More than half of Minnesota’s 2007-09 teacher contracts were settled by Jan. 6, a pace comparable to two years ago. But there’s trouble on the horizon as the state’s Jan. 15 settlement deadline approaches.
More locals and districts have requested mediation, reflecting the difficulty in bargaining tough issues, particularly employee health insurance.
The time left to settle contracts is short. Many locals’ contracts call for a written tentative agreement to be in members’ hands three to five days before a ratification vote, and state law requires a ratified agreement – not a tentative one – by Jan. 15.
Here are the facts as of early January:
- 191 of the state’s 341 teacher contracts had been settled.
- Salary schedule improvements average about 2.49 and 2.38 percent for each of the two contract years.
- 138 districts had requested mediation, compared with 111 at this time in the previous round of bargaining.
- Agreements must be ratified by Jan. 15 or districts pay a $25 per pupil penalty in state aid.
Health insurance premiums continue to soar by double-digit percentages, although the impact varies from district to district. However, Education Minnesota negotiations and field staff report that many districts are seeking to cap their insurance contributions, shifting any additional cost to employees.
Many districts are also seeking to switch to less costly insurance plans that involve very high deductibles, higher copays and other erosion of benefits, especially for family insurance coverage. A few districts are proposing to drop district-sponsored group insurance and replace it with a fixed contribution to an HRA (health reimbursement arrangement), leaving employees to buy their own coverage in the individual insurance market.
The large number of school levy votes this fall – just over half of them successful – has created additional complications in bargaining. Many local unions and districts delayed bargaining until after the votes took place.