Schutt, Eric - GOV

From: Schutt, Eric - GOV

Sent: Thursday, March 03, 2011 4:21 PM

To:

Subject: FW: Here is my e-mail

Importance: High

Sorry, sent to wrong address on previous message.

Thanks. ES

Eric A. Sch utt Deputy Chief of Staff Office of the Governor Main: 12

. From: Schutt, Eric - GOV Sent:· Thursday, March 03, 2011 4:08 PM To:_..... sub~ Importance: High

Look forward to receiving your ·proposal.

Thanks, ES

Eric A. Schutt Deputy Chief of Staff Office of the Governor Main: 266-1212

3/8/2011

Page! of!

~-----~-~-

Schutt, Eric - GOV

Froin: Schutt, Eric - GOV

Sent: Thursday, March 03, 2011 4:08 PM

To:

Subject: Here is my e-mail

Importance: High

Look fOlWard to receiving your proposal.

Thanks, ES

Eric A. Schutt Deputy Chief of Staff Office of the Governor Main:

3/8/2011

Page 10ft

----Flury. K~"eY from,: seni: To:

Legislative Fiscal Bureau , Monday, February 28, 20111:24 PM

Subject: 'seN,Culien Draft Proposal

The following is a swrumilY of proposed modifications to the collective bai'galriing and lnediCal assistailce provislpfls that are included in SPecial Session Sen,ate Bill i I (and Assembly Bill II).

Collcctiv!l BUI'ga:illing

• The proposal WO\lld p~'bvide thaUbe c)nployee contribution reqlJirclrtents fOI' Wisconsin Retirement System (WRS) benefits and health insllran,ce cDverage under SS s)3 1.l, as they apply to st!ite / employees, would take effect on April 1, 2011, unless other contribution, requirements 01' provisions are , collectively b:argained befOl'ethat aate, EITIployee cOIitributionl'eq\lirel1lcnts for WRS benefits and health in$urance coverage under SS SIi n, as they apply to local employees, would take effect on Se~mber 1,2011,

C!0less other contribution requirements orpl'Ovislons are collectively-bargained before that ®t<l-, rhe proposal would retain CW'I'ent law colle,ctive bargaining rights fot these benefit contributions for pu151ic satety elhployc'es,

, as provIded \1I1der the bilL " , ' 1 • The st~te f!.$cal effect relating toWRS and health insurance coverage contributions would b

1 unchanged from th~bill. Under the bill, the DeP.arhnCIH of Administration (DOA) pl'ojects GPR lapses and ' rof/oi,',\ transfers totaling $29.8 miHionin 2010-11 and $275.6 inillion in the 2011-13 biennium ($1:37,8 mi11ioil U atl1)ually), The iumual savings fol' local lmits of government is projected by DOA at $724.8 million .

• ' The proposal would provide that an employer pickup ofpal't of the emPIOyee'reqllirer , contribution to the WRS could be oollectively bargaillcdbeginnihg three yeats after the effective date of the bill, but aQ.y employel' pickup w01;ild not be pel'mitte4, to lowel' the employee Qut-of-pocket WRS cOiltributiqn to less

, than 4%':1-&;>tI'{I ,S'7iJ ' ( ' ~~ ..J ,, ' r3Jc.,~<;r )

.. Unde!! the J;>lIlPosal, ba~e~Wi!ges would relliahl slibject to collective 1:l~i'gainiHg, as provided uildei' SS BB 11; howeV!;l!', tlle CPlilimitatioir'fOl' the bal'gailling of base wages and the referendum provisIollS, under the bill would be deleted. The proposal would, however, permit coiIecti ve 'bargaining reiating to workplace safety and cOliditions to continue. -- e';<.pa n S' I' CI ".,

.. '(hider tlw proposal, the tel'In orany collective bargainlJ:lg agreement would b'(j for ~ithe[' a tWo- 01' three-yeai' period'mid lllay not be extended'. Under SS SB 11, agreements for' generale.mployees would be limited to one year and may not be extended. '

G:I (')6-le "T'1 I Id 'd' ' . 'ft '. . " I ' d"=- ft h , ' 1 • leproposa, WOll prOVl eun,lOnrepresentatIVe 'certllcatlOnreq1.!n'ementstmt :111"1' 'om t ,ose pl'o,:ld9dtjnder SS, SB 11. Under the bill, an initialuilit celiificati?~ for general ~lUpl~yees would bel'equired in .Ap1'l1; 201-1, and rumually thereafter. The Pl'oposal Would require inItial certifio'atlon no later than 18 months after the effective date :ofthe bjll al1d l'ecel1ifkation eveJ)' thl'¢e yel,lrs thereafter.

