July 2011
State Units Open Bargaining
On July 28, 2011 the Human Services Support, Scientific and Engineering, and Technical bargaining units opened negotiations with the Office of the State Employer. The current contracts expire on December 31, 2011. A complete listing of the SEIU bargaining team members is below. Click here to complete a survey.
Chief Spokesperson – Phil Thompson
Human Services Support Unit
Phil Patrick (Chair), Denise Edwards, Rosanne Seemann, Janice Cosey, Joey Combs, Dan Blaha, Tomasa Haight, Stephanie Ford, Jean Diaz, Antonia Currington (Alternate), Emanuel Lewis (Alternate), Heidi Zens (Alternate)
Scientific and Engineering Unit
Cindy Mason (Staff Coordinator), Bill Ruhf, Amy Lipset, Bill Land, Steve Haskell, Michelle Kusnier, Rob Lamrouex
Technical Unit
Cheryl Bollinger (Staff Coordinator), Dennis Streeter (staff), Arnie Beller (Chair), Tammy Cruickshank, John Eck, George Heath, Mike Mandrick, Jeff Morgenthaler, Paul Cristini (Alternate), Kim Grezeszak (Alternate)
2011 Annual Membership Meeting
Over 130 members met in Lansing on July 21, 2011 to hear what New Solutions we can offer to help Michigan. The program focus was on the New Solutions for Michigan report that was presented to the public in May and the ideas that we, the front-line workers, can make to save money.
We were honored to have SEIU International President Mary Kay Henry in attendance and her speech kicked off the conference. The speech will be available on the SEIU 517M website shortly. We were also honored to have SEIU International Executive Vice President Eileen Kirlin who heads the Public Division and SEIU National Political Director Brandon Davis. Eileen spoke on the Fight for a Fair Economy campaign and Brandon spoke on the measuring success in the 2012 elections.
Other speakers included Michigan Corrections Organization Vice President Andy Potter who discussed the SEIU Republican Caucus, Renaye Manley from the SEIU Capitol Stewardship Program that discussed pensions, attorney Andy Nickelhoff reviewed the various lawsuits and legislation that affect public employees, SEIU Michigan State Council Political Director Luke Canfora discussed the Right to Work and former State Representative and current SEIU International Coordinator John Freeman who discussed the New Solutions campaign.
The winner of the Member of the Year for 2011 was Andy Johnson. Andy is the Region 1 Divisional Vice President, Saginaw City Employees Unit President, the head of the SEIU Local 517M AFRAM caucus, handles bargaining and labor relations issues and has been very active in the Fight for a Fair Economy campaign.
Special recognitions were made for the two SEIU Member Lobbyists from Local 517M. Joey Combs and Amy Davis Comstock both completed the SEIU Member Lobbyist training. Both ladies come out of the Human Services Support state employee bargaining unit.
Recognition was also made to SEIU Local 517M Secretary/Treasurer Lynda Roberts who will be retiring at the end of August.
There was also recognition of the members who attended the Member Leadership and Action conference earlier this year and pinning of new members took place.
This conference energized the membership and they left with information and ideas to offer New Solutions for Michigan!
New Solutions Rally Held in Detroit
On Monday, July 25, 2011 several hundred union members gathered at a noontime rally in front of the Cadillac Place office building in Detroit to rally support for the cost saving ideas set forth in the New Solutions Report. Bargaining for state employees begins this week. The New Solutions Report states that the State can save money by cutting outside contractors, reducing the ratio of supervisors to front line workers and increasing the numbers of front line workers.
View the pictures here: http://www.flickr.com/photos/54989632@N05/sets/72157627286775860
AFRAM Sponsors Annual Meeting Reception
The SEIU Local 517M AFRAM Caucus sponsored a reception on Thursday, July 21, 2011 in conjunction with the SEIU Local 517M Annual Meeting. Several speakers told of the impact that AFRAM has made in their communities and in their lives. SEIU International President Mary Kay Henry arrived and spoke to the reception. There were slideshows of AFRAM events held in the past year and what AFRAM plans are for the future.
View pictures of the reception at: http://www.flickr.com/photos/54989632@N05/sets/72157627287615946/
Guest Editorial on New Solutions Report
UAW Vice President Cindy Estrada and SEIU Local 517M Executive Vice President Phil Thompson: Michigan should look at unions’ ideas
Proposal could save more than the $145 million sought in concessions
As published in the Lansing State Journal – July 25, 2011
Michigan taxpayers deserve leaders who will make the interests of working families their first priority. Right now, Gov. Rick Snyder has an opportunity to do just that.
Service Employees International Union Local 517M, UAW Local 6000, American Federation of State, County and Municipal Employees Council 25, Michigan Corrections Officers and Michigan State Employees Association – who together represent 35,000 state employees – have recommended reforms that could save Michigan taxpayers $185 million this year alone.
In May, The Lansing State Journal said Gov. Snyder and his team “should take a hard look” at our “intriguing ideas.”
We have met with the governor, dozens of legislators, and the Office of State Employer to discuss our New Solutions for Michigan.
