The Hamilton Township Board of Education and the Hamilton Township Education Association are signatories to a collective bargaining agreement dated July 1, 2009, through June 30, 2012. The parties reached an impasse in bargaining and the New Jersey Public Employment Relations Commission (NJ PERC) appointed a mediator to assist the parties in reaching an agreement. Mediation was not successful and on May 7, NJ PERC appointed Gerard G. Restaino, arbitrator, as fact-finder. After meetings of June 24, July 25, Aug. 7, and Aug. 27 it became apparent that a fact-finder’s report would be necessary....
Hamilton Twp. Board of Education / Hamilton Twp. Education Association fact finders report 10/23/13
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3. NEW JERSEY PUBLIC EMPLOYMENT RELATIONS COMMISSION
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HAMILTON TOWNSHIP BOARD OF
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EDUCATION,
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EMPLOYER
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AND
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HAMILTON TOWNSHIP EDUCATION
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ASSOCIATION,
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ASSOCIATION
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In the Matter of the Fact-Finding
Between
FINDINGS
AND
RECOMMENDATIONS
DOCKET NO.:
FF-2013-0041
FACT-FINDER:
GERARD G. RESTAINO, MUTUALLY CHOSEN BY THE PARTIES PURSUANT TO
THE PROCEDURES
OF THE NEW JERSEY PUBLIC EMPLOYMENT RELATIONS COMMISSION
APPEARANCES:
FOR THE EMPLOYER
BRUCE TAYLOR
ERIC AIKEN
JOHN SACCHINELLI
GEORGE HASSA
ANNE ERICKSON
DAN SMITH
FOR THE ASSOCIATION
VINCENT PERNA
ROBERT WILLOUGHBY
PATRICIA FLEMING
JEFF GILDINER
THIRTEEN TEAM MEMBERS
LABOR CONSULTANT
CHAIRMAN BOARD NEGOTIATING COMMITTEE
BOARD MEMBER
BOARD MEMBER
BOARD PRESIDENT
BUSINESS ADMINISTRATOR
NJEA UNISERV REPRESENTATIVE
NJEA ASSOCIATE DIRECTOR OF RESEARCH
PAST ASSOCIATION PRESIDENT
PRESIDENT/CHIEF NEGOTIATOR
4. BACKGROUND AND PROCEDURAL HISTORY
The Hamilton Township Board of Education, hereinafter referred to as the Board/District and
the Hamilton Township Education Association, hereinafter referred to as the Association, are
signatories to a collective bargaining agreement dated July 1, 2009, through June 30, 2012. The
parties reached an impasse in bargaining and the New Jersey Public Employment Relations
Commission (NJ PERC) appointed a mediator to assist the parties in reaching an agreement.
Mediation was not successful and on May 7, 3012, NJ PERC appointed the undersigned as the FactFinder. I had meetings with the parties on June 24, July 25, August 7, 27, 2013. At the end of the
August 27th session it became apparent that a Fact-Finder’s report would be necessary.
It was agreed that the parties would have an opportunity to submit additional documentation to
me as well as to enumerate their final offers. We also agreed that the information would be submitted
to me via email no later than September 13, 2013.
Both parties submitted comprehensive documentation to support the issues in dispute. The
voluminous documentation submitted by both parties was carefully reviewed and analyzed by the
Fact-Finder to reach a fair and equitable determination.
My role as a Fact-Finder is in two parts: (1) review all documents submitted to me and make a
reasoned, rational recommendation based upon those documents; and (2) help the parties bridge the
gap and bring them together.
Having conducted informal sessions, I was able to determine if either party was pliable or rigid
with the varied proposals that were on the bargaining table. It is a credit to the cleverness of both
parties that they were able to adroitly move through an adversary’s argument and not waiver from a
particular position.
It is of critical importance that my recommendation be considered as a whole and that the
parties refrain from picking and choosing those individual components they deem interesting or
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5. captivating. There is no question that I will visit and examine each outstanding issue, but all issues
are not joined at the hip. While all positions have been cogently argued for, some proposals may not
be included within the totality of my recommendations since they may be beyond what is obtainable in
this specific fact-finding process. More importantly, as I reviewed the inter-relationship of each issue
to the total package, some issues may have exceeded the standard of reasonableness.
I stress to the Board and the Association that the concessionary discussions and proposals
which took place during the informal sessions may not necessarily be incorporated herein.
ISSUES
The parties submitted the following open issues to the Fact-Finder:
A.
Duration
Both parties have proposed a one year (2012-13) agreement and a three year
(2013-2016) agreement.
B.
Salaries
During the informal discussions both parties presented extensive documentation
in support of their positions. The Board proposed adding three steps to the teacher
guides while the Association proposed adding one step. Additionally, both sides
proposed a starting salary of at least $50,000 beginning with the 2014-2015 year.
