Information Exchanged at First Pre-Budget Session

    The first in a series of planned pre-budget negotiation sessions with the state was held March 19 at MPEA headquarters in Helena. Staff from MPEA, MEA-MFT and AFSCME met with state negotiators and discussed the need to change how the state arrives at market-based figures, the budget office’s perception of next biennium’s economic outlook, labor/management training and a schedule of meetings for the next three months.

    State negotiator Paula Stoll told the 17 bargaining chapter members present that the state salary market survey was nearly complete and would be provided the bargaining agents in early May. She then went on to describe the many changes that have been made in how figures are now being calculated.

    In the past, the state has used four different salary surveys to arrive at their figures. These included Watts and Wyatt (a national survey), the Occupational Employment and Wage Estimates ( a national survey from the U.S. Department of Labor), the Central States Survey and a salary survey of the four contiguous states.

    Stoll noted that it had been the state’s practice in the past to discount the two national surveys by 15 percent. As if discounting the two national surveys wasn’t aggravation enough, the data was also always at least two years old and consequently had no relation to real market figures.

    Stoll then explained that an entirely new approach was being used. First, there would be no 15 percent discounting on national surveys. Second, the data sources will be reduced and will include salary data of the surrounding states taken from the Central States Survey, OES data from the labor department, and on-line data from www.salary.com. Third, the problem of using old data is being solved by using an employer index which essentially inflates 2006 salary data by 3.2 percent per year. This new methodology is meant to make the data as timely as possible.

    The market data is also being improved, according to Stoll, by having state agencies list positions that don’t fit the general picture and that the agency is having trouble filling.

    When asked for examples, Stoll mentioned environmental specialists within the Department of Environmental Quality and game wardens in Fish, Wildlife and Parks.

    Stoll said “we are seeing higher rates of pay than we would have using the old system. “I would urge members to remember that market pay is only a goal, that it doesn’t drive the process. We wont guarantee that we will pay market rates; we can’t guarantee market.”

    The governor’s chief wage negotiator then said “Our first priority will be to appropriate money toward the biggest gaps between what the market pays and what Montana pays. The work we do here, hopefully, will end in an agreement. But, all agreements are contingent on Legislative funding.”

    What the Legislature will approve is made easier when there is a healthy revenue picture for the state. Stoll said she would not advance the same proposal as last biennium and cited budget office concerns with future revenue and increasing the state’s base ---on-going---expenditures.

    Stoll noted that at the appropriate time Connie Welsh, who heads the benefits bureau and handles health insurance, will attend a negotiation session to discuss premiums and benefits. “By summer Connie will have accurate projections and the Benefits Advisory Council will have made recommendations.”

    Ruth Anne Hansen from labor relations then discussed a labor/management training initiative and the session which is set for April 29 and 30. She also said there would be four additional workshops with places and dates yet to be set.  Need more info??

    It was also agreed that the next bargaining sessions would be tentatively scheduled for May 14, June 18 and July 16 with times and locations yet to be set.

    Staff negotiators, before management’s arrival, discussed the importance of keeping communications going between members and those on the bargaining team. It was agreed that following the May meeting volunteers would get together with staff and put together a summary of the day’s session for distribution. Nate Miller, Labor and Industry, and Maxine Mougeot, Office of Public Instruction, volunteered to assist in the project.

    Bargaining team members attending the March meeting included Mike Bright, public assistance, DPHHS; Frank Westhoff, Lewistown, Montana Mental Health Nursing Care Center; Clint Ohman, DPHHS; Maxine Mougeot, Office of Public Instruction; Sheri Mitchell, PERS; Linda Nichols, Montana State Prison; Beth McKenzie, Department of Revenue; Vicky Wood, MCDC; Nate Miller, Department of Labor and Industry, Unemployment Insurance;  Dan Dolan, Labor and Industry, Job Service; Dave Lowen, Fish, Wildlife and Parks; Cal James, Highway Patrol; Janet Chevrestt, Justice; Martin Holt, Department of Environmental Quality; Amber Lamping, Labor and Industry; Joel Felix, DPHHS; Dave Labor, Labor and Industry.

updated 3/25/08

U-System Bargaining Team Has First Pre-Budget Session

    The first of the MPEA/University System pre-negotiation session was held at MPEA headquarters in Helena March 18.

    Prior to the arrival of management personnel, members discussed the impact of changes in living costs in their respective communities, the need to broaden the use of the educational benefit for members and their families, classified staff participating in the rewards that accrue to development of intellectual properties, improvements in language relating to bonuses and pay rules, and interest-based bargaining.

    Labor Relations Director Kevin McRae and Mick Robinson, associate commissioner for fiscal affairs, provided members with insights into the budget building process used by the U-System, priorities for funding and what is seen for the immediate future.  

    McRae explained that the first step in their process they use is to present proposals to the Board of Regents for review and approval. McRae said one of the initiatives that will be presented to the Regents will be to bring classified staff closer to market.

    When asked about system priorities, Robinson stressed that the first priority had to be to meet the “present law” budget needs of the university system. Present law is defined in statute as “that level of funding needed under present law to maintain operations and services at the level authorized by the previous legislature.” Fully annualized pay plans, enrollments inflation, legislated mandates are a few of the items that get thrown into present law adjustments.

    Robinson said he had met with State Budget Director David Ewer to discuss personal service increases for the coming biennium. He said he found the budget director pessimistic and concerned about anything that increases the size of the base budget. Robinson told bargaining team members that Ewer said “we have to properly fund the base budget.”  “He wants a sustainable base,” Robinson explained.

    Robinson said the budget director sees revenues flattening in the coming biennium. “However, we have to keep things in play; it will, as always, be fall  (September or October) before revenue figures are estimated,” Robinson said. He also said the Regents next meet in May but that he was unsure if they would have any kind of pay initiative they could act on at their May meeting. “We need about $60 million just to implement present law.”

    Robinson also expressed concern about the Governor’s plan to reduce energy consumption by 20 percent by 2010. “I worry that this will just come as an expenditure reduction for us.”

    Discussion then ensued on needed data. MPEA requested strategic pay data, all other pay data, retention information, and salaries and pay increases for “contract” employees, by year.

    MPEA Executive Director Quint Nyman explained that Kathy Crego, a retired HR director from the University of Montana, has been hired by MPEA to assist the team and head up the U-System negotiations effort for the coming biennium.

    Before breaking for the day members explored expanding tuition waivers, increasing longevity at the five year level, the Wyoming campus efforts to safe on energy costs, intellectual properties, hazardous duty pay for those in agriculture related work, a different approach to grieving discretionary pay, parking, problems created by block scheduling, and fiscal recognition of supervising students.

updated 4/2/08