SERB ANNUAL REPORT

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 1

The State Employment Relations Board (SERB) administers the Ohio Public Employees’ Collective Bargaining Act through a three-member Board appointed by the Governor and a staff of 30. Board members are appointed to staggered six-year terms, and only two Board members may be of the same political party. One Board member is designated by the Governor as the agency’s Chairman and its appointing authority. An Executive Director handles the day-to-day administration of the agency, and a General Counsel provides legal support in-house and serves as liaison with the Ohio Attorney General’s office, which represents the agency in court. SERB’s key statutory functions include:

• Investigating unfair labor practice charges.

• Adjudicating the merits of unfair labor practice complaints after investigation.

• Processing representation petitions and requests for recognition.

• Determining appropriate bargaining units and conducting secret ballot representation elections.

• Determining fair share fee rebate challenges.

• Analyzing and reporting wage and benefit data from collective bargaining agreements.

• Providing impasse resolution services through mediation, fact-finding, and conciliation.

• Resolving disputes as to the legality of strikes and, where appropriate, reviewing the imposition of sanctions.

• Collecting and monitoring registration and financial filings by employee organizations; and

• Training representatives of labor and management in the methods and rules of collective bargaining.

To fulfill these functions, the agency is organized administratively into the following sections: Investigations, Representation, Hearings, Bureau of Mediation, and Research and Training. In addition, the Clerk’s Office serves as an intake and docketing center, and an Administrative Services Section is responsible for personnel, fiscal, budget, and facilities management.

MISSION

Promoting orderly and constructive relationships between public employers and their employees.

ABOUT SERB

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 2

Dear Governor Kasich, Members of the General Assembly, and fellow Ohioans, We are pleased to provide you with the State Employment Relations Board’s (SERB) annual report for fiscal year 2017. SERB administers Ohio’s Public Employees’ Collective Bargaining Law (Ohio Revised Code 4117) for 2,735 employers and 320,301 employees. This past year, 1,906 total cases were filed with our office. Our Labor Relations Specialists processed 136 representation matters and investigated 255 unfair labor practice charges. Our mediators conducted 128 mediation meetings and our administrative law judges held 58 hearings. We are proud of the incredible work undertaken by our staff in processing this volume of cases, conducting thorough and timely investigations, facilitating mediations, administering hearings, holding mail ballot elections, conducting our SERB Academy training seminars and contract negotiation workshops, assisting parties in contract negotiations, and ensuring public employers’ and unions’ compliance with state law. But much of what we do – and perhaps some of our greatest achievements – cannot be shown by statistics or graphics. They are the result of working face-to-face with management and union representatives all across the state, where the real work of public employees takes place. Here are a few highlights from this past year:

Our mission statement is not simply a saying we print in our materials or hang in our offices – it’s at the center of everything we do. As we close our 33rd year, SERB remains committed to our duty to promote orderly and constructive relationships and protect the rights of Ohio’s public employers, employees, and their representatives.

Sincerely,

W. Craig Zimpher Aaron Schmidt J. Richard Lumpe Chairman Vice Chairman Board Member

LETTER FROM THE BOARD

• Greater Dayton Regional Transit Authority: On January 9, 2017, the Greater Dayton RTA bus drivers went on strike, impacting 30,000 daily riders, including workers, shoppers, the disabled, and Dayton public students. On the third day of the strike, SERB’s mediators met with the parties. After a 13-hour meeting with our mediators, the parties reached an agreement to end the strike, putting the RTA buses back in service.

• Paint Valley Local Schools: Over the course of 12 months of contentious labor contract negotiations for the

schools’ support staff, the parties filed 8 unfair labor practice charges against each other. The parties had previously engaged in mediation but were unsuccessful. On February 16, 2017, the Board ordered the parties to mediation. A SERB mediator met with the parties for two meetings and was successful in helping them resolve their disputes.

• Defiance County Board of Developmental Disabilities: In January 2017, SERB’s mediators began assisting the Defiance County Board of Developmental Disabilities and the union representing its employees with their first contract negotiation. The parties had difficulties with the negotiations and an unfair labor practice charge was filed. Our mediators held 9 meetings with the parties. They eventually reached an agreement and avoided going to fact-finding. Both sides expressed their appreciation for the work of our mediators.

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 3

W. CRAIG ZIMPHER

AARON SCHMIDT

J. RICHARD LUMPE

W. Craig Zimpher was appointed to the Board by Governor John R. Kasich effective January 21, 2011. Prior to his appointment, he had been Vice President for Government Affairs at Nationwide Insurance.

