MSU Human Resources
An Evolution to
Collaborative Labor
Relations
National Center for the Study of Collective Bargaining in
Higher Education and the Professions (NCSCBHEP)
April 17, 2007, Baruch College Conference Center
Presenters:
Scott Sowulewski, Director, MSU Office of Employee Relations
Leo Sell, President, MSU Administrative Professional Association, MEA/NEA
MSU Human Resources
HR Customers
4,098 faculty &
academic staff
5,986 Full-time & Part-time
Support Staff
10 Bargain Units
(Including Teaching
Assistants)
3,919 retirees
7,398 students
14 colleges
(with MSU health insurance)
4,984 external
applicants
16,000 Student Employees
690 departments
4,888 Temporary
Employees
MSU Human Resources
IN THE BEGINNING - - 



1965 Public Employees Relations Act passed
Earliest bargaining unit, IATSE
Most others recognized in early 1970s
MSU Administrative-Professional later
 Informal, meet & confer early 1970s
 Organized & recognized early 1980s
 Affiliated with Michigan & National Ed Association mid-80s
MSU Human Resources
Adversarial to Collegial to
Collaborative
 Most early relationship based on
classical/ traditional models of labor
relations
MSU Human Resources
A Progression…
 Movement toward a collaborative, joint
problem solving approach
 Key changes in APA & MSU bargaining approach
in 1990s (Target Specific Bargaining)
 Interest-Based Bargaining
 Helped lead toward new approach to bargaining
health care and wages
MSU Human Resources
Looking Back . . .10 Years
 In 1996 MSU and organized labor
embarked on a unique initiative
 MSU Administration and MSU Coalition
of Labor Organizations began new era of
Labor Management Relations at MSU
 Health Care Bargained with a Coalition
of Eight Unions
MSU Human Resources
Coalition/MSU
Collaborative Approach
 The parties agree the cost of the
health care plan and the funding
available for wage increases are
interrelated.
 Employer and Union Interests are
Aligned – Both Are Consumers
MSU Human Resources
Coalition/MSU
Collaborative Approach (Cont)

Promote health & disease prevention initiatives

Agree on “total compensation” cost measures

Improve cost & budgeting predictability

Align Employee/Union and Employer interests to
promote payer & consumer partnership

Consider mutual ideas and options to achieve cost
savings–Look for incentives to change “behavior”

Strong Union interest to avoid “cost shifting”
MSU Human Resources
Memo of Understanding
 Signed in 1996 between MSU and MSU
Coalition of Labor Organizations
 No coalition members can make health
care proposals during independent
bargaining
 University maintains status quo premium
sharing
MSU Human Resources
Highlights of Second
Agreement
 4-year agreement (2002-06)
 3-tier Rx co-pays; Dual employed spouses
 Wage increases tied to health care costs
 No other “economic proposals during term of
agreement
MSU Human Resources
Wage Increases Tied to
Health Care Costs
Health Care Cost Experience
0% - 2.0%
2.1% - 4.0%
4.1% - 6.0%
6.1% - 8.0%
8.1% - 10.0%
10.1% - 12.0%
12.1% - 14.0%
14.1% - 16.0%
16.1% - 18.0%
18.1% - 20.0%
20.1%+
Base Wage Factor Average
3.50%
3.25%
3.00%
2.75%
2.50%
2.25%
2.00%
1.75%
1.50%
1.25%
1.00%
MSU Human Resources
Highlights of Third Agreement
 4-year agreement (2007-10)
 Added 4th tier to Rx plan for bio-tech drugs
 Changed Office, Emergency and Rx co-pays to
further incent consumerism
 Revised wage scale
MSU Human Resources
Measuring Success
MSU Human Resources
Coalition Approach to:
Labor Management Relations
 Importance of Coalition access to information
 Strive to keep each other informed – “No Surprises”
 Importance of education and sharing of information
 Joint effort to solve problems
 All parties - Be open to the possibilities
 Based on Trust – Trust is Fragile
 Work in progress - Still evolving!!!
MSU Human Resources
Labor relations does not have to
be what you see on TV, and is not
at MSU
 Moved from adversarial to relational
 From confrontational to collaborative
MSU Human Resources
Fundamentals Today
 Mutual respect
 Recognition of joint interests
 A commitment to problem prevention
and problem solving at the lowest level
possible
 Requires a commitment at all levels of
the University
MSU Human Resources
MSU Human Resources
Lessons Learned
 Joint effort in obtaining Administration’s buy in
 Importance of Coalition of Labor Organization’s
access to information (from University and
vendors)
 Importance of education
 Allow plenty of time
 All parties—be open to the possibilities
MSU Human Resources
A brief humor break.
MSU Human Resources
MSU Human Resources
MSU Human Resources
MSU Human Resources
MSU Human Resources
Coalition Approach:
Conclusions
 Collaborative Labor-Management Approaches can Yield Effective
Results
 Labor and management both have resources that can be brought to
bear (AEPC)
 Continued Collaboration is an Effective Strategy For Joint LaborManagement Issues
 Reduced Public Funding & Soaring Health Care Costs Changing
Traditional Labor/Management Relations
 Cooperation Makes Sense – Ingham County Coalition, City of Grand
Rapids Coalition, MUCH, AEPC
MSU Human Resources
Questions/Discussion