GFOA COLLECTIVE BARGAINING TRENDS SEPTEMBER 22, 2016

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1 GFOA COLLECTIVE BARGAINING TRENDS SEPTEMBER 22, 2016 Jonathan J. Downes 17 South High Street, Suite 900 Columbus, Ohio

2 Jonathan J. Downes More than thirty years of experience and expertise in representing public and private employers in labor and employment law and human resource management. Negotiated over 500 labor contracts. Represents employers in arbitrations, organizing campaigns, and administrative hearings. Defends employers in state trial and appellate courts, courts, the Ohio Supreme Court, federal district courts and the United States Court of Appeals for the Sixth Circuit. AV Preeminent rated by Martindale Hubbell. Fellow in the College of Labor and Employment Lawyers. Ohio State Bar Ass n. Certified Specialist in Labor and Employment Law Recognized many times over as a subject-matter expert, Jonathan was selected as one of the Top 50 Central Ohio Lawyers of 2015 and every year since 2004 has been named an Ohio Super Lawyer. 2

3 Negotiations and SERB Process State Employment Relations Board Process Negotiations Mediation Fact-finding Strike (non-safety) Conciliation/Binding Arbitration (safety forces) 3 3

4 Negotiations in 2016 and Beyond Major Issues in Negotiations Wages Health Insurance Budget Impact 4 4

5 City of Newark Wage Total Compensation Comparisons 5

6 Medina Wage Comparisons 6

7 SERB Wage Settlements 7

8 SERB Wage Settlements cont. 8

9 SERB Impasse Report 9

10 Greater Ohio Policy Center Report From Akron to Zanesville: How are Ohio s Small and Mid-Size Cities Faring? June

11 Collective Bargaining Data Points Demographic data for negotiations 1. Population with changes 2. Unemployment 3. Labor force participation 4. Housing values 5. Poverty rates 6. Federal aid to individuals 11 11

12 Collective Bargaining Data Points Demographic data for negotiations (con t.) 7. Adjusted gross income 8. Median household income 9. Per capita income 10. Rental and vacancy rates, residential 11. Education levels of workforce 12. New business starts 13. Change in employees 12 12

13 GOPC Overall Trajectory of Change Indicator 13

14 GOPC Conditions Large and Mid-Sized Legacy Cities 14 14

15 GOPC Labor Force Participation Rates Over Time 15

16 Negotiations and Health Insurance SERB Health Insurance Data eports/health_insurance_report_2016.pdf 16 16

17 SERB SUMMARY OF KEY FINDINGS Statewide, the average monthly premium for medical and prescription coverage, when prescription is included in the medical premium, is $579 for single coverage and $1,528 for family coverage. Calculations include employee contributions of $0 towards the medical premium (Table 3.2). The one-year increase in medical premiums, when prescription is included in the medical premium, between January 1, 2015 and January 1, 2016 is 1.6% for single coverage and 2.3% for family coverage (Table 3.2)

18 SERB SUMMARY OF KEY FINDINGS The average annual total cost per employee for medical coverage, when prescription drug is included in the premium, is $13,928. This is a 1.6% increase from the average total cost in (Table 6). The vast majority of plans (92.3%) require a deductible before cost-sharing of out-ofpocket medical expenses begins

19 Negotiations and Health Insurance Methods to Lower Healthcare Costs (SERB Data) 1. Opt Out Provisions 2. Spousal Restrictions 3. Joint Purchasing 4. High Deductibles 5. Dependent Eligibility Audits 6. Wellness Programs 19 19

20 SERB Average Monthly Employee Contributions to Family Premiums 20

21 SERB Average Monthly Family Premiums 21

22 SERB Health Insurance Report 22

23 SERB Annual Percentage in Medical Premiums and Average Wage Increases 23

24 Negotiations and Health Insurance 24

25 Negotiations and Health Insurance 25

26 Budgets and Negotiations Source Information for Research Annual Budgets Tax Analysis CAFR Reports State Auditor Reports County Auditor Reports State Tax Revenues 26 26

27 Newark Budget Report 27

28 Newark General Fund Revenue

29 29

30 Zashin & Rich Newsletter Newsletter Signup Stay up to date on the latest Z&R news, Employment Law Quarterly newsletters, and Employment Law Alerts. 30

31 THANK YOU! If you have questions concerning this presentation, please contact: Jonathan J. Downes Zashin & Rich 17 South High Street, Suite 900 Columbus, Ohio (614) Copyright

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