• At ,tIus time; the,proposal does not specify any, modifications, to, the following 'pl'ovlsiOlis under SS SB 11: (a) tin.!olldties pi'oviSions; (b) -strikes under MuniCipai El11pioyment Rdatlons Act CMERA); (c) intel'est (Jl'bitratibil under MEM; qn.d (d) other vollective bargai,tJing provisions unde!' the \Jill ,desllribeq in the FisCill Btu'eml S1ll11l11al'Y of tIle Joint Committee 011 Finrulce version ofSS SB 11.

Medic,al Assistance 1

• Under the bill a·samended, changes 1o.the Medical Assistance program could be made by the· Deparullent ofHealj:h.$el'vices undei ·emergency rules after the rules are·reviewed by the JointCon1nlittee on Financ.6 under a 14-day p.asslv~ l'EivieW p.tocess. Onder the proposed irioditlcatioIis, prior to the eJnei'gency J'ules becoming effective the joint C0llU11ittee On Finance wonld be required to hold apubJic hearing and Jileet to . appi'ove the P~'oposed 1111es. . rJd-

.~~ :- .. . : . , . . . : ;".- .. ~ ~J!.~, " : .

..

2

From: Schutt, Eric - GOV Sent: Monday, February 2B, To: Hogan, John Subject: Draft Response to Draft Proposal

These changes are based on the draft proposal that was received earlier today.

Collective Bargaining -Term of Agreement - Under the counter-proposal, the term of any collective bargaining agreement would be for either a one or.two·year period and may not be extended. -Union Certification - The counter-proposal would require initial certification no later than 12 monlhs after the effective date of the bill and recertification every two years thereafter.

Medical Assistance -Medicaid - Per the draft proposal, prior to the emergency rules becoming effective the Joint Committee on Finance would be required to hold a public hearing and meet to approve the proposed rules.

ES

Eric A. Schutt Deputy Chief of Staff Office of the Governor Main:

I

Memo from Fiscal Bureau via Sen. Jauch

Schutt, Eric - GOV

From:

Sent:

To:

Barry, Sarah

Thursday, March 03, 2011 4:33 PM

Schutt, Eric - GOV

Subject: Memo froin Fiscal Bureau via Sen. Jauch

Senator Jauch asked that I forward this to you-- ,

From: Eck, Elizabeth Sent: Thursday, March 03, 2011 4:27 PM To: Barry, Sarah Subject:

From: Eck, Elizabeth

Sent: Thursday, March 03, 20114:23 PM

To:

Subject:

Page 1 of2

The following is Ii summary of proposed modifications to the collective bargaining and medical assistance provisions that are'included in Special Session Senate Bill 11 (and Assembly Bill II).

Collective Bargaining under MERA and SELRA

• Under the proposal, base wages, length-of-service credit ("step" progression), and continuing education credit ("lane" progression) and other economic issues would be subject to collective bargaining; however, the CPI limitation for the bargaining of base wages and the referendum provisions under the bill would be deleted.

Other economic issues subject to collective bargaining would include: overtime pay, sick leave, payments in lieu of sick leave usage, vacations, shift premium pay, longevity pay, extra duty pay, performance bonuses, disability insurance, vacation pay, holiday pay, lead worker pay, teinporary assignment pay, severance or other separation pay, hazardous duty pay, celtification or license payment, and contracting or subcontracting of work that would otherwise be performed by municipal employees in the collective bargaining unit with which there is a labor dispute.

• Under the proposal, the term of any collective bargaining agreement would be for either a one- or two-year period and may not be extended. Under SS SB 11 , agreements for gener~l employees would be limited to one year and may not be extended.

• The proposal would provide union representative certification requirements that differ from those provided under SS SB II. Under the bill, an initial unit certification for general employees would be required in April, 2011, and annually thereafter. The proposal would require initial certification no

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Memo from Fiscal Bureau via Sen. Jauch Page 2 of2

later than one year after the effective date ofthe bill and receliification every three years thereafter.

