Collective Bargaining Presentation - David Fischer Final

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History of Collective Bargaining and Impact of WI Acts 10 and 32


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Collective Bargaining  and 2011 WI Act 10 and WI Act 32 David S. Fischer Legal Aspects of Education - SCHBUSMG 772 December 12, 2014

Wisconsin Cements Its Place in the History of Collective Bargaining:

Wisconsin Cements Its Place in the History of Collective Bargaining Wisconsin the first state to pass a law allowing collective bargaining rights for public employees Wisconsin legislature passed laws eliminating collective bargaining for majority of public employees 1959 2011

Wisconsin Has Always Been At the Forefront of Union Organizing:

Wisconsin Has A lways B een At the Forefront of Union O rganizing Local 125, Molders Union, was formed in Milwaukee N ation’s first modern trade union Knights of St. Crispin Union founded by shoemakers in Milwaukee At that time, largest union in the nation with 50,000 members Milwaukee workers joined nationwide effort to institute 8 hour workdays Seven workers killed during protests 1886 1867 1865

Wisconsin Unions Lobbied for Social Reforms Throughout Early 1900s:

Wisconsin Unions Lobbied for Social Reforms Throughout Early 1900s First workers compensation law was passed in Wisconsin Provided medical attention and compensation to employees for job related injuries and deaths Wagner Act signed into law by President Roosevelt Allowed employees to bargain collectively, but limited to private-sector employees Wisconsin legislature passed the Public Employee Collective Bargaining Act (PECBA) The f irst state law permitting collective bargaining rights for public employees 1959 1935 1911

1960s and 1970s Marked the Expansion of Collective Bargaining Rights and Numerous Illegal Strikes:

1960s and 1970s Marked the Expansion of Collective Bargaining Rights and Numerous Illegal Strikes Wisconsin Employment Relations Board created. Subchapter IV of Chapter 124, Laws of 1971 significantly modified Designated as the Wisconsin's Municipal Employment Relations Act Milwaukee police strike. Known as the “Blue Flu” Hortonville teacher’s strike 95 teachers terminated 1974 1971 1961 Chapter 178 established binding arbitration 1977

A Divide Between Labor and Public Sector Employees Over Binding Arbitration Developed Between the 1980s and Early 1990s:

A Divide Between Labor and Public Sector Employees Over Binding Arbitration Developed Between the 1980s and Early 1990s Wisconsin Act 16 established the Qualified Economic Factor (QEO) Allowed school district employers to avoid binding arbitration on salaries and benefits if employees offered a QEO combined total of 3.8% QEO included provisions for step increases and increases for promotions and professional training. Employers and labor disagreed over use of QEOs Labor claimed QEOs were infringement on binding arbitration process . Employers moderately supported use of QEOs to avoid binding arbitratrion Support decreased with rising health costs 1993

The Perfect Storm:

The Perfect Storm Wisconsin Act 28 eliminated use of QEOs Collective bargaining process reverted back to use of mediation and binding arbitration Tension between labor and employers continues 2009 Scott Walker elected Governor of Wisconsin State budget crisis Public outcry for reform in our public schools 2010 Governor Walker states intentions to eliminate the collective bargaining process for the majority of public sector employees . Claimed the state could no longer afford collective bargaining because the salaries, benefits, and pensions of its government workers were driving deficits to deep and dangerous levels. Union organizations, employees, and political foes claimed there was no direct correlation between collective bargaining and increaseing budget deficits 2011

Wisconsin Act 10 and Act 32 Passed:

Wisconsin Act 10 and Act 32 Passed Wisconsin Act 10 enacted Legislation eliminated union bargaining rights for everything except base salary, and it prohibited the collection of union dues March 11, 2011 Wisconsin Act 32 enacted C ontained amendments to Act 10 pertaining to state finances and appropriations . C onstituted the executive budget act of the 2011 legislature June 26, 2011 T he massive swing in the pendulum caused shockwaves felt nationwide.

