LB 397 and the CIR One Year Later

LB 397 and the CIR One Year Later Kelley Baker Harding & Shultz (402) 434-3000 kbaker@hslegalfirm.com H & S School Law

Significant Changes  LB 397 significantly changed the Industrial Relations Act: • Moved up negotiations timetable • Issues will no longer be “moot” • Engage in fact finding before the Commission of Industrial Relations • Changed CIR “midpoint” from 100% to range of 98% to 102%

Timelines

Timelines September 1

Teacher assn. requests recognition as exclusive bargaining agent October 1 Board must respond to request November 1 Negotiations must begin February 8 If there is no agreement, parties submit to resolution officer March 25 (or w/in Negotiations, fact finding, and 25 days after state mediation must end aid certification) September 15 CIR must issue its decision

LB 397 Worked Effectively  Resolution officer requested in 3 cases • • •

Plattsmouth (settled before fact finding) Gordon-Rushville (settled before fact finding) Neligh-Oakdale (settled in fact finding)

 Certification elections (all successful) • • • • •

Omaha Wayne Crawford Gordon-Rushville Fort Calhoun

Know Where You Are

Know Where You Are  Do your homework  Have a qualified person: • Perform a comparability study for both base salary and fringe benefits  Important in negotiations & fact finding • Analyze the negotiated agreement for:  Mandatory and permissive issues  Prevalence  Wording

Strategies for Success

Recommendations  Raise and discuss all the provisions you might want to change  Ask for more than you expect to get • But bring the offer/demand into the reasonable range before the end • Remember, the fact finder/mediator chooses the “most reasonable” last offer of the board and teacher assn.

Recommendations  Keep your own minutes of the sessions • Keep thorough, detailed minutes • Do not share the responsibility for taking minutes with the association  Make it clear – nothing is final until you agree upon the whole agreement

Establish Board Goals

Establish Board Goals  Review entire negotiated agreement  Pick “wants” as well as “needs”  Think long-term – 3-5 years ahead  Think strategically

Good Faith Bargaining

Good Faith Bargaining  Elements of good faith bargaining: • Meet at reasonable times • Be willing to reach agreement • Consider and respond to others’ proposals faith about wages, hours and terms and conditions of employment • Execute and sign a written contract upon reaching agreement  It DOES NOT require parties to agree

Bargaining Sessions  Minimum of 4 bargaining sessions • Unless the parties reach agreement

 Parties must submit to mandatory mediation or fact finding if they don’t reach agreement by February 8th • Unless both parties agree to forego mediation and fact finding

Required Provisions

Required Contract Provisions  A salary schedule or objective method for determining salaries  A description of benefits with: • a specific level of any group insurance coverage with • a dollar amount or percentage of premiums to be paid and by whom

 A continuation clause

Resolution Officer

Resolution Officer  Resolution Officer – the mediator or fact finder appointed by the CIR  CIR provides list of 5 names  Parties alternately strike names  The resolution officer: • Determines issues in dispute • Accepts stipulations • Schedules hearings

Resolution Officer • Sets rules of conduct for conferences • May order additional mediation • Takes any other action to aid in resolving the dispute • Does not consult with one party w/o the other party’s permission • Not bound by strict rules of evidence  Non-attorneys may represent parties

Resolution Officer  The resolution officer:  Decides which issues were: • In dispute • Negotiated in good faith • Not agreed upon

 Limits decision to issues in dispute  Chooses the most reasonable final offer on each issue in dispute

Petition in Commission  A dissatisfied party may file an action in the Commission within 14 days of the resolution officer’s decision

 The petition is not an appeal of resolution officer’s decision

Commission’s Authority  The Commission: • Is limited to deciding issues that the officer decided were in dispute • Makes decisions on comparability, not most reasonable final offer • Must issue its decision by Sept. 15th

Total Compensation  CIR must consider the employer’s payment of or contribution to: • Health insurance premiums, • Premium equivalent payments, or • Cash equivalent payments

 FICA payments  Retirement payments

The True Midpoint  The term midpoint means “in the middle position of a range”  For example, the true midpoint of total compensation would be: • In an array of 9 districts -- the 5th • In an array of 10 districts -- the average of the 5th and 6th

The “CIR Midpoint”  The “CIR midpoint” is the average of: • The true midpoint of the array schools’ total compensation, and • The average of the array schools’ total compensation

98-102% Midpoint Range  During normal economic times (nonrecessionary times): • The CIR must determine whether the district’s total compensation is within 98% to 102% of the midpoint • If it is, the CIR will not order a change

Up to 98%, Down to 102%  If the total compensation is less than 98% of the CIR midpoint, the CIR will order it raised to 98%  If the total compensation is more than 102% of the CIR midpoint, the CIR will order it reduced to 102%

93-107% Midpoint Range  If the total compensation is less than 93% of the CIR midpoint, the CIR will order it raised to 98% in three equal annual increases • If the total compensation is more than 107%, of the CIR midpoint, the CIR will order it reduced to 102% in three annual decreases

Recessionary Occurrence  There is a recessionary occurrence when: • The two quarters immediately preceding the effective date of the contract term in which net (i) sales and use tax, (ii) individual income tax and (iii) corporate income tax receipts are less than the same quarters for the prior year.

 During a recessionary occurrence, the range will be 95 to 102% of the midpoint.

LB 397 and the CIR One Year Later Kelley Baker Harding & Shultz (402) 434-3000 kbaker@hslegalfirm.com H & S School Law