• Within 10 days following enactment of SS SB ll1AB 11, the Governor shall appoint a ten-member commission (five members representing lab·or and five members representing management) that would be required to submit recommendations to the Joint Committee on Finance identifying items relatilig to workplace conditions and safety that would be allowable subjects of collective bargaining. Requil·e that the repOltto the Committee be -submitted on or before April 15, 2011.

Collective Bargaining Rights· fo.· University of Wisconsin Hospitals and Clinic Authority E.mployees

Delete the repeal collective bargaining rights for employees of the University of Wisconsill Hospitals and Clinics Authority. Under current law, three collective bargaining units are established for · the representatIon of employees of the Authority: 0) fiscal and staff services; (2) patient care; and (3) science. Under SS SB 11, current law provisions would be repealed; the treatment of the repeal provisions would first apply to employees who aTe covered by a collective bargainillg agreement that contains provisions inconsistent with these provisions on the day on which the agreement expires or is terminated, extended, modified, or renewed, whichever comes first.

Medical Assistance

• Under the bill as amended, changes to the Medical Assistance program could be made by the Department of Health Services under emergency rules after the rules are reviewed by the Joint Committee on Finance under a 14-day passive review process. Under the proposed modifications, prior to the emergency rules becoming effective the Joint Committee on Finance would be required to hold a · public hearing and be required to meet to approve the proposed rules.

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Memo from Fiscal Bureau via Sen. Jauch. Page 1 of3

Schutt, Eric - GOV

From: Schutt, Eric - GOV

Sent: Thursday, March 03, 2011 6:31 PM

To:

Subject: FW: Memo from Fiscal Bureau via Sen. Jauch

Senator,

Below please find a counter proposal to your previous suggested changes. All proposed changes offered below are changes to the bill: .

Collective Bargaining Remove CPI from the bill. The term of any collective bargaining agreement would be for either a one or two year period and may not be

extended . . Initial certification no later than one year after the effective date of the bill and recertification every three years

thereafter. Add the following language regarding workplace conditions: "Workplace safety" means conditions of

employment related to the physical health and ~afety of employees, as long as such conditions are not unenforceable under federal or state law. "Workplace safety" includes, but is not limited to: safety of the physical work environment, the safe operation of workplace equipment and tools, provision of protective equipment, training and warning requirements, workplace violence, and accident risk. "Workplace safety" does not include conditions of employment related to the general working conditions of employees unrelated to physical health and safety matters. Examples of conditions not falling under "workplace safety!' include, but are not limited to: hours, overtime, sick, family, or medical leave, work schedules, breaks, termination, vacation, performance reviews, and compensation. It is the public policy of the state that "workplace safety" be construed narrowly, and not construed to include basic conditions of employment unrelated to physical health and safety. Public employers and labor organizations may utilize a safety committee of employees to meet and discuss suggestions and improvements on workplace safety oulside of the collective bargaining , process.

Medical-Assistance

Under the bill as amended, changes to the Medical Assistance program could be made by the Department of Health Services under emergency rules after the rules are reviewed by the Joint Committee on Finance under a 14-day passive reView process. Under the proposed modifications, prior to the emergency rules becoming effective the Joint Committee on Finance would be required to hold a public hearing and be required to meet to approve the proposed rules.

This counter proposal consists of the only proposed changes to the amended bill from finance.

ES

Eric A. Schutt Deputy Chief of Staff Office of the Governor Main:

From: Barry, Sarah rm;,lIt,. Sent: Thursday, March 03, To: Schutt, Eric - GOV Subject: Memo from Fiscal Bureau via Sen. Jauch

3/7/2011

Memo from Fiscal Bureau via Sen. Jauch

Senator Jauch asked that I forward this to you--

From: Eck, Elizabeth Sent: Thursday, March 03, 2011 4:27 PM To: Barry, Sarah Subject:

From: Eck, Elizabeth

Sent: . Thursday, March 03, 20114:23 PM

To:

Subject:

Page 20f3

The following is a summary of proposed modifications to the collective bargaining and medical assistance provisions that are included in Special Session Senate Bill 11 (and Assembly Bill.! 1).

Collective Bal'gaining under MERA and SELRA

• Under the proposal, base wages, length-of-service credit ("step" progression), ·and continuing education credit ("lane" progression) and other economic issues would be subject to collective bargaining; however, the CPI limitation for the bargaining of base wages and the referendum provisions under the bill would be deleted. .

