1. Budget-Neutral Bargaining: A Collaborative Approach Kathy K. Swope, School Board President Mark D. DiRocco, Ph.D. Superintendent Lewisburg Area School District October 22, 2014

2. We asked, “Is there a Better Approach?” Taxpayers Students Parents Teachers Team of 10

3. Traditional Bargaining By focusing on positions, parties in a dispute: see only a predetermined way to solve a problem spend time staking and defending extreme positions rather than dealing with the heart of the matter tend to settle with a compromise rather than getting what they really need limit creative options; and risk damaging ongoing relationships.

4. Collaborative Bargaining In contrast, a discussion that allows for an understanding of issues underlying positions... moves people away from contending positions promotes mutual understanding allows a cooperative atmosphere to develop sets the stage for reframing the issue encourages multiple options permits the search for alternative solutions

5. Traditional vs. Collaborative Training – both parties must agree to have all participants take part in the training session(s) prior to negotiations Time – must commit as much time up-front as necessary to detail the process in order to be successful Relationships – It is important for the Board Members, Superintendent, and Association Leadership to develop positive relationships prior to the negotiation process.

6. What is Collaborative Bargaining? More inclusive than traditional bargaining Each team member is expected to contribute in some fashion in the sessions Training for both sides is critical Facilitators from management and union help facilitate the bargaining sessions Work together to find creative solutions to issues Less adversarial than traditional bargaining

7. TRUST IS CRITICAL Steps need to be taken well in advance of negotiations or the training for negotiations to develop trust between the Board and Association.

8. Collaborative Behaviors Focus on issues, not on people Explain and educate, don’t accuse Focus on interests - not positions Understand interests – don’t judge them Defer evaluation and commitment Respect the role & responsibilities of others Seek to meet mutual & separate interests Use consensus to decide Think collaboratively Sustain the relationship with some type of social event – Dinner together before a session, snacks together after a session etc.

9. Define the Problems Working together, both parties in a collaborative bargaining situation should define the problem in such a way that it becomes their common goal. This is typically achieved using cooperative and respectful dialogue and from looking at the problem from each other’s perspective. Learning Tree International

10. Understand the Issues Part of successful problem definition is to understand the issues behind the problem or situation the parties are trying to resolve. If you can recognize and understand the other person’s issues, you have a much better chance of achieving a fair outcome. Learning Tree International

11. Develop Possible Solutions In this step, both parties need to work together to brainstorm and “think out of the box” for possible solutions to the defined problem from steps 1 and 2. One key aspect of brainstorming is to remember that this “idea generation only” step asks you to only identify and list all possible solutions or outcomes. Learning Tree International

12. Prioritize Possible Solutions In the end, both parties need to take the results of their problem definition and solution brainstorming sessions to identify and reach a solution/bargain/outcome that is amenable to both parties. This often requires both parties to meet somewhere in the middle. Learning Tree International

13. Collaborative Strategies Focus On: Seeking creative solutions Problem solving Finessing areas of agreement Seizing opportunities of common ground Reaching mutual understanding

14. Our Experience Begin to discuss as a Board several months before negotiations are initiated The entire team of 10 must agree to support the idea of exploring a collaborative approach

15. Introduce the Idea

16. Next Steps Training - Arrange for a training session with the entire board and the bargaining team of the Association Decide – Both teams must agree to try the Collaborative approach in order to move forward

17. Meeting of the Minds Time Limit – Agreed to try it for six meetings and if either team felt it was not working, we agreed to revert to traditional bargaining Ground Rules – Together, the Association’s Negotiating Team and the Board’s Negotiating Team discussed and set the rules that would guide our negotiations

18. Bargaining All issues each party planned to address were presented at the first meeting Caucus for both parties allowed fully vetted ideas to be presented at the table Neither party let the bumps in the road become stop signs

19. Essential Question How can we provide well-deserved raises to our staff while shouldering the burden of rapidly increasing PSERS contributions and health insurance premiums?

20. What’s In Your Contract? (Every Item Cost Money) Are their provisions that were bargained long ago, that are no longer important or critical? Are their provisions that only assist a few individuals each year instead of the collective whole? How many dollars are associated with contract items that could be re-allocated to better use?

21. Contract Items We Discussed Long-Term Substitute Pay Half-Year Sabbaticals at Full Pay Tuition Reimbursement Health Insurance Deductibles Health Insurance Providers

22. Contract Adjustments 2013-2014Est. Savings Eliminate Full Pay Sabbaticals$120,000 Long Term Substitutes – 91 Days @ 75% $62,000 Move to $250/$500 Health Ins. Deductible $80,000 Offer $2,000 to Decline Health Insurance $156,000 Total $418,000 2014-2015Est. Savings Move to $1,250/$2,500 HSA $125,000 (District contributes $1,000/$2,000)

23. Budget Neutral Raises Teacher Raises Year 1 - $500 + Step Year 2 - $250 + Step Year 3 - $1,000 + Step Total Raises Over Three Years$514,000 Total Contract Adjustments Over Three Years-$543,000 Difference $29,000 Contract adjustments more than offset the cost of raises.

24. Other Expenses Total Cost of the Contract Over 3 Years (Including Raises, PSERS, & Benefits)$1,075,000 Contract Adjustments -$543,000 Total 3 Year Cost to District $532,000 Yearly Cost in New Money $177,333

26. Components of Success Opportunity to opt out all along the way created comfort for both teams Agreement to collaborative approach set a cooperative tone from start Trust & History of positive relationship No Games on either side, we were up front about financials & need to have budget neutral agreement, while also wanting to give much deserved raises

27. Mark D. DiRocco, Ph.D. dirocco@lasd.us Kathy K. Swope swope@ptd.net