Working together to Working together to achieve our mission and - PowerPoint PPT Presentation

Plain Local Education Association Working together to Working together to achieve our mission and address achieve our mission and address our financial challenges our financial challenges June 22, 2011 June 22, 2011

Purpose of Presentation Purpose of Presentation • Clarify the details and address questions of Clarify the details and address questions of • the revised contract proposal and related the revised contract proposal and related cost savings. cost savings. • Share our efforts to advance our mission Share our efforts to advance our mission • while seeking reduction of expenditures. while seeking reduction of expenditures.

Clarifying Wages Clarifying Wages • Previously-negotiated wage increases of 3% on the starting base salary* for FY12 will be reduced to 1% per year through 2014. • Over the course of the three-year agreement, this change will save the District $583,698. * Wage increases are based on the starting base salary ($41,614).

Clarifying Step I ncreases Clarifying Step I ncreases • In the current agreement, step increases are part of a salary index that are calculated on the starting base salary ($41,614) and range from 4% to 5.4% per year. • In the revised agreement, each salary index will be reduced by two percentage points per year, equaling 2% to 3.4%. • Overall, the new schedule reduces the rate of salary growth for existing certificated employees, and reduces the starting salaries for new hires over the three-year contract period. • This contract revision results in a savings of $799,428 over the next three years.

Clarifying Health Care Clarifying Health Care • The revised agreement limits health care cost increases to 9% or less annually, (down from 12%). Parties agree to redesign benefits as necessary to meet this goal. • Employees will pick up a greater cost for co-pays, deductibles for family coverage, and out-of-pocket coinsurance expenses. • Premiums paid by single-coverage insureds (non-family plans) will increase from a 90 -10% employee-paid contribution to a 85-15% employee-paid contribution. • This contract revision results in a savings of $307,905 over the next three years.

SB 5 Possible Scenarios SB 5 Possible Scenarios SB 5 Passes + SB 5 Fails + No Agreement after FY12 No Agreement after FY12 Full FY 12 + 0% raises and Full FY 12 + 1% raises and 0% steps in FY13 & FY14 full steps in FY13 & FY14 FY12 = $10,280,944 FY12 = $10,280,944 FY13 = $ 967,858 FY13 = $ 9,644 FY14 = -$7,400,209 FY14 = -$10,490,173 SB 5 Passes + PLEA Agreement 1% raises & reduced steps in FY12, FY13, and FY14 FY12 = $11,117,174 FY13 = $ 2,131,094 FY14 = -$ 6,677,692

Comparing Current and Revised Agreement FY12 FY13 FY14 FY15 FY14 Balance Current 3% 0 - ? 0 - ? 0 - ? $ -7,400,209 Contract Revised 1% 1% 1% 0 - ? $ -6,677,692 Contract Yellow bar indicates the end of the a contract period

Clarifying Collective Bargaining Clarifying Collective Bargaining • Collective Bargaining follows a process outlined by the State Employment Relations Board and this statute requires that bargaining be conducted in private. • The Board is elected to represent the community’s interest at the bargaining table.

Creating the Future Together Creating the Future Together The Agreement achieves two key goals: • Provides immediate savings and controls long term wage growth to help address revenue reductions. • Reinforces a positive and collaborative partnership to pursue the district’s mission and vision to reinvent education.

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