Costing out the Financial Components During the

Negotiations Process

IASBO Annual Conference – May 2010

Presented by: Michael Frances, Jennifer Hermes and Jon Hitcho

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Agenda Roles Gathering Material and Data Benchmarking Building a Negotiations Model Use of Model During Bargaining Recent Trends Tips Examples

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Before you Begin Whose responsibility?

Business Manager Superintendent HR Director Board Members Attorneys Facilitator

Clarify Roles

Current Contract Read it, know it, live it

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Gather Materials and Data

Current Staff details Salary schedule

Step Cost Longevity Hourly Rates (non-cert) Annual Hours (non-cert)

Scattergram Actual and Eligible Retirements Retirement Enhancements

Pre and post retirement Extra Duty schedules and scattergram

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Gather Materials and Data

Benefits Plan details Scattergram Premium schedule Annual Cost Trends

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Benchmarking

Who are they? Where do you want to be? Salary Data Length of Contract Benefit Analysis Targets strengths / weaknesses

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Building a Negotiations Model The Basics

Vertical Dimension - Steps Typically one per year Not always tied to length of service with district

Horizontal Dimension – Lanes Usually related to amount of education

Format Block Staggered / “Step up”

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Building a Negotiations Model Format (cont.)

Indexed Variable Equal $

Accurate Scattergram Apples to apples

Separate schedule for each year of contract

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Use of Model During Bargaining

Type of Bargaining Process Interest based, “Win - Win” Traditional

Trust factor Sharing - Full

Electronic copy Agreement on assumptions

Sharing - Comparative Each team runs numbers and costs are compared

Closed Management tool only

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Use of Model During Bargaining Cost Communication

Staff Board Community

Marketing – Union vote Administrative Communication

Payroll HR

Recent Trends

CPI Formula Floor / Ceiling Re-Opener

Retirement Multiple Years of 6% Raises End of Career “Bonus” Additional Sick Days Penalties

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Tips

Have a summary page Date and Time Stamp all hand outs Come up with scenario “naming scheme” Do not use as your budget Don’t overly complicate things; you have to

administer it Some things take multiple years to correct

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Tips

Know the Union team Be ready for the unexpected Keep eyes and ears open Communicate in detail with operational staff

while information is fresh Use caucusing to your advantage Do not take it personally

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Examples

Indexed Certified Salary Schedule Salary Benchmarking Non-Cert Hourly Salary Schedule Benefit Benchmarking

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The End

Mike Frances, mfrances@pmanetwork.com

Jennifer Hermes, jhermes@lfschools.net

Jon Hitcho, jhitcho@district96.k12.il.us