Sunday, February 27, 2011

Breaking news...

The MGEA has ratified the contract agreed to earlier today by the board. This contract is for the 2009-2011 school year and will expire June 30th.

The contract mostly maintains the status quo to allow us to complete the year in an orderly fashion even if the current budget repair bill passes. Hopefully it will give us enough time to deal with the implications of the yet to be released state budget and make layoff and staffing decisions with enough knowledge to minimize disruption. The same is true of senior teachers with the option to retire. It also minimizes risk: in the absence of a contract we would be governed only by the complex state statutes if the "budget repair bill" becomes law, and there is a risk that any disputes would end up in litigation without this settlement.

The agreed upon contract provides for 0% salary increase in the first year (2009-10) and 1% in the current year. This is significantly less than inflation and saves the district money relative to what had been budgeted.  Given that the MGEA would retain the right to negotiate salaries up to the rate of inflation under the "budget repair bill' this is probably a deal for the district.  A teacher who started in the district this year with a bachelors will receive $31,695 in salary (including the new teacher stipend), a teacher with a master's and 16 years experience will receive $51,717.

 The contract makes no movement on our OPEB ("Other Post Employment Benefits") liability, but because it only extends through June and it was unlikely we would have made changes to the retirements retroactive this won't impact the bottom line.

The long sticking point over the negotiations to this point has been the OPEB liability. The MG district has OPEB benefits that are much higher than our peer districts. The major cost was due to generous retirement health care benefits which were first negotiated decades ago at a time when health care was cheap. The rapid growth of health care costs had not been anticipated. The other part of the OPEB benefits is the TEP - a payout equal to the one year's salary. The TEP was originally implemented to reduce district costs by encouraging higher paid senior teachers to retire, however the high costs of health benefits in retirement now makes this less of a deal for the district.

It is past time to adjust these OPEB benefits to be more in line with other districts': The board's proposals did reduce the OPEB benefits considerably, by $200K or more per teacher - and as such were understandably difficult for the MGEA to swallow. Although we hadn't reached an agreement (and were in the process of arbitration) I feel we had made significant progress and both sides were finally at least reading from the same page. These issues will have to be resolved by the board or in negotiations (depending on what happens with state law) during the next biennium.

I do feel that this agreement has been reached at the point of a gun, and that is not an environment conducive to developing the cooperative relationships we need to move forward. But I do want to thank Superintendent Gerlach and the MGEA negotiations team for the difficult work necessary to move this forward in the last few days.

30 comments:

Anonymous said...

good for you and the board-the chaos that he has tossed so many people into-tells you a lot about him.

Anonymous said...

It is BS that you gave them a raise. WRONG.

Anonymous said...

Teachers are not the enemy - corporate america (who created this recession) is now making RECORD profits (and receiving RECORD taxpayer bailout) utilizing workers educated by american teachers - and you begrudge them what is actually a salary CUT after inflation?

Anonymous said...

"It is BS that you gave them a raise. WRONG."

oooh my gosh a 1% raise.

Anonymous said...

I'm with 10:18 AM anonymous. I work in the private sector, we've taken pay CUTS - why do teachers get a free pass to keep up with inflation? All the taxpayers like me who have taken pay cuts can't afford the tax increases that are required to keep paying increases to teachers!!

All the union bosses are full of hot air - any MG teacher who protested at the Capitol and is talking about how they are willing to make the financial sacrifices that Walker is asking for have just been proven as liars.

Anonymous said...

Ok - in exchange for cuts for teachers now would you commit to raises for teachers equal to yours whenever you get them? Its only fair, and teachers would JUMP at the chance to keep up with private sector salaries over the long term.

So would you?

Anonymous said...

If we want to make public sector jobs exactly like private sector, we'll have to increase the total of pay and benefits by about 4%, before we let it follow market forces. That's about how much less they make, even with their 1% raise.

If we switch their portion of benefits to what's common in the private sector, we'll have to increase their pay by about 20% to make it comparable.

Anonymous said...

We ain't seen nothin' yet folks. Wait until the budget comes out.

Anonymous said...

seriously, the amounts of cuts to the education budget as well as medicaid. It will be awful.

Anonymous said...

" I work in the private sector, we've taken pay CUTS"

You need a union, because I bet the owners didn't take a pay cut

Anonymous said...

"It is BS that you gave them a raise. WRONG."

I have two responses to this:

1) Tell it to the governor who is pushing a political bill without regard or consideration for the havoc it would cause all across the state. Its this that created the need for this settlement.

2) If, after reviewing WI statutes 111 and 118 governing employment relations and general school operations, the district budget and operations, and consulting with legal counsel experienced in Wi public employee relations, you can find a way likely to result in a better deal for the district - please let me know. I'd be happy to consider it.

Anonymous said...

WAKE UP! This bickering between middle class private sector and public sector workers is exactly what these corporate SOBs want. We are playing into their hands. This country is going in a wrong-headed and dangerous direction. Cut schools, cut access to health care and while giving tax breaks and person-hood to corporations and the wall street cronies get huge bonuses.

Anonymous said...

Well...1% is a lot better than the -3.2% that I got. How is this justified?

Anonymous said...

A 1% raise is NOT a pay raise, it is a pay cut. I know economics is not a strong suit of the right wing in WI, which is why its so important to have good teachers!

Anonymous said...

"Well...1% is a lot better than the -3.2% that I got. How is this justified?"

In exchange for cuts now, would you commit to raises for teachers equal to any raise you get in the future, even if it means a referendum?

Anonymous said...

I urge the parents and community members to wake up, the new budget is a bomb and time is ticking.

For those with kids, the schools are going to need to become privatized. That means you will be paying tuition for your child to be enrolled.

For those without kids, along with those with kids, your property values relative to community schools and value are going to plummet.

