FOP Impasse Hearing Board of County Commissioners April 20, 2010

1. FOP Impasse Hearing Board of County Commissioners April 20, 2010

2. Background Status of Union Negotiations Merit of Request Policy Impacts Budget Constraints Summary Presentation Outline

3. Presentation Outline • Background • Status of Union Negotiations • Merit of Request • Policy Impacts • Budget Constraints • Summary

4. Background Budgeted BCC Positions 7,284 UnionPositions: 3,673 Non-Union Positions: 3,611

5. Background Budgeted Union Positions: 3,673

6. Background 7% budget reduction by all departments Evaluating a reduction in leave accruals for new employees Considering Reduced Work Hours, Furloughs, Early Retirement Options Potential Layoffs

7. Background Hold the line: • On salary increases • On employee benefits • To ensure consistency across union/non-union positions 7,284 Union Non-Union

8. Background County Proposal Union Proposal • 0% Salary Increase • One Year Status Quo • 0% Salary Increase • Increased Leave Accruals = $2M BCC Decision

9. Background Reject FOP Proposal • Merit of Request • Long Term Policy Impacts • Budget Constraints

10. Presentation Outline • Background • Status of Union Negotiations • Merit of Request • Policy Impacts • Budget Constraints • Summary

11. Status of Union Negotiations Approach For FY 10 Contracts • One Year Duration • 0% Salary Increase • Remainder Status Quo

12. Status of Union Negotiations • April 2009: Original County Proposal • July 2009: Original FOP Proposal • November 2009: County Proposal • January 2010: Union withdrew July Proposal; County returned to Original Proposal • February 2010: Impasse Declared

13. Status of Union Negotiations • FOP and County Agree • Mostly status quo language • 0% pay increase • FOP and County Disagree • Article 25 - Leave

14. Status of Union Negotiations FOP Position • Increase Leave Accruals: • 7 Additional days off for new employees • 10 Additional days off for employees with 15+ years of service County Position • Don’t Increase Leave Accruals

15. Status of Union Negotiations What does 0% salary increase mean to FOP? • 20.92% contributed to Special Risk Retirement = approx. $10.5 million annually • County funded increased health insurance costs for 2009-10 = approx. $8.4 million • Other employee benefits

16. Presentation Outline • Background • Status of Union Negotiations • Merit of Request • Policy Impacts • Budget Constraints • Summary

17. Merit of Request • July 2007: Corrections implemented 12 hour shifts and leave accruals per BCC approval and union contract • January 2008: One FOP employee filed grievance based on leave accruals • April 2008: Grievance denied and FOP advanced to arbitration on behalf of all employees

18. Merit of Request • February & April 2009: Arbitration held • June 2009: Arbitrator ruled against FOP • County did not violate contract • Leave accrual approved by BCC in July 2007 is valid • “Of course with the switch from…8-hr to …12-hr shifts…employees actually have more days each year they are not scheduled to work, while receiving the same pay.”

19. Merit of Request Regular Employee • 8 hours a day • 80 hours every two weeks • 10 days every two weeks

20. Merit of Request Regular Employee • 8 hours a day • 80 hours every two weeks • 10 days every two weeks FOP Employee • 12 hours a day • 85.4 hours every two weeks • 7 days every two weeks

21. Merit of Request Schedules Regular 8 Hour Employee FOP 12 Hour Shift Employee Days Off 105 Scheduled Work Days 182 Days Off 183 Scheduled Work Days 260

22. Merit of Request • Time Off Not Reduced in Schedule Change Regular/FOP Prior to 12 Hour Shift Employees Current FOP Employees Worked Per Two-Week Pay Period

23. Merit of Request • Time Off Not Reduced in Schedule Change Regular/FOP Prior to 12 Hour Shift Employees Current FOP Employees Worked Per Two-Week Pay Period New Employee Annual Paid Time Off (Personal and Term)

24. Merit of Request • Time Off Not Reduced in Schedule Change Regular/FOP Prior to 12 Hour Shift Employees Current FOP Employees Worked Per Two-Week Pay Period New Employee Annual Paid Time Off (Personal and Term) 15+ Year Employee Annual Paid Time off (Personal and Term)

25. Merit of Request • Union Wants Significantly More Leave Current FOP Employee Proposed FOP Leave New Employee Annual Paid Time Off (Personal and Term)

26. Merit of Request • Union Wants Significantly More Leave Current FOP Employee Proposed FOP Leave New Employee Annual Paid Time Off (Personal and Term) 15+ Year Employee Annual Paid Time off (Personal and Term)

27. Merit of Request Internal Equity • 12 Hour Shift Employees • Annual Paid Leave Days (Personal and Term)

28. Merit of Request External Equity • Seminole County • Leave • Layoffs • No FY09 Wage Increases • No Paid Disability Insurance • No Longevity • No Shift Differential • No Added Health Insurance Subsidy • Career Ladder

29. Presentation Outline • Background • Status of Union Negotiations • Merit of Request • Policy Impacts • Budget Constraints • Summary

30. Policy Impacts Long-Term Policy Impacts • National trends are showing a reduction in public sector leave and employee benefits • February’s BCC discussion - Presented the need to right-size the County’s paid time off policy by reducing leave for new hires • FOP’s proposal is contrary to national trends and the County’s long term policy strategy for employee benefits

31. Presentation Outline • Background • Status of Union Negotiations • Merit of Request • Policy Impacts • Budget Constraints • Summary

32. Budget Constraints Budget Constraints • Increased FOP leave accruals including benefits approx. $2 million annually • Long Term – Exceeds $10 million over a 5 year period • Additional overtime costs • Impacts other union negotiations and employees

33. Budget Constraints • Record Rate of Foreclosures • Decline in Economic Activity • Decreasing Revenues • Increased Unemployment

34. Property Taxes Sales Tax Impact Fees Recording Fees Budget Constraints

35. Budget Constraints • Increased Expenditures • Operating Costs • Energy Costs • Benefits Costs • Delay in capital projects • Eliminating vacant positions • Salary increases on hold

36. Budget Constraints Rising Medical Plan Costs $96M $42M

37. Budget Constraints 7% budget reduction by all departments Evaluating a reduction in leave accruals for new employees Considering Reduced Work Hours, Furloughs, Early Retirement Options Potential Layoffs

38. Presentation Outline • Background • Status of Union Negotiations • Merit of Request • Policy Impacts • Budget Constraints • Summary

39. Summary FOP proposal for increased paid leave: • Fails on Merit • Inconsistent with long term policy strategy for employee leave • Costs $2M+ Annually

40. Summary • Request BCC reject FOP’s proposal for more paid leave • Fails on merit, is inconsistent with long-term strategy and budget situation • Not in the best interest of the public including the public employees involved

41. Board Action Requested • Request BCC to approve the County’s proposal on Article 25 – Leave • Keep current leave accruals