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Thursday, December 25, 2003
Enterprise board, teachers at  impasse
By Rick Swart  of the Wallowa County Chieftain

Unable to reach an agreement on compensation, benefits, and contract language, the Enterprise School Board and teachers union declared an impasse last week, raising the  prospect of a strike in January.
    “It’s the worst thing I’ve been involved in in my 22 years as a school administrator,” said Enterprise superintendent Brad Royse.

   Declaring an impasse is one of the last steps in the negotiation process.  Under Oregon law, once an impasse is declared the two sides have seven days to submit their final offer. If neither offer is accepted, negotiations can  continue during a 30-day “cooling off” period. After the cooling off period the school district is free to implement its offer whether the teachers accept it or not. At that point — Jan. 24 on the current timeline — the teachers could choose to strike.
    “We hope that negotiations will continue,” said Duff Pace, spokesman for the teachers. “Any time you can keep communication lines open, that’s the best approach. I honestly think that discussion is health and that we’re not that far apart.”

How far apart remains to be seen.

   After 12 meetings since the last contract expired in July, including to 8-hour mediation sessions ending Dec. 15, the two sides are still deadlocked over health insurance. The union wants the school district to continue paying health insurance premiums for teachers from the time they retire until they are eligible for Medicaid at age 65. That demand would cost the school district $515 a month for each retiree.
   The school district is currently paying $135,000 a year in retirement medical premiums and that figure would increase substantially in the next several years because the Enterprise teaching staff has an unusually high percentage of teachers who have been with the district for 20 years or more.

   “The district spends more on medical benefits for retirees than we do for current teachers,” Royse said of the school board’s desire to reduce retirement medical expense.
    Pace countered that the continuing retirement health premiums will actually save the district money by providing more senior members of the staff more incentive to retire early.
    “I see it as a win-win,” said Pace, who said the provision would allow the school district to replace highly compensated senior educators with younger, less experienced teachers who would come in lower on the pay scale. Teacher salaries at Enterprise range from a low of $26,993 a year to a high $49,757 a year. Because of the high percentage of teachers with many years of service the average yearly compensation is weighted toward the upper end of the pay scale, at $45,750.

Time is money

   Another major sticking point is the so-called “funding clause” which spells out conditions under which the school board could cut up to 15 days out of the teachers’ schedule ... and reduce their salaries proportionately. That provision would be triggered if the state school fund fails to increase by 3 percent or more.
    “We don’t think we’re ever going to see a 3 percent increase in state funding,” said Pace, who estimated that taking 15 days out of the teachers’  schedule would amount to a salary reduction of 10 percent. Royse said the funding clause would give the district more flexibility in the event of a budget shortfall.

   The teachers and the board are also split over pay. In its last offer, the board proposed a 1 percent increase in fiscal 2003 and again in fiscal 2004. The teachers offered to accept no increase in 2003 but wanted a 3  percent increase next year. 
 
 

Comments on the above story:

   “The district spends more on medical benefits for retirees than we do for current teachers,” Royse said of the school board’s desire to reduce retirement medical expense.
    Pace countered that the continuing retirement health premiums will actually save the district money by providing more senior members of the staff more incentive to retire early.

OMED: The problem with the text above, is that due to PERS (Public Employee Retirement System) payments, at least until recently, some members of Oregon's educational establishment receive from 100% to 130% of their working pay after retiring.  

You don't save money by retiring experienced teachers at close to or above their working salary, and replacing them with inexperienced teachers who require their own salary and benefits package.  This process dramatically increases the cost of education instead of reducing it.

There has been a great deal of talk about changes being made in that system, but the press reports we've seen focus on the guaranteed return aspect.  (You, the taxpayer, guarantee that if the PERS retirement funds are invested in the stock market, for example, if the market drops, the PERS investments will still get a positive return.  Their stock value will grow, no matter what happens.  The difference between the stock price and that guaranteed growth rate comes out of your pocket.)

For more on this and related problems, read Tillamook Schools: Who is being milked?

Original text © 2004 Wallowa County Chieftain


 
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