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FINANCE AND ITS IMPACT ON LABOR NEGOTIATIONS. WHY DON’T WE HAVE ANYONE IN THE ROOM WHO CAN WORK A SPREADSHEET? Presented By: Mark T. Broth, Esquire. 111 Amherst Street Manchester, NH 03101 603.669.1000 . SOME REALITIES. COLLECTIVE BARGAINING IS A FINANCIAL TRANSACTION
WHY DON’T WE HAVE ANYONE IN THE ROOM WHO CAN WORK A SPREADSHEET?
Mark T. Broth, Esquire
111 Amherst Street
Manchester, NH 03101
FOR LAWYERS--IF WE HAD ANY ABILITY TO DO MATH, WE WOULD HAVE GONE TO MEDICAL SCHOOL LIKE OUR MOTHERS WANTED.
FOR HR TYPES—IF THEY COULD READ A SPREADSHEET THEY WOULD HAVE GONE INTO SOMETHING PRODUCTIVE
NEVER DEPEND ON THE LAWYERS OR LABOR NEGOTIATORS TO BE THE ‘NUMBER CRUNCHERS’ IN NEGOTIATIONS. WE WILL EITHER SCREW IT UP, OR IT WILL BE UNREASONABLY EXPENSIVE.
“EVERY NEGOTIATION IS REALLY THREE SEPARATE NEGOTIATIONS”
1. NEGOTIATIONS BETWEEN AND AMONG MANAGEMENT
2. NEGOTIATIONS BETWEEN AND AMONG EMPLOYEES
3. NEGOTIATIONS BETWEEN MANAGEMENT AND EMPLOYEES
FORGET “ECONOMIC” V. “NON-ECONOMIC” BARGAINING SUBJECTS
EVERYTHING HAS ECONOMIC IMPACT
REAL DISTINCTION IS BETWEEN “OPERATIONAL” AND “FINANCIAL”
THOSE THINGS THAT EFFECT THE DAY TO DAY FUNCTIONING OF A DEPARTMENT
AREAS WHERE THE DEPARTMENT HEAD (POLICE OR FIRE CHIEF, PUBLIC WORKS DIRECTOR) HAS EXPERTISE AND A VESTED INTEREST
-HAVE A MEETING WITH ULTIMATE DECISION MAKERS WHO MUST APPROVE ANY TENTATIVE AGREEMENT REACHED AT BARGAINING TABLE
-OBJECTIVE IS FOR THEM TO SET PARAMETERS FOR NEGOTIATIONS
-PROVIDE THEM WITH FINANCIAL DATA (“FACT SHEET”)
-ABSENT DATA, THEY WILL MAKE ANECDOTAL DECISION BASED ON PERSONAL EXPERIENCE OR PERCEPTIONS, RATHER THAN FOCUSING ON REAL COST DRIVERS
-NUMBER OF EMPLOYEES
-FULL TIME (BENEFIT ELIGIBLE)
-PART TIME (NO BENEFITS)
-BROKEN OUT BY NATURAL DIVIDER
-E.G. POLICE OFFICERS, DISPATCHERS, CROSSING GUARDS
-AVERAGE NUMBER OF HOURS WORKED (STRAIGHT TIME)
-AVERAGE NUMBER OF OVERTIME HOURS WORKED
-COST OF 10¢ PER HOUR (INCLUDING OVERTIME AND PAYROLL TAXES)
-COST OF 1% (INCLUDING OVERTIME AND PAYROLL TAXES)
-COST OF ADDITIONAL DAY OFF
-COST OF ADDITIONAL 1% EMPLOYEE CONTRIBUTION TO HEALTH INSURANCE PREMIUM
- DIFFERENCE BETWEEN 1% INCREASE IN BASE PAY AND 1% INCREASE IN HEALTH INSURANCE PREMIUM (ASSORTED EMPLOYEES)
-UNFUNDED LIABILITIES (CASH OUT OF ACCRUALS)
- DEPARTMENT HEAD NEEDS TO EXPLAIN PROPOSED OPERATIONAL CHANGES
- OPERATIONAL CHANGES REVIEWED FOR FINANCIAL IMPLICATIONS
RELATIVE TO ECONOMIC ISSUES
IDENTIFY LEAD NEGOTIATOR
ANSWER: It depends
“PAY NO ATTENTION TO THE MAN BEHIND THE CURTAIN” WIZARD OF OZ
“NEVER LET ANYONE OUTSIDE THE FAMILY KNOW WHAT YOU’RE THINKING” DON VITO CORLEONE, GODFATHER I
07/01/2010 = 3.5%
07/01/2011 = 3.5%
07/01/2012 = 3.5%
07/01/2013 = 4%
07/01/2014 = 5%
THE UNION RESERVES THE RIGHT TO ADD TO, DELETE FROM, AND/OR MODIFY THESE PROPOSALS AT ANY TIME DURING THE COURSE OF NEGOTIATIONS
Over the last few weeks, Town officials have met extensively to review and discuss the Teamster’s June 9, 2010 proposal. The following report represents a summary of the cost of each item, along with the Town’s position.
Over the 5-year proposed contract period, the package, which includes increases in wages, uniform cleaning, education stipends, details, shift differential, overtime holiday pay, longevity, life insurance, etc. is estimated to cost a total of $497,888.03to taxpayers. This amount, in our opinion, far exceeds all reasonable thresholds given general market conditions, the state of the economy, and our local unemployment rate, which is one of the highest in the state. The following table reflects a summary of the costs of the proposal:
… any bonus which is promised to employees upon hiring or which is the result of collective bargaining would not be excluded from the regular rate under this provision of the Act. Bonuses which are announced to employees to induce them to work more steadily or more efficiently or to remain with the firm are regarded as part of the regular rate of pay. Attendance bonuses, individual or group production bonuses, bonuses for quality and accuracy of work, bonuses contingent upon the employee’s continuing in employment until the time the payment is to be made and the like are in this category. They must be included in the regular rate of pay.