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By Chad D. Lerch | MiBiz
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WEST MICHIGAN — A local lawmaker is in the middle of a heated debate over whether the state should end binding arbitration in contract disputes between local governments and unions that represent police and fire employees.

State Rep. Joe Haveman, R-Holland, has introduced legislation that would kill Public Act 312, the longstanding binding arbitration statute, a move he says would save local governments struggling to balance their budgets significant dollars.

Opponents say Haveman’s legislation, House Bill 4205, would limit unions’ abilities to effectively represent police and fire staffs while giving an unfair advantage to city administrators.

Union officials say Public Act 312, which was enacted in 1969, is needed because police and fire staffs are not allowed to strike.

“At a time of fiscal crisis in our state with many communities close to receivership, we must find ways to free the hands of local elected officials from outdated and costly statutes and regulation such as this,” Haveman said.

“Binding arbitration results in incremental increases to benefits and pay that are leading many of our municipalities toward bankruptcy,” Haveman said. “It is just not appropriate to continue using a system that damages a city’s finances and compounds the tax burden on residents.”

Meanwhile, State Reps. Brandon Dillon and Roy Schmidt, Democrats from Grand Rapids, have blasted the proposed legislation, saying it jeopardizes the safety of residents and communities.

“Our dedicated firefighters and police officers put their lives on the line each and every day in order to keep West Michigan’s streets safe and they deserve our support,” Dillon said. “With the severe budget cuts proposed for revenue sharing, we must do everything we can to make sure that politics don’t get in the way of the well-being of Michigan’s communities.”

Dale Hull, Haveman’s chief of staff, said feedback thus far has been overwhelmingly positive from local government officials and residents alike. With Republicans controlling the state Legislature, Hull believes the bill will become law.

“The unions don’t like it, and the local governments and job creators love it,” Hull said of the legislation. “Almost every economist, almost every local city manager ... and job provider says that P.A. 312, as written, is unsustainable.”

Hull said the government has three choices: change or repeal P.A. 312, raise taxes, or layoff a significant number of public safety officers in many cities across the state.

Norton Shores Mayor Gary Nelund said he is not ready to publicly support or oppose the legislation. Nelund said his city has a good working relationship with the unions that represent public safety employees, and that recent contract negotiations have gone relatively smoothly.

While Nelund said he believes House Bill 4205 would save his city money, he doesn’t want police or fire staffs going on strike.

“That would lead to serious trouble if an entire police force were to go on strike,” Nelund said. “From a public safety perspective, that’s scary to me.”

But not all West Michigan communities are affected positively or negatively by Public Act 312. Hudsonville City Manager Patrick Waterman said his city has so few public safety employees with union representation that his city won’t be closely following the legislation.

Meanwhile, the Kalamazoo Regional Chamber of Commerce is urging state lawmakers to support the legislation.

“Binding arbitration results in job losses and cuts to vital city services,” said Steward Sandstrom, president and CEO of the Kalamazoo chamber. “At the end of the day, there is no other choice but to make layoffs and cuts when labor unions are unwavering in their attempts to change compensation.”

The chamber is pushing for government consolidations, partnerships and efficiencies between units of government “starting with reforming (Public Act) 312,” Sandstrom said.

West Michigan police officers and firefighters have publicly demonstrated in Grand Rapids and Lansing against the proposed legislation.

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TAGS:

• brandon dillon
• dale hull
• gary nelund
• joe havenman
• kalamazoo regional chamber of commerce
• roy schmidt
• steward sandstrom
• west michigan