Moreover, both parties acknowledged the low salaries in the beginning of the teacher
guides and proposed corrections to same. The parties also addressed the low salary of
paraprofessionals. However, they differed on how to increase those particular salaries.
C.
Longevity
D.
Language issues
1.
Article 10, C Death in immediate family… change grandparent-in-law
leave from 5 days to one day.
2
6. 2.
Article 11 (new) Insurance Short-term replacement employees not
covered if period of actual coverage is less than 90 days.
TEACHER GUIDE
YEAR
BOARD
ASSOCIATION
2012-13
2012-13 Agreement
4% Base Increase
5.25% Base Increase
2013-14
2014-15
2015-16
2013-16 Agreement
4% Base Increase
4% Base Increase
2% Base Increase
Add three steps to guide.
New monies subject to mutual
distribution.
Effective 7/1/14, $50,000
starting salary.
PARAPROFESSIONAL GUIDE
YEAR
BOARD
2012-13
2013-14
2014-15
5.25% Base Increase
5.25% Base Increase
$1200 added to each step
Add one step to guide
Normal step movement each year
Effective 7/1/14, at least $50,000
starting salary.
ASSOCIATION
2012-13 Agreement
$500 across-the-board increase
to each step of the 2011-12 guide.
This increases scattergram by $500
times the number of paraprofessionals
on agreed upon scattergram. Use new
scattergram and increase base by %
applied to teacher base for 2012-13.
2013-2016 Agreement
$500 across-the-board increase
to each step of the 2012-13 guide.
This increases scattergram by $500
times the number of paraprofessionals
on agreed upon scattergram. Use new
scattergram and increase base by %
applied to teacher base for 2013-14.
$500 across-the-board increase
to each step of the 2013-14 guide.
This increases scattergram by $500
times the number of paraprofessionals
on agreed upon scattergram. Use new
scattergram and increase base by %
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$2000 added to each step
of the 2011-12 guide. Add
to each step % applied to
2012-13 teacher base.
Normal step advancement.
$2000 added to each step
of the 2012-13 guide. Add
to each step % applied to
2013-14 teacher base.
Normal step advancement.
$2000 added to each step
of the 2013-14 guide. Add
to each step % applied to
2014-15 teacher base.
Normal step advancement.
7. applied to teacher base for 2014-15.
2015-16
Increase total 2014-15 base by % applied
to 2015-16 teacher base.
$2000 added to each step
the 2014-15 guide. Add
to each step % applied to 201516 teacher base.
Normal step advancement.
Except for the first 3 years’ adjustments
(which are across-the-board), new monies
are subject to mutual distribution by the parties
OTHER SUPPORT STAFF GUIDES
BOARD
Unlike with the teacher and paraprofessional
sub-group, the Association has made no
claim that other support salaries warrant
a higher settlement that what would be
normal. Therefore, the Board offers a
salary settlement for these sub-groups
that somewhat exceeds its budget cap under
law for each of the four years.
EXTRACURRICULAR, HOURLY RATES
BOARD
Freeze at current rate for four years.
ASSOCIATION
same % as applied to teacher
base for each year of
agreements.
ASSOCIATION
Same % as applied to teacher
guides for each year of
agreements.
POSITIONS OF THE PARTIES
FOR THE BOARD
The Board contends that the Association seeks one of the highest settlements in New Jersey
School districts. The Association’s proposal of 5.25% a year for each of four years is irrational
and not justified.
The Board offers comparable data from the NJEA (Trend Setter # 7) in support of its salary
offer. That document shows the two most recent settlements reported in Atlantic County at
2.7%/2.6%/2.5% (Folsom), and 2.3%/2.2%/2.1% (Ventnor). That document also reports State-Wide
settlements averaging 2.4% for 2012-13, 2,27% for 2013-14, and 2.81% for 2014-15.
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8. Only one district in the NJEA report reached a 4% settlement (Passaic City) and did so in only
one year of a three year agreement. Therefore, in only 1 of 374 NJEA reported settlements was a
4% increase achieved. Conversely, the Board’s offer in three of the four years equals 4%.
The Board strongly argues that its final offer would have been accepted by every other
unsettled agreement and questions why it is not acceptable to the Association.
Furthermore, the Board rejects the Association’s assertion that the difference between the
parties on the teacher salary guides is only in the range of a few hundred thousand dollars. When, in
fact, the difference over four years is $2,667,201 for the teacher guides alone. It does not factor in
the paraprofessional guide increases as well as other support staff guide increases.
