Today, for the first time, a Michigan Emergency Financial Manager is exercising his New Powers to unilaterally abrogate a Union contract in Pontiac, Michigan.
I've been a bit on the ambivalent side as far as emergency financial managers (EFMs) go. The power to appoint EFMs has been in the arsenal of Michigan Governors since 1990 and the powers of the EFMs was pretty sweeping. But until recently, they were not allowed to overturn union contracts.
Here's an FAQ about the law from 1990.
Do Emergency Financial Managers have the authority to hire staff?
Yes...
[snip]
Does an Emergency Financial Manager have the authority to direct existing staff?
Yes. Pursuant to Section 19 of the Act, an Emergency Financial Manager may issue to officials or employees of the unit of local government any orders which the Emergency Financial Manager considers necessary to accomplish the purposes of the Act, including, but not limited to, orders for the timely and satisfactory implementation of a financial plan. An order issued by an Emergency Financial Manager is binding on officials or employees of the unit of local government to whom it is issued
And this from the original law:
Does an Emergency Financial Manager have authority to change existing labor contacts without negotiation?
No. While emergency financial managers are authorized to renegotiate labor contracts, they are not authorized to abrogate such contracts or obligations. Therefore, the Act 72 process offers no safe harbor t
That bit, of course, has been changed under Snyder.
That's the change that bothers me the most. The EFM was originally intended to give the State the ability to step in when cities are on the verge of collapse and incapable of performing the basic functions of a city. It was a law Democratic Governor Granholm used on several occasions for ailing cities, including Pontiac and Benton Harbor.
But that wasn't enough for Snyder. He needed to ALSO make it a Union Busting tool. And that's a problem.
That's happening right now in Pontiac, Michigan...
The city of Pontiac received state approval to cancel union contract protections for 11 police dispatchers, allowing the city to complete the process of eliminating its police department in an effort to close its more than $10 million budget deficit.
[snip]
With its police department gone, the Oakland County sheriff's department will enforce the law in Pontiac to save the city $2 million annually.
The next step, I'm fairly confident, is going to be court. Once challenged in court we'll see if this new EFM super-power is going to to have staying power.
Anyway...that's what's going on in Michigan.