Keweenaw Report Your Source for Local News and Sports
A lawsuit has been filed against the counties of Houghton, Keweenaw, Baraga, Iron and Ontonagon by Gogebic County. The six counties of the Western Upper Peninsula together made up the former Western Upper Michigan Manpower Consortium, which was responsible for job training and development in the region.
Five years ago, that responsibility was turned over to a single agency headquartered in Escanaba known as the UPWARD Talent agency. In the lawsuit, Gogebic County asserts that they were made assurances by the state of Michigan that they would not be held solely responsible for any shortfall in funding the pension plan of the retirees of the disbanded Consortium.
The county is seeking to cover a shortfall in the pension plan and since they are unable to get relief from the state, they are demanding that the other five counties help pay the cost.
Gogebic County Board Chairman Daniel Siirila said, “It is with great reluctance that we have filed suit against our partners in The Consortium. We believe the State’s refusal to help is consistent with the State’s decades long practice of shifting its costs to local government. Gogebic County cannot afford to cover what is now an $800,000 shortfall in the pension plan of public servants who devoted their careers to job development in the Western UP”.
Chairman Siirila continued, “To the extent that the State of Michigan does not assume this extreme financial burden, the Counties which were part of this Consortium must each pay their fair share of these legacy costs. After all, the work of The
Consortium benefited every County which participated in the Partnership.”
“It is hard to understand why there was a Legislative fix as to the underfunding of the pension plan for the Eastern Upper Peninsula Jobs Consortium, but nobody has been willing to assist the Western UP. But barring help from the State, the other five counties who partnered with Gogebic in the Consortium must do what is both morally and legally right, and contribute to the pensions of our joint employees,” Siirila concluded.
