1

Detroit Typographical Union• McClatchey: an employer may not unilaterally

implement a standardless merit pay proposal at impasse– No details or plan provided

• Merit pay proposal in Detroit Typo not “standardless”– Minimum Increase of 1%

– Increases average of 4% in yr 1; 3% yrs. 2-3– Based on annual ee eval process (100 page appendix)

– Resort to grievance procedure

2

Detroit Typographical Union (cont.)

• Merit pay a mandatory subject of bargaining• Employer may negotiate for discretion in pay

provided it is not full and complete discretion, as found unlawful in McClatchey– Must be some standards

• Legal to implement merit pay proposal – At impasse as er had not violated 8(a)(5)

3

Key Quote

• “Management’s decision to propose a discretionary merit pay system – and to insist on retaining legitimate bounds of discretion – cannot (except for the limited McClatchy exception) be treated differently than other mandatory subjects of bargaining; it cannot be vetoed by the Board.”