Bargaining Updates

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January 23, 2012

DISTRICT INTENSIFIES ATTACK ON EMPLOYEE HEALTH CARE

LATEST LBUSD HEALTH BENEFITS PROPOSAL REGRESSIVE

The LBUSD has upended bargaining by making a regressive proposal to cut even more from employee health care than previously signaled. The District’s latest proposal not only proposes a HARD CAP on employee benefits (setting a maximum dollar amount the district will contribute to heath care, leaving employees vulnerable to paying the annual premium increases); they reinstated their proposal to have classroom teachers, nurses, and librarians pay an ADDITIONAL 5% of the health care premium for the current year.

In the past year of bargaining the District proposed a 5% premium co-pay for employees. They then replaced that proposal with a HARD CAP on employee coverage. And now, they have moved to a HARD CAP on contributions at the current health care rates MINUS 5%, essentially combining their last two takeaway proposals into a hybrid. Their latest proposal would annually cost current employees in the PPO anywhere from $456 for a single employee, to over $1,000 for families; in addition to the co-pays already in place. (The District’s latest proposal was distributed to Reps at Tuesday’s Rep Council).

>>Click here for the District's latest Counter Proposal<<

The District claims the HMO’s have “no cost, below cap”. . . . but this is misleading since they propose a HARD CAP and any increased employer contributions would require further negotiations. That means future salary increases will be held hostage to increases in the HARD CAP, and very quickly the HMO and PPO plans will include steep employee contributions. In a few short years, the PPO will be cost prohibitive for most employees…leaving fewer in the plan and thereby causing steeper premium increases and a likely collapse in the plan. Under the District proposal increases of $100 dollars or more EVERY YEAR in health care co-pays could become the “new normal” in Long Beach, leaving only the highest paid administrators held harmless to the inflationary impacts of ever increasing premiums co-pays.

Even worse, these proposals by the District do NOTHING to address the potential tax implications of Federal Health Care legislation on employees, meaning employees could be hit with even more costs in 2018.

Bargaining is next scheduled for February 3. The parties have agreed to invite a mediator to participate informally in the next few sessions to see if progress can occur. However, if the District continues to take a regressive stance, only organizing and unity by TALB members will protect our health care.

THE “NEW” LONG BEACH WAY?

The unrelenting attacks on employee health care in the past few years would be bad enough in any District. But Long Beach claims to be a better place often citing “The Long Beach Way” as a path to a well run school District. Few would argue that increasing health costs are a challenge for employers. But lest the District forget, TALB members agreed to health care cuts in the LAST round of bargaining, pay cuts (furloughs), AND saw over 500 members of our bargaining unit laid off. In THIS ROUND we agreed to sit down and look at additional ways to curtail health cost increases and consider implementing those changes in the next round of bargaining. We have done our best to work with the District in every possible way during these challenging times…but enough is enough!

The District has consistently taken an inconsistent shotgun approach on the health care issue. First, there was their initial proposal last January, favored by their past CBO, calling for a 5% uncapped premium co-pay on all health care costs. Next, there was complete paralysis from the District during spring and summer. Now, the new CBO (Jim Novak) who came from the Palm Springs schools, appears ready to push for a Palm Springs style health care model in Long Beach.

The District’s sudden claims of urgency to impose more health care cuts are suspect. They back up their proposal with vague statistics and graphs. On closer inspection some interesting observations can be culled from their public budget documents (available on the LBUSD website):

1. LBUSD fiscal administrators often claim our health care is out of line in comparison to other Districts. So we looked at a few comparable districts to see if this was true. Compared to similar larger districts such as LBUSD, San Francisco, Corona-Norco, Elk-Grove, San Diego, and Garden Grove in the 2010-2011 year we found the following:

• LBUSD is mid-range (4th out of 6 districts) on the percent of the budget (12.49%) spent on health benefits for all employees.
  
  
• LBUSD is mid-range (4th out of 6 districts) in the percent of the budget (46.66%) spent on teacher, nurse, and librarian salaries.
  
  
• LBUSD is high-range (2nd out of 6 districts) on the percent of budget (6.22%) spent on administrators salaries.
  
  
• LBUSD has the highest paid high school principals of the comparable districts (and two of them at each site, to boot).
  
  
• LBUSD has the second highest unrestricted reserve (a.k.a., “savings” account) of the comparable districts at 13.93% of the budget, this is nearly 12% more than required by law.