So we were surprised to read in the Lansing State Journal that state officials have declared our negotiations at impasse before they have begun, threatening layoffs that would mean additional service cuts for communities.
State employees, who actually begin bargaining next week, are working together to protect public services.
Middle class Michiganders should not have to shoulder additional cuts to pay for massive $1.8 billion in tax breaks for big corporations.
Hardworking social workers, highway engineers, and public safety employees should not pay the price for budget problems caused by Wall Street’s recklessness and greed.
Michigan public service employees have shown our commitment to shared sacrifice – and we will continue to do so. We have provided $4 billion in savings from contract concessions over the last 10 years.
Now it’s time for new solutions to:
• Bring management ratios in line with national norms and the private sector, directing more resources to the frontlines.
• Reduce the state’s dependence on private contractors and require vendors to share in the sacrifices working families are making.
• Collaborate with frontline employees to modernize and streamline state agencies.
Our recommendations would save taxpayers far more than the $145 million budgeted this year for savings from state employees.
The choice to embrace New Solutions for Michigan should be clear.
State Employee Bargaining Survey Available
Below you will find a link to the bargaining survey that will be used to help develop Union proposals. Information is compiled through chapter meetings, discussions with members and leadership, and THIS SURVEY. The bargaining teams read each one and would like you to make this a top priority as they need your guidance and input during these very difficult times. You can scan and email the survey back to info@seiu517m.org, fax it to 517-482-7870 or give it to a local Union leader in your office. Thank you for your attention to this very important matter.
Proposed Changes to MPSERS Health Benefits
By Ellen Hoekstra, Capitol Services, Inc.
At the June 9 Michigan Public School Employees Retirement System (MPSERS) meeting, a number of changes to retiree health care were introduced. The goal is to limit the rate of cost growth to the compound rate of inflation and real economic growth while maintaining a health plan that is affordable to retirees and to employers. The proposed changes are:
- Operating both a base Medicare Prescription Drug plan (PDP) and a second plan known as a “Wrap” to maximize Medicare negotiated discounts on “doughnut hole” claims and to tap Medicare subsidies in the catastrophic range. (The “donut hole” phase is the time when most Medicare recipients have to pay 100% of costs; however, the out of pocket coverage has protected MPSERS members from this)> Although the “wrap” will be more administratively challenging, there is no additional member cost and retirees will not find any difference in getting scripts filled. Catalyst will be administering the “wrap.” This change applies only to Medicare-eligible members, but all members will be receiving new prescription drug cards before the first of the year.
- Eliminating prescription coverage for Proton Pump Inhibitors used to treat conditions like heartburn, ulcers, or reflux and for non-sedating anti-histamines used to treat allergies. Many plans are eliminating coverage for these classes because over the counter options are now available that are less costly than current member co-insurance. Thus, retirees should not experience any cost increase.
- Eliminating coverage for prescription medication to cover erectile dysfunction currently covered at 6 pills per month or 72 pills annually. However, members can use the retirement system pharmacy card to purchase the drug at the negotiated discount price, which is less than the market price.
- Increasing the Medical Coinsurance Maximum from the current $700 to $800 and the deductible from $400 to $500.
The total changes proposed would range from $48 to $68 million. The initial proposal provides the largest share of savings, ranging from $34 million to $40 million. The second and third together would provide $6 to $11 million, and the final, between $8 to $13 million.
At a July 5 HIRC meeting, we received more details on the proposals, which are slated to go into effect on January 1. First of all, we learned that written comments on the proposed changes are “due” on July 15 and should be directed to Phil Stoddard, Director of ORS. The proposals then go to the MPSERS Board on July 28 for final action, and Todd Tennis will be present at that meeting.
Conference Call With SEIU President Mary Kay Henry
This Wednesday night I am hosting a conference call for SEIU members where you can ask me anything you’d like to know about our union and how it represents you at the workplace and in government.
Tune into SEIU.org on the night of the event, watch for your question and listen to others from your brothers and sisters across the country.
There are a few ways to ask your question before the event:
1.) Submit your question through the website by clicking the link below.
http://action.seiu.org/member-call
2.) Like SEIU and share your question on Facebook:
3.) Send me a tweet @marykayhenry or @seiu
4.) Text SEIU and your question to 787753 (ex. “SEIU How are you pressuring Congress to create good jobs in our communities?)
It’s important we create a direct line of communication between members and the union’s leadership, so I really do want to hear from you before Wednesday.
I’ll make sure we do our best to answer every question asked during the call or after.
In solidarity,
Mary Kay Henry
President, SEIU
P.S. Here are the event details – we’ll also send a reminder before the call:
East/Central time zone: 6 PM Eastern
Overview of Pension Taxation under New Law
Prepared by Ellen Hoekstra and Todd Tennis, Capitol Services, Inc.
