Stop Illegal Public Employee Strikes

Date: December 25, 2015 Last Edit: July 05, 2016

Small Business Challenges in 2016

Public
schools that have mismanaged their finances due to the legacy costs of
over-generous pension, health care and compensation arrangements are supporting
higher business taxes to fund their union pension plans and benefits. It is
estimated that the Detroit Public Schools alone are looking for more than $700
million in bailout money from taxpayers.

Small business and auto insurance consumers are already being targeted with an $80 million dollar tax hike to bail out the Detroit Public Schools. A new proposal would eliminate a tax credit previously allowed to auto insurance companies to offset the cost of Michigan’s expensive unlimited medical benefits under our No-Fault law. The $80 million increase in tax revenue to the state from eliminating the credit would be dedicated to reducing the Detroit Public Schools debt and bolster the union pension fund. Auto insurance companies will simply pass the additional cost onto Michigan drivers and small business. It is estimated that this will result in an additional $40 a vehicle in insurance rates.  

To get their way and push for these higher taxes, Detroit teachers have been
engaging in illegal strikes and “sickouts” as a way to force a blank check from
Lansing. In addition to opposing higher tax proposals, like the auto insurnce rate hike, NFIB is supporting legislation that would tighten the definitions of
strike activity and increase the fines and penalties for those who choose to
strike illegally.

VICTORY!: Legislation that would tighten penalties and require quicker action when public employees illegally strike was included in the Detroit Public Schools bailout package that was passed by the legislature in the last week of session before summer recess. The bill was signed into law by Governor Snyder as Public Act 194 of 2016. For more about this legislation go HERE

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