Additionally, the Board’s offer addresses some of the Association’s key concerns vis-a-vis the
structure of the current teacher guide. Nevertheless, the Association refuses to acknowledge its own
responsibility for some of the challenges that the guide produces. In fact, the Board has alerted the
Association over the years that the guide favored by the Association would cause serious problems in
future negotiations. Two major factors created the current dilemma: 1) a 13 step guide, shorter-thannormal In the County and in the State; 2) the Association’s insistence in prior rounds of negotiations
to place substantially more money at the maximum step than could sustain a sensible guide. In the
past the parties actually went to Fact-Finding over guide construction because the Association’s
distribution of monies led to some of the problems inherent with the teacher salary guide. On the
2011-12 teacher guide one third of the staff will receive $200 increments each for the first three years
of the agreement, and one third will receive $15,000 each for those same three years.
However, the Board recognizes those teacher guide problems and has proposed a settlement
far above the County and State average with a new guide that establishes the following:
1) a normal 16 step guide, 2) raises the BA starting salary in the third year to $50,000; 3) gives
the lowest paid teachers ( a third of the teacher sub-group) over a $7000 raise on average
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9. over the first three years; 4) allows those teachers scheduled for very large increases under
the 2011-12 guide to still receive far larger salary increases than lower-paid teachers; 5) more
fairly distributes available money; and 6) lowers the projected out-year increment load to the
lowest in decades.
The Board acknowledges the existence of “breakage money” and recognizes that they will
need to use that money to fund the settlement. The prior settlement with the Association far
exceeded the cap then in place, and with insurance costs skyrocketing and outstripping revenue
growth, a combination of “breakage” and hard personnel and programmatic decisions by the
District allowed for those salary increases.
The District agrees that the Association is accurate about the new State-mandated health
insurance premium sharing but the Association fails to recognize or accept that premium sharing
is a way of life for most private sector employees. Moreover, the new employee share will not
cover the increase in insurance premiums and will continue to put pressure on limited school
budgets.
The Board argues that its paraprofessional salary increases raises each paraprofessional’s
salary by $1,500 over and above what the teacher/support staff settlement would be. Coupled
with the assumed teacher/support staff raises over the four years, the Board’s salary increases
will exceed 21.7%. The adjustment alone will give paraprofessionals $4,500 in gross salary over
the four years more than he/she would have received if there were no adjustment.
The Association’s paraprofessional position is uncertain because its $30,000 top salary in
2015-16 amounts to a 43% raise over three years. In fact, the Association’s proposal to retain a
nine step guide means the 43% increase is actually much higher. The Board strenuously objects
to such an absurd increase and suggests the bargaining positions of parties should have some
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10. relationship to a 2% budget cap, a state-wide settlement rate of under 3% and a cost of living
under 2%.
The District also contends that extending the teacher and paraprofessional salary settlements
beyond the norm creates budgetary shortfalls that make automatic parity salary settlements
difficult, possibly requiring staffing decisions within the 2013-14 year and in the next two years.
The Board believes that maintaining positions is in the best interest of all involved.
The District strenuously argues that under its salary offer hundreds of thousands of dollars
over and above the budget cap will be expended directly on salaries. To that end the Board
asserts that all available monies should be directed to these overall salaries and not to activities
which may be eliminated if their value, vis-à-vis other budgetary priorities, actually decreases
because of increase salary costs.
In conclusion the Board argues that they have gone far beyond what other school boards are
willing to do in this budgetary environment. The Board has offered a fair settlement which meets
the stated goals of the Association, and the Board’s positions should be the basis of the FactFinder’s recommendations.
For the Association
The Association contends that the fact-finder’s recommendations must be derived from the
facts presented, documented and argued by the parties to this dispute. The fact-finder’s
recommendations cannot be reduced to a report which simply reports on the average of what other
employers and their employees agreed to do. A legitimate fact-finding report must recommend that
the parties agree to a settlement that is significantly above or below the mathematical average when
the proven facts warrant it.
The facts elicited and documented in this dispute warrant such a drastic departure form the
norm. The facts documented in this dispute support a settlement well above the “going rate.”
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11. Therefore, the fact-finder cannot minimize or discount the mountain of facts which support the
Association’s position.
There is no question that by any standard, it was proved that the teachers and
paraprofessionals are significantly underpaid given the results they provide and their comparable
worth on the competitive market. The certificated salary guide structure fails to provide an equitable
reward for the service provided. The failure to correct these obvious deficiencies has led to a
significant decline in morale and an inconceivable exodus from the district. Unless these issues are
addressed, it can only lead to a worsened condition that will make it impossible to provide the service
and results desired by the employer.
The obligation to assess the ability to pay is an absolute requirement for any fact-finder. It is
the criterion which is often argued, successfully, to limit the award made relative to the deserved
increase in compensation for specific groups of employees. No such argument has been advanced
by the Board. Here, we have the exact opposite. The Board has argued that they are unwilling
to provide that which is necessary to correct the documented deficiencies.
