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Budget-Neutral Bargaining:A Collaborative Approach
Kathy K. Swope, School Board PresidentMark D. DiRocco, Ph.D. Superintendent
Lewisburg Area School DistrictOctober 22, 2014
We asked, “Is there a Better Approach?”
Taxpayers
Students Parents
Teachers
Team of 10
Traditional BargainingBy focusing on positions, parties in a dispute:
• see only a predetermined way to solve a problem
• spend time staking and defending extreme positions
rather than dealing with the heart of the matter
• tend to settle with a compromise rather than getting what
they really need
• limit creative options; and
• risk damaging ongoing relationships.
Collaborative Bargaining
In contrast, a discussion that allows for an understanding of issues underlying positions...
• moves people away from contending positions• promotes mutual understanding• allows a cooperative atmosphere to develop• sets the stage for reframing the issue• encourages multiple options• permits the search for alternative solutions
Traditional vs. Collaborative
• Training – both parties must agree to have all participants take part in the training session(s) prior to negotiations
• Time – must commit as much time up-front as necessary to detail the process in order to be successful
• Relationships – It is important for the Board Members, Superintendent, and Association Leadership to develop positive relationships prior to the negotiation process.
What is Collaborative Bargaining?
• More inclusive than traditional bargaining
• Each team member is expected to contribute in some fashion in the sessions
• Training for both sides is critical
• Facilitators from management and union help facilitate the bargaining sessions
• Work together to find creative solutions to issues
• Less adversarial than traditional bargaining
TRUST IS CRITICAL
Steps need to be taken well in advance of negotiations or the training for negotiations to develop trust between the Board and Association.
Collaborative Behaviors• Focus on issues, not on people• Explain and educate, don’t accuse• Focus on interests - not positions• Understand interests – don’t judge them• Defer evaluation and commitment• Respect the role & responsibilities of others• Seek to meet mutual & separate interests• Use consensus to decide• Think collaboratively• Sustain the relationship with some type of social event
– Dinner together before a session, snacks together after a session etc.
Define the Problems
• Working together, both parties in a collaborative bargaining situation should define the problem in such a way that it becomes their common goal. This is typically achieved using cooperative and respectful dialogue and from looking at the problem from each other’s perspective.
Learning Tree International
Understand the Issues
• Part of successful problem definition is to understand the issues behind the problem or situation the parties are trying to resolve. If you can recognize and understand the other person’s issues, you have a much better chance of achieving a fair outcome.
Learning Tree International
Develop Possible Solutions
• In this step, both parties need to work together to brainstorm and “think out of the box” for possible solutions to the defined problem from steps 1 and 2. One key aspect of brainstorming is to remember that this “idea generation only” step asks you to only identify and list all possible solutions or outcomes.
Learning Tree International
Prioritize Possible Solutions
• In the end, both parties need to take the results of their problem definition and solution brainstorming sessions to identify and reach a solution/bargain/outcome that is amenable to both parties. This often requires both parties to meet somewhere in the middle.
Learning Tree International
Collaborative Strategies Focus On:
• Seeking creative solutions
• Problem solving
• Finessing areas of agreement
• Seizing opportunities of common ground
• Reaching mutual understanding
Our Experience
Begin to discuss as a Board several months before negotiations are initiated
The entire team of 10 must agree to support the idea ofexploring a collaborative approach
Introduce the Idea
Next Steps
• Training - Arrange for a training session with the entire board and the bargaining team of the Association
• Decide – Both teams must agree to try the Collaborative approach in order to move forward
Meeting of the Minds
• Time Limit – Agreed to try it for six meetings and if either team felt it was not working, we agreed to revert to traditional bargaining
• Ground Rules – Together, the Association’s Negotiating Team and the Board’s Negotiating Team discussed and set the rules that would guide our negotiations
Bargaining
• All issues each party planned to address were presented at the first meeting
• Caucus for both parties allowed fully vetted ideas to be presented at the table
• Neither party let the bumps in the road become stop signs
Essential Question
• How can we provide well-deserved raises to our staff while shouldering the burden of rapidly increasing PSERS contributions and health insurance premiums?
What’s In Your Contract?(Every Item Cost Money)
• Are their provisions that were bargained long ago, that are no longer important or critical?
• Are their provisions that only assist a few individuals each year instead of the collective whole?
• How many dollars are associated with contract items that could be re-allocated to better use?
Contract Items We Discussed
• Long-Term Substitute Pay• Half-Year Sabbaticals at Full Pay• Tuition Reimbursement• Health Insurance Deductibles• Health Insurance Providers
Contract Adjustments
2013-2014 Est. Savings
Eliminate Full Pay Sabbaticals$120,000
Long Term Substitutes – 91 Days @ 75% $62,000
Move to $250/$500 Health Ins. Deductible $80,000
Offer $2,000 to Decline Health Insurance $156,000
Total $418,000
2014-2015 Est. Savings
Move to $1,250/$2,500 HSA $125,000
(District contributes $1,000/$2,000)
Budget Neutral Raises
Teacher Raises
• Year 1 - $500 + Step• Year 2 - $250 + Step• Year 3 - $1,000 + Step
Total Raises Over Three Years $514,000
Total Contract Adjustments Over Three Years -$543,000
Difference $29,000
Contract adjustments more than offset the cost of raises.
Other Expenses
Total Cost of the Contract Over 3 Years
(Including Raises, PSERS, & Benefits) $1,075,000
Contract Adjustments -$543,000
Total 3 Year Cost to District $532,000
Yearly Cost in New Money $177,333
Components of Success
• Opportunity to opt out all along the way created comfort for both teams
• Agreement to collaborative approach set a cooperative tone from start
• Trust & History of positive relationship
• No Games on either side, we were up front about financials & need to have budget neutral agreement, while also wanting to give much deserved raises
Mark D. DiRocco, Ph.D. [email protected]
Kathy K. [email protected]