WHEREAS, Public Act 312 of 1969 (MCL 423.231 et seq., as amended) provides for compulsory arbitration in labor disputes with fire and police departments; and

WHEREAS, Act 312 does not require an arbitration panel to take a local government's ability to pay into primary consideration in rendering an award; and

WHEREAS, the greatest expense for a local unit of government is its labor costs, the majority of which are police and firefighter pay and benefits; and

WHEREAS, nothing requires an Arbitrator to limit or tie and Act 312 Award to the municipality's revenue stream or to any other financial standard; and

WHEREAS, relevant economic literature provides strong and consistent evidence that public employers in states where binding arbitration is enacted have significantly higher total compensation than in states without binding arbitration; and

WHEREAS, an Act 312 arbitrator is unaccountable to the municipality for the short and long term financial consequences of an Act 312 Award after its issuance; and

WHEREAS, public employees in nonpublic safety positions have no access to Act 312 yet maintain fair and reasonable levels of wages and fringe benefits; and

WHEREAS, House Bill 5665 would repeal Act 312, as amended.

NOW, THEREFORE, BE IT RESOLVED, that the Board of Trustees of the Charter Township of Shelby supports House Bill 5665, and encourages our elected representatives to do the same.

BE IT FURTHER RESOLVED, that the Clerk is hereby directed to forward a copy of this resolution to Governor Jennifer Granholm, State Senator Alan Sanborn and State Representative Leter Lund.

BE IT FURTHER RESOLVED, that the Clerk is hereby directed to forward a copy of this resolution to all cities, townships and villages located in Macomb County.