Susan Grimes Munsell, Chairperson
Sherry L. McMillan, Commissioner
F. Thomas Lewand, Commissioner (via conference call)
James D. Farrell, State Personnel Director

The meeting of the Civil Service Commission was opened by Civil Service Commission Chairperson Susan Grimes Munsell at 10:05 a.m. in Conference Room A, Lower Level, Capitol Commons Center, 400 S. Pine Street, Lansing, Michigan.

On motion duly made and supported, the Commission approved the minutes of the January 31, 2007, meeting.

On motion duly made and supported, the Commission adopted the following Resolution:

Whereas, Brenda Strieff has decided to retire from State Government after over 13 years of service, nearly all of which was with the Department of Civil Service; and

Whereas, Brenda has demonstrated commitment and dedication to the State of Michigan and the Michigan Department of Civil Service throughout her career as a public servant, gaining the respect and admiration of her colleagues; and

Whereas, Brenda, in her capacity as a Secretary for the Employment Relations Board, prepared and organized the important support materials for the Board’s work, often arriving early to avoid monopolizing the office copy machine and carefully organizing the materials for easy reference; and

Whereas, Brenda was instrumental in the development and maintenance of the Decision STatus And Research Service (DSTARS), Civil Service’s formal decisions database that has helped employees, employee representatives, and the labor relations community to understand the law of Civil Service; and

Whereas, Brenda commuted to Lansing from Ovid daily and was never late, and during one of those commutes, survived unhurt after her vehicle was struck by lightning and surrounded by a fireball; and

Whereas, Brenda will always be remembered as a generous supporter of charitable causes undertaken by Civil Service, and a kind, ethical, and thoughtful person; and

Whereas, Brenda and her husband of 41 years, Harold, have two children and three grandchildren in the mid-Michigan area with whom they can now spend more time; and

Whereas, Brenda and Harold will now be able to further indulge their love of travel, visiting auctions, craft fairs and interesting sites along the way, be it therefore

Resolved, that the Michigan Civil Service Commission does hereby extend to Brenda Strieff its heartfelt appreciation for her dedicated efforts and many accomplishments during her years of service.

Resolved, that the Commission extends to Brenda its warmest wishes for much health and happiness throughout her retirement.

Chairperson Munsell noted there were no amendments to the agenda.

Director’s Report: The Commission received the following report from State Personnel Director James Farrell.

Unclassified Position Report
Department of Attorney General

The following requests were submitted by the Department of Attorney General to establish an exempt unclassified position:

Request dated December 13, 2006, to serve as the Communications Advisor.  Concurrently, the Chief Deputy to the Attorney General position was abolished.  The request was approved effective December 18, 2006.

Request dated December 28, 2006, to serve as the Administrative Assistant to the Attorney General.  Concurrently, the Director of Legislative and Constituent Relations position was abolished.  The request was approved effective December 31, 2006.

Request dated February 22, 2007, to serve as a Special Assistant to the Attorney General.  Concurrently, the Communications Advisor position was abolished.  The request was approved effective February 20, 2007.

Department of Natural Resources

The Department of Natural Resources submitted a request dated March 14, 2007, to serve as Assistant Legislative Liaison.  Concurrently, the position of Press Secretary was abolished.  The request was approved effective March 4, 2007.

Department of Labor and Economic Growth

The Department of Labor and Economic Growth submitted a request dated March 19, 2007, to serve as Chief of Staff.  Concurrently, the position of Special Assistant to the Director was abolished.  The request was approved effective March 11, 2007.

Department of State

The Department of State submitted a request dated March 26, 2007, to serve as Director of the West Michigan Executive office.  Concurrently, the position of Director of Civic and Community Affairs was abolished.  The request was approved effective April 2, 2007.

Letter of Understanding

As authorized by the Civil Service Commission at its January 31, 2007 meeting, the clarifications to the Letter of Understanding on bonus programs for nurses in the Human Services Unit, as submitted by the Office of the State Employer on February 9, 2007, was approved by State Personnel Director James Farrell.

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.
5.07, Performance-Pay Programs
(Effective April 5, 2007)

In Executive Directive 2007-14, Governor Granholm requested that the Civil Service Commission impose a moratorium on performance pay awards for classified employees for the remainder of FY 2006-07 to help address the state’s fiscal condition.  After review of the Governor’s request, this regulation was revised with an immediate effective date of April 5, 2007, to prohibit performance-pay increases from being awarded or approved, on or between April 5, 2007, and September 30, 2007.

