WHY DON’T WE HAVE ANYONE IN THE ROOM WHO CAN WORK A SPREADSHEET? Presented By: Mark T. Broth, Esquire

1. FINANCE AND ITS IMPACT ON LABOR NEGOTIATIONS WHY DON’T WE HAVE ANYONE IN THE ROOM WHO CAN WORK A SPREADSHEET? Presented By: Mark T. Broth, Esquire 111 Amherst Street Manchester, NH 03101 603.669.1000

3. SOME REALITIES • COLLECTIVE BARGAINING IS A FINANCIAL TRANSACTION • A UNION CONTRACT MAY CONTROL 75 PERCENT OR MORE OF A DEPARTMENTAL BUDGET • COLLECTIVE BARGAINING AGREEMENTS ARE BINDING AND ENFORCEABLE • AGREEMENTS MUST ALSO BE APPLIED IN THE CONTEXT OF “PAYROLL LAWS” • THIS IS A SERIOUS UNDERTAKING

4. AN EMPLOYER PLACES ITSELF AT A SIGNIFICANT DISADVANTAGE IF IT DOES NOT INCLUDE FINANCE IN THE BARGAINING PROCESS • HIRING A NEGOTIATOR IS NOT A SUBSTITUTE FOR INCLUDING FINANCE IN NEGOTIATIONS

5. LAWYERS AND HUMAN RESOURCE TYPES HAVE VERY LIMITED MATH SKILLS FOR LAWYERS--IF WE HAD ANY ABILITY TO DO MATH, WE WOULD HAVE GONE TO MEDICAL SCHOOL LIKE OUR MOTHERS WANTED. FOR HR TYPES—IF THEY COULD READ A SPREADSHEET THEY WOULD HAVE GONE INTO SOMETHING PRODUCTIVE NEVER DEPEND ON THE LAWYERS OR LABOR NEGOTIATORS TO BE THE ‘NUMBER CRUNCHERS’ IN NEGOTIATIONS. WE WILL EITHER SCREW IT UP, OR IT WILL BE UNREASONABLY EXPENSIVE.

6. ORGANIZING FOR NEGOTIATIONS “EVERY NEGOTIATION IS REALLY THREE SEPARATE NEGOTIATIONS” -------------------------------------------------- 1. NEGOTIATIONS BETWEEN AND AMONG MANAGEMENT 2. NEGOTIATIONS BETWEEN AND AMONG EMPLOYEES 3. NEGOTIATIONS BETWEEN MANAGEMENT AND EMPLOYEES

7. HOW MANAGEMENT NEGOTIATES WITH ITSELF FORGET “ECONOMIC” V. “NON-ECONOMIC” BARGAINING SUBJECTS EVERYTHING HAS ECONOMIC IMPACT REAL DISTINCTION IS BETWEEN “OPERATIONAL” AND “FINANCIAL”

8. OPERATIONAL THOSE THINGS THAT EFFECT THE DAY TO DAY FUNCTIONING OF A DEPARTMENT -WORK HOURS -OVERTIME ASSIGNMENT -WORK SCHEDULES -EQUIPMENT -CLOTHING AREAS WHERE THE DEPARTMENT HEAD (POLICE OR FIRE CHIEF, PUBLIC WORKS DIRECTOR) HAS EXPERTISE AND A VESTED INTEREST

9. FINANCIAL EVERYTHING ELSE

10. GOAL SETTING MEETING WITH DECISION MAKERS -HAVE A MEETING WITH ULTIMATE DECISION MAKERS WHO MUST APPROVE ANY TENTATIVE AGREEMENT REACHED AT BARGAINING TABLE -OBJECTIVE IS FOR THEM TO SET PARAMETERS FOR NEGOTIATIONS -PROVIDE THEM WITH FINANCIAL DATA (“FACT SHEET”) -ABSENT DATA, THEY WILL MAKE ANECDOTAL DECISION BASED ON PERSONAL EXPERIENCE OR PERCEPTIONS, RATHER THAN FOCUSING ON REAL COST DRIVERS

11. THE FACT SHEET -NUMBER OF EMPLOYEES -FULL TIME (BENEFIT ELIGIBLE) -PART TIME (NO BENEFITS) -BROKEN OUT BY NATURAL DIVIDER -E.G. POLICE OFFICERS, DISPATCHERS, CROSSING GUARDS

12. FOR EACH GROUP -AVERAGE NUMBER OF HOURS WORKED (STRAIGHT TIME) -AVERAGE NUMBER OF OVERTIME HOURS WORKED -COST OF 10¢ PER HOUR (INCLUDING OVERTIME AND PAYROLL TAXES) -COST OF 1% (INCLUDING OVERTIME AND PAYROLL TAXES) -COST OF ADDITIONAL DAY OFF -COST OF ADDITIONAL 1% EMPLOYEE CONTRIBUTION TO HEALTH INSURANCE PREMIUM - DIFFERENCE BETWEEN 1% INCREASE IN BASE PAY AND 1% INCREASE IN HEALTH INSURANCE PREMIUM (ASSORTED EMPLOYEES) -UNFUNDED LIABILITIES (CASH OUT OF ACCRUALS)

