Collective Bargaining Has a Fiscal Impact

The following is a press release from Wisconsin Gov. Scott Walker's office.

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Madison— Today Governor Walker’s office released specific examples and new details to show how collective bargaining fiscally impacts government and how reforming collective bargaining can improve government.

 

A Year’s Worth of Pay for 30 Days of Work

Under the Green Bay School District’s collectively bargained Emeritus Program, teaches can retire and receive a year’s worth of salary for working only 30 days over a three year period.  This is paid in addition to their already guaranteed pension and health care payouts.

At the average annual salary for a Green Bay teacher of $51,355, this amounts to a daily rate of pay of $1,711.83, or an hourly rate of $213.98.  Since most retiring teachers receive higher than average salary, these amounts are, in practice, much higher.

Source: WLUK-TV, 3/3/11 

 Teachers Receiving Two Pensions 

Due to a 1982 provision of their collective bargaining agreement, Milwaukee Public School teachers actually receive two pensions upon retirement instead of one.  The contribution to the second pension is equal to 4.2% of a teacher’s salary, with the school district making 100% of the contribution, just like they do for the first pension.  This extra benefit costs taxpayers more than $16 million per year.

 

Source: February 17, 2010 Press Release, Process of developing FY11 budget begins Milwaukee Public Schools 

 Almost $10,000 Per Year for Doing Nothing 

While the Green Bay Emeritus Program actually requires teachers to at least show up for work, the Madison Emeritus Program doesn’t even require that.  In addition to their pension payouts, retired Madison public school teachers receive annual payments of at least $9,884.18 per year for enrolling in the Emeritus Program, which requires ZERO days of work.

When this program began, 20 days of work per year were required.  Through collective bargaining, the union successfully negotiated this down to zero days.

Source: Madison Teachers Inc. Website 

A Wausau public employee union filed a grievance to prohibit a local volunteer from serving as a school crossing guard.  The 86-year-old lives just two blocks away and serves everyday free of charge.

Principal Steve Miller says, "He said, you know, this gives me a reason to get up in the morning to come and help these kids in the neighborhood."

But for a local union that represents crossing guards, it isn't that simple.  Representatives didn't want to go on camera but say if a crossing guard is needed, then one should be officially hired by the city. 

Source: WAOW-TV, 1/27/10

Some state employees, due to the nature of their positions, are required to carry pagers during off-duty hours in order to respond to emergency situations.  Due to the collective bargaining agreements, these employees are compensated an extra five hours of pay each week, whether they are paged or not.

For an employee earning an average salary of $50,000 per year, this requirement can cost more than $6,000 in additional compensation.

Source: 2008-09 Agreement between the State of Wisconsin and AFSCME Council 24

A Cedarburg school teacher was reinstated by an arbitrator after being fired for viewing pornography on a school computer.  The school district ultimately succeeded in terminating the teacher only after taking the case to the Wisconsin Supreme Court at great cost to the taxpayers.

Source: Milwaukee Journal Sentinel, 8/23/08

Milwaukee Public Schools teacher Megan Sampson was laid off less than one week after being named Outstanding First Year Teacher by the Wisconsin Council of English Teachers.  She lost her job because the collective bargaining agreement requires layoffs to be made based on seniority rather than merit.

Informed that her union had rejected a lower-cost health care plan, that still would have required zero contribution from teachers, Sampson said, “Given the opportunity, of course I would switch to a different plan to save my job, or the jobs of 10 other teachers.

Source: Milwaukee Journal Sentinel, 6/14/10

As a cost cutting measure, Racine County began using county inmates to cut the grass in medians and right-of-ways at no cost to the taxpayers.  A county employee union filed a grievance indicating it was the right of government workers to cut the grass, even though it would cost the taxpayers dramatically more.

Source: Racine Journal Times, 5/12/10

In 2009, the City of Madison’s highest paid employee was a bus driver who earned $159,258, including $109,892 in overtime, guaranteed by a collective bargaining agreement.  In total, seven City of Madison bus drivers made more than $100,000 per year in 2009.

"That's the (drivers') contract," said Transit and Parking Commission Chairman Gary Poulson.

Source: Wisconsin State Journal, 2/7/10

Correctional Officer collective bargaining agreements allow officers a practice known as “sick leave stacking.”  Officers can call in sick for a shift, receiving 8 hours of sick pay, and then are allowed to work the very next shift, earning time-and-a-half for overtime.  This results in the officer receiving 2.5 times his or her rate of pay, while still only working 8 hours.

In part because of these practices, 13 correctional officers made more than $100,000 in 2009, despite earning base wages of less than $60,000 per year.  The officers received an average of $66,000 in overtime pay for an average annual salary of more than $123,000 with the highest paid receiving $151,181.

Source: Department of Corrections

Previously the Governor’s office released these examples of the fiscal impact of collective bargaining:

Paid-Time off for Union Activities
In Milwaukee County alone, because the union collectively bargained for paid time off, fourteen employees receive salary and benefits for doing union business. Of the fourteen, three are on full-time release for union business.  Milwaukee County spent over $170,000 in salary alone for these employees to only participate in union activities such as collective bargaining.

Surrender of Management Rights

Because of collecting bargaining, unions have included provisions in employee contracts that have a direct fiscal impact such as not allowing management to schedule workers based on operational needs and requiring notice and approval by the union prior to scheduling changes.  As County Executive Walker attempted to reduce work hours based on budget pressures and workload requirements by instituting a 35 hour work week to avoid layoffs, which the union opposed.  Additionally, government cannot explore privatization of functions that could save taxpayers money. 

WEA Trust

Currently many school districts participate in WEA trust because WEAC collectively bargains to get as many school districts across the state to participate in this union run health insurance plan as possible.  Union leadership benefits from members participating in this plan.  If school districts enrolled in the state employee health plan, it would save school districts up to $68 million per year.  Beyond that if school districts had the flexibility to look for health insurance coverage outside of WEA trust or the state plan, additional savings would likely be realized.

Viagra for Teachers

The Milwaukee Teachers Education Association (MTEA) tried to use a policy established by collective bargaining to obtain health insurance coverage that specifically paid for Viagra.  Cost to taxpayers is $786,000 a year.

Reference: http://abcnews.go.com/Health/milwaukee-schools-ban-viagra-teachers-union-sues-discrimination/story?id=11378595

Unrealistic Overtime Provisions

On a state level, the Department of Corrections allows correctional workers who call in sick to collect overtime if they work a shift on the exact same day.  The specific provision that allows this to happen was collectively bargained for in their contract.  Cost to taxpayers $4.8 million.

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