News Story

Another School Contract Extended To Lock Teachers Into Union Membership

East China agrees to contract forcing employees to pay money to the union

Add the East China School District to the list of Michigan school districts approving new union contracts just days before the state's right-to-work law goes into effect.

Michigan's right-to-work law takes effect March 28, but teachers in the East China School District in St. Clair County now will be forced to pay dues or fees to the union as a condition of employment through 2016. The East China School District has about 4,400 students.

Negotiators in the East China labor talks reached a tentative agreement on a new contract last Monday and the union ratified it the same day. That evening, on a 5-1 vote, the school board approved the contract as well.

Allen Reichle was the lone board member to vote no.

"I had more than one reason for voting no," Reichle said. "I didn't like the fact that we were doing it in a way that bypassed the right-to-work law. To me, that was sort of like saying 'In your face' to the Legislature. I also thought that, if we were going to do it that way, we could have done a better job of using the leverage it gave us to our advantage.

"Another thing I didn't like was the fact that we (the board members) didn't see the contract. All we saw was an overview," he said. "Also, I had reservations about the fact that the teachers took an overall 2.9 percent cut, which was less than the service people and the others. I'm not anti-teacher, but to me it could have been spread more equally. Even if it had been just a 6 percent cut, I would have been more comfortable with it."

East China school board president Jim Biewer said he didn't think the district got more or better concessions because of the union's rush to get the contract approved before the right-to-work law went into effect.

"I don't feel that was the case," Biewer said, adding that he didn't think the fact that the contract was approved before the law took effect was an issue.

"This is how we do our contracts," Biewer said. "The current contract was going to end in July. It's not as though we opened it up just because of right-to-work. We had been negotiating anyway. We typically agree to these contracts between 30 and 60 days before the contract expires."

March 18, was more than 30 to 60 days before July.

"It came together a little sooner this time," Biewer said.

Biewer said that when the board voted it was aware that passage of new contracts that circumvent right-to-work had become a contentious issue statewide.

"We knew that, but this isn't a six, seven or eight year contract, like some of the other ones," Biewer said.

In addition, there was nothing new about the board members not seeing the actual contract, he said.

"We did what we have always done. We set the parameters and then let the negotiators do their job," Biewer said. "This is our normal process. When they had an agreement, it was approved by the union and then we (the board) got to review it. We reviewed it for approximately three hours and then voted."

However, Reichle said following the district's normal process might not have been a good idea this time.

"I don't think that saying 'we've always done it this way' is a very good reason for this," Reichle said.

Biewer said that, so far, he hasn't been criticized by any teachers for voting quickly on contract.

"The teachers who I've talked with have thanked me," Biewer said.

To date almost 40 school districts across the state have either approved "union security agreements" that extend the forced payment of dues or fees for years beyond existing contract expiration dates, or have approved new contracts ahead of the deadline.

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.

Commentary

Kent County Considers Land Bank Changes

A Kent County Board of Commissioners subcommittee is recommending that the Kent County Land Bank be prohibited from purchasing tax-foreclosed property prior to tax auction.

If Kent County commissioners approve this recommendation, they will be taking a step toward both encouraging private-sector development and saving taxpayers money.

Last summer, the Kent County Land Bank caused a stir when it snapped up more than 40 vacant, tax-foreclosed properties before tax auction. By doing so, the land bank blocked redevelopment from occurring in the private market.

Moreover, the land bank spent more than $400,000 to buy those properties. The Kent County Taxpayers Alliance estimated that if private buyers had been allowed to bid, the county could have received up to $1 million in additional sales revenue. Instead of taking in money that could have been used to fund county operations, officials chose to spend.

State law prohibits land banks from acquiring property before tax auction, but the Kent County Land Bank worked around that by coordinating with county officials so that property was transferred first to the county and then to the land bank.

The subcommittee's recommendation is a good first step, and is in line with Michigan law. However, the Grand Rapids Business Journal reports that the land bank will still be able to bid against private buyers at tax auction. While this is certainly better than allowing the land bank to circumvent the auction, it's not a solution.

By bidding against private buyers at tax auction, the land bank would be using taxpayer money to keep vacant, tax-foreclosed property from going to back to private use. As the recipient of federalstate and local subsidies, the land bank also would be able to bid property prices up above a competitive price. In short, the land bank would be the biggest shark at tax auction, thanks to taxpayer assistance.

The St. Louis, Mo., land bank has a long-standing practice of bidding against private buyers, and spent hundreds of thousands of dollars to prevent individuals from buying property. The land bank has amassed property over time, instead of letting entrepreneurs take a shot at developing long-vacant properties.

The best move would be to remove the Kent County Land Bank from the speculation game entirely, and allow it to step in only if properties fail to sell at tax auction.

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.