Based upon the documented budget surpluses, staff retirements/resignations, and Chapter 78
insurance contributions, the District clearly has the ability to pay all that the Association asks—and
more.
The focal point of the Association’s financial arguments is based upon the July 9, 2013,
meeting with Dan Smith, BA and Bob Willoughby, NJEA Associate Director of Research. The results
of those discussions revealed the following:
1.
2.
3.
4.
5.
Retirement/Resignation “breakage”
Extraordinary aid
Banked Cap for 2014-15
Surplus
Chapter 78 Premium Sharing contributions
(2012-13) $229,359, (2013-14) $353,965, (2014-15) $642,546
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$ 540,000
$ 122,652
$1,657,215
$1,147,723
$1,225,870
$4,693,460
14. BASE YEAR
2011-12
Category
#
# on Max
Total Cost
Increment Cost
Teacher
282.43
84
16,682,557
546,759
Professionals 70.0
25.20
1,317,907
18,642
Secretarial
20.19
11.0
736,086
18,900
Custodial
26.71
15.48
986,359
7,092
Maintenance
8.0
4.0
361,756
2,407
Data
1.0
CT
3.0
NS
1.0
Para-
-
48,801
2.0
-
126,554
823
57,256
1,170
Currently, there are at least 27 full-time paraprofessionals and the rest are part-time.
Teacher Guide Specifics
282.43 Staff
129.43 or 45.83% are on the BA Column
82 or 29.03% are on the MA Column
84 or 29.74% are on the maximum step BA – MA+30
90.43 or 32.02% are on steps 1-6 BA – MA+30
108 or 38.2% are on steps 7-12 BA – MA+30
153 or 54.17% have a degree beyond a BA (BA+15 – MA+30)
90.43 or 32.02% have increments that range from $206 to $229
The cost of the teacher guide for the previous settlement was $ 17,516,742, but the actual cost
to the Board was $16,682,557. Apparently the difference of $844,185 is due to the use of
breakage money to help fund the settlement.
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16. BASE YEAR
2011-12
PARAPROFESSIONALS
Increment Dollars
Step
1
208
2
208
3
207
4
208
5
1,009
6
533
7
756
8
1,157
9
-
Increment Cost
Step
1
1,664
2
1,997
3
1,656
4
1,331
5
2,422
6
1,279
7
1,814
8
6,479
9
Total
% of base
18,642
1.41%
FINDINGS AND RECOMMENDATIONS
At the recommendation of the Fact-Finder, Dan Smith, Board BA, and Robert Willoughby,
NJEA Associate Director of Research met to review the District’s finances. The results of those
discussions were provided to the Board and Association negotiating teams as well as the Fact-Finder.
The breakdown of those discussions is as follows:
1.
Total fund balance as of 6/31/12 is $7,176,721 with $1,147,723 unassigned.
2.
$549,690 was used to balance the 2012-13 budget, lowering the unassigned amount to
$598,033.
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17. 3.
The banked cap for 2014-15 is $1,657,215. The Board did not use any banked cap for
the 2013-13 budget.
4.
The Board did not budget any extraordinary aid for the 2012-13 budget but did budget
$50,000 for the 2013-14 budget.
5.
Association members contributed to health insurance premiums as per Chapter 78 in
the amount of $353,965 for 2013-14, which is an increase of $124,606. It is estimated
that for 2014-15 that amount will increase to $642,546, and for 2015-16 it is estimated
the amount will increase to $971,431. The two estimated amounts are 81 and 51% over
the previous years.
6.
140.91 of 282.43 teachers receive less than a $50,000 salary.
7.
Since December 2011 there have been 18 retirements. Using $30,000 as an
approximate savings per teacher creates an amount of $540,000 or about 2.5% of the
agreed upon base. Further analysis is needed to determine how many of the
retirements were actually incorporated into the budget.
8.
The average value of a home in Hamilton Township is $191,000, and the average tax
bill for all services is just over $5000. A penny increase of the tax rate equals $236,000.
Additional retirement/resignation information for Association members was received which
shows the following for the 2011-12 school year:
1.
31 teachers retired/resigned and 2 were non-renewed
2.
3 secretaries retired and 1 was terminated
3.
1 custodian retired
4.
17 paraprofessionals resigned/retired and 3 were terminated
2012-13
1.
36 teachers retired/resigned and 1 was terminated
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18. 2.
2 secretaries retired and 1 was terminated
3.
4 custodians resigned and 1 was terminated
4.
14 paraprofessionals resigned/retired and 2 were terminated.
