Bill Summary – FastDemocracy

Legislative Analysis
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REPEAL PERA WAGE AND BENEFIT FREEZE                                                http://www.house.mi.gov/hfa
DURING CONTRACT NEGOTIATIONS
                                                                                   Analysis available at
House Bill 4044 as reported from committee                                         http://www.legislature.mi.gov
Sponsor: Rep. Matt Koleszar
Committee: Labor
Complete to 6-12-23
                                                                     (Enacted as Public Act 113 of 2023)
SUMMARY:
        House Bill 4044 would repeal section 15b of the Public Employment Relations Act (PERA)
        to eliminate the requirement that wages and benefit levels be “frozen” during contract
        negotiations. 1
        Currently, section 15b provides that, after the expiration date of a collective bargaining
        agreement (CBA) and until a new CBA is in place, a public employer cannot pay wages or
        provide benefits at levels and amounts that are greater than those in effect on the expiration
        date of the CBA, including wage step increases. Additionally, increased wages and benefits
        under a new contract cannot be made retroactive to the expiration date of the former
        contract, and employees are generally responsible for any increased costs of maintaining
        their insurance benefits after a contract expires.
        Section 15b was amended in 2014 to exempt certain public employees (generally police
        officers, firefighters, and public emergency medical service personnel) who are eligible to
        participate in compulsory arbitration to settle labor disputes under 1969 PA 312. 2
        Exempted employees are not subject to the wage freeze or the prohibition on retroactive
        wage and benefit increases, and their total insurance benefit costs after a CBA expires
        generally cannot exceed their contribution amounts under the Publicly Funded Health
        Insurance Contribution Act. 3
        MCL 423.215b (repealed)
FISCAL IMPACT:
        The bill would have an indeterminate impact on the state and on local units of government,
        including school districts, which would vary significantly from one unit to another. To the
        extent that the bill would permit wage increases and shift benefit cost increases back to
1
  An analysis of section 15b as added to PERA in 2011 can be found here:
http://www.legislature.mi.gov/documents/2011-2012/billanalysis/House/pdf/2011-HLA-4152-7C80A7C5.pdf.
2
  An analysis of this change to section 15b can be found here: http://www.legislature.mi.gov/documents/2013-
2014/billanalysis/House/pdf/2013-HLA-5097-31A92CFA.pdf.
3
  The Publicly Funded Health Insurance Contribution Act provides public employers with the choice between an
inflation-adjusted capped contribution or a maximum 80% contribution towards employees’ medical benefit plans. A
full analysis of the law as originally enacted can be found here: http://www.legislature.mi.gov/documents/2011-
2012/billanalysis/House/pdf/2011-HLA-0007-88186028.pdf.
House Fiscal Agency                                                                                  Page 1 of 3
       employers after a contract has expired and before a new one is in place, it would create
       incremental increased costs for public employers.
POSITIONS:
       Representatives of the following entities testified in support of the bill:
          • AFL-CIO Michigan (3-2-23)
          • AFSCME Council 25 (3-2-23)
          • Amalgamated Transit Union (3-2-23)
          • Bay City Education Association (3-2-23)
          • Dearborn Federation of Teachers (3-16-23)
          • Detroit Federation of Paraprofessionals (3-2-23)
          • Detroit Federation of Teachers (3-2-23)
          • Farmington Education Association (3-2-23)
          • Harper Creek Education Association (3-2-23)
          • Howell Education Association (3-2-23)
          • International Brotherhood of Electrical Workers of Michigan (3-2-23)
          • Kalamazoo Education Association (3-2-23)
          • Kellogg Community College (3-16-23)
          • Michigan Education Association (3-2-23)
          • Michigan Laborers’ International Union of North America (3-2-23)
          • Michigan Nurses Association (3-2-23)
          • Waverly Education Association (3-2-23)
       The following entities indicated support for the bill:
          • Eastpointe Federation of Educators (3-16-23)
          • Grand Rapids Education Association (3-2-23)
       Representatives of the following entities testified in opposition to the bill:
          • Education Advocates of West Michigan (3-2-23)
          • Michigan Association of Superintendents and Administrators (3-16-23)
       The following entities indicated opposition to the bill:
          • Barry Intermediate School District (3-16-23)
          • Branch Intermediate School District (3-16-23)
          • Great Lakes Education Project Freedom Fund (3-2-23)
          • Jackson Intermediate School District (3-16-23)
          • Lenawee Intermediate Scholl District (3-16-23)
          • Mackinac Center for Public Policy (3-16-23)
          • Michigan Alliance for Student Opportunity (3-2-23)
          • Michigan Association of Intermediate School Administrators (3-16-23)
          • Michigan Association of School Boards (3-2-23)
          • Michigan Association of Secondary School Principals (3-2-23)
          • Michigan Freedom Fund (3-2-23)
House Fiscal Agency                                               HB 4044 as reported   Page 2 of 3
           •   Monroe Intermediate School District (3-16-23)
           •   Oakland Schools (3-2-23)
                                                         Legislative Analyst: Holly Kuhn
                                                            Fiscal Analysts: Noel Benson
                                                                              Michael Cnossen
                                                                              Jacqueline Mullen
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                                    HB 4044 as reported   Page 3 of 3
Statutes affected: 
House Introduced Bill: 423.215
As Passed by the House: 423.215
As Passed by the Senate: 423.215
House Concurred Bill: 423.215
Public Act: 423.215
House Enrolled Bill: 423.215