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Michigan Association of School Administrators Fall Conference September 24, 2008 Public School Bargaining in Michigan:

Michigan Association of School Administrators Fall Conference September 24, 2008 Public School Bargaining in Michigan: CURRENT TRENDS. Carl Hartman MASB Director of Superintendent Searches & Field Services Peter Silveri MASB Labor Relations Consultant. 5 General Trends. ISSUES

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Michigan Association of School Administrators Fall Conference September 24, 2008 Public School Bargaining in Michigan:

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  1. Michigan Association of School Administrators Fall ConferenceSeptember 24, 2008Public School Bargaining in Michigan:CURRENT TRENDS Carl Hartman MASB Director of Superintendent Searches & Field Services Peter Silveri MASB Labor Relations Consultant

  2. 5 General Trends • ISSUES Continuation of Health Insurance and District Finances as the Predominant Issues • STRATEGY More Extensive Use of Data at the Table • TONE More Adversarial Bargaining • TIME Prolonged Rounds of Bargaining • SETTLEMENTS More Complex Financial Packages

  3. HEALTH INSURANCE SSome (limited) progress on health insurance cost controls: Breaking the barrier of premium co-pays • Various co-pay models • Sometimes phased in Movement to “lesser” plans • Different carrier / third party administrator • Same carrier/TPA, higher co-pays & deductibles

  4. HEALTH INSURANCE • Movement to HRAs and HSAs • Often implemented first with non-teaching staff • Agreements containing other financial concessions in lieu of insurance concessions

  5. District Finances • Context: a structural deficit in Michigan, no quick fix in sight • Focus at the table = Fund Balance • Total Compensation • (first the hard part:) agreement on “affordability”… • … followed by agreement on where to spend

  6. Use of Data More extensive use of data in the early stages of bargaining … such as …

  7. Use of Data

  8. Use of Data

  9. Use of Data

  10. Use of Data

  11. Use of Data

  12. Use of Data

  13. ADVERSARIAL BARGAINING • Negative tone at the table • Unfair Labor Practice charges • Union going to the public … • Informational picketing • “Board refuses to bargain in good faith” • “Manufactured budget crisis” • Statement shirts at board meetings • Votes of “no confidence” in the Superintendent • But … little traction with these techniques

  14. Prolonged Bargaining • More instances of starting “without a contract” • Amicable extension agreements to wait for: • Financial audit • Fall count day • Legislative action • Less open-ended extensions • More instances of impasse, leading to …

  15. Prolonged Bargaining • Mediation • No cost • Non-binding • Confidential • Fact Finding • Expensive • Non-binding • Recommendation is a public document • Implementation • Proceed with caution • Does not end bargaining

  16. COMPLEX PACKAGES • Salary and insurance routinely packaged • Salary… • On-schedule vs off-schedule • Percent vs dollar amount • Increases often phased in • Increases tied to other factors • Insurance… • Complex premium co-pays • Changes often phased in Some examples …

  17. COMPLEX PACKAGES • 2008-09 • $500 off-schedule for top-of-scale • Keep MESSA Choices, move to 10/20 prescription co-pay 1st semester, $10 office visit 2nd semester • 2009-10 • 0.75% off-schedule effective beginning of school year • Additional $250 off-schedule for top-of-scale • 1% on-schedule for all effective 2nd semester • Keep MESSA Choices, move to 100/200 deductible

  18. COMPLEX PACKAGES • 2008-09 • 2 steps added to re-indexed salary schedule • 1.5% then added to salary schedule • District pays for insurance increase up to 3%, teachers pay 50% of insurance increase 3% to 8%, teachers pay 17.5% of insurance increase over 8% • 2009-10 • 1% on-schedule salary increase • 20th step added (longevity), $500 above MA max • Insurance re-opener

  19. COMPLEX PACKAGES Simple district-to-district comparisons have become impossible

  20. 5 General Recommendations • ISSUES Make district finances the only issue. • STRATEGY Be proactive in using data at the table. • TONE Be ready, and defend the Board aggressively. • TIME Be patient, and be strategic. • SETTLEMENTS Be creative.

  21. QUESTIONS… For further questions, or to discuss how MASB can help support you in the bargaining process: Carl Hartman chartman@masb.org 517.327.5923 Peter Silveri masb-silveri@wowway.com 734.812.2384

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