An Evolution to Collaborative Labor Relations National Center for the Study of Collective Bargaining in Higher Education and the Professions (NCSCBHEP) April 17, 2007, Baruch College Conference Center Presenters: Scott Sowulewski, Director, MSU Office of Employee Relations Leo Sell, President, MSU Administrative Professional Association, MEA/NEA

HR Customers 4,098 faculty & academic staff 5,986 Full-time & Part-time Support Staff 10 Bargain Units (Including Teaching Assistants) 3,919 retirees 7,398 students (with MSU health insurance) 14 colleges 690 departments 4,888 Temporary Employees 4,984 external applicants 16,000 Student Employees

IN THE BEGINNING - - - 1965 Public Employees Relations Act passed Earliest bargaining unit, IATSE Most others recognized in early 1970s MSU Administrative-Professional later Informal, meet & confer early 1970s Organized & recognized early 1980s Affiliated with Michigan & National Ed Association mid-80s Bob’s comments on this slide

Adversarial to Collegial to Collaborative Most early relationship based on classical/ traditional models of labor relations

A Progression… Movement toward a collaborative, joint problem solving approach Key changes in APA & MSU bargaining approach in 1990s (Target Specific Bargaining) Interest-Based Bargaining Helped lead toward new approach to bargaining health care and wages

Looking Back . . .10 Years In 1996 MSU and organized labor embarked on a unique initiative MSU Administration and MSU Coalition of Labor Organizations began new era of Labor Management Relations at MSU Health Care Bargained with a Coalition of Eight Unions

Coalition/MSU Collaborative Approach The parties agree the cost of the health care plan and the funding available for wage increases are interrelated. Employer and Union Interests are Aligned – Both Are Consumers

Coalition/MSU Collaborative Approach (Cont) Promote health & disease prevention initiatives Agree on “total compensation” cost measures Improve cost & budgeting predictability Align Employee/Union and Employer interests to promote payer & consumer partnership Consider mutual ideas and options to achieve cost savings–Look for incentives to change “behavior” Strong Union interest to avoid “cost shifting”

Memo of Understanding Signed in 1996 between MSU and MSU Coalition of Labor Organizations No coalition members can make health care proposals during independent bargaining University maintains status quo premium sharing

Highlights of Second Agreement 4-year agreement (2002-06) 3-tier Rx co-pays; Dual employed spouses Wage increases tied to health care costs No other “economic proposals during term of agreement

Wage Increases Tied to Health Care Costs

Highlights of Third Agreement 4-year agreement (2007-10) Added 4th tier to Rx plan for bio-tech drugs Changed Office, Emergency and Rx co-pays to further incent consumerism Revised wage scale

Measuring Success

Coalition Approach to: Labor Management Relations Importance of Coalition access to information Strive to keep each other informed – “No Surprises” Importance of education and sharing of information Joint effort to solve problems All parties - Be open to the possibilities Based on Trust – Trust is Fragile Work in progress - Still evolving!!!

Labor relations does not have to be what you see on TV, and is not at MSU Moved from adversarial to relational From confrontational to collaborative

Fundamentals Today Mutual respect Recognition of joint interests A commitment to problem prevention and problem solving at the lowest level possible Requires a commitment at all levels of the University

Lessons Learned Joint effort in obtaining Administration’s buy in Importance of Coalition of Labor Organization’s access to information (from University and vendors) Importance of education Allow plenty of time All parties—be open to the possibilities

A brief humor break.

Coalition Approach: Conclusions Collaborative Labor-Management Approaches can Yield Effective Results Labor and management both have resources that can be brought to bear (AEPC) Continued Collaboration is an Effective Strategy For Joint Labor- Management Issues Reduced Public Funding & Soaring Health Care Costs Changing Traditional Labor/Management Relations Cooperation Makes Sense – Ingham County Coalition, City of Grand Rapids Coalition, MUCH, AEPC

Questions/Discussion