Collective Bargainingand

2011 WI Act 10 and WI Act 32

David S. Fischer

Legal Aspects of Education - SCHBUSMG 772

December 12, 2014

WISCONSIN CEMENTS ITS PLACE IN THE

HISTORY OF COLLECTIVE BARGAINING

Wisconsin the first state to pass a law allowing collective bargaining rights

for public employees

Wisconsin legislature passed laws eliminating

collective bargaining for

majority of public employees

1959 2011

WISCONSIN HAS ALWAYS BEEN AT THE

FOREFRONT OF UNION ORGANIZING

• Local 125, Molders Union, was formed in Milwaukee Nation’s first modern trade union

• Knights of St. Crispin Union founded by shoemakers in Milwaukee At that time, largest union in the nation with 50,000 members

• Milwaukee workers joined nationwide effort to institute 8 hour workdays Seven workers killed during protests

1886

1867

1865

WISCONSIN UNIONS LOBBIED FOR SOCIAL REFORMS

THROUGHOUT EARLY 1900S

• First workers compensation law was passed in Wisconsin Provided medical attention and compensation to employees for

job related injuries and deaths

• Wagner Act signed into law by President Roosevelt Allowed employees to bargain collectively, but limited to

private-sector employees

• Wisconsin legislature passed the Public Employee Collective Bargaining Act (PECBA) The first state law permitting collective bargaining rights for

public employees

1959

1935

1911

1960S AND 1970S MARKED THE EXPANSION

OF COLLECTIVE BARGAINING RIGHTS

AND NUMEROUS ILLEGAL STRIKES

• Wisconsin Employment Relations Board created.

• Subchapter IV of Chapter 124, Laws of 1971 significantly modified Designated as the Wisconsin's Municipal Employment Relations

Act • Milwaukee police strike. Known as the “Blue Flu”

• Hortonville teacher’s strike 95 teachers terminated

1974

1971

1961

• Chapter 178 established binding arbitration1977

A DIVIDE BETWEEN LABOR AND PUBLIC SECTOR

EMPLOYEES OVER BINDING ARBITRATION DEVELOPED

BETWEEN THE 1980S AND EARLY 1990S

• Wisconsin Act 16 established the Qualified Economic Factor (QEO) Allowed school district employers to avoid binding arbitration

on salaries and benefits if employees offered a QEO combined total of 3.8%

QEO included provisions for step increases and increases for promotions and professional training.

Employers and labor disagreed over use of QEOso Labor claimed QEOs were infringement on binding

arbitration process.o Employers moderately supported use of QEOs to avoid

binding arbitratrion Support decreased with rising health costs

1993

THE PERFECT STORM

• Wisconsin Act 28 eliminated use of QEOs Collective bargaining process reverted back to use of mediation

and binding arbitration Tension between labor and employers continues

2009

• Scott Walker elected Governor of Wisconsin• State budget crisis• Public outcry for reform in our public schools

2010

• Governor Walker states intentions to eliminate the collective bargaining process for the majority of public sector employees. Claimed the state could no longer afford collective bargaining

because the salaries, benefits, and pensions of its government workers were driving deficits to deep and dangerous levels.

Union organizations, employees, and political foes claimed there was no direct correlation between collective bargaining and increaseing budget deficits

2011

WISCONSIN ACT 10 AND ACT 32 PASSED

• Wisconsin Act 10 enacted Legislation eliminated union bargaining rights for everything

except base salary, and it prohibited the collection of union dues

March 11, 2011

• Wisconsin Act 32 enacted Contained amendments to Act 10 pertaining to state finances

and appropriations. Constituted the executive budget act of the 2011 legislature

June 26, 2011

THE MASSIVE SWING IN THE PENDULUM CAUSED

SHOCKWAVES FELT NATIONWIDE.

COURT CASES SURROUNDING WI ACT 10 AND ACT 32

• First suit filed by Dane County Executive, Kathleen Falk Claimed the bill was unconstitutionally passed because the bill

contained financial provisions

March 11,2011

• State Supreme court overruled Judge Sumi, Declared the law was passed legally and that Sumi had

overstepped her jurisdiction

June 14, 2011

March 16, 2011

• Dane County District Attorney, Ismael Ozanne, filed against the state on similar grounds

March 18, 2011

• Judge Sumi, the judge hearing the above cases, issued a stay on the bill Claimed it had been passed without the required 24 hours

notice to inform the public of the meeting.

