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House Bill 4501

Contact:  Office of Policy and Legislative Affairs
Agency: Energy, Labor & Economic Growth


Analysis

Committee:Labor and Occupational Safety
Sponsor:Rison, et. al.

Position: The Department opposes the bills.

ProblemBackground: Historically, hiring replacement workers has been an option for employers unable to otherwise resolve a labor dispute. Although such an action is not frequent, there have been cases where an employer has hired other workers to replace workers on strike. One recent example is the Detroit Newspaper strike.

Bill Description: House Bill 4501 amends the Labor Relations and Mediation Act to prohibit a private employer from offering or granting permanent replacement employee status to an individual performing bargaining unit work during a labor dispute. The bill also prohibits the offer or grant of employment preference based on the fact that an individual was employed or indicated a willingness to be employed during a labor dispute over an individual meeting three criteria. The three criteria are:

  • The individual was an employee at the beginning of the labor dispute;
  • The individual has exercised the right to join, assist or engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection through the labor organization involved in the labor dispute.
  • The individual is working for, or has unconditionally offered to return to work for, the employer.

    House Bill 4502 inserts identical language into the Public Employee Relations Act.

    Arguments:
    Pro: If employers are able to replace striking workers, it will undermine the efforts of workers and their bargaining units to improve wages and working conditions.

    Con: The state's public policy on labor disputes should not favor either labor or the employer. Like strikes, the option of replacing striking workers is a tool which employers can sometimes use during a labor dispute. Removing this option would unbalance the scales in labor disputes in favor of labor.

    With respect to the private sector the federal government has almost totally preempted labor relations regulation.

    The state has a public policy of prohibiting public employee strikes. House Bill 4502 is inconsistent with the intent of the current statute.

    Positions: No information is available at this time.

    Administrative Rule Impact: There would be no impact on administrative rules.

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