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  • Michigan’s Governor Gretchen Whitmer signed legislation that will repeal the state’s right-to-work law for private-sector employees on March 24th, 2023. For the first time since 2012, when Michigan’s right-to-work law was passed, union security clauses will be legal again in private-sector collective bargaining agreements when it takes effect in 2024. The law will require employees to pay union dues or a service fee to their bargaining representative to keep their jobs.

    The law will go into effect on March 30th, 2024.

    How To Prepare

    Any business owner in Michigan with a unionized workforce should review each collective bargaining agreement to determine if it contains a union security clause. A unionized workplace is a process of organizing the employees of a company into a labor union which will act as an intermediary between the employees and company management. In addition, it’s essential that you determine if the contract requires the parties to reopen negotiations and bargain upon repeal or invalidation of the right-to-work law.

    Partner With GMS

    These ever-changing rules and regulations can take a toll on your well-being as you have many responsibilities when running your business. As this new law passes in Michigan, you must begin implementing the changes necessary to comply. When you partner with GMS, a professional employer organization (PEO), you gain access to a dedicated team of HR experts who are ready to keep you up to speed on changes. Let’s tackle this change together. Contact us today to get started.

  • Michigan might become the first state in nearly 60 years to ditch its right-to-work law. The Michigan House of Representatives passed two bills, House Bill (HB) 4004 and HB 4005, to repeal the state’s current right-to-work law on March 8th, 2023. HB 4004 relates to the right to work in the public sector, while HB 4005 relates to the private sector.

    The current right-to-work law passed in Michigan in 2012 prohibits unions from requiring workers to pay union dues as a condition of employment. The bills passed by the Michigan House would reverse the right-to-work law by allowing unions to collect dues from all workers in a bargaining unit. Ultimately, it means that union security clauses in collective bargaining agreements would become legal again for the first time in Michigan since 2012.

    Supporters of the law argue that it gives workers more freedom and choice in their employment, while opponents say it weakens unions and reduces their bargaining power. The debate over the right-to-work law has been contentious in Michigan, with labor unions and their supporters arguing that it weakens their ability to negotiate better wages and benefits for workers. However, supporters of the law say that it’s helped make Michigan more competitive and attractive to businesses, leading to job growth and economic development.

    What Now? 

    The bills will now move to the Michigan Senate for further debate. If passed in the Senate, the bills will move forward to Governor Gretchen Whitmer for her signature. While the debate over the right-to-work law is expected to continue in Michigan and other states where similar laws have been passed, you must understand your responsibilities as a business owner. If the bills are passed, business owners would be responsible for allowing unions to collect dues from all employees in a bargaining unit, regardless of whether they choose to join the union.

    Ultimately, it means that if a union is present in a workplace, the employer would be required to deduct union dues from the pay of all employees in the bargaining unit. In addition, you’d have to negotiate with the union on behalf of all employees on wages, benefits, and other working conditions that affect all employees in the bargaining unit. You must be prepared to work with unions and comply with new union dues and collective bargaining requirements. Consult with an HR professional such as Group Management Services (GMS) to ensure you comply with all relevant laws and regulations. Contact us today to learn more.