Cases 1 & 2

COURT CASES SURROUNDING WI ACT 10 AND ACT 32

• A federal court cut out parts of the collective bargaining legislation in Act 10 on the grounds that the state could not prevent public employee unions from automatically collecting dues or require them to recertify annually

March 2012

• Governor Walker appealed Judge Colas' ruling to the Supreme Court of the State of Wisconsin

November2013

January2013

• The U.S. Court of Appeals for the Seventh Circuit upheld the law in its entirety in January 2013, reversing the lower court’s decision to invalidate parts of the law

September2012

• In a lawsuit brought by the Madison teachers union and a union for Milwaukee city employees, a Dane County Circuit Judge, Juan Colas, stated that Act 10 legislation violated the state and U.S. constitutions and ruled it null and void

Case 3

Case 4

• Governor Walker won that appeal and Act 10 was upheld July

2014

2 COURT CASES CHALLENGING SCHOOL DISTRICTS’ AUTHORITY TO ENTER INTO COLLECTIVE BARGAINING

AGREEMENTS

• KUSD negotiated their teacher contract during the time Governor Walker was awaiting the appeals verdict

• A former teacher contended the new contract was illegal and sued the KUSD Board with the help of Wisconsin Institute for Law & Liberty (WILL)

• In June 2014, the KUSD voted to settle the lawsuit that claimed the district violated Act 10 when it struck a labor agreement with teachers in November 2013

Kenosha Unified School District (KUSD)

Madison School District• in September 2014, the WILL, on behalf of Dave Blaska, alleged that the terms of the current

Madison teachers’ contract violated Act 10 laws• The district and Madison Teacher Inc. filed a motion to strike, on the grounds that Blaska was not a

district employee• WILL attorneys responded to that motion to strike saying, “Taxpayers have standing to challenge

any unlawful action by a government entity that results in the expenditure of public funds.”• The Madison teachers’ union has maintained that its contract is valid because it was reached after

Colas ruled against Act 10 and before the state Supreme Court reversed his decision• Their current contract runs through June 2016, and the case is still pending trial

IMPACT OF WI ACT 10 AND ACT 32Decrease in Employee Morale

• Complete swing in the pendulum that highly favors employer• Lack of trust, given the circumstances surrounding the passage

of WI Act 10 and the radical changes it brought• Lack of understanding, misinformation, and uncertainty

continues to plague district employers in their attempts to improve morale and climate

IMPACT OF WI ACT 10 AND ACT 32Need for Employee Handbooks

• Elimination of collective bargaining created the need for districts to establish employee handbook

• Development and implementation of an employee handbook proved to be a difficult undertaking for many school districts.

• Employees continue to question and resist the implementation of that handbook Very dependent on how districts approached the

development processo In districts where no input from staff was requested or

heard, resistance has been very higho In districts where input was requested, they have

experienced less resistance and more buy-in

IMPACT OF WI ACT 10 AND ACT 32Higher employee turn-over rates

• Teachers now able to act as free agents.• “We are definitely seeing more of a major league baseball type

of atmosphere. If you are a sharp teacher and/or in short supply, you are going to command a higher price.” – William Bracken, Paralegal & Labor Law Expert, Davis & Kuelthau Creates an interesting predicament for school districts.

o Trying to maintain a balanced budget while still offering competitive salaries to retain and attract quality teachers.

