Emerging Negotiation Models in Today’s Economic Climate Allen Albus, Lake Forest School District 67 & 115 Barry Bolek, Township High School District 113 Jennifer Hermes, Lake Forest School District 67 & 115 Audrey 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 113 Deerfield and Highland Park High Schools Barry A. Bolek Assistant Superintendent for Finance email: bbolek@dist113.org Township High School District 113 District Demographics Negotiation Solution Impact of New Schedule Existing Employees New Employees Additional Changes in Contract Township High School District 113 • 20 step schedule • Top salary of $ 130,000 • 60 teachers in the “pipeline” to retire over the next 5 years Township High School District 113 Fundamental Issue Tier 1 Employees Retire age of 55 13 years at top salary Tier II Employees Retirement Age of 67 27 years at top salary System unable to sustain cost of current salary structure Township High School District 113 Solution • 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% Township High School District 113 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 Liddle Business Manager email: Liddlea@zbths.org 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 ZBTHS – District 126 • 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 ZBTHS – District 126 • 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 Himebaugh Assistant Superintendent for Business Services email: ghimebaugh@dps109.org 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 Boyan Assistant Superintendent for Business Services email: mboyan@asd4.org 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 Michelini Assistant Superintendent for Business email: mmichelini@d125.org 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 Farley Assistant Superintendent of Business Operations email: william.farley@cusd200.org 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 aalbus@lfschools.net Barry Bolek bbolek@dist113.org Jennifer Hermes jhermes@lfschools.net Audrey Liddle liddlea@zbths.org