Court Cases Surrounding WI Act 10 and Act 32:

Court Cases Surrounding WI Act 10 and Act 32 F irst suit filed by Dane County Executive, Kathleen Falk Claimed the bill was unconstitutionally passed because the bill contained financial provisions March 11, 2011 State Supreme court overruled Judge Sumi , Declared the law was passed legally and that Sumi had overstepped her jurisdiction June 14, 2011 March 16, 2011 Dane County District Attorney, Ismael Ozanne , filed against the state on similar grounds March 18, 2011 Judge Sumi , the judge hearing the above cases, issued a stay on the bill Claimed it had been passed without the required 24 hours notice to inform the public of the meeting. Cases 1 & 2

Court Cases Surrounding WI Act 10 and Act 32:

Court Cases Surrounding WI Act 10 and Act 32 A federal court cut out parts of the collective bargaining legislation in Act 10 on the grounds that the state could not prevent public employee unions from automatically collecting dues or require them to recertify annually March 2012 Governor Walker appealed Judge Colas' ruling to the Supreme Court of the State of Wisconsin November 2013 January 2013 The U.S. Court of Appeals for the Seventh Circuit upheld the law in its entirety in January 2013, reversing the lower court’s decision to invalidate parts of the law September 2012 In a lawsuit brought by the Madison teachers union and a union for Milwaukee city employees, a Dane County Circuit Judge, Juan Colas, stated that Act 10 legislation violated the state and U.S. constitutions and ruled it null and void Case 3 Case 4 Governor Walker won that appeal and Act 10 was upheld July 2014

2 Court Cases Challenging School Districts’ Authority to Enter Into Collective Bargaining Agreements:

2 Court Cases Challenging School Districts’ Authority to Enter Into Collective Bargaining Agreements KUSD negotiated their teacher contract during the time Governor Walker was awaiting the appeals verdict A former teacher contended the new contract was illegal and sued the KUSD Board with the help of Wisconsin Institute for Law & Liberty (WILL) In June 2014, the KUSD voted to settle the lawsuit that claimed the district violated Act 10 when it struck a labor agreement with teachers in November 2013 Kenosha Unified School District (KUSD) Madison School District in September 2014, the WILL, on behalf of Dave Blaska , alleged that the terms of the current Madison teachers’ contract violated Act 10 laws The district and Madison Teacher Inc. filed a motion to strike, on the grounds that Blaska was not a district employee WILL attorneys responded to that motion to strike saying, “Taxpayers have standing to challenge any unlawful action by a government entity that results in the expenditure of public funds .” The Madison teachers’ union has maintained that its contract is valid because it was reached after Colas ruled against Act 10 and before the state Supreme Court reversed his decision Their current contract runs through June 2016, and the case is still pending trial

Impact of WI Act 10 and Act 32:

Impact of WI Act 10 and Act 32 Decrease in Employee Morale Complete swing in the pendulum that highly favors employer Lack of trust, given the circumstances surrounding the passage of WI Act 10 and the radical changes it brought Lack of understanding, misinformation, and uncertainty continues to plague district employers in their attempts to improve morale and climate

Impact of WI Act 10 and Act 32:

Impact of WI Act 10 and Act 32 Need for Employee Handbooks Elimination of collective bargaining created the need for districts to establish employee handbook Development and implementation of an employee handbook proved to be a difficult undertaking for many school districts. E mployees continue to question and resist the implementation of that handbook Very dependent on how districts approached the development process In districts where no input from staff was requested or heard, resistance has been very high In districts where input was requested, they have experienced less resistance and more buy-in

Impact of WI Act 10 and Act 32:

Impact of WI Act 10 and Act 32 Higher employee turn-over rates Teachers now able to act as free agents. “We are definitely seeing more of a major league baseball type of atmosphere. If you are a sharp teacher and/or in short supply, you are going to command a higher price. ” – William Bracken, Paralegal & Labor Law Expert , Davis & Kuelthau Creates an interesting predicament for school districts. Trying to maintain a balanced budget while still offering competitive salaries to retain and attract quality teachers.