2. The LBUSD beginning balance has INCREASED from $99,971,376 last year to $109,929,850 this year. While we applaud responsible fiscal practices this increase was on the backs of TALB members in the form of salary cuts (furloughs), health benefit cuts, and the layoff of over 500 teachers. Was the only point of these cut backs, and their latest demands for more cuts to health care, to allow an increase of their savings account by $10 million dollars?

3. The amount they have budgeted on teachers, nurses, and librarians has dropped from 46.66% of the total budget last year to 44.41% of the total budget this year. The cost of health benefits for ALL employees is only projected to increase from 12.49% last year, to a budgeted amount of 13.93% next year. That means all employees, including TALB members, are costing them LESS in their budget NOT MORE, as their rhetoric suggests. And it also means that those closest to the classroom and kids ….classroom teachers, nurses and librarians….are not the budget priority in the District. If we were then, the total percent spent on the classroom would have remained static or increased as they looked for cuts in other areas to balance their budget during the lean fiscal times. And keep in mind; these numbers are based on their actual costs last year compared to their budget for this year. Their budgeted numbers are always conservative and tend to error on the high end. So, expect their actual costs on benefits and the percent they spent in the classroom to actually decrease by the end of the year.

4. Their total costs for salary and benefits has been dropping since 2009-2010, meaning they are spending less on health care and salaries as a percent of their budget, not more. It also means that they are spending less on the people who work with kids.

5. Their unrestricted ending balance, not counting the amount they have to keep for economic uncertainties, was the highest it has ever been, shooting from $51,300,030 in 2009-2010 to $83,225,686 in 2010-2011. So, while they are claiming poverty, laying off classroom teachers, and making cuts in health care, they are just taking the money “saved” and putting it into the bank in record amounts.

Is this the “new” Long Beach way of doing business?

A district where affordable quality health care is based on the level of your salary as the classroom teachers, school secretaries, custodians, nurses, librarians, counselors and maintenance workers are asked to pay a higher percentage of their salary to keep their health benefits, while the highest paid administrators see the least impact?

A district that demands massive health care takeaways a year after employees have already given up jobs, cuts in salaries, cuts in benefits, and salary cuts (furloughs)?

A district that uses savings from the sacrifices of employees to increase the balance in their savings account to record levels?

The District can still look at the facts, and take a different approach. More importantly, the District can give meaning to the words, “the Long Beach way” and the administration’s oft uttered words of appreciation for the district’s employees, by working collaboratively and by withdrawing the unwarranted attack on one of our most necessary and valued working conditions…quality and affordable health care.

January 9, 2012

BUDGET UPDATE

TALB and District bargaining teams met on Friday, December 16. The District made no new proposals on health benefit cuts. Most of the day was spent discussing shared decision making. TALB has proposed the inclusion of shared decision making as a part of the contract for those schools who want to participate. The District also provided budget data that TALB had requested regarding Head Start. No agreements were reached. The parties are scheduled to meet again on January 19.

STATE BUDGET UPDATE:

The STATE BUDGET directly impacts local negotiations, layoffs, and virtually all other school operations. The Governor has made his initial proposal for 2012-2013.

Current projections show that without additional revenue increases, and/or budget cuts, California faces an approximate $9 billion shortfall in the upcoming budget cycle. Governor Brown is proposing a balance between cuts and revenues to deal with the shortfall. The Governor is asking voters to approve temporary tax increases on the wealthy in order to protect schools and public safety. Without the additional revenues schools face an estimated cut of an additional $5 billion dollars from local classroom programs already ravaged by funding cuts over the past four years.

Even if the temporary tax increases on the wealthiest Californians are approved, school budgets will remain static at best, and will likely see cuts in important categorical programs such as school transportation. The Governor is also proposing the elimination of funding for entire programs including AVID and Transitional Kindergarten.

The state budget, and the health of our schools, will again depend on the support of the voters. The Governor’s January budget proposal is the beginning of the process. There are many proposals yet to come over which the legislature is likely to have difficulty reaching a consensus.

November 29, 2011

DISTRICT STILL PUSHING IMMEDIATE HEALTH CARE CUTS

TALB URGES LONG TERM APPROACH

The District made no new proposals at the bargaining table on November 21. The LBUSD’s last proposal to “cap” employer contributions to health benefits was not altered (click here for the District’s last proposal and TALB’s proposal). The District continues to insist on cuts to health benefits in this round of reopeners. Their position remains baffling given that they did not even push a position, any position, until September…nine months after the scheduled start of this round of reopeners.

