The meeting of the Civil Service Commission was opened by Civil Service Commission Chairperson Susan Grimes Munsell at 10:10 a.m., in Conference Room A, Lower Level, Capitol Commons Building, 400 S. Pine Street, Lansing, Michigan.

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On motion duly made and supported, the Commission approved the minutes of the meeting of April 29, 2004.

Chairperson Susan Grimes Munsell amended the Agenda with the addition of Item E-8, Appointment to the Employment Relations Board.

The Commission received the following report from Janet McClelland, Acting State Personnel Director.

Unclassified Position Report: Civil Service Commission Rules require me to report on the establishment or abolition of positions in the unclassified service.  I received on May 7, 2004, a request from the Department of Attorney General to establish an unclassified position to serve as the Senior Research Analyst.  The position of Director of Public Affairs was abolished. This request was approved on May 24, 2004.

I received a request on June 3, 2004, from the Department of Attorney General to reestablish the unclassified position of the Director of Public Affairs.  This request was approved on June 18, 2004.

I received a request on June 7, 2004 from the Department of Natural Resources to establish an unclassified position to serve as the Chief Deputy and Chief of Staff. The position of Conservation Policy Advisor has been abolished. This request was approved on June 17, 2004.

Regulations:  Civil Service Commission Rules require that I report to the Commission on the promulgation of regulations, which are issued to implement commission rules.

Since the last Commission meeting, the following regulations were revised and reissued:

Regulation 5.07, Performance-Pay Programs – Effective May 9, 2004

Summary:   The regulation was amended to remove language regarding the information technology performance pay program.  This change brings the information technology classifications’ pay structure more in line with those of other Group 2 and 3 classifications.

Regulation 4.08, Working Out Of Class – Effective June 6, 2004

Summary:  The regulation was amended to clarify the time period for a working out of class assignment.  A working out of class assignment cannot exceed 26 pay periods.

Regulation 4.03, Establishing and Reclassifying Positions in the State Transitional and Departmental Trainee Classifications

Summary:  The regulation was revised to clarify that the purpose of the State Transitional Professional is to facilitate career movement of employees in a professional or SEMAS classification, employees with a bachelor’s degree or higher in a nonprofessional classification, or employees who possess the alternate education and experience for entry into a professional classification.

Acting Director McClelland also reported that, in response to the Civil Service Commission’s April 27, 2004 action to amend the rules by adding Rule 1-4.2, Communication with Employees, MI Civil Service News was developed and issued to state employees.  Four topic areas were highlighted in the first issue, which included:, (1) MI HR, (2) Long-Term Care Insurance Open Enrollment, (3) Voluntary Work Schedule Adjustment Program, and (4) Political Activities.

Finally, Ms. McClelland reported that the Department of Civil Service met with the China Ministry of Personnel to discuss human resources processes in the State of Michigan classified service.

Nancy Foltz, Office of Great Workplace Development, provided a presentation regarding the vision and values initiative, the impact of 360 feedback process, and the vision to make Michigan a great place to do great work. Ms. Foltz's written presentation is, by reference, a part of the record of this meeting.

David Fink, Office of the State Employer, also presented information to the Commission regarding the vision of the 360 tool and its correlation with the current performance management program.  He stated that it is their hope that the 360 tool can be blended with the current performance management program, but the intent is not to replace the current performance management program.  The results and processes will be validated to make sure that the positive aspects of the performance management system are not given up.

Commissioner Lewand commented that the Commissioners would have questions as the program develops.

Howard Pizzo and Rhonda Whiting, Department of Management and Budget, addressed the Commission regarding approval of two changes in the reimbursement rates under the Standardized Travel Regulations applicable to non-exclusively represented employees.  Mr. Pizzo requested that the FY-04 rates be amended, increasing the mileage rate to 32.7 cents per mile, and to provide for the reimbursement of auto policy collision deductibles, up to $500 per accident effective immediately.  He also requested that the Commission adopt the rates for FY-05.  No change in travel reimbursement rates was requested.

Dan McLellan addressed the Commission requesting approval of a request from State Employer David Fink to amend mileage rates and to authorize the State Personnel Director to approve letters of understanding relating to the amendments.

On motion duly made and supported, the Commission unanimously approved the Standardized Travel Regulations.

Dan McLellan presented information on amendments to the following Rules:

E-2:  Proposed Ethics Rule Amendment

Three proposals were presented regarding Rule 2-8 (Ethical Standards and Conduct), Rule 6-5 (Rights of Employees), and Rule 6-8 (Recognition Rights for Labor Organizations).  The proposals exclude all employees in the Department of Civil Service and the Office of State Employer from joining or being represented by a Limited Recognition Organization (LRO); exclude Human Resource employees from being an officer with an LRO; and exclude Human Resource employees from representing fellow employees represented by an LRO.

Andre Friedlis, Association of State Employees in Management (ASEM), expressed opposition to the proposed amendments to Rules 2-8, 6-5, and 6-8.  He indicated there had not been conflicts previously and the LROs do not have any bargaining rights.

