to 141.1531, local financial stability and

choice act, 2012 PA 436, MCL 141.1541 to 141.1575, that places

limitations on a unit of government's expenditures or revenue

collection.

     (b) The lawful authority of the employer.

     (c) Stipulations of the parties.

     (d) Comparison of the wages, hours, and conditions of

employment of the employees involved in the arbitration proceeding

with the wages, hours, and conditions of employment of other

employees performing similar services and with other employees

generally in both of the following:

     (i) Public employment in comparable communities.

     (ii) Private employment in comparable communities.

     (e) Comparison of the wages, hours, and conditions of

employment of other employees of the unit of government outside of

the bargaining unit in question.

     (f) The average consumer prices for goods and services,

commonly known as the cost of living.

     (g) The overall compensation presently received by the

employees, including direct wage compensation, vacations, holidays,

and other excused time, insurance and pensions, medical and

hospitalization benefits, the continuity and stability of

employment, and all other benefits received.

     (h) Changes in any of the foregoing circumstances while the

arbitration proceedings are pending.

     (i) Other factors that are normally or traditionally taken

into consideration in the determination of wages, hours, and

conditions of employment through voluntary collective bargaining,

mediation, fact-finding, arbitration, or otherwise between the

parties, in the public service, or in private employment.

     (j) If applicable, a written document with supplementary

information relating to the financial position of the local unit of

government that is filed with the arbitration panel by a financial

review commission as authorized under the Michigan financial review

commission act.

     (2) The arbitration panel shall give the financial ability of

the unit of government to pay the most significance, if the

determination is supported by competent, material, and substantial

evidence.