Amending PERA: A Union Accountability Act for Michigan

 Boldfaced text represents new text added by the amendment.

Michigan Statutes Annotated, Sec. 17.455(10) is amended by adding subsections (2)(a) and (2)(b): 


Act 336 of 1947

423.210 Prohibited conduct; service fee. [M.S.A. 17.455(10) ]

Sec. 10. (1) It shall be unlawful for a public employer or an officer or agent of a public employer (a) to interfere with, restrain or coerce public employees in the exercise of their rights guaranteed in section 9; (b) to initiate, create, dominate, contribute to, or interfere with the formation or administration of any labor organization: Provided, That a public employer shall not be prohibited from permitting employees to confer with it during working hours without loss of time or pay; (c) to discriminate in regard to hire, terms or other conditions of employment in order to encourage or discourage membership in a labor organization: Provided further, That nothing in this act or in any law of this state shall preclude a public employer from making an agreement with an exclusive bargaining representative as defined in section 11 to require as a condition of employment that all employees in the bargaining unit pay to the exclusive bargaining representative a service fee equivalent to the amount of dues uniformly required of members of the exclusive bargaining representative; (d) to discriminate against a public employee because he has given testimony or instituted proceedings under this act; or (e) to refuse to bargain collectively with the representatives of its public employees, subject to the provisions of section 11.

(2) It is the purpose of this amendatory act to reaffirm the continuing public policy of this state that the stability and effectiveness of labor relations in the public sector require, if such requirement is negotiated with the public employer, that all employees in the bargaining unit shall share fairly in the financial support of their exclusive bargaining representative by paying to the exclusive bargaining representative a service fee which may be equivalent to the amount of dues uniformly required of members of the exclusive bargaining representative.

(a)    Where a mandatory service fee is agreed upon, the exclusive bargaining representative must, on a yearly basis, not more than 90 days after the end of its fiscal year, provide financial disclosure information to all employees of the bargaining unit and to the general public by filing with the Commission a report containing the following information, detailed by functional spending categories, which accurately discloses its financial condition and operations for the preceding fiscal year:

(i)     assets and liabilities at the beginning and end of the fiscal year;

(ii)    salary, the cost of fringe benefits, allowances and other direct or indirect disbursements to each officer of the local, bargaining representative, and support staff, as well as all contributions to state or national affiliates and any official or employee thereof;

(iii)    all income received or the value of services furnished to an exclusive representative by either a parent affiliated labor organization or by any other labor organization on behalf of the exclusive representative;

(iv)    an itemization of the total amount spent by the exclusive bargaining representative for:

(A)    contract negotiation and administration;

(B)    organizing activities;

(C)    strike activities;

(D)    litigation, specifying the matters and cases involved;

(E)    public relations activities;

(F)    political activities;

(G)    activities attempting to influence the passage or defeat of federal, state or local legislation or the content or enforcement of federal, state or local regulations or policies;

(H)    voter education and issue advocacy activities,

(I)    training activities for each officer of the local bargaining representative or union support staff,

(J)    conference, convention, and travel activities engaged in by exclusive bargaining representatives;

(v)    the percentage of the labor organization's total expenditures that were spent for each of the activities described in subparagraphs (A) through (J) of paragraph (iv);

(vi)    the names, addresses and activities of any of the law firms, public relations firms or lobbyists whose services are used by the labor organization for any activity described in subparagraphs (D) through (J) of paragraph (iv);

(vii)    a list of political candidates, political organizations, charitable organizations, non-profit organizations and community organizations to which the labor organization contributed financial or in-kind assistance and the dollar amount of such assistance;

(viii)    the name and address of any political action committees with which the labor organization is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.

(b)    The report required in subsection (a) shall be prepared by an auditing organization, independent of the exclusive bargaining representative, using generally accepted auditing standards, and generally accepted accounting principles, which shall ensure the accuracy and veracity of the information provided by the labor organization.  All union expenditures shall be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.

(3) It shall be unlawful for a labor organization or its agents (a) to restrain or coerce: (i) public employees in the exercise of the rights guaranteed in section 9: Provided, That this subdivision shall not impair the right of a labor organization to prescribe its own rules with respect to the acquisition or retention of membership therein; or (ii) a public employer in the selection of its representatives for the purposes of collective bargaining or the adjustment of grievances; (b) to cause or attempt to cause a public employer to discriminate against a public employee in violation of subdivision (c) of subsection (1); or (c) to refuse to bargain collectively with a public employer, provided it is the representative of the public employer's employees subject to section 11.

Michigan Statutes Annotated, Sec. 17.455(10) is amended by adding the following language to subparagraph (3) at the end thereof:

"(d) to fail or refuse to prepare the report required, in violation of subsections (2)(a) and (2)(b).  A failure or refusal to provide the report required herein shall result in the refund of all membership dues or agency fees to employees of the bargaining unit for the period covered by the report.  A second failure or intentional refusal to report shall result in an employee election in the bargaining unit affected, pursuant to the provisions of Sec. 12, as to whether the labor organization will continue to be the exclusive agent, as authorized in Sec. 11.  The election shall be conducted upon the expiration of any existing collective bargaining agreement".