-Friday, November 3, 1978-The Michigan Daily
You're invited to attend
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Financial interests divided on Proposal C

By JULIE ROVNER
Nearly everyone who will be going to
the polls to vote next Tuesday knows at
least.something about the major ballot
proposals-Tisch, Headlee, voucher,
and the drinking age (proposals J, E. H,
and D respectively). But most people
aren't aware of the seven other
proposals on the ballot, and that one
- Proposal C-is causing its own con-
troversy.
Proposal C is a constitutional amen-
dment which would allow state funds to
be deposited in savings and loan in-
stitutions and credit unions. Currently,
the state Constitution only allows funds
to be deposited in commercial banks.
Southpaw Tom Zachary threw the
ball that Babe Ruth of the Yankees hit
for his 60th home run in 1927. Two years
later, in 1929, Zachary had a 12-0 record
pitching for the Yankees.

PREDICTABLY, credit unions and
savings and loans are in favor of the
proposal, while the Michigan Banker's
Association is vigorously opposed to it.
"It (the constitutional requirement
that state funds be deposited in com-
mercial banks) is just one of those
strange things on the books . that
shouldn't be there," said Hazel Proctor,
Vice President of Great Lakes Federal
Savings and Loan. "Public funds should
be where they earn the most interest."
Savings and loans and credit unions
are allowed by law to offer higher in-
terest rates to their depositors, who ac-
tually buy into the institutions when
they open an account. Opponents of the
proposal claim that allowing the state
to put funds into those institutions
would entangle the government in


ownership problems, and might lead to
the state taking control of some of the
institutions.
BUT CHET PAWLOSKI, marketing
manager for the University Employees
Credit Union, doesn't think that is a
valid claim. "That couldn't happen
here," he said, "because no matter how
much money you have on deposit, you
still only get one vote."
Pawloski cited the advantages of the
passage of Proposal C. "Not only could
government units earn more interest,
but it would give savings and loans and
credit unions more funds for mortgages
and loans," he said.
Jed Moran, public relations represen-
tative for the Michigan Banker's
Association, argued that the proposal

presents only "a piecemeal solution"
and the fact that 38,states allow public
funds to be placed in savings and loans
and credit unions is due only to political
factors.
"BASICALLY, IT'S a politica
thing," he said. '.It's more of a
manifestation of political clout than it is
good public policy."
Moran said that if Proposal C passes
it could do irresponsible damage to
some of the state's smaller commercial
banks, who might lose some state fun-
ds.
Proctor, however, disagreed sharply.
"It's a smokescreen," she said of the
MBA's attacks on the proposal. It's
ridiculous thinking. For the public's
own interest, they should voteyes."

U

Ul

Paid for by James WAnderson Jr
for Trustee Committee

Prop. G would grant collective
bargaining rights to state police

-3

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By JULIE ROVNER
Sandwiched on next week's ballot
between two of the controversial tax
questions is Proposal G, which has
divided the State Police department in
two camps-management and labor.
Proposal G would amend the state
Constitution to allow state police
troopers and sergeants to bargain
collectively for pay increases and
fringe benefits. Any unresolved
disputes would be submitted to binding
arbitration. Currently, all pay scales
and fringe benefits are set by the State
Civil Service Commission.
THE STATE Police officials are op-
posed to the proposal, while the
Michigan State Police Troopers
Association (MSPTA), a volunteer
organization which represents almost
1600 of the 1800 officers affected, sup-
ports it.
Michigan State Police Director Col.
Gerald Hough released a report citing a
number of reasons for opposing the
proposal including:
" a possible conflict of interest which
could be caused by supervisors being in
the same bargaining group as subor-
dinates;
" the possibility that incentives for
promotion might be reduced if the
bargaining unit managed to close the
gap between troopers and sergeants
and the higher classes, whose salaries
would still be set by the Civil Service

Commission;
" the possibility that the troopers and
sergeants might be able, through
bargaining, to get their salaries raised
to a point higher than that of some of
their superior officers;
" the problem of deciding who the
employer spoken of in the amendment
actually is. Paul Hill, Director of Public
Affairs for the State Police, said the
'wording of the proposal doesn't make it
clear whether the police affected would
be bargaining with the department, the
Office of the State Employer, the State
Civil Service Commission, or the
Legislature.
DOIL BROWN, Executive Secretary
of MSPTA, said that Hough's complain-
ts about the proposal are not valid.
Brown cited the fact that local police
departments in Michigan have had the
right to bargain collectively, granted
by statute, since 1965, and that local

police and fire department units have
been under binding arbitration since
1969.
"The proposal improves morale by
granting troopers some input into their
own futures," said Brown, "and it
keeps them (the troopers) independent
of outside influences, since they would
be bargaining for themselves."
BROWN STRESSED that the
proposal does not grant the troopers the
right to strike, nor would it take them
out of the civil service protesting and
promotion system.
Opponents of the proposal complain
that it would discriminate against other
groups of state classified employees;
Brown disagrees.
He said that in October of 1975, Attor-
ney General Frank Kelley ruled that:
collective bargaining for State Police
troopers would not discriminate again-
st other employees.

0..

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Iaocca to head Chrysler
From Wire Service Reports
Lee Iacocca, the bold and brash halt the corporation's slide by injecting
ousted president of Ford Motor Co., new blood into top-level management.
yesterday waa named president o BY SIGNING with a Ford com-
financially troubled Chrysler Corp., for rfeit ec $ar-chompinIn ac ca, 54
an undisclosed salary. bonuses he stood to receive from his
The announcement came moments former employer. Iacocca left Ford un-
after Chrysler reported its largest der "mutually acceptable terms" that
quarterly loss ever--a staggering $158 included a $400,000 cash payment and
million-and was seen as an attempt to he will receive a separation allowance
through October 1979. On that date,
Iacocca turns 55 . and retirement
benefits will begin.I

g I ANTHE MICHIGAN DAILY
Volume LXXXIx, No.50
Friday, November 3, 1978
is edited fnd managed by students at the University
" of Michigan. News phone 764-0562. Second class
postage is paid at Ann Arbor, Michigan 48109.
Published daily Tuesday through Sunday morning
during the University year at 420 Maynard Street,
Ann Arbor, Michigan 48109. Subscription rates: $12'
September through April (2 semesters); $13 by mail,
outside Ann Arbor.
Summer session published through Saturday
Paid o r y urs er UMRe e sAtACnoAmbmitMtee4ymorning. Subscription rates: $6.50 in Ann Arbor;
Tom Bernthial, Treasurer, 2065 Geddes Avenue, Ann Arbor, MI 4.8104$70 by mail outside Ann Arbor.

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