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HomeMy WebLinkAbout2000-08-09 Board of Selectmen Executive Session Minutes - Board of Selectmen/School Committee/Finance Committee Meeting Executive Session August 9, 2000 The meeting convened at 7:35 p.m.. at the Senior Center, 49 Pleasant Street, Reading, Massachusetts. Present were: School Committee — Susan Cavicchi, Harvey Dahl, William Griset, James Keigley and Timothy Twomey; Board of Selectmen — Matthew Cummings and Camille Anthony (George Hines joined the quorum at 7:45 p.m.); Finance Committee — Chairman Carol Grimm, Richard McDonald, James Francis, Catherine Martin, Charles Robinson, Andrew Grimes, Robert LeLacheur and Neil Cohen. Also in attendance were Superintendent of Schools Harry Harutunian, Town Manager Peter Hechenbleikner, Finance Director Beth Klepeis, Labor Counsel Alan Kaplan. Labor Counsel Alan Kaplan reviewed with the bodies the considerations in upcoming labor negotiations. He reviewed his experience in negotiations and also in overrides with respect to labor settlements. In considering salary increases, the Town needs to consider the ability to pay, and where the Town falls with respect to comparable. In most situations, communities are seeking two to three year contracts. This is better for labor peace and reduces Labor Counsel expenses. In three year contracts, settlements are in the 9% to 12% range, with the average 10%. There is usually one 4% in a three year contract and there are sometimes splits. Teachers will be looking for a minimum of 9%+ for a three year contract in Reading. A three year contract is standard and you usually pay a little bit more for a three year contract. Given the economic situation of the Town, the Town may want to consider a one year or two year contract at the most, unless there is a funding clause inserted into the contracts -- there is none now. If there is no funding clause in the contracts; i.e., a clause that says that years two or three of the contract are subject to funding, then the Town is obligated to fund years two and three. As part of the labor negotiations process, we have to be prepared to answer questions about the budget -- the Town needs to "prove the case" that it is financially strapped. Included in this discussion will be discussion of free cash, overlay surplus and any other reserves. If the Town was to go to fact finding, we would have to prove the case as to the ability to pay. Finance Committee Member Jim Francis asked if both sides don't benefit from a long-term contract. Selectman George Hines noted that we are not in an economic downturn nationally, regionally or a statewide basis. School Committee Member Pete Dahl asked if a failed override is demonstration of a lack of ability to pay. Labor Counsel.noted that being able to demonstrate clear priorities is important -- if the Town says it doesn't have money for salaries but does other things that the community would view as lower priority, that would be problematic. Finance Committee Chairman Carol Grimm asked if spiraling health insurance costs could play a part in the discussion, and Labor Counsel noted that they would. Board of Selectmen/School Committee/Finance Committee—Executive Session—Page_2 School Committee Member Tim Twomey asked for some discussion about resolution of impasse. Labor Counsel noted that the negotiations for FY 2002 plus contracts can be open now. The Town would have to go through a process and lay out all of the facts. He would suggest that a first session deal with economics. Having data is important. We have to have comparables. This information is important for the public to know also. Finance Committee Member Robert LeLacheur asked if we could do a lump sum salary, and it was noted that we can. Labor Counsel indicated that it is important not to have a "pronouncement" as to what the percentage increase should be for salaries. He strongly recommends not doing this. It is especially important that FinCom view their role as part of this process as an observer. Guidelines and goals are appropriate. He also noted that it is important that the Town Manager sits in on all negotiations strategy sessions regarding school contracts because that is where the consistency between Town and School settlements comes into play. School Committee Member Sue Cavicchi asked whether it is a legal issue in setting a percentage in the budget and does that constitute preconditioned bargaining. Labor Counsel noted that there could be an issue of the three bodies meeting but as long as the discussion is general like this, that should not be a problem. He reviewed the process of dealing with an impasse. With all employees in the School Department bargaining units, either side can call in a mediator if there is an impasse. You can use a public or private mediator. Either side can petition for fact finding if the mediation doesn't work. The cost is $50041000 per day and the costs are split. The issues will be economics and comparables. The findings are not binding. Ultimately, the Town can implement its last best offer. For the Town, the process is the same except for Police and Fire. Police and Fire have fact finding that is not binding. There is arbitration to the Joint Labor Management Committee whereby an arbitrator's report may be issued and is binding on the Town Manager and the Board of Selectmen but not on Town Meeting. The Town Manager noted that the last time the Town went through with this was with the Firefighters, and the Town then negotiated from the fact finder's report. Labor Counsel went on to talk about overrides. He voiced the opinion that an override for salary increases would,not be successful. It is important to establish what a reduction list would be if an override was not successful and what the impact would be on the public. It is important to determine how big the override would be. This has to be a cooperative process, and involve the decision making Boards, Committees and Commissions and employees. It is important to coordinate the negotiations vis-a-vis an override. When you don't have much money, you suggest that all issues except for money be taken off the table, and that we try to settle contracts for a one year term. Board of Selectmen/School Committee/Finance Committee—Executive Session—Page 3 School Superintendent Harry Harutunian asked if he understood Labor Counsel's recommendations that would be to: (1) start bargaining soon; (2) bargain one year contracts; (3) have the focus of the bargaining financial and not language issues. He also suggested that they could start this process very soon with the leadership of the Unions. Selectman Matthew Cummings noted that he doesn't agree with the one year contract, and that there is a lot of energy, money and hard work that goes into bargaining. He doesn't think that the economic condition of the Town has changed over the last several years, and he agrees that we should not make pronouncements which would be equitable across the Board. Labor Counsel felt that there were two reasons to do a one year contract: 1. Tactical -- you can't project the future with certainty. 2. Substantive -- A one year contract can be settled at a lower rate of increase. School Committee Member Tim Twomey was concerned about the effect of collective bargaining and retaining personnel. School Committee Member Pete Dahl asked what the market rate salary increases would be. It was noted that 9% - 10.5% for a three year contract was market rate. The School Committee stayed in Executive Session. On motion by Cohen seconded by McDonald, the Finance Committee voted to adjourn their Executive Session meeting of August 9, 2000 at 9:25 p.m. On a roll call vote, all eight members present voted in the affirmative. On motion by Cummings seconded by Anthony, the Board of Selectmen voted to adjourn their Executive Session meeting of August 9, 2000 at 9:25 p.m. On a roll call vote, all three members voted in the affirmative. The Board of Selectmen stayed in Open Session for a few minutes and noted that the Board would not take action this evening on negotiating strategy-- the full Board should be involved in that discussion. It was also suggested that the Board should determine as quickly as possible whether or not a trash fee was a viable option for balancing the FY 2002 budget. On motion by Cummings seconded by Anthony, the Board of Selectmen adjourned their Executive Session meeting of August 9, 2000 at 9:35 p.m. Respectfuy submitted, J", � Secretary Yrs