Commentary

UAW Prez: SEIU ‘Dues Skim’ More Important Than RTW

In an interview with the Detroit Metro Times, United Auto Workers President Bob King suggests that the forced unionization of home-based caregivers is more important than Michigan's becoming a right-to-work state. 

“[T]here was a whole series of legislation that [Snyder] said was not on his agenda that he signed,” King told the Metro Times. "There were [university] research assistants being denied collective bargaining rights. There were home health care workers, who were given some really strong assurances that collective bargaining rights would not be taken away from them.

“And that’s much more serious, honestly, than right-to-work; denying them the right to collective bargaining.”

The “university research assistants” are University of Michigan graduate student research assistants who work for U-M professors. The Michigan Employment Relations Commission has held the GSRAs to be students first and workers second for three decades. A union attempted to organize the GSRAs against the wishes of several hundred of the assistants, many professors and, initially, U-M President Mary Sue Coleman. Hundreds of students who did not want to be in the union were represented by the Mackinac Center.

“The whole concept of unionizing students is ludicrous,” U-M professor Fawwaz Ulaby told the Michigan House Government Operations Committee. “The work they perform cannot be distinguished from working toward their dissertations. ... There’s the potential adversarial relationship of employer to employees that would be created between the students and those of us who mentor them.”

The Legislature eventually voted to codify the MERC standard into law and ensure that the GSRAs could not be unionized.

The “home health care workers” King refers to are well-known to Michigan Capitol Confidential and Mackinac Center readers. He is alluding to the tens of thousands of home-based caregivers who mostly look after their own friends, relatives and children in their own homes.

The families receive Medicaid money to be caregivers, and they were shepherded into a union, mostly without their knowledge or consent. Many of the families reached out to the Mackinac Center to have their voices heard and to criticize “Proposal 4,” a proposed state constitutional amendment that would have effectively locked these caregivers into the Service Employees International Union for good.

The SEIU and related unions appear to have spent $9 million on the skim, which has netted them over $34 million so far. The Mackinac Center is involved in legal action to get the caregivers their money back from the union.

The UAW was involved in a similar scheme a few years ago involving home-based child care providers, who include people running day care businesses out of their homes and in some cases receiving state money for watching the children of low-income parents. King’s union worked closely with the administration of former Gov. Jennifer Granholm, a state department and other unions in an “experiment” to set up a shell corporation and force tens of thousands of such day care providers into a union.

At a national convention of the American Federation of State County and Municipal Employees, then-Gov. Granholm boasted that the scheme had netted the state 45,000 new union members.

Two day care owners, Sherry Loar and Dawn Ives, publicly protested the skim (see a Mackinac Center video of their story here). Home-based day care owners Paulette Silverson and Michelle Berry later joined Loar in a Mackinac Center Legal Foundation lawsuit attempting to end the skim.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Average Michigan Government Employee Compensation Exceeds Six Figures For The First Time

Combined cost of salary and benefits for state workers jumped from $98K to $104K last year

The Michigan Civil Service Commission’s website boasts: "Invest your talent with the state of Michigan. The rewards are enormous."

In fact, for the first time, the average salary and benefit package for state employees surpassed $100,000 a year in 2011-2012.

The average combined cost of salary and benefits for a state worker jumped to $104,067 in 2011-12, increasing from $97,883 in 2010-11.

James Hohman, assistant director of fiscal policy with the Mackinac Center for Public Policy, did the analysis using the Michigan Civil Service Commission’s certified aggregate payroll.

When factoring in inflation, the cost of benefits for a state employee has increased 75 percent since 1998-99. Overall, average compensation has risen 31 percent over the past 13 years.

The 2011-12 fiscal year was the first involving Gov. Rick Snyder. The number of state full-time jobs remained almost the same. There were 47,818 full-time equivalent employees in 2010-11. That dropped to 47,802 in 2011-12.

The state's total base pay decreased from $2.87 billion in 2010-11 to $2.81 billion in 2011-12. However, the cost of benefits increased from $1.8 billion to $2.2 billion in 2011-12. A little more than $350 million of the increased costs of benefits was attributed to the state starting to pre-fund employees' retirement health care, Hohman said.

Gov. Snyder's spokespeople didn't respond to a request for comment.

The cost of a state employee has risen steadily since 1998-99, when the average cost of pay and benefits was $79,409, when adjusted for inflation.

That state's full-time workforce has dropped from 60,066 in 1998-99 to 47,802 in 2011-12. However, the state’s cost for benefits has risen from $1.23 billion in 1998-99 when factoring inflation to $2.16 billion in 2011-12, a 76 percent increase.

Hohman said the costs for the state are going to increase if it doesn’t cut retiree health care. Hohman said employees won’t see any extra money, but the state will pay much more to make up for past years when retiree health care wasn't pre-funded.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.