TALB continues to express willingness to collaborate with the District on health benefit cost issues. However, TALB wants to work in a deliberative manner that will give the parties the necessary time to look at all of the options, and then return with recommendations as a part of next year’s negotiations. TALB would like to see the District take a more long term and collaborative approach to health benefit cost concerns, instead of their more recent approach which results in proposals that are not well thought out or even likely to produce the intended cost savings.

The irony of the District’s position is that the TALB proposal to work in a collaborative committee would result in the parties beginning to deal with health benefit cost concerns immediately. The District approach of attempting to “shotgun” short term cuts will only result in more delay and conflict, as the District attempts to force their proposals on TALB members.

In other bargaining related issues, the District continued to press for significant pay cuts to Head Start teachers. At the same time, the District is struggling to respond to TALB questions regarding the operation and management of the Head Start program. For example, the District could not clearly respond to a simple question regarding whether or not all Head Start management employees would take the same pay cut that was being proposed for teachers.

Bargaining is scheduled to reconvene on December 16.

October 24, 2011

NO SETTLEMENT . . . BENEFITS AND HEAD START STILL AT ISSUE

TALB and District bargaining teams met on Monday, October 24, 2011, regarding ongoing reopener negotiations. Negotiations deal with matters covering this school year as part of the third year of a three-year agreement. Next year we will be bargaining a full-contract.

No settlement was reached on Monday. There are two main sticking points preventing resolution. The first is the District’s proposal to CAP health care contributions, coupled with their demand that any agreements on health care cost containment must be reached in this round of reopener negotiations. The second is their proposal to cut 13 days, and a proportional teacher pay cut, from the Head Start calendar.

TALB continues to express willingness to engage in discussions regarding ongoing health benefit costs, but only in a longer term context and in preparation for bargaining a full contract next year. You can view both the District’s and TALB’s latest proposals by clicking the links below.

The parties are scheduled to negotiate again on November 21.

Click here to read the District's Counter Proposal to TALB K-12 and CDC/Head Start (September 30, 2011)

Click here to read the TALB Settlement Proposal (October 24, 2011)

October 3, 2011

NO SETTLEMENT . . . YET
DISTRICT WITHDRAWS FURLOUGH DAYS…PROPOSES NEW CUTS TO HEALTH CARE

Last Friday, the District withdrew their proposal to implement seven furlough days this year. The TALB Bargaining Team had argued for months against the furlough days based on educational and budget reasons.

The District reported their withdrawal of their furlough day proposal on Friday afternoon…but they left out most of what happened at bargaining on Friday. Here is the rest of the story . . .

HEALTH CARE AND HEAD START STILL AT RISK: What the District omitted from their report is that they are still proposing significant cuts to health benefits. The District is now looking for an annual CAP in what they will pay for benefits. This would leave TALB members vulnerable to paying for annual premium increases. The District is also insisting on a permanent 13 day cut to the Head Start teacher calendar.

TALB’S RESPONSE: The parties had productive dialogue over these complex and important issues. Here is a summary of TALB’s position on these two key issues:

• HEALTH CARE CUTS: TALB has told the District on repeated occasions, and again on Friday, that we are willing to work with the District on long term health benefit cost containment measures, including possible changes in contributions and plan design. HOWEVER, these changes should be well considered and long term (meaning the District doesn’t come back year after year seeking additional cuts).
  
  TALB has an interest in exploring cost containment changes that will limit the possible tax increases resulting from national health care laws on higher cost premiums. The District CAP proposal will dramatically INCREASE out of pocket costs to TALB members but do NOTHING to contain overall premium costs. Under the District proposal, TALB members may get hit twice…with premium co-pays for any amount above the cap AND with possible taxes on those same premiums.
  
  TALB has proposed a collaborative committee to work over the next 3 to 4 months on serious long term health care proposals. The parties would then use next year’s negotiations to make final decisions on implementing any agreed upon solutions. Both parties will benefit from a long term approach that will likely save more money; and more importantly, preserve and protect quality health benefits for teachers, nurses, and librarians.
  
  
• HEAD START: The District did not provide detailed budget information regarding their proposal to cut 13 days from the Head Start calendar. TALB requested several budget documents in order to better understand the status of the Head Start budget, such as: who is working in what jobs and where the money is really being spent. It is unclear why the District is only looking to significant teacher pay cuts to solve their budget problem. When the budget documents are available TALB negotiators will review them in detail to determine what the real problems are in terms of expenditures, revenues, or management policy.

