Emerging Negotiation Models in Today’s Economic Climate Allen Albus, Lake Forest School District 67 & 115 Barry Bolek, Township High School District 113 Jennifer Hermes, Lake Forest School District 67 & 115 Audrey Liddle, Zion-Benton Twp High School District 126
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Emerging Negotiation Models in Today’s Economic Climate Allen Albus, Lake Forest School District 67 & 115 Barry Bolek, Township High School District 113.
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Emerging Negotiation Models in Today’s Economic Climate
Allen Albus, Lake Forest School District 67 & 115Barry Bolek, Township High School District 113Jennifer Hermes, Lake Forest School District 67 & 115Audrey Liddle, Zion-Benton Twp High School District 126
Agenda
Introductions Importance of Emerging Models In-Depth Case Studies Emerging Ideas Obstacles to Emerging Ideas Summary/Questions
Case Study
Township High School District 113Deerfield and Highland Park High Schools
Barry A. BolekAssistant Superintendent for Finance
District Demographics Negotiation Solution Impact of New Schedule
Existing Employees New Employees
Additional Changes in Contract
• 20 step schedule • Top salary of $ 130,000• 60 teachers in the “pipeline” to retire over the
next 5 years
Township High School District 113
Township High School District 113
Tier 1 EmployeesRetire age of 5513 years at top salary
Tier II EmployeesRetirement Age of 6727 years at top salary
System unable to sustain cost of current salary structure
Fundamental Issue
• PMA developed a “toggle” schedule that could show savings with a second schedule
• Half steps for NEW hires = significant savings• Half Steps – Decreased step increment from
average of 2.6% to 1.2%
Township High School District 113
Solution
Township High School District 113
Additional Changes in Contract•Tied retirement incentives to years in the District and not TRS•To be eligible for incentives, one MUST retire at the “First Non-Penalty” year•Percentage of family medical increase for employees
– FY 11 – Hard Freeze– FY 12 – 1% on Base, no Step
Obstacles to Emerging Ideas
• Current Financial Condition of the District• Union Leadership• District Team
Summary
• 5-6 years ago variation in settlements much smaller• What will influence settlements going forward?– Interest Earnings– New Construction– State Funding– Pension Obligations
• Takeaway– Ideas that you can apply to your district
Emerging Negotiation Models in Today’s Economic Climate