Tuesday, May 25, 2010

FORCED PAY CUT FOR MICHIGAN PUBLIC EMPLOYEES


FROM THE MEA: 
On Tuesday, May 25, the latest attack on the economic well-being of school employees at all levels, pre-K through and including universities, was reported to the floor of theMichigan Senate by the Reform and Re-structuring Committee. This attack is SJR "U", a joint resolution proposing that an amendment to the Michigan Constitution be placed on the ballot at this year's August Primary Election. This constitutional amendment would, if passed:

*       Require that the base salary of all public employees in Michigan, including employees of school districts, community colleges and universities, be reduced on October 1, 2010 by 5% from the base salary in effect for them on January 1, 2010.

*       Require that this forced pay reduction remain in effect for 3 years from the effective date of October 1, 2010.

*       Provides that any such pay reduction be reduced by any pay reduction that went into effect on or after January 1, 2009.

*       Provides that the section of the Michigan Constitution which protect contracts from being "impaired" by any law shall be amended to allow any contracts with or covering public employees may be impaired by the forced pay reduction called for in this resolution. In essence, such contracts could be voided by legislation to force pay reductions.

*       Has a provision that prohibits the state from enacting any law that grants a hearing over any pay reduction called for in this resolution.

*       Contains provisions to nullify the constitutional autonomy of universities in regards to setting pay rates for their employees.


MEA ANALYSIS:

We believe that the Senate leadership intends to move this bill as soon as possible, perhaps in the next day or two. Please contact your senator and urge her/him to vote NO on SJR "U" if it comes up for a vote. The reasons to vote NO are numerous, including:

*       Public employees have taken many cuts in compensation, both in salary and in non-salary areas such as benefits.

*       This is another "big brother knows best" fix coming out of Lansing. We don't need another one-size-fits-all panacea that will actually fit no one and will only exacerbate our problems.

*       Forced pay reductions will further shrink our already faltering economy. This will take 5% of pay out of spendable income of hundreds of thousands of employees and reduce economic activity dollar for dollar for all of the reduction.

*       This is the first time that any group of legislators has proposed legislating away contract provisions, a legal protection that is one of the bedrock foundations of capitalism and our democratic society. If the government can vacate thousands of public employee contracts today, it can vacate any and every contract tomorrow, a condition that would undermine our economy and our society.

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