Collective Bargaining In An

Economic Downturn

Negotiating Successor Collective Bargaining

Agreements – The Traditional Negotiation

Format

Bureau of Labor Statistics Bureau of Labor Statistics numbers show major work numbers show major work stoppages stoppages dropped 95 dropped 95 percentpercent this year compared this year compared with last year and are at their with last year and are at their lowest level since the lowest level since the government began keeping a government began keeping a tally in the 1940s.tally in the 1940s.

Labor peace has broken out Labor peace has broken out across the country, and all it across the country, and all it took was the nastiest took was the nastiest recession since the end of recession since the end of World War II to spawn it. World War II to spawn it. The Washington TimesThe Washington Times, , November 3, 2009.November 3, 2009.

AgendaAgenda

Current TrendsCurrent Trends Strategic ConsiderationsStrategic Considerations SalarySalary InsuranceInsurance LanguageLanguage

Current TrendsCurrent Trends

Delayed bargaining due to Delayed bargaining due to uncertain fundinguncertain funding

Initial board proposals calling for Initial board proposals calling for a pay freezea pay freeze

One year contractsOne year contracts Historically lower salary increasesHistorically lower salary increases Language instead of moneyLanguage instead of money

Strategic ConsiderationsStrategic Considerations

Strategic ConsiderationsStrategic Considerations

Do not approve administrator Do not approve administrator and non-union salary increases and non-union salary increases prior to completing prior to completing negotiationsnegotiations

Share financial information and Share financial information and projections, early and oftenprojections, early and often

Strategic ConsiderationsStrategic Considerations

Cost the union’s financial Cost the union’s financial proposal on your ownproposal on your own

Use “Package Proposals” to Use “Package Proposals” to negotiate all economic issuesnegotiate all economic issues

Before you start – know Before you start – know where you want to endwhere you want to end

SalarySalary

Negotiating Salary - Negotiating Salary - StrategiesStrategies

Provide financial information Provide financial information – early and often– early and often

Complete negotiations, then Complete negotiations, then address administrator and address administrator and non-union salarynon-union salary

Projections and model Projections and model buildingbuilding

Negotiating Salary - Negotiating Salary - StrategiesStrategies

Scattergram IssuesScattergram IssuesNegotiating Salary v. Negotiating Salary v. Payroll BudgetPayroll Budget

Union targets savings Union targets savings from retired teachersfrom retired teachers

What can you afford – know What can you afford – know the end pointthe end point

Negotiating Salary - Negotiating Salary - StrategiesStrategies

““Diminished Expectations” Diminished Expectations” Step calculationsStep calculations Distribution issuesDistribution issues

Percentage vs. straight-dollar Percentage vs. straight-dollar increasesincreases

Senior teacher concernsSenior teacher concerns

Negotiating Salary - Negotiating Salary - StrategiesStrategies

Percentage of what (base, Percentage of what (base, cell, total payroll)cell, total payroll)

Referendums and contingent Referendums and contingent fundingfunding

Salary Re-OpenerSalary Re-Opener

Health Insurance Health Insurance BenefitsBenefits

Cost Containmen

t

Options

Health Insurance Health Insurance Benefits – Benefits – Trends and Trends and

RecommendationsRecommendations Cost sharing formulasCost sharing formulasBoard/Employee share increases Board/Employee share increases 50/5050/50

Board pays maximum 5% Board pays maximum 5% increase in the premium per yearincrease in the premium per year

Maximum dollar limitation on Maximum dollar limitation on Board contributionBoard contribution

Health Insurance Health Insurance Benefits – Benefits – Trends and Trends and

RecommendationsRecommendations Promise levels of Promise levels of premiumspremiums, as , as opposed to levels of opposed to levels of benefitsbenefits

Consider offering lower tiered Consider offering lower tiered plans, plans, i.ei.e. Platinum, Gold, Silver . Platinum, Gold, Silver Bronze.Bronze.

Health Savings Accounts for high Health Savings Accounts for high deductable plansdeductable plans

Cash option in lieu of insurance – Cash option in lieu of insurance – include cost of TRS!include cost of TRS!

Employee Health Insurance Employee Health Insurance

(Bad Language)(Bad Language)The Board agrees to continue to pay the full The Board agrees to continue to pay the full employee medical and hospitalization insurance employee medical and hospitalization insurance for full time employees. The Board agrees to pay for full time employees. The Board agrees to pay medical and hospitalization insurance for part medical and hospitalization insurance for part time employees prorated based upon the time employees prorated based upon the percentage of full time employment based upon percentage of full time employment based upon the employee’s classification. the employee’s classification. Changes in the carrier, single and family rate, Changes in the carrier, single and family rate, coverage, co-pays and deductibles shall require a coverage, co-pays and deductibles shall require a joint decision between the Association and Board. joint decision between the Association and Board. A joint Board and Association committee shall be A joint Board and Association committee shall be utilized to research and make recommendations to utilized to research and make recommendations to the respective partiesthe respective parties..

Employee Health Employee Health Insurance (Good Insurance (Good

Language)Language)For each full-time employee who desires to For each full-time employee who desires to participate, the Board shall contribute a maximum participate, the Board shall contribute a maximum amount of $368.00 per month for single coverage amount of $368.00 per month for single coverage for the duration of this Agreement. for the duration of this Agreement. Participating employees will pay any premiums in Participating employees will pay any premiums in excess of the Board’s maximum monthly excess of the Board’s maximum monthly contribution. All employees are subject to contribution. All employees are subject to eligibility requirements. The Board shall have the eligibility requirements. The Board shall have the right to make unilateral changes to the medical and right to make unilateral changes to the medical and hospitalization insurance carrier, plan, coverage, hospitalization insurance carrier, plan, coverage, co-pays, deductibles, single and family premiums co-pays, deductibles, single and family premiums and any other aspect of the health insurance and any other aspect of the health insurance program during the duration of this Agreement.program during the duration of this Agreement.

Significant Contract Significant Contract Language IssuesLanguage Issues

Language IssuesLanguage Issues

Review contract and identify Review contract and identify language that is costlylanguage that is costly

Union – give us language if Union – give us language if no moneyno money

Language IssuesLanguage Issues

Avoid the following:Avoid the following: Maintenance of Benefits ClauseMaintenance of Benefits Clause

Subcontracting limitationsSubcontracting limitations

Class size limitsClass size limits

Language IssuesLanguage IssuesAvoid the following:Avoid the following:Guaranteed work days/hoursGuaranteed work days/hours

Limits on Reductions-in-ForceLimits on Reductions-in-Force

Class schedules (4 Block, 7 Class schedules (4 Block, 7 Period, 8 Block)Period, 8 Block)

Barney R. Mundorf310 Regency Centre

Collinsville, IL 62234618.301.4060

FAX 618.301.4080bmundorf@gmmschoollaw.com

Questions and Comments