CONSIDERATIONS IN NEGOTIATIONS A REVIEW OF PREPARATION, PROCESS AND CURRENT ECONOMIC CIRCUMSTANCES FACING NEW JERSEY PUBLIC SCHOOL DISTRICT NEGOTIATIONS
PRESENTATION OBJECTIVES To facilitate communication between the Board of Education and the public 1. Allow people to understand the collective bargaining process 2. Identify economic challenges facing New Jersey public school districts today 3. To answer any questions involving the collective bargaining process 4. Remove any confusion about the facts surrounding collective bargaining 5.
PRESENTATION DISCLAIMER New Jersey Statue does not permit the Board of Education to reveal or discuss the actual proposals or items 1. being negotiated during a collective bargaining negotiations between two parties, unless the both parties agree to do so. Note: The Clinton T ownship Board of Education offered the Clinton T ownship Education Association (CTEA) the 1. opportunity to negotiate in public in December 2016. The CTEA declined. The content included in this presentation WILL NOT reveal any specifics related to actual proposals or items 2. being negotiated at this time between the Board of Education and the Clinton Township Education Association (CTEA). The confidential nature of these negotiations WILL NOT be broken. 3. The Board of Education and its representatives only will answer any question that is permitted by the law. 4.
AGENDA Introduction Overview of Collective Bargaining in New Jersey Vito Gagliardi Jr., Board Legal Counsel - Porzio, Bromberg and Newman PC Board Preparation for Collective Bargaining Process Alissa Olawski – Chairperson - Personnel, Negotiations Committee Key Components and Considerations in Negotiations Maria Grant – Chairperson, Negotiations Kevin Maloy – Chairperson - Facilities and Finance, Negotiations Committee Rising Healthcare Costs – Premiums Brian Rizor – Senior Vice President, Employee Benefits - Brown & Brown Benefit Advisors Salary Guide Structure and Considerations Phillip E. Stern – Board Labor Representative - DiFrancesco, Bateman, Kunzman, Davis, Lehrer & Flaum, PC Current Negotiation Status – Board of Education and Clinton T ownship Education Association Basic Question and Answer about Current Negotiations
OPENING COMMENTS AND INTRODUCTION MARIA GRANT, PRESIDENT, CLINTON TOWNSHIP BOARD OF EDUCATION - CHAIRPERSON
WHY WE NEGOTIATE VITO GAGLIARDI JR., BOARD LEGAL COUNSEL - PORZIO, BROMBERG AND NEWMAN PC
REASON WHY WE NEGOTIATE Profound Effect on School Management Dictates over 70% of a school district’s budget. 1 Affects personnel policies. Impacts District’s ability to implement its educational program. Board cannot change certain terms and conditions of employment without negotiations with the union. 1 AN OVERVIEW OF THE BOARD'S COLLECTIVE NEGOTIATIONS OBLIGATIONS, NEW JERSEY SCHOOL BOARDS ASSOCIATION, AVAILABLE AT WWW.NJSBA.ORG/WP-CONTENT/UPLOADS/2016/04/NEGOTIATOINS ADVISOR BOARDS COLLECTIVE BARGAINING OBLIGATION.PDF
WHAT IS COLLECTIVE BARGAINING Good Faith Bargaining Joint-decision making process Eliminates Board’s ability to unilaterally determine certain employment issues Bargaining Unit Negotiate with union representatives, never individual employees Mandatory T opics of Negotiations Intimately and directly affects employees’ work and welfare Not preempted by statute or regulations Would not significantly interfere with management’s inherent rights
APPLICABLE LAWS Public Employment Relations Act Employees have right to: Form a union Initiate grievances Collectively negotiate Collective Negotiations Meet at reasonable times Negotiate in good faith Agreement must be included in a signed, written contract Board cannot change certain work rules without negotiations Enforced by the Public Employment Relations Commission (PERC)
WHO REPRESENTS THE BOARD Negotiations T eam Composition • Board members Professional negotiator Superintendent/Business Administrator (advisors) Role Prepare Board’s proposal Negotiate with union Sign tentative agreement (Memorandum of Agreement) Full Board Set direction for the process and outcome of negotiations Establish parameters for a settlement
STAGES OF NEGOTIATIONS 1. Good Faith Negotiations 2. Impasse Declared Further meetings will be unproductive 3. Mediation Third party neutral is assigned Makes nonbinding recommendations 4. Fact Finding Publically issues written, nonbinding recommendations 5. Super Conciliation Publically issues written, nonbinding recommendations
BOARD PREPARATION FOR NEGOTIATIONS ALISSA OLAWSKI – CHAIRPERSON OF PERSONNEL AND NEGOTIATIONS COMMITTEE
BOARD PREPARATION FOR NEGOTIATIONS General Notes – Board Preparation The Board spends in excess of 60 hours to prepare for the collective bargaining process. Preparation for negotiations begins in the fall before the contract expires. Board President assigns a negotiations committee after the re-organization meeting held during the first week of January.