SALARY BASE FOR 2011-12
Teacher Guide
Base
$16, 682,557
Average Salary
$59,068
Number of steps on guide 13
Paraprofessional Guide
Base
$1,317,908
Average Salary
$18,827
Number of steps on guide 9
Board Final Position
Teacher
2012-13 4% added to base
Association Final Position
Teacher
2012-13 5.25% added to base
2013-15 4% added to base each year
2015-16 2% added to base
2013-15 5.25% added to base each year
2015-16 $1200 added to each step plus
increment
Paraprofessionals*
2012-13 $500 added to each step plus %
applied to teacher base
Paraprofessionals ◊
2012-13 $2000 added to each step plus
% applied to teacher base
2013-15 $500 added to each step, each year 2013-15 $2000 added to each step, each
plus % applied to teacher base each year
year plus % applied to teacher base each year
2015-16
% applied to teacher base
2015-16 $2000 added to each step plus %
applied to teacher base
Both parties are proposing 2 separate agreements with terms of July 1, 2012, through
June 30, 2013, for a one year agreement, and July 1, 2013, through June 30, 2016, for a
three year agreement.
* For purposes of paraprofessional’s calculations, I will use the Board’s proposed
teacher base increases.
◊ For purposes of paraprofessional’s calculations, I will use the Association’s
proposed teacher base increases.
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19. TEACHER BASES AND AVERAGE SALARIES
YEAR
2012-13
Average Salary
2013-14
Average Salary
2014-15
Average Salary
2015-16
Average Salary
BOARD
$17,349,859
$61,430
$18,043,853
$63,888
$18,765,607
$66,443
$19,140,919
$67,772
ASSOCIATION
$17,558,391
$62,169
$18,480,206
$65,433
$19,450,418
$68,868
$20,325,686
$71,967 (@4.5%)*
The Board’s offer increases the average teacher salary by $8704 over the life of both agreements
while the Association increases the average salary by $12,899 for the same time period.
*I interpreted the Association’s offer to be 4.5% for 2015-16. That % might not be accurate but
for purposes of this report it will suffice.
PARAPROFESSIONAL BASES, AVERAGE AND MAXIMUM SALARIES
YEAR
2012-13
Average Salary
Maximum Salary
2013-14
Average Salary
Maximum Salary
2014-15
Average Salary
Maximum Salary
2015-16
Average Salary
Maximum Salary
BOARD
$1,407,024
$20,100
$22,375
$1,499,705
$21,424
$23,790
$1,596,094
$22,801
$25,261
$1,663,716
$23,257
$25,766
ASSOCIATION
$1,534,481
$21,920
$24,222
$1,762,356
$25,175
$27,599
$2,002,227
$28,601
$31,153
$2,238,630
$31,978
$34,644
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20. The Board increased the average paraprofessional salary by $4430 and the maximum salary by
$4752 while the Association increased the average salary by $13,151 and the maximum salary by
$13,630 over the life of both agreements.
The unique facts of each impasse matter can and does control how a particular disputed
situation might be adjudicated if it is submitted to Fact-Finding. Under any set of facts, however, I am
limited to and must draw any conclusions from the exhibits presented and post hearing
documentation.
It is uncommon for a school board in the State of New Jersey to make a final offer as the
Board did in the instant matter. Without doing any further research the Board is probably correct that
its offer is the highest in Atlantic County and possibly in the State. The Association’s economic
weapons are based upon an analysis of the Board’s budgets and finances. Nevertheless, it is critical
to review the current salary guides for teachers and paraprofessionals. That is not to minimize salary
increase for other support personnel but the thrust of both parties focused on teachers and
paraprofessionals. In fact, both parties acknowledge and concede that those two guides have major
problems.
The current teacher guide shows increments for steps 1-6, BA – MA+30 of $206 to $229. Not
only is that absurd but it clearly reveals contributory negligence. The Board argued that in 1999 the
parties submitted an impasse to Fact-Finding and the only issue was the structure of the teacher
salary guides. Furthermore, the District strongly asserted that they told the Association of the perils
of adopting the guide created in Fact-Finding and raised the same concerns in subsequent contract
negotiations.
However, all salary guides are mutually agreeable; therefore, even though the Board had
doubts about the viability of those teacher guides, they accepted and passed resolutions to approve
them. In fact, the 2011-12 guide has increments for steps 7-12 ranging from $1,159 to $7,918, and
17
21. 140.1 or 49.8% of teachers receive a salary less than $50,000. It certainly means to me that the
money was put towards the top of the guide, and it became a ”wait to get competitive raises”
type of guide. It is commendable that both sides are moving in the same direction; however, they are
traveling on different routes. They both want a starting salary of at least $50,000 by the beginning of
the 2014-15 school year, but getting there is the difficulty. The Board wants to implement its offer by
adding three steps to the teacher guides, while the Association is adamant that they will agree to only
one step being added. Whether the Association’s final offer is 21% (5.25 x 4 years) or 20.25 % (5.25
for three years and 4.5 for 2015-16) is of no moment because neither final offer is obtainable in this
process. On page 2 of this report at the end of the first paragraph I stated: “More importantly, as I
reviewed the inter-relationship of each issue to the total package, some issues may have exceeded
the standard of reasonableness.”