3.14, State Transitional Position Designation and Appointments
(Effective April 8, 2007)

This regulation has been revised to clarify language to reflect that an employee with status who is appointed to a position designated as transitional at a new classification may be required to complete a probationary period at the discretion of the appointing authority.  In addition, minor clarifying language was added which requires an employee classified in the Sr. Executive Management Assistant Service (SEMAS) to possess an equivalent of six months full-time experience as a SEMA in order to be eligible for appointment to a professional position designated as transitional. 

On motion duly made and supported, the Commission approved the minutes of the January 31, 2007, meeting.

Chairperson Munsell noted there was no unfinished business.

Ms. Carol Vargovich, Budget and Financial Services Division, presented a Resolution for Commission approval concerning a reduction in the Civil Service Budget. 
Ms. Vargovich noted that the reduction is in response to the Governor’s Executive Order 2007-3, which was issued to provide for a statewide expenditure reduction and funding shift in order to meet reduced revenue estimates.  As part of the statewide reductions, the general fund appropriation for the Department of Civil Service was reduced by $466,100 for FY 06-07.

The State Personnel Director is authorized to take any action necessary to implement the provisions of this Resolution so that expenditures of the Department of Civil Service are reduced as specified for FY 06-07.

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

Mr. Dan McLellan, General Counsel for the Commission, presented information on the secondary collective bargaining agreements (CBAs) between the UAW & Department of Labor and Economic Growth, UAW & Michigan State Housing and Development Authority, and UAW and Strategic Fund.

On motion duly made and supported, the Commission approved Agenda Item 5b. 

Counsel McLellan presented information on the temporary layoff rule.  He explained that current rules for NEREs do not have any standards for temporary layoffs.  Historically, the Civil Service Commission has approved temporary layoffs or furlough days as budget issues arose.  Staff recommended a general temporary layoff rule which would give appointing authorities the flexibility to deal with budget issues as done previously on an ad hoc basis.

Counsel McLellan outlined the proposed rule changes as follows: 1) temporary layoff would be limited to 1-20 unpaid workdays per fiscal year, 2) employment preference would not be permitted, 3) a temporary layoff is creditable time which means that all time would be treated as if you were working, 4) while on temporary layoff, an employee would not be in pay status and could not elect for annual leave payoff, 5) benefits continue, 6) in consultation with the Office of Retirement Services, the interpretation of the statute regarding the temporary layoff days would be included in the final average compensation at a slightly lower level.  Mr. McLellan noted, however, with respect to the State Police Retirement System, the statute is unclear at this point, and staff would continue to work with the Attorney General’s office and the Office of Retirement Services regarding how state police retirement would be treated if a temporary layoff occurred, and lastly, 7) an employee on temporary layoff would return to the same job at the end of the temporary layoff.

In addition, Counsel McLellan asked the Commission to repeal Rule 5-16 regarding furlough days which affected only FY 2004.

Counsel McLellan stated Resolution 5c includes the waiver of the 28-day notice requirement as provided in Civil Service Commission Rule 1-1.

Chairperson Susan Munsell discussed the reason the temporary layoff rule was being addressed was due to the state’s anticipated budget shortfall for fiscal year ending September 30, 2007.

Mr. Scott Bowen, Director, Office of the State Employer (OSE), addressed the Commission to support the temporary layoff rule.  He indicated the need for the rule is clear and its absence would not allow the executive office to utilize temporary layoffs as part of contingency plans for operating government in the event the budget crisis is not resolved and the state does not have enough money to fully operate all of its programs.  He further noted that the proposed rule is patterned after provisions for temporary layoffs found in collective bargaining agreements and it is the intent to be equitable to all state employees.  The proposed rule does not mean that temporary layoffs would automatically occur, however, state departments have been asked to prepare contingency plans in the event the budget situation goes unresolved.  No final decision for implementation of those plans have been determined.  He noted, the Governor is working with the legislature to resolve the budget crisis, and is taking appropriate and comprehensive measures if the budget crisis is not resolved.  The OSE urged the Commission to adopt the temporary layoff rule.

Mr. Dennis Kelley, a NERE employee with the Department of Transportation, addressed the Commission regarding the rule on temporary layoffs.  He expressed his concerns regarding the implementation of the rule and stated that employees have done their part in recent years with unpaid furlough days, banked leave time, and directives that have cut the ability to work effectively in our jobs and that it was unfair to target state employees.  He stated that whether it’s temporary layoffs or indefinite layoffs, they should not be required by state employees.

