COMMONWEALTH OF PENNSYLVANIA PENNSYLVANIA LABOR RELATIONS BOARD IN THE MATTER OF THE FACT FINDING BETWEEN NESHAMINY FEDERATION OF : TEACHERS, LOCAL 1417, : AFT PENNSYLVANIA, AFT, AFL-CIO : FACT FINDING REPORT : CASE NO. ACT 88-08-08 E and : : NESHAMINY SCHOOL DISTRICT : HEARING: FACT FINDER: May 7, 2008 Langhorne, PA John M. Skonier, Esq. FOR THE DISTRICT: Charles N. Sweet, Esq. FOR THE FEDERATION: Thomas W. Jennings, Esq.
Procedural History Neshaminy Federation of Teachers, AFL-CIO Pursuant to Act 88 of 1992 (Act 88) and the Public Employe Relations Act, Act 195 of 1970 (PERA), notice was received by the Pennsylvania Labor Relations Board (PLRB) from the Bureau of Mediation that no agreement had been reached between the Neshaminy Federation of Teachers, AFL-CIO (hereinafter Federation) and the Neshaminy School District (hereinafter District). By letter dated April 10, 2008, the PLRB appointed the undersigned to act as a fact finder, vested with the authority set forth above. Subsequent to such notice, the parties were duly notified and a hearing was held on May 7, 2008, in Langhorne, Pennsylvania; at which time both parties were afforded a full opportunity to present testimony, examine and cross-examine witnesses, and introduce documentary evidence in support of their respective positions. The matter is now ready for issuance of the subject Report. The Fact Finder would like to thank the parties for the professionalism they exhibited during this proceeding and on the clarity and intelligence with which they presented their positions. The documentation provided was both comprehensive and informative. As the parties had conducted very little bargaining, the instant impasse involves numerous unresolved issues with various sub-issues. This Report contains "recommendations" for these issues which constitute the settlement proposal upon which the parties are now required to act, as directed by statute and PLRB regulations. Pursuant to statutory authority, this Report will be released to the public if not accepted. A vote to accept the Report does not constitute agreement with or endorsement of the rationales, but rather represents only an agreement to resolve the issues by adopting the recommendations. The parties are directed to review the Report and, within ten days of its issuance, notify the PLRB of their decision to accept or reject the recommendations. WAGES Basic Salary Schedule (Article VI, 6-1.1) RECOMMENDATIONS The Federation seeks a 4% wage increase at each step of the basic salary schedules. The Federation would adjust the salary schedules by multiplying each step by 1.04 for each of the three years of the successor contract. The District proposes to increase the number of steps on the basic salary schedule from the current 11 steps to 15 steps, effective by the 2010-2011 school year. The District would add steps 0 and 12 in the 2008-2009 school year; step 13 in the 2009-2010 school year; and step 14 in the 2010-2011 school year. The District proposes to increase the basic salary schedules for each year of the contract by 1%. A review of the budgetary and actual data presented at the hearing reveals that ability to pay is a significant issue. The District points to the rate of increase of health care costs and the poor revenues caused by a relatively static real estate market and the economy in general. The District argues that, while it is not one of the wealthiest Districts in the County, its labor cost for teachers is one of the highest. The Federation argues that the District s perspective on relative labor cost for teachers is skewed because of the very senior workforce in the District. The Federation maintains that, once attrition is taken into account, the relative cost of labor in the District compared to other districts in the county is consistent with its relative wealth. In addition, the Federation points to two facilities that it maintains are slated to be sold and or rented. This revenue, by the District s own analysis, would be substantial and should be considered in any analysis of ability to pay. 2