For those with business, the public sector union employees will have very little if any discretionary money to spend. Those with kids are going to be paying tuition to the tune of thousands a year.

Look at the BIG PICTURE and get invovled for the community you would like to see.

Also, a 1% raise over two years is hardly a raise with the cost of living. Have you purchased a gallon of gas or a milk lately?

Anonymous said...

to all of you (or maybe it's just one of you) who keep saying that a 1% raise is really a pay cut. Get a GRIP. So, by your math, my 5.2% pay cut over the last three years is wholly devastating. Again, get a grip. You make changes to live within your means. There are a lot of public workers afraid of having to live within their means, but the time has come.............

Anonymous said...

Dear 9:27 poster,

That's all well and fine. But when the economy starts roaring again under the Republican plans you apparently have been suckered into supporting, and you receive the huge increases in pay and benefits you apparently believe you will get (because why else would you support tax breaks for wealthy corporations who are going to create all these groovy jobs), will you then support raises and benefits for public workers? Because we should all rise and sink together, right?

Anonymous said...

"There are a lot of public workers afraid of having to live within their means, but the time has come............."

Do you actually know any teachers? The ones I know live in fairly modest houses, drive cars that most folks do (one of the chief negotiators for the MG teacher's union drives a car so old it's amazing it's allowed on the road), and take vacations to a family cabin up north, or head to the Dells for a few days. They aren't getting rich; they're not poor, but they pretty much define what it means to be middle-class these days.

Yes, there is more job security in the public sector. Wages tend to be more stable. Health and retirement benefits are solid and secure.

But public workers often accept -- and yes, bargain for -- those conditions in return for the things you can't offer in the public sector. There is no discounted stock options in the public sector, as you find in many private (and forward-thinking) companies; no year-end bonuses in good years or for exceptional performance; no profit-sharing when the company does exceptionally well; less opportunity for advancement up the corporate ladder for higher wages and benefits; fewer opportunities to jump ship and join a company willing to pay better and offer more; fewer (generally) golden parachutes (MG actually being an exception with its TEP payout).

Those in the public sector know this, of course, and willingly trade in on it in exchange for a different kind of economic benefit, one often rooted in security and not really money. And you can argue all you want about the implosion of the private sector in the last few years, but private-sector workers had it pretty good for roughly 20 years prior to the onset of the current recession two years ago.

There is a lot to quibble with about the current state of unions, and in particular teacher's unions, and especially with the MGEA (whose leadership -- not the rank-and-file, but leadership -- has been absolutely myopic about how this all came about). But to suggest teachers in the main are greedy, or somehow ungrateful to those of us who pay for their salaries and benefits, or don't live within their means, is simply uninformed opinion.

Anonymous said...

"But to suggest teachers in the main are greedy, or somehow ungrateful to those of us who pay for their salaries and benefits, or don't live within their means, is simply uninformed opinion."

No, it is an opinion of a very angry person.

Anonymous said...

re:"Well...1% is a lot better than the -3.2% that I got. How is this justified?"

It wouldn't be justified if you are a teacher, but since it sounds like you work in another industry, what happened to you isn't related to what teachers got.

Do you have to go back to school every year to keep your job, and pay for it out of your own pocket?

Do you have to buy office supplies for 20 coworkers?

Did you spend the late 90's getting 1-2% raises?

There are good things and bad things with every job. When times are tough, the raises that teachers get seem a lot better then other jobs. But it's part of the deal (which is very long-term and logical), that also pays significantly less at other times, and makes the teachers pay for a lot of things out of their own pocket.

If you want teacher pay to mirror private sector pay, start the campaign when you get a 5% raise. then the justified thing would be to give the teachers 5% too.

Anonymous said...

Remember when teachers repackaged those worthless derivatives, crashed the economy and took TARP funds... me neither

Anonymous said...

"There is a lot to quibble with about the current state of unions, and in particular teacher's unions, and especially with the MGEA (whose leadership -- not the rank-and-file, but leadership -- has been absolutely myopic about how this all came about). "

ahh, but here's the rub. I 100% oppose our delusional Governor, BUT, the rank and file elect the leadership so they are not off the hook. that is why so many in this community are struggling with conflicting feelings about this situation.

Anonymous said...

"So, by your math, my 5.2% pay cut over the last three years is wholly devastating."

For you probably - but if I took a paycut - I wouldn't wish it on you. "Do unto others" after all. But perhaps your not a christian.

Anonymous said...

He is going to cancel ap classes?

Anonymous said...

Merit badges are free!

Anonymous said...

no funding for nursing staff?

Anonymous said...

do people realize that type of person they voted for?

Anonymous said...

no mandatory recycle for cities-my mother-in-law will hit him or Chad my gave him a long lecture.

Anonymous said...

"ahh, but here's the rub. I 100% oppose our delusional Governor, BUT, the rank and file elect the leadership so they are not off the hook. that is why so many in this community are struggling with conflicting feelings about this situation."

Yes -- not writing letters of recommendation and other juvenile exercises of "working the contract" will no doubt cause long-term damage to the district, because those tactics will be viewed (and remembered) harshly by voters who will inevitably and shortly now be asked to shore up the district's finances in light of the budget cuts announced today.

What's frustrating about this union is that its members are not greedy, do hard work every day, trade higher potential wages in return for working diligently with our kids, help foster a sense of community and geniune learning that isn't universal (but is all too often criticized by folks in the district who have never been anywhere else), and often go overboard to meet the many unseen but very real and challenging needs of kids.

Yet it's the stupid things they do -- spitefully not helping with after-school clubs, not lifting pen to paper for seniors, not having any proportionate sense of the struggles facing the folks who pay taxes here (well, that's mostly the MGEA leadership) -- that people will unfortunately remember.