Mr. Zimpher’s public-sector work has included serving as Chairman of the Industrial Commission of Ohio, an appointment by Governor Richard F. Celeste to the Commission on Workers Compensation Administration, serving as Deputy Assistant to Governor James A. Rhodes, and as Legislative Assistant to the Minority Leader of the Ohio House of Representatives. His private-sector work has included serving as Assistant VP of Ohio Operations for Gates, McDonald and Company and Assistant Dean of Students at Ohio Wesleyan University.

Mr. Zimpher is a native of Piqua. He received a B.A. and an M.A. in History from The Ohio State University. He served as a First Lieutenant in the U.S. Army. He has also lectured as an Adjunct Instructor in History/Humanities at Ohio Dominican University.

Aaron A. Schmidt was appointed to the Board by Governor John R. Kasich effective January 2, 2014. Prior to his appointment, he served as legal counsel to the Ohio Lottery Commission.

Mr. Schmidt’s public-sector work as legal counsel to the Ohio Lottery included advising the agency on a variety of legal matters, including contracts, compliance, litigation, labor relations, intellectual property, public records, and administrative law, as well as assisting in the promulgation of administrative rules, policies, and procedures. His private-sector work included practicing law in two Cleveland private law firms and managing litigation in a corporate legal department.

Mr. Schmidt is a native of Cleveland. He received a B.A. in English from The Ohio State University and a J.D. from Cleveland-Marshall College of Law. Mr. Schmidt is a member of the Ohio State Bar Association and the Cleveland Metropolitan Bar Association, where he authors articles on alternative dispute resolution and mediation.

J. Richard Lumpe was appointed to the Board by Governor John R. Kasich effective June 1, 2016. Prior to his appointment, he served as Vice Chairman of the State Personnel Board of Review (SPBR).

Mr. Lumpe’s public-sector work has included serving as Legal Assistant for the Columbus City Attorney, an Assistant Prosecuting Attorney for the Franklin County Prosecutor’s Office, and an Assistant Attorney General. In the private-sector, he practiced law for more than 50 years at his firm, Lumpe and Raber, Esq, Attorneys at Law, until his retirement. His practice was limited to and specialized in administrative and regulatory law and legislative representation, which included drafting proposed rules and legislation.

Mr. Lumpe is a native of Columbus. He received a B.S. in Business Administration from The Ohio State University and a J.D. from Capital Law School.

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 4

A MESSAGE FROM THE EXECUTIVE DIRECTOR

In the first quarter staff moved toward finalization of the current case management software environment begun in fiscal 2016. SERBs Management Docketing System (SMDS) and the Case Management Docketing System (CMDS) used by the State Personnel Board of Review (SPBR) came to fruition. The two docketing systems were finally able to be “married” into one software database and are now known as SMDS 3.0. The “go live” date of April 13, 2017 for 3.0 was paired with the deployment of new PCs which included a migration to Microsoft Office 2016. This was a daunting project, but once done was a great accomplishment.

To reduce friction costs associated with the adjudication of Unfair Labor Practice filings resulting in a finding of probable cause, SERB embarked on an undertaking, threefold in scope, sort of like a tripod and transit used in Civil Engineering. First prong of the tripod was to require the parties in a case to enter mediation prior to the commencement of a more legal and costly hearing process. Second prong was the development of a bold approach to training practitioners in small groups who are involved in mediating and negotiating labor disputes in alternative avenues of resolution. Third prong is SERBs labor/management relations seminars, which annually trains more than 792 labor and/or management participants statewide in the nuances of doing “business” with SERB; the combination of all three prongs has yielded great results in underscoring the basis of our mission. The transit on top of the tripod is the SERB staff who make all of this work.

A tool that is used effectively by practitioners in the labor/management labor relations process is the Annual Report on the Cost of Health Insurance in Ohio’s Public Sector. This report is an annual collection of data surveyed from over 1,320 public employers detailing the health insurance programs they provide their employees and the calculation of related trends. Building upon 25 years of publications to compute trend analysis it has become a coveted publication which boasts a 93.4% survey response rate!

Another project of size and scope began to take shape in mid-year, that of updating the Employee Handbook. As simple as this might sound, the project took months of review, research, rewrites, and lots of editing to produce the final product. In addition to having a fresh new look, the revised employee handbook will be easy to update, is inviting to use, and will stand as a support tool to help ensure the continuous and positive engagement of our staff.