Neshaminy Federation of Teachers, AFL-CIO A careful review of the financial, budgetary and actual data presented at the hearing reveals that the District does have the ability to pay a modest salary increase within a contractual package. Recommendation: The role of the fact finder is to try to fashion recommendations that will resolve the dispute. After a careful review of the arguments and all of the evidence presented into the record, the following salary schedules are recommended, which represent a 3% total increase per year: SALARY SCHEDULE - EFFECTIVE JULY 1, 2008 STEP B B + 10 B + 20 B + 30 B + 40 M M + 10 M + 20 M + 30 M + 40 1 43,105 44,143 45,097 46,176 47,323 48,462 49,609 50,748 51,892 53,035 2 45,006 46,081 47,131 48,272 49,417 50,556 51,706 52,843 53,985 55,132 3 47,034 48,174 49,226 50,367 51,509 52,651 53,795 54,940 56,079 57,221 4 49,127 50,274 51,319 52,460 53,606 54,747 55,890 57,036 58,178 59,321 5 51,225 52,370 53,414 54,556 55,701 56,841 57,987 59,125 60,272 61,411 6 53,126 54,271 55,319 56,462 57,605 58,746 59,890 61,032 62,173 63,314 7 54,318 55,481 56,640 61,415 63,192 64,964 65,506 66,056 67,420 70,830 8 59,086 60,350 61,611 66,806 68,735 70,666 71,257 71,853 73,338 77,415 9 63,852 65,217 66,585 72,199 74,279 76,368 77,007 77,651 79,257 84,000 10 68,621 70,089 71,557 77,590 79,826 82,070 82,761 83,447 85,174 90,586 11 73,390 74,955 76,526 82,977 85,372 87,766 88,510 89,245 91,089 97,170 SALARY SCHEDULE - EFFECTIVE JULY 1, 2009 STEP B B + 10 B + 20 B + 30 B + 40 M M + 10 M + 20 M + 30 M + 40 1 43,748 44,800 45,769 46,864 48,028 49,185 50,348 51,505 52,665 53,825 2 45,676 46,767 47,834 48,992 50,154 51,309 52,476 53,630 54,790 55,953 3 47,735 48,892 49,959 51,117 52,277 53,436 54,597 55,759 56,914 58,073 4 49,859 51,023 52,084 53,242 54,405 55,563 56,722 57,886 59,045 60,205 5 51,988 53,150 54,209 55,369 56,531 57,687 58,851 60,006 61,170 62,326 6 53,918 55,080 56,143 57,303 58,464 59,622 60,782 61,942 63,100 64,258 7 55,128 56,308 57,483 62,330 64,133 65,932 66,482 67,040 68,424 71,886 8 59,966 61,249 62,529 67,801 69,759 71,719 72,318 72,923 74,430 78,568 9 64,804 66,189 67,577 73,275 75,386 77,506 78,155 78,808 80,438 85,252 10 69,644 71,133 72,624 78,746 81,016 83,293 83,994 84,691 86,443 91,936 11 74,484 76,072 77,666 84,213 86,644 89,074 89,829 90,575 92,446 98,618 SALARY SCHEDULE - EFFECTIVE JULY 1, 2010 STEP B B + 10 B + 20 B + 30 B + 40 M M + 10 M + 20 M + 30 M + 40 1 44,426 45,495 46,479 47,591 48,772 49,947 51,128 52,303 53,482 54,659 2 46,384 47,492 48,575 49,751 50,931 52,104 53,290 54,462 55,639 56,820 3 48,475 49,649 50,734 51,910 53,087 54,264 55,443 56,623 57,796 58,974 4 50,632 51,814 52,891 54,067 55,248 56,424 57,602 58,783 59,960 61,138 5 52,794 53,974 55,050 56,227 57,407 58,582 59,763 60,936 62,118 63,292 6 54,754 55,934 57,014 58,191 59,370 60,546 61,724 62,902 64,078 65,254 7 55,982 57,180 58,374 63,296 65,127 66,954 67,512 68,079 69,485 73,000 8 60,896 62,198 63,498 68,852 70,840 72,831 73,439 74,054 75,584 79,786 9 65,808 67,215 68,624 74,411 76,554 78,707 79,366 80,029 81,685 86,573 10 70,723 72,236 73,749 79,967 82,271 84,584 85,296 86,004 87,783 93,361 11 75,638 77,251 78,870 85,518 87,987 90,454 91,222 91,979 93,879 100,147 3
Co-Curricular Salary Schedules (Article VI, 6-1.3) Neshaminy Federation of Teachers, AFL-CIO The Federation seeks a 4% wage increase for each position identified in Appendix C of the current collective bargaining agreement for each year of the term of the contract. The District opposes such an increase. Recommendation: That the positions identified in Appendix C of the current collective bargaining agreement be increased 3% for each year of the term of the contract. Calculation of Salaries (10 and 10.5 month employees) (Article VI, 6-6) The Federation seeks to delete Article VI, 6-6, in its entirety and substitute new language which provides for the 10 and 10.5 month employees. The Federation seeks a pro rata rate equal to the time worked to be added to the base salary rate for each day worked beyond the normal work year at their normal hourly rate. Recommendation: That the Federation proposal be adopted. All other Ancillary Wages The Federation seeks all other wages to be increased at the customary rates. Recommendation: That these rates be increased by 3% for each year of the term of the contract. Health Insurance (Article VIII, 8-1) The District seeks to change the base medical plan to Blue Cross Keystone Point of Service C1-F1-01 Plan and to have the employees pay 10% of the monthly premium for the base medical plan by payroll deduction, effective July 1, 2008. The employee monthly premium payment is to be increased to 11% as of July 1, 2009 and to 12% as of July 1, 2010. The post-retirement health care (for those retired on or before June 30, 2008) is to be subject to the same cost-sharing as that required by the active employees in the bargaining unit. The Federation opposes any change in health insurance. While the District did demonstrate that it was faced with a substantial premium increase by Blue Cross to maintain the existing health care plan, there has been no real bargaining over this issue between the parties. During the