REA Bargaining Update from October 18, 2011
Reynolds Education Association and Reynolds School District have been bargaining since May 3, 2011. So far, the parties have met eight times for approximately 4 hours each session.
After the eight bargaining sessions, no agreement has been reached on any article. The remaining unresolved issues include:
• Article 1, Recognition
• Article 2, Negotiation Procedure
• Article 3, Miscellaneous
• Article 4, Association Rights and Privileges
• Article 5, Employee Rights
• Article 7, Employee Work Year
• Article 8, Emergency Closure
• Article 9, Teaching Hours
• Article 11, Vacancies, Promotions and Transfers
• Article 13, Academic Freedom
• Article 14, Paid Leaves of Absence
• Article 15, Unpaid Leaves of Absence
• Article 16, Transportation Reimbursement
• Article 18, Student Discipline
• Article 19, Tuition Reimbursement
• Article 21, Dues and Payroll Deductions
• Article 22, Employee Compensation (and salary schedules)
• Article 23, Fringe Benefits
• Article 24, Funding
• Article 25, Layoff and Recall
• Article 26, Special Education
• Article 27, Class Load
Two articles, in particular, offer examples of the differences in District and REA positions:
Article 9, Teaching hours.
The District position is that the current prep schedule for middle school and high school will remain the same as the current contract. That means middle and high school teachers will have one class period of prep every day. The length of the prep period in middle and high schools would be the same time as one student class period.
The District is asking for more flexibility in the elementary school schedule. Our current contract requires that five (5) 30-minute prep time sections must occur during the student day every week. That means elementary teachers have one 30-minute prep every day when students are in school. On most days that is possible, so we would continue to schedule teacher prep during the student day. On occasion, if we do not have a place to send students, such as PE or music classes, we would schedule the teachers to take prep time when students are not present. The placement of prep time in the work day is a permissive issue, meaning that state bargaining law does not require the district to bargain when prep time is scheduled. The District, however, has continued to try to reach an agreement with the REA. The REA has refused to consider changes to the current schedule.
Article 22, Employee Compensation and Article 23, Fringe Benefits:
The REA has proposed increases in salary and insurance benefits that would cost about $10.9 million over two years (2011-12 and 2012-13). The 2011-12 step raises that the district was required to provide for licensed teachers cost approximately $700,000 with the remaining raises proposed by REA estimated to cost approximately $10.2 million more over the next two years.
The District teachers are working under the old contract that expired in June 2011, as required by law. In other words, Oregon law does not allow union members to work “without a contract.” When an existing contract expires, the terms of the expired contact continue forward until the parties are able to reach a new agreement.
The expired contract that licensed teachers are working under requires a step raise of approximately 3% for all teachers who have not worked in the district long enough to be at the top step of a salary column. In addition to a step raise, many teachers who earned college credits in the past year have received salary raises by moving over to a new salary column. The District started paying teachers for step raises as of July 1, 2011, which employees get in the September paycheck. Teachers will receive these raises on all 12 paychecks for 2011-12. Step raises are approximately a 3% increase in salary. Teachers who are at the top of a salary column do not receive step raises.
The District is not offering a COLA (cost of living adjustment) on the salary schedule for the 2011-12. The District is not offering a COLA for the 2012-13 school year. A COLA would raise the salary for every teacher at every step of the salary schedule. Teachers at the top step are not eligible for step raises, so the only way our most experienced teachers get raise is if a COLA raise is given. Again, the District is not offering a COLA to teachers.
In addition, the District is not offering a step raise in 2012-2013 and is not offering an increase in the District share of health premiums. The District was required to provide a step raise of approximately 3% for 2011-12 under the existing contract.
Rationale for the District position:
The REA demand for salary and benefit raises costing $10.9 million over two years would force the District to: a) lay off teachers and staff; b) cut days from the school year; and/or c) reduce or eliminate student programs, such as PE and music. If the District were to agree to the salary and benefit raises proposed by REA, budget cuts would start as early as next school year. Even without teacher raises, the district’s cash reserves will be spent at the rate of about $4 million per year in order to maintain the current staff and school year.
