FINE, J.
¶ 1 The City of Milwaukee appeals the judgment enjoining it from modifying the terms of the 2010-2012 labor agreement between it and the Milwaukee Police Association in connection with health-care-coverage costs. The circuit court also issued a writ of mandamus directing the City to comply with the terms of the labor agreement, and, specifically, to not modify the Agreement's "specific deductibles, co-pays, prescription costs." Both the injunction and the derivative mandamus turn on whether the circuit court correctly applied WIS. STAT. § 111.70(4)(mc)6, which was created by section 2409cy of 2011 Wis. Act 32, published on June 30, 2011. Subsection (mc)6 provides:
The circuit court agreed with the Association that this provision did not affect the City's obligation to bargain in connection with the health-care-coverage provisions in the 2010-2012 labor agreement. On our de novo review, we reverse.
¶ 2 After the publication of 2011 Wis. Act 32, the City sought ways to reduce
¶ 3 Article 21 of the Agreement dealt with "Health Insurance." (Uppercasing and underlining omitted.) Article 21 runs twenty-two pages. At its head, Article 21 noted: "Certain items contained in this Article are currently under litigation." (Underlining omitted.) The Agreement also indicated, in Article 69, how the parties would treat provisions that conflicted with law: "Each party for the term of this Agreement specifically waives the right to demand or to petition for changes herein, whether or not the subjects were known to the parties at the time of execution hereof as proper subjects for collective bargaining.... If any federal or state law now or hereafter enacted results in any portion of this Agreement becoming void, invalid or unenforceable, the balance of the Agreement shall remain in full force and effect and the parties shall enter into immediate collective bargaining negotiations for the purpose of arriving at a mutually satisfactory replacement for such portion." (Paragraphing altered.)
¶ 4 The Association sued the City and sought judgment:
(Parentheses in original, bracketed material added.) The Association later sought the writ of mandamus. As noted, the circuit court agreed with the Association that subsection (mc)6 did not forbid bargaining in connection with any of the items in Article 21.
¶ 5 On appeal, the Association makes an important concession:
(Italics and underlining in original.) A footnote to this paragraph encapsulates the Association's contention: "Once a plan is `designed and selected,' bargaining would occur with respect to the `direct results' of that `design and selection' decision." We disagree.
¶ 6 There are no disputed facts here, only a question of what WIS. STAT. § 111.70(4)(mc)6 means. Accordingly, as noted, our review is de novo. See State v. Turnpaugh, 2007 WI App 222, ¶ 2, 305 Wis.2d 722, 725, 741 N.W.2d 488, 490.
State v. Swiams, 2004 WI App 217, ¶ 5, 277 Wis.2d 400, 404-405, 690 N.W.2d 452, 454.
¶ 7 As we have seen, WIS. STAT. § 111.70(4)(mc)6 prohibits bargaining by "public safety employees" in two respects.
It thus modified 2011 Wis. Act 10, which excluded most public safety employees from Act 10's restriction of public-employee collective bargaining. See 2011 Wis. Act 10, § 210 (amending WIS. STAT. § 111.70(1)(a)). 2011 Wis. Act 10 was republished on June 28, 2011, and thus became effective on June 29, 2011. See WIS. STAT. § 991.11 ("Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication as prescribed in s. 35.095(1)(b).").
¶ 8 The Association does not dispute that it represents "public safety employees." Further, as we have seen, it does not dispute that the City may design and select health-care coverage plans for its members. As we have also seen, it concedes that the City may design and select the health-care-coverage plans' "structure (deductibles, maximum-out-of-pockets, co-pays, premiums, etc.)" and the "specific funding mechanism associated with the plan (i.e., a high deductible Health Savings Account, Health Reimbursement Account, Flexible Savings Account, etc.)."
¶ 9 The Association argues that the "impact" ban clause applies only to the "indirect" consequences of the design and selection of health-care-coverage plans. The examples it gives concern the ability to find convenient health-care provider services within the plans' networks.
¶ 10 It is true, as the Association argues, that before enactment of WIS. STAT. § 111.70(4)(mc)6, the cases recognized a distinction between a municipal employer's unfettered right to manage its employees, which was not a proper subject for collective bargaining, and the financial impact that managerial changes might have on the affected employees, which was a proper subject for bargaining. See School District of Drummond v. Wisconsin Employment Relations Commission, 121 Wis.2d 126, 135, 358 N.W.2d 285, 290 (1984) ("`If the employees' legitimate interest in wages, hours, and conditions of employment outweighs the employer's concerns about the restriction on managerial prerogatives or public policy, the proposal is a mandatory subject of bargaining.'") (quoted source omitted). Indeed, this is what the statute considered by School District of Drummond said. See id., 121 Wis.2d at 133-134, 358 N.W.2d at 289. But, WIS. STAT. § 111.70(4)(mc)6 has changed that for public-safety employees.
¶ 11 The Association also seeks support from Governor Scott Walker's message explaining why he was vetoing certain aspects of 2011 Wis. Act 32 unrelated to the dispute in this case. The governor's message observed: "Under Act 10, current public safety employees retain the ability to bargain for wages, hours and conditions of employment, including the ability to bargain for employer payment of employee-required retirement and health insurance contributions." That was true, of course. But 2011 Wis. Act 32, § 2409cy, which the governor did not veto, changed that by enacting § 111.70(4)(mc)6, and, under that provision, as we have already seen, "the impact of the design and selection of the health care coverage plans on the wages, hours, and conditions of employment of the public safety employee" is no longer a subject that a municipality may bargain with the unions representing public-service employees. Accordingly, we reverse the circuit court judgment and remand with directions that the previously entered writ of mandamus be vacated.
Judgment reversed and cause remanded with directions.