Child Care Policy Research Consortium
2009
Unionization In Child Care
The Illinois Perspective
Presenter: Linda Saterfield
Unionization In Illinois
In January 2005, the Governor issued an Executive Order granting day care home providers the right to representation and the right to engage in collective bargaining concerning their participation in the Child Care Assistance Program (CCAP).
In March 2005, Service Employees International Union (SEIU) won the right to represent day care homes in the collective bargaining process.
Illinois’ Definition of Day Care Homes
Licensed Day Care Home – family homes, which receive more than 3 up to a maximum of 12 children for less than 24 hours per day and licensed by the Department of Children and Family Services in accordance with applicable standards and provisions of the Child Care Act of 1969.
License-Exempt Day Care Home – family homes that care for no more than 3 children under the age of 12 or that receive children only from a single household for less than 24 hours. Commonly referred to as Family, Friend and Neighbor care.
Provisions
The first collective bargaining agreement covered the period April 1, 2006 through June 30, 2009. Major provisions of the agreement are classified as non-economic and economic.
Non-Economic Provisions
Access to data; monthly reports detailing all payments by provider, number of children billed, number of days of care, amount of payments, amount of assessed parent co-payment; all contact information for newly approved providers, etc.
Requirement for state to send union information to all new day care home providers
Non-Economic (continued)
Access to all required trainings in order to provide Union orientation
Requirement for state to modify data systems to allow for deduction of membership dues and fair share from provider payments
Grievance Procedure
Economic Provisions
4 rate increases over the 39 month term of the agreement
Quality Rating System (QRS) based on the recommendations of the Child Care Advisory Council
Health Insurance contributions to a Health Benefit Fund selected by the Union
Estimated Cost to Illinois
for the 39 month Contract
(in millions)
FY06 FY07 FY08 FY09 TotalRates $8.1 $32.4 $72.0 $100.8 $213.3Health Insurance
$0 $0 $ 7.0 $ 20.0 $ 27.0
QRS $0 $0 $ 3.0 $ 7.0 $ 10.0Increase over prior year $0 $24.3 $39.6 $ 28.8 $ 92.7
Total $8.1 $32.4 $82.0 $127.8 $250.3
Unanticipated Benefit – Center Parity
Rates - the State gave centers the same rate increases (%) that day care homes negotiated through the contract
QRS – the State allowed centers to voluntarily participate in QRS and receive enhanced rates
Measuring the Impact of Unionization
Workforce – are there more day care homes?
Access – are parents better able to access care?
Number of Home Day Care Providers
11,0
45
723
10,9
07
639
10,9
58
610
10,7
17
712
0
2,000
4,000
6,000
8,000
10,000
12,000
FY06 FY07 FY08 FY09
Lic HDC
LE HDC
Data Source: CCR&Rs Provider Referral Database
Number of Home Day Care Providers paid through the CCAP
8,91
3
74,9
35
8,86
7
67,6
34
9,10
5
65,8
88
8,56
5
65,8
05
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY06 FY07 FY08 FY09
LIC HDCLE HDC
Measuring the Impact of Unionization
Economic – are day care home providers better off financially?
Rates – are rates set at market?
Average Income for Licensed Home Day Care Providers
FY05Of the responses, providers:
Worked an average of 51.45 hours per week, 48 weeks per year
75% made less than $17,000 per year (net)
FY07Of the responses, providers:
Worked an average of 49 hours per week, 48 weeks per year
75% made less than $20,000 per year (net)
Only 10% of LEHDC providers reported netting more than $28,000/year
Data source: IL Salary & Staffing Survey of Licensed Child Care Facilities
Net Income Ranges for Licensed Home Day Care Providers
24
23
29
23
21
23
14
15
10
18
0
5
10
15
20
25
30
$5,000or less
$5,001 -$11,000
$11,001-$17,000
$17,001-$23,000
Over$23,000
FY05
FY07
(% of providers)
Great START Participation for Licensed Home Day Care Providers
860 915 978 1,037
0
200
400
600
800
1,000
1,200
FY06 FY07 FY08 FY09
2008 Market Rate Survey
Group 1A
Age 0 – 2 49th percentile
Age 2 51st percentile
Age 3 and Older 42nd percentile
Group 1B
Age 0 – 2 47th percentile
Age 2 50th percentile
Age 3 and Older 49th percentile
Group 2
Age 0 – 2 83rd percentile
Age 2 87th percentile
Age 3 and Older 70th percentile
Measuring the Impact of Unionization
Quality – is there an improvement in the quality of care
provided?
Participation in Training
6,79
8
829
7,05
2
863
6,84
0
812
6,16
3
1,10
2
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY06 FY07 FY08 FY09
Lic HDC
LE HDC
Credentials
9
42 27 36
05
1015202530354045
FY06 FY07 FY08 FY09
LIC HDC
LE HDC
Quality Rating System
32 1
112
74
123
166
020406080
100120140160180
FY08 FY09 FY10
LIC HDC
LE HDC
(Through September)
(Cumulative)
Measuring the Impact of Unionization
Does the make-up of the negotiating team make a difference in the contract provisions?
Is there a difference in the process if licensing and subsidy are housed in the same agency?
Does the union invest deductions back into the membership?
Union Contributions
$1,880,461
$7,349,205
$7,517,094
$7,861,372
FY06 FY07 FY08 FY09
Unionization in Illinois
Recently completed 2nd union agreement
Rates – 7 increases over four fiscal years, approximately 20% increase over current rates
Health – Covered for up to 5,000 enrollees
QRS – continuation of $7.0 million annually
Contact Information
Linda Saterfield, ChiefIDHS, Bureau of Child Care & [email protected]
For more information on the Union contract:www.state.il.us/cms/download/pdfs/emp_seiuchild.pdf