David Fink addressed the Commission in support of the exclusions.  He indicated that the change would bring more clarity to the integrity of the process, and that over time it is hoped the LROs would have more opportunity to participate in a meaningful way.  He discussed the current circumstances where a President of an LRO could also be a labor relations representative on the other side of the bargaining table.  If we can avoid these conflicts, we believe over the long run we will be able to work with the Civil Service Commission to give LROs more recognition and fewer limits. 

On motion duly made and supported, the Commission unanimously approved the amendments to Rules 2-8, 6-5, and 6-8.

E-3:  Amendments to Rule 2-12, Leave of Absence Without Pay

As a result of a recent court decision, Yarborough v DOC & CSC, staff proposed an amendment to restore the original intent of the Commission when it enacted Rule 2-12.  The following changes were proposed:

(b) If the appointing authority has demoted the employee since the beginning of a leave of absence under rule 2-6 [Discipline] or rule 3-3 [Appointments and Job Changes], the employee is returned to a position at the classification level to which demoted and is compensated within the range of rates approved for that classification level.

On motion duly made and supported, the Commission unanimously approved the amendments to Rule 2-12.

E-4:  Amendments to Rule 2-14, Military Pay

Dan McLellan discussed the request from David Fink regarding extending the military leave benefits for an additional fiscal year, until September 30, 2005.  He noted that the amendments to Rule 2-14 grant the State Personnel Director the authority to approve letters of understanding for all current collective bargaining agreements to provide the same military leave benefits for exclusively represented employees as for those approved by the Civil Service Commission for the non-exclusively represented employees.

State Employer David Fink addressed the Commission regarding his request to extend the military leave benefits to nonexclusively represented employees who were called to active duty after September 11, 2001 for an additional fiscal year, thereby extending the benefits until September 30, 2005.
 
On motion duly made and supported, the Commission unanimously approved the amendments to Rule 2-14.

E-5:  Interim Approval of Collective Bargaining Agreement between OSE and MSPTA

The Office of the State Employer and the Michigan State Police Troopers Association reached an agreement on a three-year collective bargaining agreement for the State Police Troopers and Sergeants Unit for October 1, 2002 through September 30, 2005.

With the consent of the Chair, Susan Grimes Munsell, interim approval was granted on May 18, 2004.

Since the collective bargaining agreement increased wages retroactively, the wage increases could not take effect unless the legislature waived the notice requirements of Article 11, §5, of the Michigan Constitution.  Both the Senate and House of Representatives have now approved the required waiver in House Concurrent Resolution No. 61.

David Fink addressed the Commission regarding the voluntary agreement reached with the troopers and sergeants.  He indicated that the agreement contained concessions consistent with those voluntarily agreed to by other bargaining units.  This included a clause regarding bank leave time for fiscal year 05, provided a majority of members in other bargaining units also agree to bank leave time for fiscal year 05.

On motion duly made and supported, the Commission unanimously approved the Collective Bargaining Agreement between OSE and MSPTA.
 
Dan McLellan presented information on the Letters of Understanding as follows:

E-6:  Letter of Understanding – OSE & UAW, Prorating of Furlough Hours for New Hires

This interim approval amends the primary collective bargaining agreements for the Administrative Support Unit and the Human Services Unit for prorating furlough hours for new hires after April 10, 2004.

Commissioner Lewand abstained from voting.  On motion duly made and supported by three votes, the Commission approved the Letter of Understanding regarding prorating furlough hours.

E-7:  Letter of Understanding – Secondary Agreement Letter of Understanding, MDCH and UAW

This interim approval amends the secondary collective bargaining agreement which adds Macomb Correctional Facility to the list of defined work sites.

Commissioner Lewand abstained from voting.  On motion duly made and supported by three votes, the Commission approved the Letter of Understanding between MDCH and the UAW.

E-8:  Appointment to the Employment Relations Board

Susan Grimes Munsell announced the reappointment of William J. Braman to the Employment Relations Board with a term expiring April 30, 2007.

David Fink addressed the Commission regarding the inequities that occurred with non-exclusively represented employees due to the long-term impact of concessions and the freeze on pay-for-performance.  He advised the Commission that the freeze on pay-for-performance for Group 4 employees with respect to lump-sum payments will remain, but the freeze on pay-for-performance base pay adjustments will be lifted for FY 05. He stated that an Executive Directive will be issued specifying the terms and conditions that will apply to this provision.  He indicated that at management’s discretion and within certain criteria, Group 4 employees who are not at the fixed-control point will have the opportunity to receive base pay adjustments.

In closed session on July 22, 2004, the Commission considered 9 decisions of the Employment Relations Board. Copies of the review sheets indicating the Commission’s actions on these decisions are on file at the Department of Civil Service.

The meeting was adjourned at 11:08 a.m.

Note:  These minutes will become final upon approval by the Civil Service Commission.