13. GOAL SETTING ON OPERATIONAL MATTERS - DEPARTMENT HEAD NEEDS TO EXPLAIN PROPOSED OPERATIONAL CHANGES - OPERATIONAL CHANGES REVIEWED FOR FINANCIAL IMPLICATIONS • UNDERSTAND SIGNFICANCE/PRIORITY RELATIVE TO ECONOMIC ISSUES

14. ASSEMBLE BARGAINING TEAM IDENTIFY LEAD NEGOTIATOR

15. WHO ELSE ON THE TEAM? Selectmen? Manager/Administrator? Department Head? Finance? ANSWER: It depends

16. ADVANTAGES TO EXCLUDING ELECTED OFFICIALS “PAY NO ATTENTION TO THE MAN BEHIND THE CURTAIN” WIZARD OF OZ “NEVER LET ANYONE OUTSIDE THE FAMILY KNOW WHAT YOU’RE THINKING” DON VITO CORLEONE, GODFATHER I

17. UNION PROPOSALS • Percentage wage increases as follow: 07/01/2010 = 3.5% 07/01/2011 = 3.5% 07/01/2012 = 3.5% 07/01/2013 = 4% 07/01/2014 = 5% • Promotional Process changed to a weighted system with top score getting position. Included in process are Detective, SRO, and Specialty Assignments. • Increase in uniform cleaning reimbursement by fifty dollars ($50) annually • Premium Pay if working alone – Double compensation • Premium Pay if other Town employees are sent home due to emergency conditions. Time and a half • Old Home Day ETO Guarantee – Ability to schedule off • Stipend or Comp time to people who have to maintain PT (physical training) certification or other such certification that requires outside time and effort • Stipend/differential for certification – FTO, Defensive Tactic, DARE, Drug Recognition Expert Power Phone, Instructional

18. UNION PROPOSALS • Increase Education Stipends: Associate to .25/hr, Bachelor to .40/hr, and Master to .50/hr • Able to use Sick Pool after three (3) days out, not seven (7) • Designate one week a year as Officer Appreciation • Redefine Special Teams Policy (including but not limited to reassignment, scheduling, cruiser assignment, and case assignments) in order to establish a consistent level of opportunity for all Union members • Modify Article 1/Section 1 to include the VWA (Victim Witness Advocate) as being included in the bargaining unit • Include VWA in the Uniform Allowance (under plain-clothes-duty) and/or the Cleaning Reimbursement for professional clothing worn to court • Establish the VWA position in the Salary Schedule/Pay Matrix • Include the VWA and Secretary positions in the eight (8) hour work day instead of the either and one half (8.5) hour days as they are also “on call” during lunch period and must respond to phone calls, people in lobby, and/or large court dockets • Five (5) year agreement • Detail Hourly Rate: Year 1 - $38, Year 2 - $39, Year 4 - $40, Year 5 - $42

19. UNION PROPOSALS • Increase shift differentials • Allow employees to donate ETO to other Association members in time of need • Court time guarantee increase to four (4) hours • Double time on Old Home Day if forced to work • The Town shall work in cooperation with the Union to develop and implement a program to insurance the usage of details for al roadside work. • Reimbursements for time spent on training homework • Any employee ordered in shall receive premium pay for the shift • Add Memorial Day, Mother’s Day, and Father’s Day to Holiday list (Double time) • 3:1 ratio on Sick Pool contribution • The Town shall make available payroll deduction for D.R.I.V.E. • Change address of to P.O. Box • Increase opt out for health care to five thousand dollars ($5,000) annually • Longevity Pay to increase to $500, $750, $1000, $1500 respectively • Increase life insurance to be equal to one year’s salary • Town shall deduct initiation fees as well as dues, and they shall be remitted to the Union prior to the 20th of the month

20. UNION PROPOSALS • Renew all side letters, addenda, letters of agreement, etc. • Change all dates to reflect new agreement • A Comprehensive Healthcare proposal will come under separate cover at a later date THE UNION RESERVES THE RIGHT TO ADD TO, DELETE FROM, AND/OR MODIFY THESE PROPOSALS AT ANY TIME DURING THE COURSE OF NEGOTIATIONS

21. TOWN’S RESPONSE TO UNION’S PROPOSAL Over the last few weeks, Town officials have met extensively to review and discuss the Teamster’s June 9, 2010 proposal. The following report represents a summary of the cost of each item, along with the Town’s position. Over the 5-year proposed contract period, the package, which includes increases in wages, uniform cleaning, education stipends, details, shift differential, overtime holiday pay, longevity, life insurance, etc. is estimated to cost a total of $497,888.03to taxpayers. This amount, in our opinion, far exceeds all reasonable thresholds given general market conditions, the state of the economy, and our local unemployment rate, which is one of the highest in the state. The following table reflects a summary of the costs of the proposal:

22. .75 .4 .1 .1 .3 .5 .4 .3 .1 .35 .45 .2 .6 4.55

23. 29 CFR § 778.211(c) … any bonus which is promised to employees upon hiring or which is the result of collective bargaining would not be excluded from the regular rate under this provision of the Act. Bonuses which are announced to employees to induce them to work more steadily or more efficiently or to remain with the firm are regarded as part of the regular rate of pay. Attendance bonuses, individual or group production bonuses, bonuses for quality and accuracy of work, bonuses contingent upon the employee’s continuing in employment until the time the payment is to be made and the like are in this category. They must be included in the regular rate of pay.