The parties will meet again on October 24, 2011.

September 6, 2011

BARGAINING UPDATE

TALB and District bargaining teams met at the LBUSD office on August 30, from 8:30am to 2pm. The teams met in an attempt to resolve 2011-2012 reopener negotiations.

Discussions during the day were generally collaborative and productive. However, no final agreements were reached. Most of the discussions centered on compensation and health care. While the District did not formally modify their position around health benefit and pay cuts, the parties did have broad and informal discussions around compromise and collaboration in taking a long term approach to some of the issues at the table -- including health care.

One issue that is an ongoing sticking point is the District’s desire to cut approximately 20 days (13 ongoing permanent days, 7 furlough days) from the Head Start calendar. The District indicated that they needed more time to prepare financial information around this proposal, but did not withdraw from their position.

At the end of the day, the District team said that they needed to go back and meet with the School Board before proceeding. The parties have agreed to meet again on September 30.

Thanks to the TALB Bargaining Team for volunteering their off track time to meet with the District in an attempt to move forward.

August 27, 2011

BARGAINING, BUDGETS, AND LAYOFFS
HAVE WE TURNED THE CORNER?

At press time, we were scheduled to negotiate with the District on August 30, 2011. The next UPDATE (September 14) will address any progress made at that bargaining session. To date, the District has not modified any of their initial proposals (including, a 5% health benefit premium co-pay, seven furlough days for this year, and an additional permanent 12 day cut to the Head Start calendar). Bargaining has been slowed by the fact that the District has not produced consistent or clear budget numbers in the last few meetings, with swings in their projections of several million dollars.

Last year we agreed to five (5) furlough days, but that agreement was for one-year only. There is no agreement for furlough days this year and those days cannot be implemented unless an agreement is reached.

Bargaining, the specter of May 2012 layoffs, and rehires, continue to be held hostage by the uncertain state budget. The budget (see the August 1, 2011, UPDATE for more information) is in limbo as mid- year funding cuts remain a possibility. We will know by November if these cuts are going to occur and how they will impact the LBUSD.

It is too early to tell if we have turned a corner, if there will be layoffs again, and if the District will continue to propose cuts in pay and benefits to balance their budget. There are still hundreds of TALB members on layoff and awaiting rehire (click here to view the most current rehire list). Until our members are reinstated AND the District stops asking TALB members to take pay and benefit cuts, we haven’t made a turn for the better, so stay informed and stay united.

June 16, 2011

BARGAINING UPDATE
DISTRICT BUDGET UNRESOLVED…HINDERS AGREEMENT ON CONTRACT

The bargaining teams for TALB and the District met on Thursday, June 9, 2011. Previous to meeting there were some signals from the District that they would be in a position to complete bargaining on the reopeners for next year, however, they did not make any new proposals and both parties agreed that the District and State budget situation are too fluid to resolve compensation issues.

The District’s last proposal includes:

• A pay cut resulting from an 18 day cut to the Head Start calendar (7 furlough days and 11 ongoing days).
• A cut to health care in the form of a 5% ongoing uncapped health benefits premium payment.
• 7 furlough days, likely including 2 student free days (day before school, day after school.)

The District was unable to make any commitments on budget related matters. The District previously indicated that, under a scenario similar to the Governor’s May Revise, they would have a deficit of $9 million in the coming years. They now say that under the Governor’s May Revise scenario…a better scenario, that their deficit has jumped to well over $40 million. It makes no sense that their projected deficit has increased by over $30 million in the past month, when the state budget projection has improved.

TALB raised many questions about this forecast, as it is wildly inconsistent with earlier District projections. After several hours of discussion and questioning, the District and TALB agreed that a contract could not be reached until the District resolves some of the questions surrounding the budget.

Here are a few of the frequent questions we have been getting as it relates to bargaining.

WHAT ABOUT THE NEW MONEY THE DISTRICT HAS FOUND? We have had several calls about “new” money the district or state has found. There is no “new” money. The Governor has proposed a budget that will, if approved, moderately increase education funding for next year. This is a proposal. It depends on lawmakers approval AND an election to maintain the current temporary tax extensions. The proposed increase would eliminate funding deferrals and help cash flow, but the budget would be a no cuts to schools budget. The state did get about $6 billion more in tax revenue than anticipated…and this helps…but still leaves a $9 billion shortfall without the tax extensions. So a funding cut is still a very real possibility.

