APA Prevails and Compels Full Payout of the January 2014 and 2015 Lump Sum Bonus Payments

by Maury Koffman, APA President

The APA is proud to have led the negotiations with MSU that resulted in lump sum bonus payments for every member of the APA in January 2014 and January 2015. However, in a disappointing series of decisions, MSU chose to withhold a portion of both the January 2014 and January 2015 payments. The APA pursued MSU’s contract violation through the adjudicatory process and frequently communicated updates with the membership.

As a result of the APA’s pursuit on behalf of every member, we are proud to have concluded the issue entirely in favor of APA union members. Eligible members who received both the January 2014 and January 2015 payments will have one single payment in your April 2016 paycheck for $351.89.

January 2014 Lump Sum Bonus Payment
As you may recall, the University unilaterally withheld a portion of every eligible member’s January 2014 lump sum bonus payment. An outside plaintiff filed a lawsuit and the lower court ruled exclusively in favor of the APA and MSU to enforce the contract as agreed. However, the plaintiff appealed the lower court’s decision and a hearing was held in the Michigan Court of Appeals on February 5, 2016.

In March 2016, the APA received the decision of the Michigan Court of Appeals, ruling in favor of our union, dismissing the plaintiffs claims, and identifying that MSU must pay out all withheld funds to those individuals who satisfied the requirements under the contract.

Specifically, to be eligible for the payment you had to (1) be actively employed on January 1, 2014, and (2) a member of the APA, and (3) MSU health care benefits eligible.

The plaintiff had 42 days to submit an appeal for consideration by the Michigan Supreme Court and that window lapsed on March 31, 2016. Therefore, the APA engaged MSU and has confirmed the remaining 2014 funds will be included in your April 2016 paycheck.

Each full-time member of the APA who received payment in January 2014 will receive a lump sum payment of $264.21, less any taxes or withholdings, in their April paycheck.

January 2015 Lump Sum Bonus Payment
There was no lawsuit regarding the January 2015 payment. However, MSU chose to unilaterally withhold a portion from every member’s lump sum bonus payment in January 2015. Since this issue was not subject to adjudication through the court, the APA filed a grievance and certified the case to binding arbitration.

The arbitration hearing was held in late November 2015 and at the end of January 2016 the APA received a positive ruling from the arbitrator compelling MSU to payout the unilaterally withheld funds from January 2015.

The APA has confirmed that the amount withheld will be included in your April 2016 paycheck.

Each full-time member of the APA who received payment in January 2015 will receive a lump sum payment of $87.68, less any taxes or withholdings, in their April paycheck.

A Great Benefit and Success
The January 2014 and January 2015 payments were the result of collective bargaining, roughly $2,400 per member. It is our strong collective voice through the union and support from our state affiliate, the Michigan Education Association, which gave us the necessary resources to legally pursue full payment of the January 2014 and January 2015 lump sum bonus payments.

As an APA member, you will only receive the April 2016 payout if you originally received the partial payment in January 2014 and January 2015. And again, eligible members who received both the January 2014 and January 2015 payments will have one single payment in your April 2016 paycheck for $351.89.

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