IMPACT OF WI ACT 10 AND ACT 32Easier for Employers to Make Benefit Changes

• All 5 interviewees listed ease in making benefits changes as a positive outcome of Act 10 and Act 32 Prior to Act 10, making any type of benefit change was extremely

difficult Insurance carriers raised premiums with relative confidence they would

be able to maintain their customer base. Rising premiums put some school districts in financially precarious

situations.• Passage of Act 10 eliminated the need to bargain over benefits

Gave district employers the long overdue ability to examine and bid out their benefitso Resulted in insurance carriers offering more competitive pricingo Single monthly insurance premiums decreased from $754, pre Act

10, to $665 in 2012-2013.o Family monthly insurance premiums decreased from $1,752, pre

Act 10, to $1,551 in 2012-2013

CONCLUSION

• Factors negatively impacting teacher morale and decreasing job satisfaction: Staggering changes triggered by WI Act 10 and WI Act 32 Political tactics Shrinking revenues and state aid Increasing demands on educators, like Educator Effectiveness

• Long-term impact: Difficult to attract high quality candidates into the education profession Create a shortage of teachers

• Districts’ board members and administrators need to lead professional educators through difficult times Manage these changes Find solutions Etablish safe and productive work environments Empower educators to make a difference in their classrooms

ThankYou!

References

Richards, E. (2014, October 9). Madison district, union lawyers seek dismissal of act 10 contractslawsuit. Milwaukee Journal Sentinel. Retrieved November 13, fromhttp://www.jsonline.com/news/education/madisondistrict-union-lawyers-seek-dismissal-

of-act10-contracts-lawsuit-b99367935z1-278650961.html

Ryan, S. (2013, January 18). Wisconsin law curtailing collective bargaining upheld on appeal. Milwaukee Business Journal. Retrieved fromhttp://www.bizjournals.com/milwaukee/news/2013/01/18/wisconsin-act-10-upheld-byfederal.html

The passage of the wagner act. (n.d.). National Labor Relations Board. Retrieved on November 8, 2014from http://www.nlrb.gov/who-we-are/our-history/1935-passage-wagner-act

Van Alstyne, S. (2011, February 24). Collective bargaining: What it is and its place inwisconsin’s history. International Foundation of Employee Benefit Plans. Retrieved fromhttp://www.ifebp.org/AboutUs/PressRoom/Releases/pages/pr_022411.aspx

Watchke, G.(1998). Qualified economic offer. Budget Briefs, 98(5), 1-2. Retrieved fromhttp://legis.wisconsin.gov/lrb/pubs/budbriefs/98bb5.pdf

Wisconsin collective bargaining. (n.d.). Ballotpedia. Retrieved fromhttp://ballotpedia.org/Wisconsin_collective_bargaining#cite_note-11

Zimmerman, A. (2013, January). State and local government employment relationslaw. Wisconsin Legislative Fiscal Bureau. Retrieved fromhttp://legis.wisconsin.gov/lfb/publications/informational papers/documents2013/97_state%20and%20local%20government%20employment%20relation%20law.pdf

References2011 Wisconsin Act 10. State of Wisconsin. Retrieved from

http://docs.legis.wisconsin.gov/2011/related/acts/102011 Wisconsin Act 32. State of Wisconsin. Retrieved from

http://docs.legis.wisconsin.gov/2011/related/acts/32.pdfGermanson, K. (n.d.). Milestones in wisconsin labor history. Wisconsin Labor History Society.

Retrieved from http://www.wisconsinlaborhistory.org/resources/milestonesGunn, S. (2013, Spring). First years of freedom: Wisconsin schools saving millions on health insurance

inthe act 10 era. Education Action Group News. Retrieved fromhttp://eagnews.org/wp-content/uploads/2013/04/First-Years-of-Freedom-report.pdf

Judge strikes down wisconsin law restricting union rights. (2012, September 14). NBC News. Retrievedfrom http://usnews.nbcnews.com/_news/2012/09/14/13868190-judge-strikes-down-

wisconsin-lawrestricting union-rights?lite

Marley, P. and Walker, D. (2011, June 14). Supreme court reinstates collective bargaining law.Milwaukee Journal Sentinel. Retrieved from http://www.jsonline.com/news/statepolitics123859034.html

McCartin, J. (2011, February 19). What’s really going on in wisconsin. New Republic. Retrieved fromhttp://www.newrepublic.com/article/politics/83829/wisconsin-public-employees-walkernegotiate

Mills, S. (2014, June 9). Kenosha school district settles lawsuit over alleged act 10 violation.Wisconsin Public Radio. Retrieved fromhttp://www.wpr.org/kenosha-school-district-settles-lawsuit-over-alleged-act-10-violation