The standard of reasonableness will be my barometer for this Report.
Infused within the Association’s economic arsenal is the Chapter 78, health insurance
contributions that all bargaining unit members are required to pay. Chapter 78 contributions are a
non-starter for me, and I am rejecting those contributions as part of the economic means the District
can employ to fund the settlement. All public employees in the State of New Jersey are required to
pay those contributions based upon their base salary. The statute requires a minimum contribution of
1.5% and some teachers may be paying as much as $6000 for family coverage. I have no authority
to modify, delete or amend any provisions of Chapter 78.
Chapter 78 was established, rightly or wrongly, for health insurance contributions, NOT to
enhance salary increases. The Chapter 78 economic gun that the Association is carrying has no
firing pin and consequently cannot be used to fund this settlement. To advance such an argument
and expect the Fact-Finder to accept it expands the boundaries of believability beyond any
recognizable limit.
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22. Both parties have acknowledged that the current guide for paraprofessionals must be
improved. Additionally, many paraprofessionals have left the District for a higher paying position in
another school system. Some resigned and became substitute teachers in the District. The
standards of reasonableness apply here as they do with the teacher guides.
The 2011-12 paraprofessional guide shows the following:
Steps 1-4 increments of $207 - $208
Step 5 $1,009 increment
Step 6 $533 increment
Step 7 $756 increment
Step 9 $1,157 increment
It also shows that 30.8 or 44% are on maximum, and 25.6 or 36.57% are on steps 1-3.
Applying the same % applied to the teacher guides to the paraprofessionals guide does not help them
because of their low salaries. Moreover, a guide for paraprofessionals cannot be priced out of the
competitive market. Furthermore, many of the paraprofessionals are part-time and that is probably
determined by the District’s needs.
The Association consistently argued that the Board has at least $540,000 in breakage and that
must be used in this settlement. However, that breakage argument is not as completely controlling as
the Association would have me believe. The Board budgeted 2% for salary increases, which means
they put $333,652 (1% is $166,826) in the budget. The other 2% for the Board’s final offer was taken
from breakage, surplus or a combination of other accounts. For some reason the Association fails to
recognize that of the $540,000 they found in breakage, the Board already used some of that amount.
For purposes of this report I will assume all of the $333,652 is from breakage leaving a breakage
balance of $206,348.
The 2011-12 Atlantic County rankings from the NJEA Research Division show the following:
BA MINIMUM
COUNTY AVERAGE
DIFFERENCE
RANKING
$44,352
$47,295
-$2943
212/24
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23. BA MAXIMUM
$74,371
$76,230
-$1859
18/24
Additionally, that research information shows that Hamilton Township has 13 steps on the
teacher guide and the County average is 14. Moreover, 11 of the 24 districts compared have 15 or
more steps on their guides. That exhibit shows a range of steps from 12 -20.
The Board’s 2012-13 budget has a school tax rate of $0.808 with a school tax levy of
$19, 290,197, and to increase that amount by 2% an additional $0.017 increase in the tax rate was
necessary. The 2013-14 school rate is $0.833 for a school tax levy of $19,676,001. That 2% tax levy
increases taxes on a home assessed at $100,000 by $25.00, one assessed at $200,000 a $50.00
increase and one assessed at $250,000 a $62.50 increase. The amount raised by $.01 for 2012-13
is $238,839.66 and for 2013-14 the amount is $236,306.52.
Furthermore, the Board’s Capital Outlay Budget for 2013-14 is $1,189,737 of which $951,155
is funded by the Capital Reserve Fund and $238,582 from the General Fund.
The Board’s $500.00 per step increase plus % applied to teacher base for the
paraprofessionals guide is not high enough to correct the long-standing errors on that guide. On the
other hand, the Association’s $2000.00 per step increase plus the % applied to the teacher base is
candidly unreasonable. After spending hours with the Board’s negotiating team, I am convinced that
the increase proposed by the Association will result in a reduction of paraprofessionals as well as
many positions becoming part-time. Of the 70 paraprofessionals 27 are full-time and 43 are parttime.
An increase such as being proposed by the Association will in all likelihood result in the
number of 27 being reduced and the number of 43 being increased.