Each year we participate in the Combined Charitable Campaign and the Operation Feed Campaign. With all the pressures of the day to day operation, Staff and members of both the SERB and SPBR Boards are very generous; we more than meet the goals set for our agency, we exceed them! Our minds are engaged in our work, but our hearts are full with support for those in need.

This mini snapshot in time highlights the dedication of SERB staff, the leadership of our Chair, W. Craig Zimpher and members of the Board all working in concert with the specific and clear direction of Ohio Revised Code, Chapter 4117. We at SERB take seriously our stewardship of the responsibilities entrusted to us.

Sincerely,

Christine A. Dietsch Executive Director

Last fiscal year, SERB experienced a renewal on many fronts. This Fiscal Year 2017, SERB sprang from that renewal and was reenergized through implementation of projects initiated the year prior. There were instances of discovery, frustration and many ah ha moments leading to improved work flow and output. This buoyed and bolstered our commitment to the mission of SERB which is to promote orderly and constructive relationships between public employers and their employees.

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 5

GENERAL COUNSEL

RESULTS OF FACT-FINDING

The Office of General Counsel serves as the Board’s in-house legal counsel. The General Counsel provides legal support to the Board, issues unfair labor practice complaints, assists in the preparation of Board opinions, and works with the Ohio Attorney General’s Office (SERB’s litigation counsel) in the preparation of cases pending before Ohio courts. The General Counsel also serves as the agency’s Chief Ethics Officer and provides annual ethics training for its employees and the Board. The Office of General Counsel oversees the Investigations Section and the Bureau of Mediation. The General Counsel maintains SERB’s Roster of Neutrals and monitors the roster to ensure that standards of neutrality are maintained. The office assigns mediators and provides fact finder and conciliator panels to parties. In FY 2017, the office made 938 mediator appointments, 190 fact finder appointments, and 39 conciliator appointments. A total of 98 fact-finding reports were issued, from which 63 reports were accepted (64%) and 35 were rejected (36%).

FACT-FINDING REPORTS ISSUED BY EMPLOYEE TYPE

69 0

POLICE

13

TEACHERS FIRE OTHER

63

ACCEPTANCES REJECTIONS

16

35

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 6

RESEARCH & TRAINING

The Research & Training (R&T) section provides public employers and employee organizations with detailed information on wages, fringe benefits, health insurance, and employment practices.

R&T maintains SERB’s Clearinghouse, a database that contains data from 3,403 current labor agreements (see chart on right for detailed breakdown) and 33,451 historical labor agreements.

R&T produces three annual reports: The Wage Settlement Report, Cost of Health Insurance Report in Ohio’s Public Sector, and SERB’s Annual Report. R&T also produces a Job Title Benchmark Report, Benefits Report, Wage Increase Report, Insurance by Employer Report, and custom reports that are available upon request. In FY 2017, R&T responded to 444 report requests.

The Clearinghouse is updated annually by compiling current data from an annual report that employers are required to submit. It’s also updated with every collective bargaining agreement that is executed and filed with SERB.

R&T provides training on SERB’s rules and procedures through four annual conferences: SERB Academy (a comprehensive two-day conference in the Spring and Fall), SPBR Conference, Fact-Finding Conference, and negotiation training. Last year, 792 labor professionals attended these training conferences.

NUMBER OF ATTENDEES AT

TRAINING CONFERENCES

266 SERB ACADEMY

208

146

172

NEGOTIATION

TRAINING

SPBR

CONFERENCE

FACT-

FINDING

SERB ACADEMY: For newcomers to public-sector collective bargaining, new managers or new employee organization officials, staff, and those who are or will be working in positions where they need to know how Ohio’s law governs labor relations in the public sector.

FACT-FINDING: Conference on Ohio Public Sector Fact-Finding that brings together professionals -as presenters and as participants- who are part of the fact-finding process. It includes representatives of labor and management, neutrals who preside as fact finders, staff of the State Employment Relations Board, under whose jurisdiction the fact-finding is conducted, and attorneys whose practice includes representing the parties at fact-finding.

SPBR CONFERENCE: The conference provides attendees with an overview of basic civil service elements, as well as best practices for participating in administrative hearings and administering due process within the civil service laws.

NEGOTIATIONS TRAINING: The objective is to provide “practical negotiations” training to labor relations professionals who are new to the profession and to give new perspective to experienced labor relations professionals to facilitate solutions during collective bargaining. The training covers different negotiation strategies with emphasis on those strategies best

suited to result in successful negotiations.