Other economic· issues subject to collective bargaining would include: overtime pay, sick leave, payments in lieu of sick leave usage, vacations, shift prem.ium pay, longevity pay, extra duty pay, performance bonuses, disability insurance, vacation pay, holiday pay, lead worker pay, temporary assignment pay, severance or other separation pay, hazardous duty pay, certification or license payment, and contracting or subcontracting of work that would othelwise be performed by municipal employees in the collective bargaining unit with which there is a labor dispute.

• Under the proposal, the term of any collective bargaining agreement would be for either a one- or two-year period and may not be extended. Under SS SB 11, agreements for general employees would be limited to one year and may not be extended.

• The proposal would provide union representative celtification requirements that differ from those provided under SS SB 11. Under the bill, an initial unit celtification for general employees would be required in April, 2011, and annually thereafter. The proposal would require initial certification no later than one year after the effective date of the bill and receltification every three years thereafter.

• Within 10 days following enactment of SS SB ll1AB II, the Governor shall appoint a ten-member commission (five members representing labor and five members representing management) that . would be required to submit recommendations to the Joint Committee on Finance identifYing items relating to workplace conditions and safety that would be allowable subjects of collective bargaining. Require that the report to the Committee be submitted on or before April 15, 2011.

Collective Bargaining Rights for University of Wisconsin Hospitals and Clinic Authority

'),/7/?011

Memo from Fiscal Bureau via Sen. Jauch Page 3 of3 '

Employees

Delete the repeal collective bargaining rights for employees of the University of Wisconsin Hospitals and Clinics Authority. Under current law, three collective bargaining unit~ are established for the representation of employees of the Authority: (I) fiscal and staff services; (2) patient care; and (3) science. Under SS SB 11, CU1Tent law provisions would be repealed; the treatment of the repeal provisions would first apply to employees who are covered by a collective bargaining agreement that contains provisions inconsistent with these provisions on the day on which the agreement expires or is terminated, extended, modified, or renewed, whichever comes first. . .

Medical Assistance

• Under the bill as amended, changes to the Medical Assistance program could be made by the Depaltment of Health Services under emergency rules after the rules are reviewed by the Joint Committee on Finance under a 14-day passive review process. Under the proposed modifications, prior to the emergency rules becoming effective the Joint Committee on Finance would be required to hold a public hearing and be l'equired to meet to approve the proposed rules.

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Page 1 of2

Schutt, Eric - GOV ------.. ----.~~~-- -----.~--.-.-~--. --.-_ . From: Schutt, Eric - GOV

. Sent: Sunday, March 06, 2011 6:05 PM

To: lang, Bol): ••

Cc: Gilkes, Keith - GOV

Subject: RE: Proposal

Bob,

The following is a summary of proposed modifications to he collective bargaining and medical assistance provisions all suggested changes would be from bill:

Collective Bargaining -Remove CPllimitation for the bargaining base wages and the referendum provisions under the bill would be deleted. Step progression 'and lanes would not be subjects of collective bargaining.

-Certain economic·issue·s would be permissive subjects of bargaining. (Bargaining would be allowed on these issues if included by one party and not objected to by the other party. Agreed to subjects would then be collectively bargained. We should also point out. that, permissive subjects are defined for each contract going forward. So, for example if a school board agrees to accept all of these items, then the next time the contract comes up - they would have to reestablish what is permissive.) Economic issues of permissive bargaining would include mandatory overtime, performance bonuses, hazardous duty pay, certification or license payment, calendar and classroom size.

-In addition to base wage listed in first item above, only other allowable item subject to bargaining would be work place safety. As a resUlt,we would add the following language regarding workplace conditions: "Workplace safety" means conditions 'of employment related to the physical health and safety of employees, as long as such conditions are not unenforceable under federal or state law. "Workplace' safety" includes, but is not limited to: safety of the physical work environment, the safe operation of workplace equipment and tools, provision of protective equipment, training and warning requirements, workplace violence, and accident risk. "Workplace safety" does not include conditions of employment related to the general working conditions of employees unrelated to p.hysical health and safety matters. Examples of conditions not falling under "workplace safety" include, but are not limited to: hours, overtime, sick, family, or medical leave, work schedules, breaks, termination, vacation, performance reviews, and compensation. It is the public policy of the state that "workplace safety" be construed narrowly, and not construed to include basic conditions of employment unrelated to physical health and safety. Public employers and labor organizations may utilize a safety committee of employees to meet and discuss suggestions and improvements on workplace safety outside of the collective bargaining process. In putting this tanguage back in, we worked to add two additional items to permis'sive list above.