CAN’T WE JUST AGREE TO A CONTRACT? Yes, if we simply agree to the terms currently proposed by the District. TALB believes we need to be prudent and make decisions that are grounded and thoughtful…and based on an actual budget. That is difficult to do right now because both the state and school district budgets are in flux. At this writing, the District budget could swing as much as $50 million one way or the other depending on the outcome of the state budget, and an eventual election to extend temporary taxes.

CAN’T WE JUST AGREE TO FURLOUGH DAYS AND STOP ALL OF THE LAYOFFS? As reported in past UPDATES, the District is not proposing such an arrangement. Their position is that any one time revenue generated from furlough days needs to be used to offset their reported fiscal shortfall. The other mutual concern is that such agreements will lead to more layoffs next year, thereby not saving jobs, but actually continuing the cycle of layoffs. This is because anytime the employer pays for ongoing salaries with one time money (from furloughs or any other source) they then need to make more cuts the following year to make up for the lost revenue that results when the one time money dries up – so you keep taking furloughs every year, and the layoffs continue year after year.

WHEN WILL THERE BE AN AGREEMENT? The District and TALB will meet in July to review the current budget status and engage in a collaborative discussion to review both budget issues and health benefit issues. We will then restart negotiations in late August.

IF THERE IS AN AGREEMENT AFTER THE START OF THE UPCOMING SCHOOL YEAR, WILL THERE BE FURLOUGH DAYS? We don’t know. The status quo for next year, unless TALB members agree otherwise, is that there will be no furlough days next year.

March 2, 2011

Click here for a copy of Initial Proposals -- LBUSD and TALB.

February 24, 2011

Click here for a copy of TALB's initial contract reopener proposals.

February 3, 2011

We are scheduled to begin bargaining on third year re-openers of a three year contract. The District has not made initial proposals. As soon as they do we will post them here. We will also post any other key information.

We hope the District will work with us to reach a quick and fair agreement so we can all focus on saving classroom jobs and programs by working to support Governor Brown’s June Special Election. Passage of Governor Brown’s June Initiative should relieve some of the pressure at the bargaining table for more cuts to health benefits and salaries. Click here if you want to volunteer to help pass this initiative.

Please continue to read your UPDATES which are delivered to your school mailbox by your Site Rep every two weeks. Also be sure we have your personal email on file, as we often send out email information to our members (we can only use personal emails to communicate most information). Send your email address to eric@talb.org.

February 1, 2011

The budget cuts presented tonight are scary for all of us who care about our local schools. They represent a loss of jobs for hundreds teachers, nurses, and librarians. They represent a diminishing quality of education for thousands of students.

These cuts are premised on a speculative funding reduction that will occur if existing temporary tax increases are not approved by the voters in a June election. If the election is successful education cuts will be mitigated and many of these cuts will not occur.

So here’s the bottom line: We will all need to work together to save our schools by passing this initiative, which we hope will make it to the ballot in June. It is our lifeline....(click to download and read more)

January 21, 2011

Locally, the LBUSD is beginning the process of deciding on cuts for next year. Their eventual cuts will be driven by both the final State budget (likely not known until late Summer/early Fall) and their own spending decisions over the past few years (e.g., maintenance of spending and staffing patterns using one time funds that will dry up after this year). Most of the cuts will likely be people based – including layoffs and attempts to further cut pay and benefits. The District may attempt to once again play these two divisive cuts off against the other to gain leverage at the bargaining table. However, saving jobs is clearly linked to the outcome of a Special Election to extend taxes more so than attempts to make more cuts in salaries and benefits. Because the Special Election creates revenue it actually saves jobs. Further cuts to salary and benefits doesn’t create any revenue, it just robs Peter to pay Paul by forcing employees to pay for programs that taxpayers aren’t willing to fund.

Right now, we do not know how many layoffs are planned. A number of our members laid off from last year were not fully reinstated but were instead offered temporary/special contracts. At minimum, we expect the District to not renew these temporary/special contracts. But several hundred additional notices are likely as the District makes cuts that account for the possible failure of tax extensions. The layoff decisions will occur in February with initial notices due in March.

Bargaining may be a little more predictable. The LBUSD hasn’t provided us with their initial proposal, but it appears that they will seek more furlough days and the uncapped 5% health benefits premium co-pay. We are preparing for difficult negotiations, but remain hopeful that the District will work with us to reach a quick (and fair) agreement so we can all focus on saving classroom jobs and programs by working to support the Special Election.

Print a copy of the January 21, 2011 issue of the UPDATE newsletter here.