Preparing Fact Finding Presentations & Reviewing Recent Reports February 11, 2011

1. Preparing Fact Finding Presentations & Reviewing Recent ReportsFebruary 11, 2011 Tom White Associate Director, Labor Relations

2. Fact Finding What is it? A step in the process of labor relations… • Negotiations • Mediation • Fact finding • Impasse/Implementation

3. Fact Finding What is it? Quasi-judicial hearing by a third party neutral to hear the issues and arguments in a labor contract dispute and render a public report with recommendations from the fact finder for reaching a settlement.

4. Fact Finding • The report is a set of recommendations • It is NOT binding • The state pays the fact finder’s fee but you pay for your representation and preparation costs

5. Fact Finding Why is it important? • Strategic value • Face saver • New look at old issues • Provides political leverage • Part of the process for settling contract or reaching impasse

6. Fact Finding • Not extensively used in the past • May be time to reconsider its value/usefulness • The economy and “facts” are generally in management’s favor • However, it is time consuming! • Preparation • Lengthy and expensive hearings

7. Fact Finding • Who are “fact finders”? • Arbitrators or labor experts, often attorneys • May or may not know about how schools operate and are funded • MERC keeps a list

8. Fact finding • The process for getting there • Negotiated for a “reasonable” period • After mediation has failed • Make application to the state through MERC • MERC sends you 5 names – strike the “unacceptable” names, rank order remaining and submit back • MERC picks fact finder based on Mgmt and Union responses

9. Fact Finding Process • It may take 3-4 weeks to hear back from MERC • Scheduling a date can take another 4-8 weeks • May take more than one day of hearing • 30-60 days to issue a report following the hearing

10. Fact Finding Process after selection of fact finder • Contact fact finder • Confirm process they wish to use for hearing • Check MERC Web site or call MASB for prior cases by the same fact finder

11. Fact Finding Process • Set up like a typical hearing, but normally less formal • Use written exhibits and expert testimony to make your case • Union will bring in “experts” to assist and you should too!

12. Fact Finding The Hearing • Conduct of the hearing depends largely on the fact finder • Some are very formal, others not • Ask him/her in advance how the hearing will be conducted

13. Fact Finding Preparing Your Case and Exhibits Decide on themes • Ability to pay • Fairness • Problem solving Develop a “story” around the themes, and use exhibits to tell

14. Fact Finding Preparing Your Case and Exhibits • Show trends over time • Salaries and Fringes– 10 year trend • Cost per employee per year • Expenditures per pupil each year • Employee moving through salary schedule

15. Fact Finding Preparing Your Case and Exhibits • District Financials • Audit summary • History of fund balance • Explain a fund balance • Revenue and/or Expenditure Issues • Use expert testimony/”impartial” support to make your points

16. Fact Finding Preparing Your Case and Exhibits • Financials • Consider expenditure comparisons using Bulletin 1014 data • If claiming inability to pay, list all the efforts to save costs you have already implemented

17. Preparing Exhibits Generally • Background on your community • Summary of how school funding works • All districts do not receive same • The status of school funding in Lansing • Specific Issues in your situation • Bargaining history • Your rationale and supportive documentation

18. Fact Finding Types of Exhibits • Comparative data • Comparable schools districts • Other employees in your district • Public sector in your area • Private sector in your area

19. Fact Finding Types of Exhibits Economic data • School Aid issues • Local property values/issues • Michigan’s economy • Trends in pupil count

20. Make it YOUR Story • Let the Fact Finder know where you are.

21. Make it YOUR Story • Provide a summary of the demographics of the school district community. • Remind the Fact Finder of your focus … brag a little about student achievement.

22. Make it YOUR Story • Use local media. • “Districts Still Losing Students” (Escanaba Daily Press, March 13, 2008) • “Board Cuts 14 Jobs to Keep Doors Open” (The Houghton Lake Resorter, 1/12/06) • “Laingsburg Institutes Pay to Participate” (The Owosso Argus-Press, April 17, 2008) • “Cheboygan Hospital Cuts Nine Staff Positions” (Cheboygan Daily Tribune, November 11, 2008) • “Nearly 7,500 in County to Get Help with Food Bill” (Sturgis Journal, October 22, 2006) • “Jobless Rates Hit Double Digits Here” (Kalamazoo Gazette, January 30, 2009) • “Food Pantries Feeling Effects of the Economy” (River Country Journal, December 23, 2008) • “Georgia-Pacific Plant Closing Eliminates 210 Jobs” (Gaylord Herald Times, 3/6/06)

23. Risky Assumption • Do not assume the Fact Finder is knowledgeable regarding school systems and public school financing in Michigan.

26. Current Status at the Bargaining Table • Provide a summary of agreements reached in this round of bargaining. • Summarize current proposals.

27. Context • Show previous salary increases.

28. Context • Demonstrate the cost of step increases (yes, a step increase is a “raise”). SUMMARY: 35 teachers received a salary step increase, with an average increase of $3,142 (an average of 6.3%)

29. Context • Track one teacher as an example. • The following is an example of total percent increases in salary for a Sampleville teacher, based on the following : • Teacher hired at beginning of 1991-92 school year • Teacher received 20 credits beyond the bachelor's degree, • effective 6th year • Teacher received Masters degree, effective 11th year

30. Context

31. Context • Show previous salary increases compared to C.P.I.

32. Context

33. Context • Show previous employee contribution to health insurance premium.

34. Internal Comparable Data

35. External Comparable Data • Consider using MDE’s Bulletin 1014 (which uses actual dollars paid for teacher salaries).

36. External Comparable Data

37. External Comparable Data

38. External Comparable data

39. Michigan’s Economy • Citizens Research Council of Michigan • Regional Media • “Granholm to Slash Budget as Economy Worsens” (The Detroit News, November 7, 2008) • “State Tries to Craft Budgets Amid Economic Uncertainty” (Crain’s Detroit Business, November 16, 2008) • “2009 Could Bring Further Economic Turmoil” (The Detroit Free Press, November 16, 2008)

40. Local Economy • Bureau of Economic Analysis (U.S. Department of Congress)

42. District Finances • Foundation Allowance Trend

43. District Finances • Revenue and Expenditures Trend

44. District Finances • Revenue Loss Due to Enrollment Decline

45. District Finances • Insurance Premium Trend

46. District Finances • A great summary: “Simply put, our financial obligations have increased dramatically and our revenue hasn't.” The source? MEA “Answers to Your Questions about Budget Crisis” MEA Voice (April 2003)

47. District Finances Oh, and by the way … MEA’s 2008 LM2 Report (submitted to the U.S. Department of Labor), indicates that MEA received (in “other receipts”) … $4,268,449 from MESSA

48. Financial Impact of Proposals • Fund Balance Target • MSBO: “15 to 20%” • Your Auditors’ Recommendation

49. Financial Impact of Proposals • District’s Fund Balance Trend …