As costs increase, staff reductions will be necessary to balance the 2012-13 budget. The District has proposed no salary or benefit raises for 2011-12 and 2012-13 in order to preserve a full school year for students; preserve teacher and staff jobs; and preserve student programs, such as music and physical education.
The District’s financial position is such that careful consideration needs to be made before increasing expenses. The board plans to use the ending fund balance to maintain services and a full school year for students and preserve teacher and staff positions.
The District was required to provide a step raise of approximately 3% for 2011-12 under the terms of the existing contract. As with any budget, choices are made in how to spend the limited dollars available. The District is in a financial position that will allow student programs and jobs to be preserved if decisions are made carefully and by looking ahead to plan for how our increased expenses would impact the district’s financial position over the next several years.
District financial goals:
The financial goals set by the Board of Directors include:
• Preserve teacher and staff jobs,
• Preserve a full school year for students,
• Preserve student programs including music and PE, and
• Balance the budget and maintain responsible reserves.
In order to meet REA contract demands that would cost approximately $10.9 million in salary and benefits raises, the Board would need to choose a combination of the following options:
• Lay off staff,
• Cut programs, and/or
• Cut school days.
The School Board strongly believes it is their duty to preserve jobs, preserve student instructional programs, and preserve the full school year. The Board, therefore, did not offer a COLA or step raises or insurance increases in 2011-12 or 2012-13. However, because our existing contract is expired and in effect, licensed teachers were given the required step raise of approximately 3% for 2011-12 at a cost of approximately $700,000.
Next Steps:
On Friday, September 30, 2011, the Reynolds School District issued a statement to clarify and explain the District’s decision not to bargain on two areas of permissive language. The two permissive areas that the district is not bargaining are: class size and scheduling of teacher preparation time. In addition, the District told the Reynolds Education Association Bargaining Team that the District was going to issue a letter requesting mediation.
Given the number of unresolved issues, progress to date and the $10.9 million gap in salary and benefit offers, the district believes that mediation is necessary. Mediation is part of the bargaining process. The District believes that the services of a mediator will assist us in reaching an agreement.
On October 7, 2011, Reynolds School District requested mediation services from the Employment Relations Board. Oregon’s collective bargaining laws state that either party may request mediation after 150 days of good faith negotiations. The purpose of bringing in a mediator is to help the parties resolve their differences.
Mediation is often necessary and effective in assisting the parties to resolve their differences. To learn more about Mediation, click here.
The major issues of concern involve the financial terms and ongoing costs associated with providing raises in salary through step or cost of living raises or benefits such as insurance.
Reynolds School District Financial Status
To learn more about the financial condition and impacts of the agreements between Reynolds Education Association and Reynolds School District see the materials titled, “Financial Impacts of REA Proposals,” which were released on October 26, 2011.
The Reynolds School Board has set forth a policy that the district manage funds responsibly, which means that there is an ending fund balance at the end of the 2012-13 school year. Financially, Reynolds School District must manage the employee costs by looking at the cost of proposals over multiple years, not just the current year. The School Board intends to maintain a full school year with quality services and programs for students and preserve teacher and staff positions.
The District financial outlook over the next several years depends upon using the ending fund balance to preserve student programs and services; preserve a full school year for students; and preserve teacher and staff jobs. As costs increase, staff reductions will probably be necessary to balance the budget. Increasing salary and benefit costs will increase the amount of reductions that will be necessary to balance the budget.
Summary of District Offer
Under the existing contract terms, the District was required to provide licensed teacher staff with step raises of approximately 3% for 2011-12. The District is offering no step, cost of living or insurance raises for 2011-2013.
Please check back at: www.reynolds.k12.or.us and click on Negotiations for additional updates on the mediation process, which the District believes will assist in reaching a resolution to our differences.
