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Topics to be Addressed  Mandatory Employee Contributions to WRS  Employee Contributions to Health Insurance  Police and Fire Exception  Changes to.

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Presentation on theme: "Topics to be Addressed  Mandatory Employee Contributions to WRS  Employee Contributions to Health Insurance  Police and Fire Exception  Changes to."— Presentation transcript:

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2 Topics to be Addressed  Mandatory Employee Contributions to WRS  Employee Contributions to Health Insurance  Police and Fire Exception  Changes to the Collective Bargaining Law (MERA)  Union Elections and Union Dues  Grievance Procedure or Civil Service Rules  Practical Guidance on Implementing the Budget Repair Bill

3 MANDATORY EMPLOYEE CONTRIBUTIONS TO WRS

4 Basic Requirements All employees must pay the employee’s share of WRS. The only exception to that requirement is for police officers and firefighters who are covered by a collective bargaining agreement. Non-represented employees of a police or fire department (chief, captains, lieutenants, etc.) are required to make WRS contributions.

5 Basic Requirements For non-represented employees, this change takes effect almost immediately. For bargaining unit employees, the change takes effect upon the expiration of the current collective bargaining agreement. In those cases where the collective bargaining agreement is already expired, the change takes effect at the same time as for non-represented employees.

6 Employee Contribution Rates ● For general employees, the contribution rate is defined as one-half of the total WRS rate. For most employers, that translates to an employee contribution rate of 5.80% for 2011. ● For elected officials and executives, the employee contribution rate is also set at one-half the total WRS rate, which translates to 6.65% for 2011. ● For protective occupation participants (police and fire), the employee’s contribution rate is set at the same contribution rate as that required of general employees.

7 Implementation Date for WRS Contributions The current implementation date for these WRS contributions is the first day of the first payroll period after March 13, 2011. If an employer cannot implement changes to its payroll practices by this deadline, it may delay the implementation to no later than July 1 st, but must recoup any contributions that employees owe for the period of the delay.

8 EMPLOYEE CONTRIBUTIONS ON HEALTH INSURANCE

9 Health Insurance Contributions This change affects only those employers who are enrolled in the Wisconsin Public Employers’ Group Health Insurance Plan – commonly referred to as the “State Plan.” For those employers only, the legislation sets a new maximum contribution rate which an employer can make to the plan. Effective January 1, 2012, the maximum contribution a municipal employer can make is eighty-eight percent (88%) of the average premium cost of plans in any tier with the lowest employee premium rates (i.e. Tier 1 plans).

10 Health Insurance Contributions For all other employers, the Budget Repair Bill does not set any minimum contribution level for health insurance. For non-represented employees, the employer could increase the employee contribution rate immediately. For represented employees, the employer could increase the employee contribution rate after the current collective bargaining agreement expires.

11 POLICE AND FIRE EXCEPTION

12 Police and Fire Exception Applies only to police officers and firefighters who are covered by a collective bargaining agreement. Does not apply to corrections officers, dispatchers, or other civilian employees in police and fire departments. Does not apply to police or fire command staff unless they are covered by a collective bargaining agreement.

13 Police and Fire Exception The mandatory employee contributions on WRS and health insurance do not apply to police officers and firefighters unless the employer negotiates these changes at the bargaining table and the labor union(s) agree to the change. In reality, negotiations with existing police and fire units will not be any different than before the Budget Repair Bill was adopted.

14 CHANGES TO THE COLLECTIVE BARGAINING LAW (MERA)

15 Subjects of Bargaining Once the current collective bargaining agreement expires, the only issue that can be bargained is the across-the-board wage increase. Overtime, premium pay, merit pay, salary schedules and automatic wage progressions are not considered wages and cannot be bargained. The new law links the wage increase to the increase in the Consumer Price Index (CPI) over the preceding 12 months.

16 Subjects of Bargaining An employer may only provide a wage increase that exceeds the CPI if it passes a public referendum. The Budget Repair Bill identifies specific dates and language for any referendum, depending on the type of employer.

17 Other Terms of the Current Collective Bargaining Agreement All other items currently included in the collective bargaining agreement are prohibited subjects of bargaining. That means that a union cannot propose, and the employer cannot agree, to bargain over these issues any longer. In application, this means that when the current collective bargaining agreement has expired, then the employer basically can start over, and has the discretion to determine how to address all of the terms and conditions which were previously included in contract language.

18 Contract Duration A collective bargaining agreement may only be for a period of one year. The agreement may not be extended beyond this one year period.

19 Interest Arbitration Interest arbitration no longer exists for general employees. If an impasse is reached, an employer may implement its last wage offer, provided the collective bargaining agreement has expired. Interest arbitration still exists for police officers and firefighters.

20 UNION ELECTIONS AND UNION DUES

21 Union Representation WERC must conduct an election annually to determine wishes of the employees. First election must occur in April 2011 for all bargaining units. For municipalities, the election must then occur no later than May 1 st each year. Union representation will occur/continue if 51% of all employees vote to be represented (not 51% of those employees who vote).

22 Dues Deduction and Fair Share An employee has the right to refrain from paying union dues, but still remain a member of the bargaining unit. An employer is prohibited from making payroll deductions for union dues or fair share.

23 GRIEVANCE PROCEDURE OR CIVIL SERVICE RULES

24 Grievance Procedure or Civil Service Rules An employer must utilize existing civil service rules or create a grievance procedure. Issues that must be subject to review:  Employee discipline  Employee termination  Workplace safety An employer must adopt a grievance procedure on the first day of the fourth month after the law takes effect.

25 Grievance Procedure or Civil Service Rules At a minimum, the grievance procedure must include the following rights: A written document specifying the process that a grievant and the employer must follow; A hearing before an impartial hearing officer; and An appeal process in which the highest level of review is the governing body of the government unit.

26 PRACTICAL ADVICE FOR IMPLEMENTING THE BUDGET REPAIR BILL

27 Practical Tips for Implementing the Budget Repair Bill Take steps to immediately change your payroll practices to permit deduction of employee contributions to WRS for non-represented employees, and bargaining unit employees upon the expiration of their collective bargaining agreement. All WRS contributions must be made with post-tax dollars. Adopt an interim resolution that identifies wages, benefits and working conditions after the collective bargaining agreement expires.

28 Practical Tips for Implementing the Budget Repair Bill Review the contract language and determine those practices, rules or restrictions that the employer no longer wishes to follow and ensure that those items are removed from personnel policies and procedures. Provide advance notice to the union at that point in time when the employer no longer intends to adhere to the terms of the expired collective bargaining agreement. Adopt personnel policies, an employee handbook or other personnel practices that address all of the items regulating the terms and conditions of employment of bargaining unit employees.

29 Practical Tips for Implementing the Budget Repair Bill Review salary schedules, pay plans, wage classifications and other wage-related items to determine whether to maintain, change or remove existing pay practices. Determine the wage or salary progression for represented employees (i.e. steps). Begin working on a grievance procedure for bargaining unit employees, including identification of who will serve as the impartial hearing officer for grievances. Determine the steps of the grievance procedure and how appeals will be processed.


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