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Teacher (Parchment Education Association) Negotiations Update November 22, 2017

Posted: November 22, 2017

Following is a summary of the Board's Last Best Offer-Revised (LBO) for a two year contract with our teacher group that includes increases in compensation from the last offer. Two board members (President, John Madaras and Secretary, Cherie Balmer) worked with PEA leadership over the past few weeks in an effort to reach an agreement to no avail. The Board continues to be willing to shift the dollars in the current LBO-Revised (much of which will be prorated over time as required by law) as the PEA wishes, but cannot add additional funds as the fall student count came in below what was budgeted. The student count leaves the district with about $100,000 fewer dollars for the year. Also included are copies of MCL Section 380.1250 and 388.1764h of the State School Aid Act. Beginning October 1, 2017, the District must comply with Section 1250 or face a 5% forfeiture of state funding. Hence, the District must include in the new Collective Bargaining Agreement (CBA) a provision that makes clear under (3) of 1250, "...the district shall implement and maintain a method of compensation (Merit Pay*) that includes job performance and job accomplishments as the primary factor in determining compensation and additional compensation." PEA leadership has stated that other districts do not have this but several do have similar language in their CBA's. CBA's approved before October 1, 2017, do not have the threat of forfeiting 5% of state aid so many do not have this in their CBA's yet. The Board remains committed to working with the PEA and Administration regarding planning time during the school day moving forward per the attached Letter of Agreement.

  • 1/2 step for all eligible staff for 2017-18 per Schedule A "prorated per law
  • Bargaining unit members not receiving the 1/2 step listed above, shall receive an off-schedule stipend of 0.75% pay increase for 2017-18-prorated per law

The cost for the District for these items, prior to additional proration, is about $65,090 or 1.05% raise.

  • Insurance increases beginning Jan 1, 2018-September 30, 2018 (End of 2017-2018 Insurance year) the district agrees to pay an additional $30 per month for FF, $22 per month for 2 person and $10 per month for self. The current contract language remains in place regarding caps.

The total cost for the District is approximately $15,500 or 0.25% raise.

  • A one day work reduction for each PEA member moving from 188 days worked to 187 days and a reduction in the work day from 8 hours to 7 3/4 hours.

These time reductions equate to 55 hours less required work per year or about 7 days. The approximate value of these 2 items is $234,000 or 3.75% increase.

  • Schedule A--Add off-schedule stipend language recognizing the Board s willingness to share unbudgeted revenues as they become available year over year. All staff are critical in promoting the district to assist in enrollment gains or losses.

0.40% if the student count is >= 10 more than budgeted
0.60% if the student count is >= 15 more than budgeted
0.80% if the student count is >= 20 more than budgeted

To be paid out on the last payroll of December each year

  • The Board agrees to work toward planning time in future school years per the attached Letter of Agreement.

Demonstrating the Board s commitment to implement planning time during the school day.

  • Merit Pay* Component under Schedule A--Any Board approved increase in compensation and/or step increase will only be given to teachers earning a summative evaluation rating of Highly Effective or Effective on his/her most recent summative evaluation (year-end).

This language complies with the new mandates by our State regarding MCL 380.1250 and 388.1764h of the State School Aid Act. This language would have no impact on any member of the PEA for this year or for the past two years if it was in place at that time.

The contract would be for the 2017-18 and 2018-19 school years. The only items negotiable for the 2018-19 school year would be teacher planning time, Schedule A (Salary), and Insurance.

Other items are part of the Last Best Offer-Revised that is attached. The total additional new cost to the Board of this proposal is about $80,600 or 1.3% increase. With the value of time reductions at $234,000 added in, the total proposal has a value of $314,600 or over 5%.

*Merit Pay is a prohibited subject of bargaining

Additional Documentation




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