Mr. Dale Threehouse, President of MAGE, OPEIU, and legal counsel, Brandon Zuk addressed the Commission as representatives for NERE’s regarding the temporary layoff rule.  Mr. Threehouse expressed that the members of MAGE are adamantly opposed to the rule and that employees feel they have already done their share.  Supervisors are working overtime with no overtime pay, nurses in psychiatric hospitals and prisons are working overtime excessively.  Mr. Threehouse further stated that we have downsized two times, taken furlough days and banked leave time and that state employees are doing more with less staff and resources.  Mr. Threehouse urged the Commission to reject the proposed rule amendment and reminded the Commission that in previous years when addressing furlough days, the Commission indicated that NEREs would not be harmed greater than the rank and file employees and he asked that the Commission again make that proclamation.

Mr. Brandon Zuk, legal counsel for MAGE addressed the Commission to expand on MAGE’s concerns with regard to the disproportionate treatment of NEREs under the proposed rule as compared to the treatment of rank and file employees in the event of a temporary layoff.  He indicated the last time he was here was when the Commissioners made a commitment with regard to the furlough day issues with the NEREs not being treated disproportionately or more adversely than rank and file employees.  He acknowledged that the intent was to pattern temporary layoffs for NEREs after the temporary layoff provisions in the collective bargaining agreements, but noted in some respects the proposed rules would in fact treat NEREs more adversely than rank and file employees.  Mr. Zuk highlighted some of those differences.  The proposed rule is capped at 20 days and none of the collective bargaining agreements (CBAs) have a cap of 20 days.  Typically, the CBAs have less than 20 days, (i.e., a maximum of 19, but in two cases the CBAs have temporary layoff days capped in no more than 6 days in a fiscal year.)  In many cases there is at least one additional day, and other cases, NEREs would be capped three times more.  The CBAs provide that temporary layoffs be imposed in consecutive days and that a provision is missing from the proposal for NEREs and is important with regard to their ability to collect unemployment compensation for a temporary layoff. In addition, NEREs would not be able to use the leave time they have already earned and individuals will be without an income either from their pay, utilizing leave time, or collecting unemployment benefits.  An additional difference for NEREs, in contrast to rank and file employees, is that the CBAs provide that temporary layoffs be done in order of seniority.  The NEREs are not given this protection.  He stated MAGE objects to any type of layoffs and would seek from the Commission to renew the commitment that was made a few years ago that NEREs would not be treated more adversely than rank and file employees.  MAGE did have concerns with respect to the final average compensation and thanked Director James Farrell and Dan McLellan for addressing those concerns.

Mr. Ken Fletcher, Michigan State AFL-CIO, addressed the Commission regarding the state’s fiscal crisis.  Mr. Fletcher indicated that they would prefer that layoffs, whether temporary or indefinite, not be part of the budget solution.  Mr. Fletcher indicated that it is their belief that state employees have done their part in previous fiscal years when they had furlough days and other concessions.  Mr. Fletcher pointed out that the number of state employees has reduced from 58,000 to 53,000 and that is the lowest number of state employees since 1974, yet state employees are serving 1.3 million more citizens.  He further indicated payroll has declined about one-third since 1982.  Mr. Fletcher stated if layoffs become necessary, that they be done equally among bargaining units and departments with due consideration to maintaining public safety.

Mr. Tom Welch, a state employee with Department of Community Health, also addressed the Commission to speak from a personal perspective.  Mr. Welch indicated he and his wife both work for the state and if the proposed rule was implemented it would severely impact their ability to raise their family.  He implored the Commission to act as an independent body and to encourage other solutions during this time of crisis.

Ms. Martha Yoder, ASEM representing NERE employees, addressed the Commission and concurred with the concerns raised by others present.   She strongly suggested that modifications be considered to stipulate the NEREs be treated equitably with other state employees in terms of the use of temporary layoffs and/or other work time adjustments and NEREs should not suffer to a greater degree than any other group of state employees.  She requested a minimum written notification be provided to employees for the use of temporary layoff days and it was suggested that it not be less than one week.   Ms. Yoder also asked that temporary layoff time be given flexibility to state employees to have input as to when their layoff days would be; and that employment preference be considered.  If employment preference is not considered, she asked the Commission to give direction to departments on how to implement temporary layoff because of concerns regarding favoritism and other inequities that could happen without guidance in applying the temporary layoff rule.  Also requested was that NEREs not be expected to bear an overly burdensome share of layoff days and asked that the Commission understand that any loss of work time and associated pay reduction is very difficult and potentially traumatic to state employees.  She reminded the Commission that state employees have always contributed their fair share and that some departments are federally funded and taking away those services would reduce federal funds.

