P.O. Box 909 ● Trenton, NJ 08605-0909 ● Phone: 609.695.7600 ● Fax: 609.695.0413 ● Web: www.njsba.org/PI

Negotiations 2009

• Backgrounder: Collective Bargaining in New Jersey's Public Schools
• A Glossary of Labor Relations Terms

School Districts Reduce Benefit Costs, Increase Class Time

TRENTON, August 13, 2009 — A large number of school boards and teachers unions are agreeing to lower raises, more instructional time and cost-saving provisions for fringe benefits, according to a New Jersey School Boards Association analysis of teacher contracts covering 2009-2010. However, progress in reaching settlement has been somewhat slower than in previous years.

In all, 443 of the state’s school districts have agreements in place for the 2009-2010 school year. One hundred forty-one (141) are still in negotiations.

“We are seeing the convergence of several factors that can make the bargaining process slower and more difficult,” explained Marie S. Bilik, NJSBA executive director. “With concern over the state of the economy, government revenues and local property taxes, school boards are negotiating cost controls of health benefits, which constitute the fastest rising area of compensation, and they are seeking lower salary increases than in the past.

“In addition, many school districts are finding it necessary to negotiate increases in teacher work time to meet state and local education goals.”

Of school boards negotiating new contracts to begin in 2009-2010, 73 percent are still at the bargaining table. Last year, 61 percent of districts negotiating new contracts had not reached agreement when school began, the Association reported.

Bilik stressed that students and parents should not be alarmed by the number of unsettled contracts.

“It’s not unusual for more than 100 school districts to begin the new school year with the school board and teachers unions still in negotiations,” she said. “Teachers never work ‘without a contract.’ The salary, benefits and protections of the previous contract remain in place until a new agreement is reached. The status of negotiations should not affect the opening of school.

“When negotiations reach an impasse, the state’s Public Employment Relations Commission will appoint a mediator to work with both sides to get the process moving,” Bilik continued. At present, 67 of the 141 districts still in negotiations for 2009-2010 are at impasse.

Historically, many teacher contracts are resolved in the fall and, if there are difficult financial issues, many districts will remain at the bargaining table into the winter. About one-third of New Jersey school districts return to the bargaining table each year, typically seeking three-year agreements.

Health Benefit Costs An NJSBA analysis of 2009-2010 contracts shows that 65 percent include provisions to rein in health benefit costs. In comparison, just over half of 2008-2009 contracts included such clauses.

• Requiring employee contributions toward insurance premiums (present in 14% of 2009-2010 contracts—double the amount of contracts that contained such provisions in 2000-2001).
• Providing less-costly health insurance programs to new employees (45% of contracts).
• Providing a basic employer-pay-all plan with the option of employee-paid upgrades (21%).
• Offering incentives to waive district-provided coverage for those employees covered by other health insurance plans (66%).

Salaries The average salary increase for 2009-2010 contracts settled to date is 4.47 percent, according to NJSBA. The Association expects that the poor economy will have a downward push on future settlements, although the movement may be relatively slow because many current teacher contracts will not expire until a year or two from now.

For recently settled contracts, those reached since January 2009, the average increase is lower, at 4.31 percent. NJSBA also reports an increase in the number of settlements at 4 percent or less, with 65 districts having at least one year of the contract with settlement rates at or below 4 percent.

(NJSBA’s data includes all increases in salary, including incremental raises paid to employees as a result of an additional year of experience. The individual settlement rates do not reflect cost savings achieved through changes in fringe benefits.)

Other Achievements Other trends in school district negotiations include capping payment for unused leave time and placing controls on tuition reimbursement.

• Longer school days, school year: NJSBA reports that 31 percent of 2009-2010 contracts have agreements leading to longer days or a longer school year. In some instances, the additional time may apply to teacher training; in other cases, it may increase instructional time, said Bilik.
• Capping sick leave: A full 71 percent of the 2009-2010 teacher contracts place controls on payment for unused sick leave. Strategies can include monetary caps on the overall payment, limiting the number of days that can be cashed in, and ensuring that payment is equivalent to the salary in effect at the time the sick day was earned.
• Controlling tuition reimbursement: School districts continue to negotiate limits on tuition reimbursement, reports NJSBA. Controls may include limiting reimbursement to coursework related to a teacher’s classroom responsibilities; establishing “return service obligations” that link tuition reimbursement to a teacher’s employment in the district for a specified amount of time; and placing caps, or strengthening existing limits, on the amount of reimbursement.
• Salary guide restructuring School boards report achievements in restructuring salary guides to reflect individual school district staffing needs.

The New Jersey School Boards Association, a federation of district boards of education, advocates the interests of school districts, trains local school board members, and provides resources for the advancement of public education.