2023 House Bill 4354 / Public Act 115

Labor: public service employment; performance evaluation standards, merit pay standards, and decisions on layoff, recall, hiring, position eliminations, classroom observation, teacher placement, evaluation, discipline, and discharge; remove from prohibited subjects of bargaining for public school employers.

An act to amend 1947 PA 336, entitled “An act to prohibit strikes by certain public employees; to provide review from disciplinary action with respect thereto; to provide for the mediation of grievances and the holding of elections; to declare and protect the rights and privileges of public employees; to require certain provisions in collective bargaining agreements; to prescribe means of enforcement and penalties for the violation of the provisions of this act; and to make appropriations,” by amending section 15 (MCL 423.215), as amended by 2023 PA 9.

House Fiscal Agency Analysis

House Bill 4354 would amend 1947 PA 336, the public employment relations act (PERA), to permit the inclusion of certain topics during collective bargaining for public school employees. House Bill 4355 is a companion bill that would make complementary updates to the State School Aid Act. Among other excluded topics, PERA currently provides that decisions about the development, content, standards, procedures, adoption, and implementation of certain subjects cannot be included in collective bargaining negotiations between a public school employer and a representative of its employees. The impact of those decisions on an individual employee or the bargaining unit are also prohibited topics. These restricted subjects are: • A public school employer’s teacher placement policy. • A public school employer’s policies regarding personnel decisions when conducting a reduction, eliminating a position, recalling or hiring employees, or making any related decisions. • The performance evaluation system, including decisions concerning the content of a performance evaluation of an employee. • The policy regarding the discharge or discipline of a teacher. • The format, timing, or number of classroom observations. • The policy regarding the method of compensation, including decisions about how an employee performance evaluation is used to determine performance-based compensation. • The notification to parents and legal guardians required under section 1249a of the Revised School Code.1 The following subjects are also prohibited from collective bargaining negotiations: • A public employer’s decision whether to enter into an intergovernmental agreement to consolidate services. • The procedures for obtaining a contract for the transfer of functions or responsibilities under such an agreement. • The identities of any other parties subject to the agreement. House Bill 4355 would amend the State School Aid Act to remove the current prohibitions on collective bargaining agreements entered into by a school district or intermediate school district that include automatic payroll deductions for union dues2 or methods of compensation that do not comply with section 1250 of the Revised School Code.

Introduced in the House

April 11, 2023

Introduced by Rep. Regina Weiss (D-6) and 9 co-sponsors

Co-sponsored by Reps. Brenda Carter (D-53), Penelope Tsernoglou (D-75), Rachel Hood (D-81), Amos O’Neal (D-94), Carrie Rheingans (D-47), Stephanie Young (D-16), Christine Morse (D-40), Felicia Brabec (D-33) and Abraham Aiyash (D-9)

Referred to the Committee on Labor

May 25, 2023

Reported with substitute H-1

June 13, 2023

Substitute H-1 concurred in by voice vote

June 20, 2023

Passed in the House 56 to 53 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

June 21, 2023

Referred to the Committee on Labor

June 27, 2023

Reported without amendment

June 28, 2023

Referred to the Committee of the Whole

Reported without amendment

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 5, following line 24, by inserting:

“(j) (p) Decisions about the development, format, content, and procedures of the notification to parents and legal guardians required under section 1249a of the revised school code, 1976 PA 451, MCL 380.1249a.”.

The amendment failed 17 to 20 (details)

Amendment offered by Sen. Kevin Daley (R-26)

1. Amend page 7, following line 6, by inserting:

“(9) The following are prohibited subjects of bargaining and are at the sole discretion of the public employer:

(a) A decision as to whether or not the public employer will enter into an intergovernmental agreement to consolidate 1 or more functions or services, to jointly perform 1 or more functions or services, or to otherwise collaborate regarding 1 or more functions or services.

(b) The procedures for obtaining a contract for the transfer of functions or responsibilities under an agreement described in subdivision (a).

(c) The identities of any other parties to an agreement described in subdivision (a).

(10) Subsection (9) does not relieve a public employer of any duty established by law to collectively bargain with its employees as to the effect of a contract described in subsection (9)(a) on its employees.” and renumbering the remaining subsection.

The amendment failed 17 to 20 (details)

Passed in the Senate 20 to 17 (details)

Signed by Gov. Gretchen Whitmer

July 27, 2023