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September 13, 2005 Commission Minutes

State of Michigan
DEPARTMENT OF CIVIL SERVICE
Civil Service Commission Meeting
September 13, 2005
Present: Susan Grimes Munsell, Chairperson
F. Thomas Lewand, Commissioner
James P. Pitz, Commissioner
Sherry L. McMillan, Commissioner
James D. Farrell, State Personnel Director


1. CALL TO ORDER & APPROVAL OF MINUTES
  The meeting of the Civil Service Commission was opened by Civil Service Commission Chairperson Susan Grimes Munsell at 10:00 a.m. in Conference Room A, Lower Level, Capitol Commons Center, 400 S. Pine Street, Lansing, Michigan.

Chairperson Munsell recognized the reappointment of Richard Warner to the Employment Relations Board for a term expiring April 30, 2008, and thanked him for his dedicated service and contributions.

On motion duly made and supported, the Commission approved the minutes of May 17, 2005.

2. AMENDMENTS TO AGENDA
 

Chairperson Munsell noted for the record that there were no amendments to the agenda.

3. INFORMATIONAL REPORTS
  a. Director's Report: The Commission received the following report from State Personnel Director James Farrell.

Unclassified Position Report: Civil Service Commission Rules require the State Personnel Director to report on the establishment or abolishment of positions in the state unclassified service. There were no requests for establishment or abolishment of positions since the last Commission meeting.

Regulations: Civil Service Commission Rules require that the State Personnel Director report to the Commission on the promulgation of regulations, which are issued to further implement Commission rules.

Regulation 2.04, Military Leaves of Absence and Return to Work: Basic Rights
Effective May 22, 2005

This is a new regulation that establishes basic employment and return-to-work rights and benefits for classified employees who are absent due to service in the uniformed services. The rights and benefits are similar to those granted under federal law (i.e., the Uniformed Services Employment and Reemployment Rights Act of 1994, or USERRA).

Regulation 5.16, Correcting Compensation Errors
Effective June 19, 2005

This regulation was amended to specify that all compensation is subject to review, audit, and correction by both the appointing authority and the Department of Civil Service. The regulation also requires an appointing authority or the Department of Civil Service to recover any overpayment from the employee (unless the Department of Civil Service authorizes a waiver because it is not cost effective to recover the overpayment); provides that if an employee is overpaid, the employee must repay the state for up to 26 pay periods of overpayment (if the employee is overpaid as a result of employee fraud or misrepresentation, the employee is liable for the entire overpayment--regardless of duration, and is also subject to discipline, civil suit, or criminal action); and also provides that if an employee is underpaid, the appointing authority must pay the employee within four pay periods after discovering the underpayment. An employee is limited to recovering 26 pay periods of retroactive compensation.

Regulation 5.18, Complaints About Benefits
Effective June 19, 2005

Amendments to this regulation expand the complaint procedure for the self-funded group insurance plans and also specify when an employee may file a complaint directly with the Department of Civil Service.

Regulation 5.20, Correcting Benefit Errors
Effective June 19, 2005

This new regulation addresses benefits under group insurance plans and qualified pre-tax plans. It provides that all benefits are subject to review, audit, and correction by the Department of Civil Service (DCS) and that employees are required to document or verify employee and dependent eligibility for group insurance benefits. The regulation also requires employees to repay the state for up to 26 pay periods of "excess benefit costs" (costs paid by the state that are not authorized; e.g., medical costs paid for a dependent who was not eligible for coverage) incurred as a result of error. In addition, the DCS can recover any "improper reimbursements" received by employees under qualified pre-tax plans (e.g., medical care spending accounts). Furthermore, this regulation requires the DCS to reimburse employees for any "unpaid benefit" if specific criteria are met.

Regulation 6.04, Determination of Exclusive Recognition
Effective May 22, 2005

The amendment to this regulation is in regard to information on the form required for petition for election. The form includes a place for the employee's identification number (any form submitted to the State Personnel Director before January 1, 2006, may include a place for the employee's social security number rather than, or in addition to, the employee's identification number).

  Director Farrell introduced the following presentations (Agenda Items b., c., and d.) on the three major initiatives that the department has been working on.

  b. MI-HR Service Center: Michelle Suchner, manager of the MI-HR Service Center outlined the goals of the Center, the six major components of the Center, results of implementation, and next steps within the MI-HR Service Center. Director Farrell noted that the MI-HR Service Center celebrated its first anniversary on August 16; and that a number of other states are interested in investigating employing this kind of technology and operation in their states.

  c. Human Resource Consolidation: Matt Fedorchuk, director of Compensation and Performance Management, highlighted the department's progress in working with human resources staff in other State of Michigan agencies to consolidate processing of several compensation-related activities such as step increases, reclassifications, pay for performance, and military leaves of absence.

  d. Workforce Planning: Deb Wieber, director of Human Resource Services gave an overview of the workforce planning project that will be implemented to address the impacts that the retirement of the state's workforce will have on the operations of state government. Ms. Wieber noted that 26 percent of the state workforce will be eligible to retire in 5 years and 60 percent within 10 years.

4. UNFINISHED BUSINESS
  Chairperson Munsell noted there was no unfinished business.

5. NEW BUSINESS
  a. Travel Expense Reimbursement Rates for Fiscal Year 2006

    Rose Wilson, acting director of Agency Services at Department of Management & Budget (DMB) was present to offer a proposed Resolution for Commission approval. While the methodology used in the past by DMB would have resulted in a rate increase (primarily for dinner rates), based on current budget challenges and the need to reduce costs, the original proposal from DMB's Vehicle and Travel Services recommended no rate increases for fiscal year 2006. They did recommend adding several out-of-state cities to the "Select Cities" list, however.