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 7

COUNTY

TOWNSHIP

OTHER

COLLEGE/UNIV

CITY

BOARD OF ED

STATE

Number of Collective Bargaining Agreements by Employer Type

1,217

1,043

601

241

207

83

11

3,403

1,200

1,535

Number of

current

contracts

on file

320,301 Public

Employees

Covered by

Contracts

Public

Employers

without

Contracts

Public

Employers

with

Contracts

21

15

6

12

14

18

11

84

149

20

16

18

42

22 19

26

59

88

44

45

116

30

17

35

11

20

58

12

12 8

13

11

10

24

22

19

28 16

8 6

23

24

7

39

29

20

9

48

19

99

22

385

54

31

26

45

31

9

11 7

35

11

4

21

11

19

27

9

19

13

136

41

33

30

93

116 153

5

32 38

15

51

105

77

106 48

7

5

CONTRACTS ON FILE BY COUNTY

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 8

MEDIATION

SERB’s mission to promote orderly and constructive relationships between public employers and their employees is carried out every day by our mediators. They travel throughout the state to provide a variety of services at no cost to employers and employee organizations. Our mediators assist the parties at every stage of their relationship, from facilitating contract negotiations to mediating unfair labor practice charges. The Bureau of Mediation offers mediation services in four areas: collective bargaining, grievances, unfair labor practices, and representation. Last year, they conducted 42 collective bargaining mediations (with a 67% settlement rate) and 18 mediations involving unfair labor practices and representation matters (with a 78% settlement rate). Each successful settlement represents a substantial savings in time and costs to the parties. The Bureau of Mediation offers several training programs to help prepare parties for contract negotiations. Last year, they conducted four training meetings on practical negotiations for 208 participants. The mediators also provided 18 individual training meetings on interest-based bargaining (IBB) or modified-traditional bargaining (MTB). The mediators facilitated actual contract negotiations with the parties, when requested. The Bureau of Mediation plays a key role in SERB’s success. As our mediation services and training programs have expanded, we have seen a decrease in unfair labor practice filings.

Contracts Mediated

67%

Mediation Meetings

Settlements

Settlement Rate

42

102

28

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 9

UNFAIR LABOR PRACTICE CHARGES MEDIATED

78%Settlement

Rate

Cases Mediated

Mediation Meetings

Settlements

18

26

14

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 10

INVESTIGATIONS REPRESENTATION

82% 18%

ELECTION VOTER TURNOUT

37 REPRESENTATION ELECTIONS HELD

VOTE CAST

NO VOTE CAST

The Representation Section is responsible for all representation matters filed with SERB. The Board determines appropriate bargaining units, conducts representation elections, and certifies exclusive bargaining representatives.

The section’s Labor Relations Specialists review and process petitions for representation and decertification elections, requests for recognition, petitions for amendment or clarification of existing bargaining units, and rebate challenges.

The specialists work with the parties to a proposed election to reach a consent election agreement (where they agree to the description of the bargaining unit, proposed dates, times, and places or polling period of the election, and an employee eligibility date). The specialists schedule and conduct the secret ballot elections and tally the ballots.

Finally, the section is responsible for preparing recommendations on representation cases for the Board’s review and determination.

In FY 2017, 37 elections were held. Out of 1,555 eligible voters, 1,280 members (82%) voted in an election, a 4% increase in voter turnout

over the previous year.

