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The hourly union contract expired in March 2007 and was extended to Oct. 23, '07. The road board accepted the mediation proposal in November, but the union rejected it. Both sides agree on a three-year contract.

Neither side has to accept the non-binding fact finding report, but may use it to change their positions, said labor attorney Michael Kluck.

With the issuance of the report, both sides have a 60 days cooling down period in which to review the report. Kluck said they may set up additional bargaining meetings.

However, after the 60 days the road commission may, but does not have to, implement their final offer, which was on the table before the fact-finding.

"They can implement portions of their final offer, none of it or all of it," he emphasized.

"The union must recognize... 100 percent payment by a public entity of all co--pays and deductibles in the face of shrinking revenues and expanded costs is going to be a thing of the past," stated fact finder Kenneth Frankland, who was appointed by the Michigan Employment Relations Commission in January.

"Health care costs are 10% of the total budget, and thus an area ripe for cost saving," he added.

Frankland recommended either adopting the mediator's suggestion of cost sharing 4% of the premium in the third year of the contract or a progressive cost sharing such as 90--10 in year one, 80--20 in year two and 75--25 in year three.

Retiree health
Frankland also recommends the new contract include ways of saving the road commission money on retiree health insurance.

Last year the road commission paid $413,858 for retiree health insurance, including $232,026 for self--insured prescription coverage for 37 retirees, 31 of whom were hourly retirees. The supervisors' union contract typically matches the hourly contract.

Frankland suggests they find a different way to finance the basic benefits for Medicare supplemental coverage.

One suggestion it to have the road board pay two-thirds of the cost with the retirees paying one third, or having the retirees pay for the least expensive part of the supplemental premium or drug coverage. He also noted having the road commission reimburse employees would be a dollar saver for the road board.

Wages
The fact finder agreed with the mediator regarding wages, and recommended increases of 30 cents, 30 cents and 35 cents for each of the three years.

Effective date
Frankland suggested a comprise effective date for the new contract of Jan. 1, 2008, and recommended no benefits or accruals lapse between the end of the extension and the effective date of the new contract.

The union had asked for an effective date of April 1, 2007 while the road board wanted the contract to take effect when it is signed.

Family coverage rider
The fact finder suggested the road commission pay the premium for health coverage for full--time college students under age 23.

Additional hourly wage
Frankland recommended the road commission not adopt the proposal to pay the employees an extra $1 per hour when they are working on a construction project, which is being charged to another government entity.