BC News

District, teachers union renegotiation contract concessions
Release Date: April 24, 2009

Under the terms of a contract extension proposal announced Wednesday, April 22, Bethlehem Central taxpayers would save more than $600,000 as a result of union concessions next year.

The tentative agreement would extend the existing contract – which is set to expire at the end of next year – two more years through the end of the 2011-12 school year.

The main element of the savings is a concession on the part of the union that would defer its scheduled cost-of-living increase next year for a period of four months at the start of the year. Other provisions in the extended contract that would yield savings are moratoriums on sabbaticals and professional development stipends and a freeze on coaching salaries.

The deal is tentative at this point, with the union’s full membership expected to vote on it May 5. This vote requires the approval of two-thirds of union membership for passage because it is an amendment to an existing contract. If the union’s vote is successful, the Board of Education then must approve the proposal, possibly as early as its May 20 meeting.

As it became clear last fall that navigating the difficult economic terrain would be a multi-year challenge, the district and Bethlehem Central Teachers Association (BCTA) began to explore whether a renegotiated contract could yield taxpayer savings. After talks this winter did not produce initial agreement, the administration and BCTA leadership continued to pursue such a deal. In early April, the tentative settlement was reached.

Absent an agreement to extend the contract, negotiating teams would be expected to take up talks on a new contract next January. Given the current economic climate, these negotiations were expected to be difficult, with both sides bracing for the possibility that a deal would not be reached before the existing contract expired.

“I want to express my appreciation to the union’s leadership for persevering with us in this difficult conversation to reach a deal that generates some savings for our taxpayers, stability for the district, and recognizes the role that our teachers continue to play as key educational and community partners,” Superintendent Michael Tebbano said. “This is a very positive development for the district as we grapple with this very tough economic climate and its impact on school districts.”

Under the terms of the deal, teachers would go four months without the previously negotiated 3.25 percent cost-of-living increase next year, meaning the increase would not kick in until January 1, 2010 as opposed to September. This will save $378,000. Other aspects of the settlement for 2009-10 that will yield savings include a moratorium on sabbaticals ($62,500), fringe benefit savings ($75,600); freezing coaching salaries ($25,000); and a moratorium on professional development stipends ($35,000).

The following year – the first of two years extending the contract – negotiators settled on a 2.75 percent cost-of-living increase — about half a percentage point lower than the average in the current contract. In addition, this would be deferred until December, saving the district $258,000 compared with a 2.75 percent cost-of-living increase for the entire year.

Also in 2010-11, coaching salaries would remain frozen; one sabbatical would be granted (compared with two in the current contract); fringe benefits would be limited as a result of the salary increase deferral; and professional development stipends would be funded but lower than current levels. These provisions will save a combined $142,000 compared to the terms of the current contract.

In the third year, 2011-12, the proposal calls for a 2 percent cost-of-living increase, though this is subject to change depending on the rate of inflation that year. That provision gave the district and the BCTA the ability to include a third and crucial year in the contract with the confidence that the rate of increase would be pegged to economic conditions.

Including step increases — those intended to recognize the experience that teachers bring to their jobs — the effective total salary increases over the next three years in the proposal are 4.45 percent in 2009-10 (down from 5.75 percent in the existing contract), 4.43 percent in 2010-11, and 4.5 percent in 2011-12.

The proposal also includes a $20,000 retirement incentive designed to save the district money through replacing teachers on the upper end of the salary schedule with those at entry level.

Under the terms of the agreement, teachers will no longer be required to provide a second dedicated hour of planning and improvement time each month beyond their regular workday. In addition, teachers will gain an additional planning and preparation day in 2010-11 and 2011-12.

Due to the timeline for ratification of the contract extension proposal, the $608,000 savings projected for next year will not be formalized until after residents head to the polls on May 19 to vote on the 2009-10 budget.

The proposed 2009-10 budget will result in a projected 1.76 percent tax rate increase. However, the budget calls for the use of $861,000 in district fund balance, which represents a structural deficit. The administration sees the $600,000 in BCTA concession savings as an opportunity to close this gap and strengthen the district’s financial position as it heads into budget years that are expected to be at least as difficult as this year given the state of the economy.

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