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24. Nevertheless, I am also convinced that there is funding available with the additional use of
breakage and surplus to fund the multi-year settlement that will begin to make both salary guides
competitive and attractive. My recommended settlement is more than the Board has offered and less
than the Association has offered. The breakage amount may be increased if there are
retirements/resignations or terminations during the 2013-14 school year. I am only using the amount
of $540,000 that was created at the July meeting between Messrs. Smith and Willoughby.
Furthermore, the Board’s documentation accepts and recognizes that breakage money will be
needed to fund the multi-year settlement.
My salary recommendations are as follows:
All salary increases, stipends, extra-pay, coaching positions are retroactive to July 1, 2012.
Add two steps to the teacher guides. I doubt that will occur during the 2012-13 school year,
but that is up to the parties. I will not create any salary guides; I will leave that to the parties
and their experts. I do not recommend adding steps to the paraprofessional’s guides.
One Year Agreement
July 1, 2012, - June 30, 2013
2012-13
Increase 2011-12 teacher base by 4.25% including increment
New base $17,391,586 average salary $61,578
Adjust each step of the 2011-12 paraprofessionals’ guide by $7500.00 and increase that
amount by 4.25%
New base $1,428,649
average salary $20,409 maximum salary $22,689
Increase 2011-12 base of other support personnel by 4.25%
Longevity unfreeze and pay at rates set forth on pages 19/20 of the Agreement
Increase summer curriculum to $39.00 per hour
Increase Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities,
Home Instruction, Administrative Detentions, Paraprofessional Summer Work
by 4.25%.
Article 10 C, Death in immediate family change five days to three days
Article 11 (new) Insurance Short-term replacement employees not
covered if period of actual coverage is less than 90 days. Change to 75 days.
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25. Three Year Agreement July 1, 2013, - June 30, 2016
2013-14
Increase 2012-13 teacher base by 4.0% including increment
New Base $18,087,249 average salary $64,041
Adjust each step of the 2012-13 paraprofessionals’ guide by $750.00 and increase that
amount by 4.0%
New base $1,540,395
average salary $22,005 maximum salary $24,377
Increase 2012-13 base of other support personnel by 4.0%
Longevity
pay at rates set forth on pages 19/20 of the Agreement
Summer Curriculum to be paid at $39.00 per hour
Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities, Home
Instruction, Administrative Detentions, Paraprofessional Summer Work
to be paid at 2012-13 rates.
2014-15
BA starting salary of at least $50,000
Increase 2013-14 teacher base by 4.00% including increment
New base $18,810,739 average salary $66,603
Adjust each step of the 2013-14 paraprofessionals’ guide by $750.00 and increase that
amount by 4.00%
New Base $1,656,611
average salary $23,666 maximum salary $26,132
Increase 2013-14 base of other support personnel by 4.00%
Longevity
pay at rates set forth on pages 19/20 of the Agreement
Summer Curriculum to be paid at $39.00 per hour
Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities, Home
Instruction, Administrative Detentions, Paraprofessional Summer Work
to be paid at 2012-13 rates.
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26. 2015-16
Increase 2014-15 teacher base by 4.00% including increment
New base $19,563,169 average salary $69,269
Adjust each step of the 2014-15 paraprofessionals’ guide by $750.00 and increase that
amount by 4.00%
New Base $1,777,475
average salary $25,392 maximum salary $27,957
Longevity
pay at rates set forth on pages 19/20 of the Agreement
Summer Curriculum to be paid at $39.00 per hour
Increase Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities,
Home Instruction, Administrative Detentions, Paraprofessional Summer Work
by 4.0%
Average increase for teacher guide from 2011-12 $10,201 or $2550 per year
Average increase for paraprofessional guide from 2011-12 $6565 or $1641 per year
Maximum step increase for paraprofessional guide from 2011-12 $6943 or $1735 per year
% increase for paraprofessional maximum step from 2011-12 over 30%
My recommendations for teacher salary increases are 2.25% higher than the Board’s final offer
and 4.5% lower than the Association’s final offer. My recommendations for adjusting each step on
the paraprofessionals guides is $2191 higher than the Board’s (which did not include any step
adjustment for the 2015-16 year) and $6687 lower than the Association’s final offer.
A definitive cost for each guide can be developed once an accurate scattergram is created.
My recommendations are based upon the 2013-14 bases and scattergrams and only addressed
personnel changes for the 2013-14 school year. Certainly with additional changes in personnel since
September 2013 and beyond, a lower cost to the Board will be established.