Governor Rick Snyder has signed the pension tax legislation, HB 4361, into law as PA 38 of 2011. Retiree and labor organizations—and many individual retirees–strongly opposed this legislation. Per the Governor’s request, the Michigan Supreme Court will be reviewing the major legal issues underlying the legislation. As finally enacted, the legislation modified the Governor’s proposal to fully tax all pensions but added another $150 million in budget reductions beyond those in the executive budget proposal. The new law and related other legislation also signed into law specify that as of January 1, 2012, payments to retirees are subject to state income tax. The state income tax rate remains at 4.35% until January 1, 2013 and then is reduced to 4.25%.
Frequently Asked Questions about the new pension tax:
Q: When does the new tax take effect?
A: The law will take effect for the 2012 tax year.
Q: How does the tax affect retirement income of different age groups?
A: Taxpayers born before 1946 will see no change from the status quo, which exempts all public pensions and social security, as well as a substantial amount of retirement income from private plans.
Taxpayers born between 1946-1952, would have retirement income up to $20,000 single and $40,000 joint exempt, with income beyond that level taxed at 4.35%. Additionally, they can claim exemptions for which they are eligible and can exempt Social Security income. However, they are not eligible for the $20,000/$40,000 exemption if they take either the Armed Forces retirement income deduction or the income deduction under the Railroad Retirement Act.
Taxpayers born in 1953 or later would see retirement income—except for Social Security– taxed at 4.35% until they turn 67, after which time they would qualify for a senior income exemption of $20,000 for single and $40,000 joint, regardless of income source. Retirees in this bracket have a choice between (1) the $20,000/$40,000 exemption against all types of income, with no personal exemptions and no exemption for Social Security or (2) continuing to exempt Social Security, along with the personal exemptions for which they are eligible. Here too they are not eligible for the $20,000/$40,000 unrestricted exemption if they elect to take either the Armed Forces retirement income or Railroad Retirement Act deduction.
Q: What if my spouse and I are a different age?
A: The tax will be calculated based on the age of the older spouse.
Q: What other types of deductions or exemptions have been changed?
A: Senior citizens born after 1945 will no longer be able to deduct a portion of interest, dividends, and capital gains received.
- Taxpayers will no longer receive an additional $600 exemption per dependent child under the age of 19.
- Distributions from certain individual retirement accounts used to pay qualified higher education expenses will no longer be deductible.
- Charitable contributions made from a qualified retirement plan or account will no longer be deductible.
- The standard personal exemption will be phased-out for single taxpayers with household resources between $75,000 and $100,000, and for married couples filing joint returns with household resources between $150,000 and $200,000.
- The additional $1,800 exemption allowed for each taxpayer age 65 and older, and each dependent of the taxpayer, will be eliminated.
Q: How does the bill affect the Homestead Property Tax Credit?
A: Taxpayers will no longer be eligible for the credit if the taxable value of their homestead is greater than $135,000—e.g., for a new home, if the sale value is $270,000 or more.
The credit will be phased out if total household resources are $41,000 or greater and eliminated once household resources reach $50,000; current law does not begin the phase out until household income exceeds $73,650.
The bill eliminates much of the difference in rates between seniors and other taxpayers.
Q: Given that the State Supreme Court is reviewing this legislation, what should I do?
A: The results of the Supreme Court review may be available before next year. Stay posted!
Pre-Negotiation Rally in Detroit
FIGHT THE BOGUS ATTACKS ON MICHIGAN STATE EMPLOYEES!
JOIN US TO SEND GOVERNOR SNYDER OUR MESSAGE, LOUD AND CLEAR!
Across the country, politicians and big corporate interests are attacking working people and their collective bargaining rights with more intensity than at any time in recent memory. State of Michigan employees have been attacked too, in the Legislature, in the state’s big media outlets, and in corporate-funded “think tanks” meant to diminish the voice of working people.
Michigan legislators just granted corporations a $1.8 BILLION TAX BREAK in a law pushed by Governor Snyder. This is the same Governor who now wants hard-working, middle class State workers to accept $145 MILLION IN CONCESSIONS to help pay for those massive tax breaks.
THIS IS NOT SHARED SACRIFICE!
State employees begin bargaining a new contract on Tuesday, July 26th. We will be demanding REAL SHARED SACRIFICE AT THE BARGAINING TABLE! But, we need your support!
- Michigan’s budget problems were created by a massive loss of nearly One Million manufacturing jobs and Wall Street’s greed in the housing market;
- Michigan’s budget problems were created by lax corporate regulations;
- Michigan’s budget problems persist because legislators don’t have the political will to fix long-standing structural government deficits;
- Michigan’s budget problems persist because legislators keep decimating revenues by cutting corporate business taxes;
- WE’VE DONE OUR FAIR SHARE! In the past 10 years alone, Michigan State employees have made concessions totaling over $4 billion! Under our current contract, the State saved about $300 million just from health insurance changes;
- Academic studies show that it’s an URBAN LEGEND that State workers make more than private sector workers when accounting for experience and required education. We make 3% to 10% LESS!
- ALL of the $145 million the Governor wants from State workers – AND MORE – can be generated if the State fixes out-of-whack staff-to-manager ratios, out-of-control privatization, and inefficient work systems by implementing a continuous improvement program driven by OUR INPUT!