The meeting of the Civil Service Commission was opened by Civil Service Commission Chairperson Susan Grimes Munsell at 10:25 a.m., in Conference Room A, Lower Level, Capitol Commons Building, 400 S. Pine Street, Lansing, Michigan.

2.

On motion duly made and supported, the Commission approved the minutes of the meeting of December 11, 2003.

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 February 19, 2004, a request from the Department of Attorney General to establish an unclassified position to serve as the Director of Public Affairs.  The position of Director of Community Outreach has been abolished.  This request was approved on February 24, 2004.

I received on February 26, 2004, a request from the Department of Environmental Quality to establish an unclassified position to serve as the Executive Office Assistant to the Director of the Office of Communications.  The position of Director of the Partnership Team has been abolished.  The position of Legislative Liaison has been abolished.  This request was approved on March 4, 2004.

I received on February 24, 2004, a request from the Department of Corrections to establish an unclassified position to serve as the Sentencing Guidelines Specialist.  This request was approved on February 26, 2004.

Regulations:  Since the last meeting no new regulations were issued or revised.

Jim Farrell addressed the Commission and provided an update on the HR Optimization Project.  Mr. Farrell gave an overview on the business challenges and objectives, project governance, MI HR Service Center, the organizational changes and the progress to date.  He stated the project is on time and on budget.  He discussed the next steps for this project which include installing and fine tuning the application into the State of Michigan environment, continuing with organizational change sessions, commun- ications and launching the MI HR Service Center.  The launching of the center will begin in August with our group benefits open enrollment for all agencies.  Mr. Farrell’s presentation then identified agencies which will be phased in at different dates for all the other services the MI HR Service Center will provide.  Mr. Farrell’s written presentation is, by reference, a part of the record of this meeting.

3.

Matt Fedorchuk updated the Commission regarding the conversions from pay for performance back to step and pay grade schedules for Groups 2 & 3 Information Technology (IT) and Non-IT employees.  He stated that the Department of Civil Service is circulating for review and comment Regulation 5.07 on Performance Pay Programs.  The amendments to the regulation removes language regarding the IT performance pay plan including any language relating to signing bonuses and issuing critical bonuses that were part of the original regulation.  He further stated that at the same time, agencies were encouraged to identify other Group 2 & 3 Non-IT conversions to be made.  Mr. Fedorchuk indicated that MEDC, FIA, and DIT requested a list of classifications in Groups 2 & 3 to be converted to the pay step plan.  Those took place along with the IT conversions at the end of March.  Mr. Fedorchuk’s written presentation is, by reference, a part of the record of this meeting.

Draft Amendments to Civil Service Rules.

Dan McLellan reported on the proposed amendment to Rule 2-17 (Retirement) and New Rule 5-17 Deferred Retirement Option Plan (DROP), which was discussed at the last Commission meeting.  At that time, the Commission tabled the proposed amendment and new rule pending legislation enactment.  Governor Granholm signed legislation on April 22, 2004, which creates a Deferred Retirement Option Plan to permit eligible State Police Command Officers to remain on active duty and collect partial retirement benefits.  Mr. McLellan’s written presentation is, by reference, a part of the record of this meeting.

On motion duly made and supported, the Commission unanimously approved proposed amendment to Rule 2-17 (Retirement) and New Rule 5-17 Deferred Retirement Option Plan (DROP).

Dan McLellan presented information on the Letter of Understanding between Office of the State Employer (OSE) and the United Technical Employees Association (UTEA).

This interim approval is a change in the restricted transfer policy for technician level eight (8) vacancies and is entered into for a trial of one year from the date of signing.

On motion duly made and supported, the Commission unanimously approved the Letter of Understanding regarding the “assignment and transfer.”

Dan McLellan presented information on Letters of Understanding as follows:

E-1:  Letter of Understanding --OSE & AFSCME

This interim approval provides for banked leave time, retirement assurances, compensatory time, testing, health care, and contract review discussions, employee education and resource fund, concession suspension in the event of layoffs or hours reductions, prescription drug copays and limited-term appointments for the Institutional Unit.

Mr. Fink spoke briefly to the Commission regarding their ability to work out the agreement with AFSCME.  He indicated that this agreement includes the 3-tier prescription drug co-pay that not all the negotiated concessions packages included.

On motion duly made and supported, the Commission unanimously approved the Letter of Understanding regarding concessions.

E-2:  Letter of Understanding – DLEG & UAW Local 6000

This interim approval allows for applying the existing secondary collective bargaining agreements in MSHDA, the Department of Career Development, and the Family Independence Agency to employees of those departments who were transferred to the DLEG at its creation.

On motion duly made and supported, the Commission unanimously approved the Letter of Understanding regarding the secondary agreements.

E-4:  Letter of Understanding – DOS & UAW Local 6000

This interim approval provides for a one-day shut down of the Department of State for the purpose of using unpaid furlough hours on either July 2 or September 3, 2004.

On motion duly made and supported, the Commission unanimously approved the Letter of Understanding regarding the one-day shutdown.

E-5:  Letter of Understanding – DOS & MSEA

This interim approval provides for a one-day shut down of the Department of State for the purpose of using unpaid furlough hours on either July 2 or September 3, 2004.

On motion duly made and supported, the Commission unanimously approved the Letter of Understanding regarding the one-day shutdown.

E-6:  Proposed Amendment to Rules

This proposal to the rules is to add requirements to Rule 1-4 that the State Personnel Director communicate periodically with classified employees on matters of interest, and repeals Rule 6-7.5 that requires notices only to exclusively-represented employees on dues-related issues.

Commissioner Lewand commented that this solves some of the problems that have been heard at a previous meeting and encouraged staff to work with OSE and representatives of the non-represented employees. 

Mr. McLellan addressed Commissioner Lewand’s comment that the amendment to Rule 1-4.2 specifically permits the State Personnel Director to communicate jointly with others including the OSE and Office of Retirement Services.

On motion duly made and supported, the Commission unanimously approved the proposed amendments to the rules.

E-7:  Letters of Understanding - OSE & SEIU 517-M

This interim approval provides for banked leave time, concession suspension in the event of layoff (“employment and continuing condition guarantee”), DLEG overtime and scheduling discussions, UA dress code and mentoring discussions, limited-term appointments, prescription drug committee, DLEG veterans preference committee and letter of intent for the Human Services Support Unit.

Mr. Fink addressed the Commission and spoke on the last item regarding Commissioner Lewand’s issue of cooperation in terms of communication.  Mr. Fink stated that they have had wonderful cooperation and communication with the Department of Civil Service with respect to any communications with state employees and is grateful for that.  He stated the Department could not be any more inclusive in cooperating with OSE and seeking their assistance and input.

With respect to item E-7, Mr. Fink expressed relief and gratitude to this bargaining unit who worked so hard to reach agreement at such a difficult time. 

On motion duly made and supported, the Commission unanimously approved the Letter of Understanding regarding concessions.

Mr. Andre Friedlis, ASEM, addressed the Commission concerning agenda items E-4 and E-5.  He addressed the issue on the scheduled one-day shutdown unpaid furlough day for NERE’s with the Department of State.

Mr. McLellan responded to Mr. Friedlis that in respect to NERE’s, Civil Service Commission approval is not required.

In closed session on April 29, 2004, the Commission considered 14 decisions of the Employment Relations Board.  Copies of the review sheets indicating the Commission’s actions on these decisions are on file in the Department of Civil Service.

The meeting was adjourned at 11:15 a.m.

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