Impact of WI Act 10 and Act 32:

Impact of WI Act 10 and Act 32 Easier for Employers to Make Benefit Changes All 5 interviewees listed ease in making benefits changes as a positive outcome of Act 10 and Act 32 Prior to Act 10, making any type of benefit change was extremely difficult Insurance carriers raised premiums with relative confidence they would be able to maintain their customer base. Rising premiums put some school districts in financially precarious situations. Passage of Act 10 eliminated the need to bargain over benefits Gave district employers the long overdue ability to examine and bid out their benefits Resulted in insurance carriers offering more competitive pricing S ingle monthly insurance premiums decreased from $754, pre Act 10, to $665 in 2012-2013. Family monthly insurance premiums decreased from $1,752, pre Act 10, to $1,551 in 2012-2013


Conclusion F actors negatively impacting teacher morale and decreasing job satisfaction: Staggering changes triggered by WI Act 10 and WI Act 32 Political tactics Shrinking revenues and state aid I ncreasing demands on educators, like Educator Effectiveness L ong -term impact: D ifficult to attract high quality candidates into the education profession Create a shortage of teachers Districts ’ board members and administrators need to lead professional educators through difficult times M anage these changes Find solutions Etablish safe and productive work environments E mpower educators to make a difference in their classrooms

Thank You!:

Thank You!


References Richards, E. (2014, October 9). Madison district, union lawyers seek dismissal of act 10 contracts lawsuit. Milwaukee Journal Sentinel. Retrieved November 13, from http:// /news/education/ madisondistrict -union-lawyers-seek-dismissal-of-act 10-contracts-lawsuit-b99367935z1-278650961. html Ryan, S. (2013, January 18). Wisconsin law curtailing collective bargaining upheld on appeal. Milwaukee Business Journal. Retrieved from http:// / milwaukee /news/2013/01/18/wisconsin-act-10-upheld-by federal.html The passage of the wagner act. ( n.d. ). National Labor Relations Board. Retrieved on November 8, 2014 from http:// /who-we-are/our-history/1935-passage-wagner-act Van Alstyne , S. (2011, February 24). Collective bargaining: What it is and its place in wisconsin’s history. International Foundation of Employee Benefit Plans. Retrieved from http:// / AboutUs / PressRoom /Releases/pages/pr_022411.aspx Watchke , G.(1998). Qualified economic offer. Budget Briefs, 98(5), 1-2. Retrieved from http:// / lrb /pubs/ budbriefs /98bb5.pdf Wisconsin collective bargaining. ( n.d. ). Ballotpedia . Retrieved from http:// /Wisconsin_collective_bargaining#cite_note-11 Zimmerman, A. (2013, January). State and local government employment relations law. Wisconsin Legislative Fiscal Bureau. Retrieved from http:// / lfb /publications/ informational papers / documents 2013 /97_state%20and%20local%20government%20employment%20relation %20law.pdf


References 2011 Wisconsin Act 10. State of Wisconsin . Retrieved from http:// /2011/related/acts/10 2011 Wisconsin Act 32. State of Wisconsin . Retrieved from http:// /2011/related/acts/32.pdf Germanson , K. ( n.d. ). Milestones in wisconsin labor history. Wisconsin Labor History Society . Retrieved from http:// /resources/milestones Gunn, S. (2013, Spring). First years of freedom: Wisconsin schools saving millions on health insurance inthe act 10 era. Education Action Group News . Retrieved from http:// / wp -content/uploads/2013/04/First-Years-of-Freedom- report.pdf Judge strikes down wisconsin law restricting union rights. (2012, September 14). NBC News . Retrieved from http :// /_news/2012/09/14/13868190-judge-strikes-down-wisconsin-law restricting union-rights?lite Marley, P. and Walker, D. (2011, June 14). Supreme court reinstates collective bargaining law. Milwaukee Journal Sentinel . Retrieved from statepolitics 123859034 .html McCartin , J. (2011, February 19). What’s really going on in wisconsin . New Republic . Retrieved from walker negotiate Mills, S. (2014, June 9). Kenosha school district settles lawsuit over alleged act 10 violation. Wisconsin Public Radio . Retrieved from http:// /kenosha-school-district-settles-lawsuit-over-alleged-act-10-violation

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