In addition, although an increase in mileage reimbursement rates was not part of the original Resolution, Ms. Wilson requested an amendment to the Resolution to reflect an increase in the premium mileage rate for use of private vehicles, tied to the temporary increase in the private vehicle rate announced by the IRS on September 9. The IRS increased the private vehicle rate to 48.5 cents effective September 1, 2005, through December 31, 2005.

The amendment requested by DMB will temporarily increase the state's premium mileage rate for private vehicles from 40.5 cents to 48.5 cents, effective September 1, 2005, through December 31, 2005. The standard mileage rate will remain the same. DMB's recommendation for fiscal year 2006 travel reimbursement rates will be brought back for Commission consideration and approval at its December 13, 2005, meeting.

On motion duly made and supported, the Commission approved the amendment to Resolution 5a. to temporarily increase the state premium vehicle mileage rate to 48.5 cents, effective September 1, 2005, through December 31, 2005. On a separate motion duly made and supported, the Commission approved item 5a., as amended.

  b. John Gnodtke, Assistant General Counsel for the Commission, presented information and staff recommendations on the following secondary agreements for approval by the Commission.

    (1)

Secondary Collective Bargaining Agreements
   

This Resolution before the Commission approves the following seven secondary agreements listed in Resolution 5b.-1, effective for the period September 13, 2005, through December 31, 2007.

Labor & Trades and Safety & Regulatory Units
Agreements between the Michigan State Employees Association (MSEA) and:
-- Department of Community Health
-- Department of Environmental Quality
-- Department of Natural Resources
Institutional Unit
Agreements between the American Federation of State, County, and Municipal Employees (AFSCME), Council 25 and:
-- Department of Human Services
-- Department of Labor and Economic Growth
Administrative Support and Human Services Units
Agreements between the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and:

-- Department of State
Security Unit
Agreements between the Michigan Corrections Organization (MCO) and:

-- Department of Community Health
On motion duly made and supported, the Commission approved 5b.-1.

    (2)

MSEA-Department of State Secondary Agreement
   

The Resolution amends the secondary agreement between the Michigan State Employees Association and the Department of State for the Labor & Trades and Safety & Regulatory Units by deleting the evergreen provision that allows automatic extensions of the agreement, and approves the agreement as amended, effective for the period September 13, 2005, through December 31, 2007.

On motion duly made and supported, the Commission approved 5b.-2.


    (3)

UAW-Department of Transportation Secondary Agreement
   

The Resolution amends the secondary agreement between the United Auto Workers, Local 6000 and the Department of Transportation for the Administrative Support and Human Services Units by deleting the evergreen provision that allows automatic extensions of the agreement, and approves the agreement as amended, effective for the period September 13, 2005, through December 31, 2007.

On motion duly made and supported, the Commission approved 5b.-3. Commissioner Lewand abstained from the vote.

  c. Letter of Understanding to the OSE-AFSCME (Institutional Unit) Primary Agreement

    This Letter of Understanding amends the primary collective bargaining agreement for the Institutional Unit and addresses work schedules for bargaining unit members in limited-term appointments at the Department of Community Health's Mt. Pleasant Center.

On motion duly made and supported, the Commission confirmed the interim approval granted for 5c., and approved the Letter of Understanding for the remainder of its term.

  d. Department of Treasury-UAW Local 6000 Secondary Agreement:
ERB Impasse Panel Recommendation

    The Department of Treasury and the UAW Local 6000 were unable to reach voluntary agreement for a new secondary agreement on two issues (worksites and meal periods), and Employment Relations Board (ERB) Impasse Panel assistance was sought. After a hearing, the Impasse Panel recommended accepting the Department of Treasury's proposal on worksites, which memorialized current practice. The Panel also recommended adoption of the UAW's proposal to continue current language on meal periods. In addition, the Panel reviewed the provisions of the secondary agreement where voluntary agreement was reached, and identified no prohibited subject of bargaining violations.

On motion duly made and supported, the Commission approved 5d. Commissioner Lewand abstained from the vote.

  e. Observance of 2006 Christmas Eve and New Year's Eve Holidays

    The Office of the State Employer submitted Letters of Understanding (LOUs) between the OSE and the Michigan Public Employees, Service Employees International Union Local 517M for employees in the Scientific and Engineering, Human Services Support, and Technical Units. These LOUs change the observance of Christmas Eve and New Year's Eve holidays from the Friday before the holiday to the Tuesday after the holiday (Tuesday, December 26, 2006, and Tuesday, January 2, 2007). Staff reviewed the LOUs for violations of the Commission's rules on prohibited subjects of bargaining and found no violations.

On motion duly made and supported, the Commission approved 5e.

6. PUBLIC COMMENT
  Chairperson Munsell noted there were no further requests for public comment.

ADJOURNMENT
There being no further items for Commission approval or public comments to be heard, Chairperson Munsell adjourned the meeting at 10:50 a.m.

NOTE
Copies of any written statements, reports, or staff proposals which were presented to the Commission may be obtained by contacting the Department of Civil Service, Executive Office, Capitol Commons Center, Lansing, Michigan. (517-373-3020)
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