Agenda da Language Costing Considerations Settlement Costing 101 - PDF document

1/21/2020 SETTLEMENT COSTING 101 Tiffany Gustin, Associate Director Of Management Services 1 Goals Preparation Agenda da Language Costing Considerations Settlement Costing 101 I 2 2 “If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra Settlement Costing 101 I 3 3 1

1/21/2020 • Successfully negotiate a labor agreement Goals • Preserve your management rights • Maintain a positive labor-management relationship Settlement Costing 101 I 4 4 Gather information ✓ Review the existing agreement ✓ Review grievances, Preparat ration ion if applicable ✓ Talk with administrative staff ✓ Look at comparable districts Settlement Costing 101 I 5 5 Establish bargaining parameters and proposals ✓ Consider developing Preparat ration ion a range of positions . • Initial • Target • Unacceptable ✓ Prioritize Settlement Costing 101 I 6 6 2

1/21/2020 Plan the bargaining strategy ✓ Anticipate the issues of the union Preparat ration ion • Last agreement • “Scuttle” ✓ Union players • The demographics? • The team? • The power? Settlement Costing 101 I 7 7 Why is all this important when we are talking about costing? ✓ Even items that Preparat ration ion appear to be only language changes can have a cost • Personal day • Weather closing • Credit recognition • Administrative burden Settlement Costing 101 I 8 8 Langua uage ge What is the What is the problem? purpose of How does the the proposal? language alleviate the problem? What is the impact of the proposal? Settlement Costing 101 I 9 9 3

1/21/2020 Langua uage ge Settlement Costing 101 I 10 10 Langua uage ge What will the Business Office HR / Payroll proposal mean to Principals/Supervisors various stakeholders? Students Settlement Costing 101 I 11 11 Langua uage ge What is Who will be responsible? required to implement the How will it be tracked? proposal? Settlement Costing 101 I 12 12 4

1/21/2020 Langua uage ge Is it Academic or co- curricular offerings consistent with the Insurance plans strategic plan and/or Financial goals policies? Staffing levels Settlement Costing 101 I 13 13 Langua uage ge How does Impact on existing language the proposal impact other Impact on other agreements proposals? Conflict or compatibility? Settlement Costing 101 I 14 14 Costing ing: : Terms Calculate your BASELINE What will the agreement cost if NOTHING changes other than the passage of time? Settlement Costing 101 I 15 15 5

1/21/2020 Costing ing: : Terms Information you need: FTEs Step / Lane Insurance info Benefits rates Assumptions: Same staff Settlement Costing 101 I 16 16 Costing ing: : Terms Total Package: All of wages and fringe benefits received by an individual or group of employees. 7% Wages Social Security / 25% Medicare Insurance (Health, 60% Dental, Disability) 8% Retirement Settlement Costing 101 I 17 17 18 6

1/21/2020 Is there another perspective…. Settlement Costing 101 I 19 19 …on use of ‘total package’…. One union’s position on total package: “Don't fall into the trap of negotiating economics on the basis of how much the overall ‘package’ costs the employer! These calculations can be useful tools for us to understand the cost to the employer of the different components of our economic demands but should never substitute for negotiations that are based on addressing the real needs of the members.” Settlement Costing 101 I 20 20 Considerations o Dollars or percentages? The Great Debate o Community wages and benefits o Clerical? o Drivers? o …. o Political climate o What is happening in your community? o Communications o What works for you? Settlement Costing 101 I 21 21 7

1/21/2020 Communications Committee? Board? Union? o Know your audience o Find a way to communicate. Roles o Costing: The baseline data should be Unified Voice discussed….preferably agreed upon. o The sides may cost proposals differently. o How does your Board want to receive the information? Listen o Increase in General Education Aid Understand o Is 2% really 2% --- no. Settlement Costing 101 I 22 22 Pitfalls o Piecemeal Negotiations o Premature Best Offer o Negotiating Away Management Rights Recommendations: Need help with a costing model? Questions on Contact SchoolFinances.com language (operated by Forecast5 Analytics). proposals? Consider attending MSBA Negotiations Call MSBA. Seminars in early 2021. Settlement Costing 101 I 23 23 “By failing to prepare, you are preparing to fail.” Benjamin Franklin Settlement Costing 101 I 24 24 8

1/21/2020 QUESTIONS? Contact Tiffany Gustin at: tgustin@mnmsba.org (507) 934-2450 or 1-800-324-4459 Contact your local School Business Official 25 9