Working together to Working together to achieve our mission and - - PowerPoint PPT Presentation

June 22, 2011 June 22, 2011

Working together to Working together to achieve our mission and address achieve our mission and address

• ur financial challenges
• ur financial challenges

Plain Local Education Association

Purpose of Presentation Purpose of Presentation

• Clarify the details and address questions of

Clarify the details and address questions of the revised contract proposal and related the revised contract proposal and related cost savings. cost savings.

• Share our efforts to advance our mission

Share our efforts to advance our mission while seeking reduction of expenditures. while seeking reduction of expenditures.

Clarifying Wages Clarifying Wages

• Previously-negotiated wage increases of 3% on

the starting base salary* for FY12 will be reduced to 1% per year through 2014.

• Over the course of the three-year agreement,

this change will save the District $583,698.

* Wage increases are based on the starting base salary ($41,614).

Clarifying Step I ncreases Clarifying Step I ncreases

• In the current agreement, step increases are part of a

salary index that are calculated on the starting base salary ($41,614) and range from 4% to 5.4% per year.

• In the revised agreement, each salary index will be

reduced by two percentage points per year, equaling 2% to 3.4%.

• Overall, the new schedule reduces the rate of salary

growth for existing certificated employees, and reduces the starting salaries for new hires over the three-year contract period.

• This contract revision results in a savings of $799,428
• ver the next three years.

Clarifying Health Care Clarifying Health Care

• The revised agreement limits health care cost increases

to 9% or less annually, (down from 12%). Parties agree to redesign benefits as necessary to meet this goal.

• Employees will pick up a greater cost for co-pays,

deductibles for family coverage, and out-of-pocket coinsurance expenses.

• Premiums paid by single-coverage insureds (non-family

plans) will increase from a 90 -10% employee-paid contribution to a 85-15% employee-paid contribution.

• This contract revision results in a savings of $307,905
• ver the next three years.

SB 5 Possible Scenarios SB 5 Possible Scenarios

SB 5 Passes + PLEA Agreement

1% raises & reduced steps in FY12, FY13, and FY14

FY12 = $11,117,174 FY13 = $ 2,131,094 FY14 = -$ 6,677,692

SB 5 Passes + No Agreement after FY12

Full FY 12 + 0% raises and 0% steps in FY13 & FY14

FY12 = $10,280,944 FY13 = $ 967,858 FY14 = -$7,400,209

SB 5 Fails + No Agreement after FY12

Full FY 12 + 1% raises and full steps in FY13 & FY14

FY12 = $10,280,944 FY13 = $ 9,644 FY14 = -$10,490,173

Comparing Current and Revised Agreement

$ -6,677,692 0 - ? 1% 1% 1% Revised Contract $ -7,400,209 0 - ? 0 - ? 0 - ? 3% Current Contract FY14 Balance FY15 FY14 FY13 FY12

Yellow bar indicates the end of the a contract period

Clarifying Collective Bargaining Clarifying Collective Bargaining

• Collective Bargaining follows a process
• utlined by the State Employment

Relations Board and this statute requires that bargaining be conducted in private.

• The Board is elected to represent the

community’s interest at the bargaining table.

Creating the Future Together Creating the Future Together

The Agreement achieves two key goals:

• Provides immediate savings and controls

long term wage growth to help address revenue reductions.

• Reinforces a positive and collaborative

partnership to pursue the district’s mission and vision to reinvent education.

Questions?