Michigan residents are probably aware that employment contracts are binding to both the employee and the employer. It is a foundation on which an employer-employee relationship can be built, and needs to be respected by all concerned parties.
The 700 member faculty association of Central Michigan University approved a five year bargaining contract on July 24 and July 25 with the university administration. The employment contract began on July 25, 2014, and will expire on June 30, 2019.
According to the employment contract, there will be an annual wage hike of approximately 2 to 2.9 percent in addition to insurance contributions. This employment contract is the third one that the university has settled this year. The CMU has also entered into agreements with the CMU Chapter of the Police Officers Association of Michigan and the American Federation of State, County, and Municipal Employees. Central Michigan University serves over 27,000 students annually, and is the fourth largest public university in the state.
For individual employees, it is important to understand their employment contract and to review it fully before signing. In this case, if the university fails to provide the annual salary raise to faculty members, employees could file a lawsuit for breach of contract.
When discussing terms and considering an employment contract, it is in the best interest of the employee to fully understand every aspect of the contract. Getting the right information can be invaluable. In the case of an employment termination, overlooked intricacies of the contract may come back to haunt an employee.
Source: MLive.com, “Central Michigan University faculty agree to 5-year contract,” Lindsay Knake, July 29, 2014