hearing, it was revealed that Blue Cross presented the District with an exorbitant increase and then offered products of arguably lesser benefit value and lower cost. There has been no independent analysis of the health insurance issue and, as stated, there has been no real bargaining. Under these circumstances, I do not recommend a change in the health care insurance at this time. Recommendation: No change. Disability Insurance (Section 8-2) The Federation seeks to increase the monthly short-term and long-term disability insurance benefit over the term of the collective bargaining agreement as follows: July 1, 2008 - increase long-term disability insurance benefit to $1500; July 1, 2009 - increase short-term disability insurance benefit to $1400; July 1, 2010 - increase long-term disability insurance benefit to $1600. 4
Neshaminy Federation of Teachers, AFL-CIO (Section 8-2.1) The District seeks to modify the current disability benefit so as not to exceed $1300 per month. (Section 8-2.2) The District seeks to modify the current long-term accident and sickness disability plan benefit of $1400 per month to age sixty-five. (Section 8-2.3) The District seeks to add new language to reflect that during any period when disability payments are paid under either short-term or long-term disability plans pursuant to Section 8-2.1 or 8-2.2, no sick leave, worker s compensation, or other forms of paid leave or paid benefits shall be due or payable to the employee receiving disability pay. Dental Insurance (Section 8-4) The Federation seeks to increase the basic dental coverage and related riders from $1500 to $2000 per person per year in the collective bargaining agreement. The Federation seeks to increase the existing orthodontic coverage from $1000 to $2000 and to eliminate the existing age restriction in the current collective bargaining agreement. The District seeks to amend Section 8-4 to reflect that effective July 1, 2008 employees will contribute 10% of the monthly premium towards their dental coverage by payroll deduction. This contribution is to be increased to 11% as of July 1, 2009 and to 12% as of July 1, 2010. Prescription Drug Plan (Section 8-5) The District seeks to amend this section to require co-payments for prescriptions at various levels depending on the type of prescription (generic or name brand) that the individual requires and depending on which health care plan in which the individual participates. The Federation opposes any changes in the prescription drug plan. Vision Care Plan (Section 8-6) The Federation seeks to increase the existing Vision Care Plan and the District seeks to amend Section 8-6 to require employees to contribute 10% of the monthly premium towards their vision coverage, by payroll deduction. This contribution would then be increased to 11% on July 1, 2009 and 12% on July 1, 2010. Teachers Schedules The Federation seeks to include the following language in Article X, Other Conditions of Employment, of the collective bargaining agreement: No more than three (3) consecutive encumbered periods (150 minutes) will be scheduled in any teacher s daily assignment. Recommendation: No change. 5
Excused Absence Leave (Article X, Section 10-13) Neshaminy Federation of Teachers, AFL-CIO Add to Justification of Leave Categories The Federation seeks to amend Section 10-13.2 of the collective bargaining agreement to include: T. Attendance at an immediate family member s K-12 educational activity. U. Emergency child care situations. Increase Personal Day Substitutions The Federation seeks to amend Section 10-13.6 of the collective bargaining agreement to increase one excused day for a personal day per school year to two. The District seeks to change the name of this Section from Excused Absence Leave to Personal Leave and to specify the manner of use of personal leave. Recommendation: No change. Term Recommendation: The Collective Bargaining Agreement shall be for a term of three (3) years from July 1, 2008 to June 30, 2011. Aside from editorial changes regarding the updating of relevant dates and corresponding contractual language by mutual agreement of the parties, all proposals for which no recommendations for change has been made in the subject Report are rejected and all provisions of the contract for which no recommendation for change has been made in the subject Report should remain as is. Having conducted a Fact Finding hearing pursuant to Act 88 and Act 195, having taken testimony under oath, and having considered the evidence to better understand the respective positions of the parties, I respectfully submit this Report. May 20, 2008 Fact Finder 6