MMA’s Manufacturing Agenda 2020-21 | Page 6

Protecting the future of employees and the success of manufacturing while maintaining a competitive state regulatory system
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MMA ’ s Manufacturing Agenda

Employment & Workforce Policy

Protecting the future of employees and the success of manufacturing while maintaining a competitive state regulatory system

Tremendous progress has been made in recent years to streamline , stabilize , and properly balance Michigan ’ s employment and workforce regulations
Michigan ’ s legislature has adopted numerous bills dealing with workplace issues and developing talent to make manufacturing an attractive career opportunity for future Michiganders , from securing a more competitive , properly funded unemployment insurance system to reforming Michigan ’ s workers ’ compensation law , to the stability of the state ’ s Self-Insurers ’ Security Fund and the continued defense of the employeremployee relationship .
The COVID-19 crisis presents new challenges for Michigan ’ s unemployment system . Since 2010 , a coalition of employers , employees , and the Legislature strategically rebuilt the Unemployment Insurance Trust Fund ( UITF ) through bonding over several years , achieving a strong balance . The COVID-19 pandemic has depleted the fund and will lead to state borrowing from the federal government to keep the UITF operational , leading to increased unemployment taxes on employers . The 101st Legislature must partner with the business community to stabilize the UITF by seeking creative solutions that avoid anti-competitive taxes . The UITF is fully employer funded , and solutions must protect against negative impacts on employer competitiveness .
As Michigan enters a post-COVID-19 economic environment , manufacturers must defend these important policy advances . In the coming years , manufacturers will fight for the core rights of employers in the workplace and promote workforce policies that allow job creators to stay competitive and grow their business .
Source : US Department of Treasury Federal Borrowings Reports
Michigan Unemployment Insurance Trust Fund Balance
One of the casualties of the COVID-19 pandemic is the Unemployment Insurance Trust Fund . The Fund is nearly insolvent after starting 2020 with a $ 4.8 billion balance . Employers paid in that $ 4.8 billion , and the balance depleted due to COVID-19 is not the fault of employers . Finding creative solutions to rebuild the UITF must be a priority .
— Ann Marie Treglia , Global Manager , Government Affairs & the Environment , Dart Container Corporation , Mason
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