Ms. Sandra Parker, President United Auto Workers (UAW), representing approximately 16,500 members for the State of Michigan addressed the Commission.  Ms. Parker stated that the rule mirrors UAW’s contract, Article 12, Section A, which does indicate that a UAW member could receive up to 20 consecutive layoff days.  If the rule was implemented, it should be mirrored to the CBAs that have been negotiated and approved by the Commission.

Ms. Diane Garrison, Executive Director of the Michigan State Police Command Officers’ Association, concurred with the concerns expressed by colleagues regarding temporary layoff days.  She indicated that state employees feel they have done their part and it is unfair to balance the budget on the back of state employees.  Other concerns addressed were, 1) additional language to the rule that the layoffs shall take place on the basis of inverse seniority among all employees of the appointing authority, and 2) concerns regarding the State Police Retirement Act whereas, the state police command officers would adversely be affected based on the statute which does not include the final average compensation of a state police command officer. 

Counsel McLellan addressed the issue of final average compensation and indicated it would require a legislative change as it was done in 2003 for the furlough days.  He indicated the Commission cannot address statutory issues with regard to the State Police Retirement Act.

Chairperson Susan Munsell added that OSE wanted the flexibility of  using cumulative versus consecutive days and this appears to be one of the issues of contention, as well as the number of days.  She indicated, even if the temporary layoff rule is adopted, the Commission is very concerned about the equity between represented and non-represented employees.  The Commission’s next meeting is scheduled for July and if the legislature and the Governor have not come to an agreement on how to deal with the budget shortfall, and the executive office has directed the departments to utilize the use of temporary layoffs, members of the Commission are concerned that it be done in a way that units are looked at by their function and not by whether the employees are represented or non-represented, and in fact that the NEREs do not feel unfair treatment based on their representation.  Chairperson Munsell also indicated the Commission could come back and address that issue if it is reported that employees are feeling adversely impacted, and if necessary, the Commission could meet prior to the July date.  Chairperson Munsell strongly urged employees to notify staff of any issues if the institution of temporary layoffs occurred, and ensured that the Commission takes seriously their role of equitable fair treatment of State of Michigan employees.

Commissioner Lewand added that the Commission shares the tremendous concern that the budget not be balanced on the backs of state employees who have given so much and so often in the past, and who are valued by state government.  He stated it is a policy decision made by the policymakers in the legislature and Governor’s office and if the policymakers make those difficult decisions, the Commission feels very strongly that employees be treated fairly across the board, and encouraged staff to advise the Commission if there are trends that are problematic that the Commission address and meet prior to the scheduled July meeting if necessary. 

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

Mr. Robert Proctor, retired Administrative Law Examiner in the Hearings Division of the Department of Civil Service, addressed the Commission regarding his interactions with the Department of Natural Resources (DNR) human resources staff.  Mr. Proctor referred to a letter that was sent to the Commission on March 5, 2007, and provided an update to that correspondence with respect to Ms. Joyce Rhodes.  In summary he stated his March 5, 2007, letter set forth a chronology of events regarding the DNR’s actions related to the implementation of the decisions by the Hearing Officer, Employment Relations Board and Civil Service Commission with respect to the grievance decision of Ms. Rhodes.  Since that time, Ms. Rhodes has received reimbursement, however, Mr. Proctor stated there were still outstanding issues. 

Mr. Proctor also addressed the agency’s failure to respond to grievances as provided in Regulation 8.01.  He expressed his concern of the employee who pays for representation at such steps when the department does not respond and that the employee may then move their grievance to the next step when a required answer is not answered.  Mr. Proctor submits that the Commission should address department’s compliance with the rules and regulations.

Mr. Proctor also stated there is a burden of expense upon an employee when appealing an adverse adjudicating officer decision.  Mr. Proctor requested the Commission consider this matter when the department’s appeal is unsuccessful.

In closed session on May 2, 2007, the Commission considered six recommended 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.

In closed session via conference call on February 22, 2007, the Commission considered 17 recommended decisions of the Employment Relations Board.  Copies of the review sheets indicated the Commission’s actions on these decisions are on file at the Department of Civil Service.

ADJOURNMENT

There being no further items for Commission approval or public comments to be heard, Chairperson Munsell adjourned the meeting at 11:19 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, 400 S. Pine Street, P.O. Box 30002, Lansing, Michigan, 48909, or by telephone at 517-373-3020.

I, James D. Farrell, State Personnel Director, hereby certify that the foregoing are the Minutes of the Civil Service Commission Meeting of May 2, 2007.