State Employees were shocked when they received an email from Bob Emerson, State Budget Directory, outlining propose changes in the retirement plans for state workers.

Unfortunately,   the plan “encourages” state employees with 30 years or more of service to retire by forcing them to contribute 3 percent of their salary toward retirement effective Oct. 1, capping retirement credit at 30 years of service, and eliminating their retirement vision and dental care if they refuse to step down. Those who remain in the defined benefit plan would face the same changes. 

Any modifications to the employee’s retirement require a change in the States Constitution. Granholm is expected to present her plan for these changes to the Legislature within the coming weeks.  During the legislative process, the proposed legislation can be amended or voted down. More specific details will emerge as this process moves forward.  As members of Local 6000 may be confused about the history of our retirement plan here are facts about our retirement plans;

*The pension plan is not part of our contract. It cannot be negotiated*The pension is set by state law, written by the legislature.

*Until 1974, state workers contributed towards the pension.

*In 1974 the state agreed to fully fund the pension system, in lieu of state workers getting a pay raise that year and a cost of living adjustment.

* In 1997, over the Union's objection, Governor Engler and the state legislature ended the defined benefit plan and implement the defined contribution plan (401k) for new employees. Employees in the defined benefit plan remained in that plan.

By now, you have probably heard about the State Employer imposing temporary layoff days on the Administrative Support and Human Services Bargaining Units.  There is a lot of misinformation being spread to the membership.  I would like to set the record straight by letting you know what the facts are concerning how we reached this point. 

The Bargaining Team met with the Office of the State Employer on December 3, 2009.  The State asked for concessions in regards to Banked Leave Time and wanted a two-tier healthcare system for new employees.  The Bargaining Team countered with cost-savings proposals that would have saved the State all the savings they were trying to achieve, and would protect our members’ jobs and benefits.  Our proposals would have given the State $15.9M from UAW members.  The State rejected our proposals, stating that they wanted “structural changes” in healthcare for new employees.  The State walked away from the table.  The Union has been waiting for the State to return to the table since December.  I have been informed that the State is not planning to return to the bargaining table and that they will not be giving the Union a written counter proposal.  The Union offered the State, through a written proposal, $5M dollars from the Joint Education, Training and Development Fund, and mandatory participation in the Banked Leave Time Program for no more than two (2) hours per pay period until the necessary savings are achieved.  The Union’s proposal amounted to slightly more savings then the State was asking for.  The State acknowledged, at the table, that the healthcare plan for new employees may or may not save the state any money.  Had the State agreed to the Union’s proposal you, the membership would have had an opportunity to vote on the proposal. 

 Agreeing to the State’s proposal concerning Healthcare for new employees would have required the opening of the current Bargaining Agreement.  In the past concessions, we have been able to achieve the requested savings without opening the contract.  Once the contract is opened, everything in the contract is fair game, including healthcare for current employees.  Since we will be negotiating a new agreement this summer, there is no need to open the contract at this time.

In Solidarity,  

 Ed Mitchell, PresidentUAW Local 6000

Michigan is a sportsman’s dream with its woodlands, lakes, and rivers and naturalists flock to the state enjoying a wonderful mix of geological and biological features.  Local emergency agencies are called every year to look for lost hunters and hikers, often exhausting their resources.  The Michigan State Police (MSP) Dispatch Centers are called when this happens. 

On January 5th, 2010, the Local received notice from the Department of Corrections of their intent to implement a reduction in force at the Muskegon Correctional Facility to begin not earlier than February 6th, 2010.  Initial discussions revealed that although the facility will be used to house inmates from Pennsylvania, the Department will not be contracted to provide programs which are administered and available to Michigan sentenced inmates.  As these programs will not be offered or included in the contract with Pennsylvania, there is no need to maintain the current staffing levels for any aspect of the facility operations. 

LANSING – Today Alma Wheeler Smith (D-Salem) criticized Senate Leader Mike Bishop and his Republican colleagues on their proposal calling for a reduction in state worker pay.

“Mike Bishop has proposed a plan that will, in part, balance the budget on the backs of our hard working public employees many of whom have already made contract concessions, accepted unpaid furlough days and taken up the slack for lost state worker colleagues as the state has struggled to balance its budget,” said Smith. "

In announcing his plan, Bishop made very clear his priorities: to save the top 5% of earners in Michigan from having to pay their fair share through a graduated income tax, while asking only middle and lower income families who work for the public sector to give more and more.” will allow the elimination of the Michigan Business Tax surcharge.

"The people of the State of Michigan are sick and tired of political rhetoric and frankly so am I." Said Smith,  "These proposals play too well in a 30 second sound bite but are terrible public policy for our State.  I encourage everyone to call Mike Bishop and tell him we need real answers and sound policy not just sound bites for his next campaign."

   Tom Lawrence, UAW Local 6000 Region 1A Rep gets the message out to the public