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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.

  • We have all heard the phrase, “there are two types of people in the world. Those who… and those who…” The blank spot is usually then filled in with whatever point someone is trying to make.

    In the world of business, you can make a strong case that the old adage that holds truest is “those who are union and those who are not”.

    Well, many “who are not” maybe counting down the days to when they will be.

    On December 15th, the NLRP, in a 3-2 decision, pushed through their new rules for unionization. Not to scare the non-union employers, but the two dissenters referred to the new rules as “’the Mount Everest of regulations’, massive in scale and unforgiving in effect”. A recent article in the National Law Review goes into greater detail of the rules that are due to go into effect on April 14, 2015.

    As a sales rep in the PEO industry, I’m acutely aware of the impact government regulations can have on businesses, particularly small businesses that don’t have the resources or the manpower to protect themselves in ways the big corporations do. In 2009, shortly after the election, we had a meeting with a leading labor attorney who speculated about what might happen with the NLRB with the new administration.

    For years, the unionization procedures for a company were pretty simple. A union rep would begin talking with employees seeing if there was a 50% + 1 majority interest in exploring a union. From that point, the employer would be notified and he/she would then have a certain amount of time to campaign or state their case as to why the union would be a bad idea for the company and in turn for the employees.

    With this ruling, the momentum has swung to the union’s side both in ease and support of unionization. Without getting too much into the above-mentioned article, the new rules “elections occur more quickly – by eliminating the time for reasonable preparation; by adopting new, accelerated pleading requirements applicable only to employers; by dispensing with post-hearing briefs; and by deferring, until following the election, evidence regarding issues as fundamental as who can vote.”

    If this is of concern to you, I would suggest you read the National Law Review article thoroughly, speak with your own trusted advisors, or absent that, reach out to a PEO to see how this could impact you and if there’s anything you can do to address this in your business.

  • Back in January, I wrote a blog post called “Are You a Union Shop? Are You Prepared to Be?” In it, I talked about how an NLRB ruling split 3-2 along party lines was making it easier for unions to unionize a place of employment.

    A PEO like GMS can help your company by creating an employee handbook.

    Well that time has  come. In a recent article posted online, the NFIB talks about how these new rules will “bring about “quickie” union elections in as few as 10 to 14 days. This change in election rules will make it much more difficult for employers to fight a union organizing campaign and far easier for unions to win. It also goes into some suggestions about things that employers can do to put themselves in a better defensive position should this happen to them.  

    Among the four things they listed, No. 3 struck me:

    Don’t be afraid to communicate with employees. Address your business’s labor relations philosophy in new hire orientation and in an employee handbook.

    An employee handbook? Really? Exactly!

    Over the last eight years, I have spoken with business owners in many different industries and varying sizes. Some have employee handbooks and are diligent in keeping them up to date. Some have them, but don’t update as frequently as they need to. Some have thought about it, but never got around to it. Some, incredulously, don’t have one because their attorney advised them years ago to not get one and put anything in writing.

    Well, with the ever-increasing employee-related costs of government compliancy, more and more business owners are starting to see the importance and value of having this very basic Human Resource tool in their company. A handbook is just a first step, albeit, a very good one.  

    If you need help in that area or in other areas related to human resources and/or are concerned with the future of your workforce, give us a call at 888-823-2084 or contact us online.