EMU faculty union, administration say they both made concessions to reach tentative contract

It’s unclear exactly when the tide shifted - negotiators from both sides worked late into the night Monday - or what the tipping point was. But it's clear both sides made significant changes in what they were originally seeking and that neither side wanted to risk goodwill built after the university announced a zero percent increase in tuition, fees and room and board for students earlier this summer.

It's also evident neither side came out as the identifiable winner. Both the union and administration gave up key portions of their proposals in the final contract.

In the last week leading up to the current contract expiring, the sides seemed far apart on two key issues - pay raises and health insurance costs.

The union wanted raises of around 4 percent for each of the next three years. The administration wanted to give them no raise this year, and small raises the next two years, with an 1 percent raise all three years tied to enrollment growth and state aid growth.

That last provision was a major sticking point - with union members upset their pay would be based on things they couldn't control.

Administrators and the Board of Regents believed the move would allow the university to share its financial growth with the faculty, Provost Jack Kay said this afternoon.

“We really did want to reward the great work of the faculty,” he said. “We’re glad we have the ability to provide a pay raise. We were very interested in having a system where the faculty shared in the success. Clearly, we weren’t successful in convincing the union of that. It’s something we’ll have to look at (again).”

When administrators removed the incentive plan, union members agreed to accept the smaller raises.

The other point of contention centered on health care. Administrators said they looked at rising costs and national legislation extending benefits to dependents up to the age of 26 and determined they needed a larger contribution from employees - a move that didn’t sit well with union members.

After the administration agreed to a one-time $1,000 payment to all faculty members to cover the increased costs of insurance, the union supported the plan. It will cost a typical family about $2,950 a year in premiums, up from the current level of $1,139.

“We wanted to make sure that no member was taking a pay cut,” Moeller said. “Some of our members will be getting no increase when the health care cost is counted in.”

With those major issues resolved, the tentative agreement was struck mid-morning today.

Union members were briefed at noon in a meeting initially called to vote on a possible strike. They will vote on the tentative contract on Sept. 10, and it also will need to be approved by the Board of Regents.

“I think the members are happy that we have a contract,” Moeller said outside the meeting. “I think some members are disappointed that the Board of Regents and the administration weren’t willing to show more respect to the faculty.”

Several faculty members declined to comment on the contract when approached by AnnArbor.com outside the meeting, saying they needed more time to study the proposal.

But during the meeting, several union members expressed concerns that the regents had issued strict orders to the administration’s bargaining team about the contract.

Not true, Kay said.

“They set broad parameters, and we work within those,” he said.

Administrators and union officials both said they wanted a three-year contract, but the economic uncertainty made a two-year contract a better fit.

Both sides said they also felt momentum building for the university following good press after the Board of Regents adopted the "0, 0, 0" plan. They didn’t want to risk losing that if there was a job action such as a strike, even if no classes ended up being canceled.

“It says something very positive about our university and the relationship we have with our faculty,” Kay said. “It puts the focus back on the exciting start of the semester. I’m really glad we’re all going to be there.”

David Jesse covers higher education for AnnArbor.com. He can be reached at davidjesse@annarbor.com or at 734-623-2534.