-The term of any collective ·bargaining agreement would be for eit.her a one or two year period and may not be extended.

-Initial certification no later than one year after the effective date of the bill and recertification every three years thereafter. From your proposal, we would remove the changes on voting percentage and follow language in the b~ .

Medical Assistance Under the bill as amended, changes to the Medical Assistance program could be made by the Department of

Health Services' under emergency rules' after the rules are reviewed by the Joint Committee on Finance under a 14-day passive review process. Under the proposed modifications, prior to the emergency rules becoming effective the Joint Committee on Finance would be required to hold a public hearing and be required to meet to approve the proposed ru les.

Other Issue: . -UW Hospital Clinics Authority - We would allow collective bargaining to remain with changes made under the bill,

the JFC amendment and the items discussed in this compromise. So, they would continue to have collective

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bargaining, but with modifications.

Thanks, ES

Page 2 of2

if you need something,

The following is a summalY of proposed modifications to the collective bargaining and medical assistance provisions that are included in Special Session Senate Bill II (and Assembly Bill II): Collective Bargaining

Under the proposal, base wages would be subject to collective bargaining. The cpr limitation for the bargaining of base wages and the referendum provisions under the bill would be deleted. In addition, issues relating to length-of-service credit ("step" progression). and, continuing education credit ("lane" progression) would be subjects of bargaining for school districts.

While the selection of health insurartce coverage plans and the employer/employee premium cost sharing would not be sbbject to collective bargaining, the features of health 9al~e coverage would be subject to bargaining.

Require that health insurance coverage plans offered to public employees must provide benefits that are substantially similar to the plans offered by the ETF public employer group health insurance program. Specify that WERC use the criteria in mles promulgated by the Commissioner of Insurance to determine if health insurance plans are substantially similar. Require the Commi~sioner of Insurance to promulgate rules that set out a stand~rdized sumlUary of bene,fits provided under health insurance coverage plans, including plans offered by the ETF public employer gwup health insurance program, for use in detennining whether a plan is substantially simihir.

Certain economic issues would be pelmissive subjects of bargaining. (Bargaining would be allowed on these issues if included by one party and not objected to by the other party. Agreed to subjects would then be collectively bargained.) Economic issues of pennjssive bargaining would include mandatory overtime, performance bonuses, hazardous duty pay, and certification or license payment.

Economic issues, which would not be subject to collective bargaining, would include oveltime pay (other than mandatory overtime pay), sick leave, payments in lieu of sick leave usage, vacations, clothing allowances in excess of the actual cost of clothing, shift premium pay, longevity pay, extra duty pay, health insurance (with the exception, as noted above), life insurance, disability insurance, long-term care insurance, workelJs compensation and unemployment insurance, social security benefits, vacation pay, holiday pay, lead worker pay, temporary assignment pay, retirement contributions, supplemental retirement benefits, severance or other separation pay, limitations on layoffs that create a new or increased financial liability on the employer and contracting or subcontracting of work that would otherwise be perfonned by municipal employees in the collective bargaining unit with which there is a labor dispute.

Col1ective bargaining relating to all noneconomic issues (issues not included as economic issues above) would be maintained as under cun·ent law.

Under the proposal, the tenTI of any collective bargaining agreement would be for either a one- or two-year period and may not be ext,ended. Under SS SB II, agreements for general employees would be limited to one year and may not be extended.

The proposal would require initial cel1ification no latel' than one year after the effective date of the bill and recc11ification every three years thereafter; in addition, cettification would be approved by an affirmative vote of 51% of the members voting. (The 51% vote of members voting is subject to fmther discussion.) Under SS SB 11, all initial unit ce11ification for general employees would be required in April, 2011, and annually thereafter and celtification would be approved by an affirmative vote of 51 % of the members in the collective bargaining unit. Medical Assistance

Under the bill as amended, changes to the Medical Assistance program could be made by the Department of Health Services under emergency rules after the rules are reviewed by the Joint Committee on Finance under a 14-day passive review process. Under the proposed modifications, prior to the emergency rules becoming effective the Joint Committee on Finance would be required to hold a publi~ hearing and be required to meet to approve the proposed rules. .

Subject for Further Discussion The repeal of collective bargaining rights for employees of the University of Wisconsin Hospitals and Clinics Authority

under SS SB II.

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