BOARD PREPARATION FOR NEGOTIATIONS Step 1 - Obtain Labor Counsel Identify Candidates Negotiations Committee Conducts Interviews Committee Recommends Its Choice for Labor Counsel to the Full Board Board Votes to Approve or Not Approve the Candidate Step 2 – Review Current Contract Identify contract articles that need to be updated as a result of new laws, mandates or processes that would positively or negatively impact classroom education Step 3 – Review Current Contract with District Administration Review contract with superintendent to make sure it complies with policies, procedures, operations, educational programs and processes, professional development days required, and length of school day, week and year.
BOARD PREPARATION FOR NEGOTIATIONS Step 4 – Conduct Secondary Research Review, Compare and Document Contract From “Like - Districts” & Districts in Hunterdon County (Same Enrollment Size, K-8, District Factor I Group) Salary Percentage Increases Additional Instructional Time Higher Co-Pays Benefit Packages & Increases Increase in Length of School Day Increase in Deductible Professional Development Days Additional Parent Conference in Day or Sick Bank Evening
BOARD PREPARATION FOR NEGOTIATIONS Step 5 – Identify the Current Structural Costs of the Existing Contract Benefits, Sick Bank, Increment Cost, T otal Salary Cost Step 6 – Meet With Board - Approved Experts NJSBA – Contract Review NJSBA – Salary Guide Review Insurance Consultant – Brown & Brown
BOARD PREPARATION FOR NEGOTIATIONS Step 7 – Develop Proposals Step 8 – Negotiations Committee Reviews Data with Full Board and Makes a Recommendation Step 9 – Discussions Occur in Executive Session and Board Provides Guidelines to the Negotiations Committee Step 10 – Committee Provides the Status of Negotiations On a Constant Basis
KEY COMPONENTS AND CONSIDERATIONS IN NEGOTIATIONS MARIA GRANT – CHAIRPERSON, NEGOTIATIONS
GENERAL CONSIDERATIONS FOR NEGOTIATIONS General Considerations Across All Disciplines T eachers, teaching assistants, school guidance counselors, long term substitutes, school nurses, school psychologists, learning disabilities teacher consultants, school social workers, occupational therapists, physical therapists, speech therapists, behavioral specialists, custodial and maintenance staff, and secretaries. Length of Contract (3 or 4 Professional Development Work Day, Week, Year years) Black Seal License Certifications for T eaching Tuition Reimbursement programs Assistants eacher Evaluation Program Holidays T Employee Leave Situations (Child Care Leave, Emergency Leave of Absence, Disability Leave/Family Leave Sick Bank Process Grievance Process Stipends for Extra Curricula Activities
KEY FINANCIAL COMPONENTS AND CONSIDERATIONS IN NEGOTIATIONS KEVIN MALOY – CHAIRPERSON, FACILITIES AND FINANCE – NEGOTIATIONS COMMITTEE
FINANCIAL CONSIDERATIONS Comparison Staff Salary and Impact on Budget 2016-17 and 2017-18 February 23, 2017 Scattergram for CTEA Members is $12,945,918 as of the signed agreement with the Board 2% General Fund Tax Levy CAP Increment Cost to the District Current and Future Healthcare Benefit Structure/Options and Associated Costs Contribution percentages for the employee and District Impact of Pending Cadillac Tax Cost of Sick Bank (compensated balances) Tuition Reimbursement
BUDGETARY FINANCIAL CONSIDERATION FOR NEGOTIATIONS COMPARISON STAFF SALARY/BENEFITS & BUDGET ALLOCATIONS 2016-17 2017-18 8% 8% 15% 13% 77% 79% Salaries Required Variable Salaries Required Variable
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