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 11

UNFAIR LABOR PRACTICES

ALLEGATIONS OF O.R.C 4117.11 VIOLATIONS

26% 74%

ALLEGED EMPLOYER

VIOLATIONS

ALLEGED EMPLOYEE

VIOLATIONS

UNFAIR LABOR PRACTICE CHARGES

5 3

259

180

92

8

2 COMPLAINTS

SETTLED

DEFERALS TO

ARBITRATION

CHARGES

FILED

CHARGES

DISMISSED

CHARGES

WITHDRAWN

PROBABLE

CAUSE

FINDINGS

COMPLAINTS

ADJUDICATED

The Unfair Labor Practice (ULP) Section is responsible for investigating all ULP charges, non-compliance complaints (ERC), or jurisdictional work disputes (JWD) that are filed with SERB. ULP charges allege that an employer, an employee organization, or a public employee may have violated Ohio Revised Code (ORC) § 4117.11, the unfair labor practice provision of the statute. Investigations are conducted by Labor Relations Specialists, who are highly trained and skilled investigators. The Specialists review the parties' position statements and any supporting documentation, and may request additional information from the parties if necessary. After a thorough review of the information provided by the parties, the Specialists prepare an investigative report and recommendation, which is submitted to the Board for review and consideration. In some cases, the Specialists may mediate a ULP charge during the course of the investigation, in an attempt to resolve the parties’ dispute. In FY 2017, 255 ULP cases alleging violations of ORC § 4117.11, 3 ERC cases alleging violations of ORC § 4117.19, and 1 JWD, case alleging violations of ORC § 4117.11(D) were filed with SERB. From the total ULP cases, 188 cases alleged violations by public employers and 67 cases alleged violations by employee organizations or employees. There were 31 cases adjudicated from the previous year.

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 12

HEARINGS

HEARINGS & RECOMMENDATIONS (SERB & SPBR)

The Hearings Section conducts administrative hearings to resolve factual and legal disputes in cases involving significant issues of law arising from unfair labor practice charges, representation matters, impasse resolution, and other issues under Ohio Revised Code 4117.

In addition, the Hearing Section supports the State Personnel Board of Review (SPBR) to hear cases pertaining to exempt employees in the classified service, non-exempt employees in the classified service who have not been organized, and non-exempt employees whose collective bargaining agreements allow an appeal to SPBR.

All cases are heard before an administrative law judge who submits recommended findings of fact and conclusions of law to the Board and report and recommendations to the SPBR.

In FY 2017, our administrative law judges conducted 47 prehearings, held 58 hearings, and prepared 106 report and

recommendations representing 156 cases.

PRE HEARINGS

47

RECORD HEARINGS

58

REPORTS & RECOMMENDATIONS

106

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 13

SERB v. City of Maple Heights, SERB 2017-001 (3-21-17) The issue in this case was whether the City of Maple Heights (“the City”) committed an unfair labor practice by violating O.R.C. § 4117.11(A)(1) and (A)(5) when it refused to bargain with the Fraternal Order of Police, Ohio Labor Council (“the Union”) for an initial collective bargaining agreement because the bargaining unit contained only one member. The City argued that a single-employee bargaining unit was not an appropriate unit for collective bargaining. It argued that O.R.C. § 4117.04(A) refers to bargaining units composed of “employees” and includes the term “collective bargaining,” both of which indicate that more than one employee is needed to constitute a viable bargaining unit. The City’s arguments had been addressed and rejected by SERB in two prior cases, In re City of Wauseon, SERB 88-019 (12-23-88) (“Wauseon”) and In re City of Munroe Falls, SERB 2011-005 (7-12-11) (“Munroe Falls”). In both Wauseon and Munroe Falls, SERB specifically noted that there is no language in O.R.C. 4117 that precludes single-employee bargaining units. A long-established role of legislative and statutory construction and interpretation, as provided for in O.R.C. § 1.43, prescribes that “the plural includes the singular and the singular includes the plural.” Therefore, the meaning of “employee” or “employees” contained in O.R.C. 4117 must be interpreted in conformity with O.R.C. § 1.43. The City stipulated that it refused to bargain collectively with the exclusive representative of a SERB-certified single-employee bargaining unit because the unit was not appropriate. The City also stipulated that the parties followed the recognition process set forth in O.R.C. § 4117.05 and 4117.06, and it did not file objections to the proposed bargaining unit or provide any substantial evidence to show that the bargaining unit was inappropriate. The City initially participated in two negotiation meetings before refusing to bargain with the Union. O.R.C. § 4117.04(B) provides that once SERB has certified a bargaining unit, the public employer is obligated to bargain collectively with the exclusive representative. In this case, SERB certified the Union as the exclusive representative in 2015, triggering the City’s duty to bargain collectively with the Union, and the Union filed a Notice to Negotiate. Because SERB certified the Union as the exclusive representative, the City had a continuous and ongoing duty to bargain with the Union. The Board found that the City committed an unfair labor practice by violating O.R.C. § 4117.11(A)(1) and (A)(5) when it refused to bargain with the Union for an initial collective bargaining agreement.

BOARD OPINION ISSUED FY 2017

STATE EMPLOYMENT RELATIONS BOARD ANNUAL REPORT 2017 14

State Employment Relations Board 65 East State Street, 12th Floor

Columbus, OH 43215-4213 (614) 644-8573 (614) 466-3074 (FAX)

www.serb.state.oh.us