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27. The top step (maximum) increase for support staff from 2009-10 to 2011-12 agreements
shows the following:
$1592 increase for secretaries
$1487 increase for custodians
$1819 increase for maintenance
$774 for paraprofessionals
Teacher guides
BA step 10, 2009-10 to step 12, 2011-12
MA step 11, 2009-10 to step 13 (maximum) 2011-12
$15,619 or 30%
$18,375 or 30%
My recommendation for paraprofessionals for 2012-13 to 2013-14 increases the maximum
salary by $3363, which is significantly higher than they have received in the past. The Board’s offer
for paraprofessionals for 2012-13 to 2013-14 increases the maximum salary by $2775. The
Associations final offer for paraprofessionals for 2012-13 to 2013-14 on step adjustment alone
increases the maximum salary by $4000.00.
A major goal of any public sector negotiations is to keep the cost of increments low. By adding
2 steps to the teacher guides, the 2015-16 increment cost will be significantly lower than the current
3.28%.
RECOMMENDATIONS FOR SETTLEMENT
All tentative agreements remain in effect. Any items not addressed herein are rejected.
Add two steps to the teacher guides. It is up to the parties to determine what years they want
to add a step or steps.
One Year Agreement
July 1, 2012, - June 30, 2013
2012-13
Increase 2011-12 teacher base by 4.25% including increment
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28. Adjust each step of the 2011-12 paraprofessionals’ guide by $1200.00 and increase that
amount by 4.25%
Increase 2011-12 base of other support personnel by 4.25%
Longevity--unfreeze and pay at rates set forth on pages 19/20 of the Agreement
Increase summer curriculum to $39.00 per hour
Increase Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities,
Home Instruction, Administrative Detentions, Paraprofessional Summer Work
by 4.25%.
Article 10, C Death in immediate family, change five days to three days
Article 11 (new) Insurance Short-term replacement employees not
covered if period of actual coverage is less than 90 days. Change to 75 days.
Three Year Agreement July 1, 2013, - June 30, 2016
2013-14
Increase 2012-13 teacher base by 4.0% including increment
Adjust each step of the 2012-13 paraprofessionals’ guide by $750.00 and increase that
amount by 4.0%
Increase 2012-13 base of other support personnel by 4.0%
Longevity--pay at rates set forth on pages 19/20 of the Agreement
Summer Curriculum to be paid at $39.00 per hour
Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities, Home
Instruction, Administrative Detentions, Paraprofessional Summer Work
to be paid at 2012-13 rates.
2014-15
BA starting salary of at least $50,000
Increase 2013-14 teacher base by 4.00% including increment
Adjust each step of the 2013-14 paraprofessionals’ guide by $750.00 and increase that
amount by 4.00%
Increase 2013-14 base of other support personnel by 4.00%
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29. Longevity--pay at rates set forth on pages 19/20 of the Agreement
Summer Curriculum to be paid at $39.00 per hour
Extra-Curricular Activities, Interscholastic Sports, Co-Curricular Activities, Home
Instruction, Administrative Detentions, Paraprofessional Summer Work
to be paid at 2012-13 rates.
2015-16
Increase 2014-15 teacher base by 4.00% including increment
Adjust each step of the 2014-15 paraprofessionals’ guide by $750.00 and increase that
amount by 4.00%
Increase 2014-15 base of other support personnel by 4.00%
Longevity--pay at rates set forth on pages 19/20 of the Agreement
Summer Curriculum to be paid at $39.00 per hour
Increase 2012-13 Extra-Curricular Activities, Interscholastic Sports, Co-Curricular
Activities, Home Instruction, Administrative Detentions, Paraprofessional Summer Work
by 4.0%
I stress to the parties that negotiation is the art of compromise. You may not be happy with
what I recommended, but ultimately each party can live with those recommendations. Major gains
were achieved on salary guide enhancement. During the 2011-2013 school years 66 teachers
retired/resigned, 5 secretaries retired/resigned, 5 custodians retired and 31 paraprofessionals
retired/resigned. Based upon the comments I heard from both parties salary was the reason why
most resigned. Most importantly, this Fact-Finding is unique because the Board’s final offer is higher
than any Board offer in Atlantic County. In today’s economic climate and with a 2% levy increase,
creating a final offer of 14% is an acknowledgement by the Board that they are aware of and
concerned about the salary guides. Furthermore, in my opinion a 14% Board offer shows without
reservation that the Board was seriously attempting to solve salary guide problems. The Association
also was also serious about trying to achieve economic gain for its members, but with a much higher
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30. approach than the Board. This is understandable because the Association has consistently argued
that the Board has the money to fund its final offer.
I shall retain jurisdiction.
Respectfully submitted
Dated: October 14, 2013
________________________
Gerard G. Restaino, Arbitrator
State of Pennsylvania )
County of Wayne )
ss:
On this 14th day of October, 2013, before me personally came and appeared
GERARD G. RESTAINO to me known to be the person who executed the foregoing document and
he duly acknowledged to me that he executed the same.
___________________________
Notary Public
Lake Twp., Wayne County
My commission expires on November 10, 2013
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