The UAW joined with state employees today as they announced a rare, coordinated bargaining approach with the state of Michigan during contract negotiations, which began for the UAW in July. The coalition of unions has notified the State Employer that the unions will be coordinating their bargaining for the first time in 30 years, a move the UAW says will advance its commitment to working with other unions to addressing new solutions for Michigan. 

Each of the unions will continue to negotiate separately with the state on non-economic issues unique to each bargaining unit.

The coalition includes UAW Local 6000, SEIU Local 517M, Michigan Corrections Officers SEIU Local 526M, AFSCME Council 25 and the Michigan State Employees Association, which collectively represent Michigan’s 35,000 state employees. The coalition says state government can save tens of millions in taxpayer dollars and protect essential services using innovative methods outlined in a report released in May called “New Solutions for Michigan.” Mich. Gov. Rick Snyder has not responded to the report.

“Michigan’s state employees are actively seeking solutions, including this historic bargaining arrangement, so we can help make government work better for Michigan families and taxpayers,” said Cindy Estrada, UAW Vice President of Public Sector and Health Care Servicing. “We want to work together to advance the kind of innovative cost savings Michigan needs to protect services and speed up our recovery,” she said.

State employees’ New Solutions for Michigan report analyzed data and used the insight and experience of public employees to propose reforms to the governor and legislature to save taxpayer dollars and protect essential services. Recommendations showed how Michigan could save upwards of $185 million in FY2011-12 alone by: 

• Prioritizing frontline service delivery and reducing managers.
• Pursuing better value from contractors, consultants and agency staff.
• Delivering better services through collaboration between agency leaders and frontline employees.

New Solutions for Michigan revealed that the state classified workforce averages fewer than six, non-supervisory staff for every manager and/or supervisor (5.87:1 ratio), which is well above the norm in other states and the private sector. Increasing Michigan’s ratio by just one staff per manager would yield a savings of $75 million annually in wages alone. Moving the state toward an 11:1 ratio target could save hundreds of millions in annual spending and protect essential services.

New Solutions for Michigan also identified a need for the state to take a hard look at ways to cut costs and reduce Michigan’s dependence on contractors. Excluding community health and higher education, the state spends $1.1 billion on contracts annually. Michigan can save $110 million a year by asking state vendors and contractors to share in the sacrifice by reducing costs by 10 percent. More savings could be realized if Michigan performed a comprehensive cost/benefit analysis of contracts, as required in the Public Service Accountability Act, to ensure agencies are providing services in the most cost-effective manner possible.

New Solutions for Michigan also outlined how collaboration between agency leaders and frontline employees can lead to better service and additional cost savings.

The 35,000 employees represented by coalition unions work throughout the state as social service workers, highway engineers, corrections officers, and employees providing other vital services for the citizens of Michigan. UAW Local 6000 has 17,000 members in human services and administrative support units throughout the state of Michigan.

New Solutions for Michigan report (977 KB).