Emerging Negotiation Models in Today’s Economic Climate

Emerging Negotiation Models in Today’s Economic Climate

Allen Albus, Lake Forest School District 67 & 115Barry Bolek, Township High School District 113Jennifer Hermes, Lake Forest School District 67 & 115Audrey Liddle, Zion-Benton Twp High School District 126

Agenda

Introductions Importance of Emerging Models In-Depth Case Studies Emerging Ideas Obstacles to Emerging Ideas Summary/Questions

Case Study

Township High School District 113Deerfield and Highland Park High Schools

Barry A. BolekAssistant Superintendent for Finance

email: [email protected]

Township High School District 113

District Demographics Negotiation Solution Impact of New Schedule

Existing Employees New Employees

Additional Changes in Contract

• 20 step schedule • Top salary of $ 130,000• 60 teachers in the “pipeline” to retire over the

next 5 years



Tier 1 EmployeesRetire age of 5513 years at top salary

Tier II EmployeesRetirement Age of 6727 years at top salary

System unable to sustain cost of current salary structure

Fundamental Issue

• PMA developed a “toggle” schedule that could show savings with a second schedule

• Half steps for NEW hires = significant savings• Half Steps – Decreased step increment from

average of 2.6% to 1.2%


Solution


Additional Changes in Contract•Tied retirement incentives to years in the District and not TRS•To be eligible for incentives, one MUST retire at the “First Non-Penalty” year•Percentage of family medical increase for employees

Case Study

Zion-Benton Township High School District 126

Audrey LiddleBusiness Manager


Zion Benton Twp High School District 126

•District Background•Timeline•Last Best & Final Offer•Final Resolution – New Contract Format

ZBTHS – District 126

• Demographics• Board• Students• Salary Schedule• Longevity Schedule• Pension Contribution• Health Insurance Plan

• Delayed Start of Negotiations– Strategic Planning with

Board of Education

• Initial Board Goals• Documentation to

Union• SB7 – Impact– Mediation


• Board of Education Top Three Major Issues– Supervision Time Used

for RTI Interventions– Salary Schedule– Benefit Premium Sharing

• Basics of Board’s Last Best & Final Offer Given to Union on October 31, 2011.– Supervision– Salary – Benefit


• Strike Information / Timeline Under New SB7 Regulations

• Community Involvement in Strike Process

• Union Major Concern• Board Major Concern

• New Solution– General Concept– Issues to Resolve– Final Agreement– New Issues After

Ratification

• Future Benefits of New Solution

Emerging Ideas

Deerfield Public Schools District 109

Greg HimebaughAssistant Superintendent for Business Services


Deerfield Public Schools 109 FY 12 – Non-compounding 1 Time payment of

$2000

FY 13 & 14- Soft Freeze (Step of 3.75 – 4.0%)

FY 15 – Base of 1-2%, Plus Step (depending on other variables)

Emerging Ideas

Addison Elementary School District 4

Marcy BoyanAssistant Superintendent for Business Services


Addison Elementary School District 4

FY 11 – Hard Freeze

FY 12 - .25% of CPI, (1/4 of 1.5%)no Step, no Lane

FY 13 - .25% of CPI, (1/4 of 3%)no Step, no Lane

Emerging Ideas

Adlai Stevenson High School District 125

Mark MicheliniAssistant Superintendent for Business


Adlai Stevenson High School 125

FY 12 – Total increase equal to CPI (1.5%)used in their calculation• Achieved by decreasing the starting base salary to

preserve step

Emerging Ideas

Wheaton Community Unit School District 200

Bill FarleyAssistant Superintendent of Business Operations


Wheaton Community Unit 200

– FY 11 – Hard Freeze– FY 12 – 1% on Base, no Step

Obstacles to Emerging Ideas

• Current Financial Condition of the District• Union Leadership• District Team

Summary

• 5-6 years ago variation in settlements much smaller• What will influence settlements going forward?– Interest Earnings– New Construction– State Funding– Pension Obligations

• Takeaway– Ideas that you can apply to your district

Emerging Negotiation Models in Today’s Economic Climate

Allen Albus [email protected] Bolek [email protected] Hermes [email protected] Liddle [email protected]

Documents

Emerging Negotiation Models in Today’s Economic Climate