Massachusetts State College Association: Bargaining Update 1/31/09

Bargaining Update - January 2009

On January 15th management rescinded the financial offer it made in late September 2008 - nearly eight months after negotiations began. The September offer was put on "hold" within a week of being made and remained on hold until earlier this month.

The September offer was:

2.5% on January 1, 2009 (a portion to be used for inversion/compression)
0.5% on July 1, 2009 (used for inversion/compression)
2.5% on January 1, 2010 (a portion to be used for inversion/compression)
0.5% on July 1, 2009 (used for inversion/compression)
2.5% on January 1, 2011 (a portion to be used for inversion/compression)

The January offer is:

0.0% on July 1, 2008
1.5%* on July 1, 2009
3.5% on July 1, 2010

*If tax revenues for FY 2010 reach $20.3 billion, then the July 1, 2009 salary increase would be augmented by 1.0% (to 2.5%); if tax revenues for FY 2010 reach $21.4 billion, then the salary increase would be augmented by an additional 1.0% (to 3.5%).

All of management's language proposals proffered in September 2008 remain on the table. Management's language proposals are not acceptable to the MSCA Bargaining Committee and will impede settlement.

Will tax revenues increase to a level necessary for additional salary increases on July 2009?
Based on what we are hearing from various sources, tax revenues for FY 2010 are not expected to be anywhere near the $20.3 billion necessary for a larger salary increase on July 1, 2009. It is noteworthy that the contingent offer applies only to FY 2010, which is less likely to see tax revenue increases than FY 2011.

Does management's withdrawal of the September 2008 violate the law?
In collective bargaining, it is generally considered improper for an employer to take a money offer off the bargaining table. We believe that this action may violate the law and we are working with MTA to research the issue more carefully. The MSCA will take appropriate action once the research has been completed. If the employer had made a good faith money offer in the winter or spring of 2008, we might have had a settled and ratified contract by September 2008.

On August 4, 2008 the MSCA filed an unfair labor practice on the failure of the Board of Higher Education to bargain over money from February 4, 2008 (our first negotiating session) to the date the charge was filed. The MSCA is considering filing an additional charge over the BHE's failure to negotiate over money from October 2008 to January 15, 2009.

Comparisons of the September 2008 and January 2009 offers
These comparisons assume that all increases would be across-the-board.

Comparisons of the September 2008 and January 2009 offers These comparisons assume that all increases would be across-the-board.
September 2008 Offer	January 2009 Offer
Effect on salaries with compounding: 8.77%.	Effect on salaries with compounding: 5.05%. Note: If FY 2010 tax revenues reached $20.3 billion, the compounded effect would be: 6.09%. - and - If FY 2010 tax revenues reached $21.4 billion, the compounded effect would be: 7.12%
Cumulative dollars paid per $1,000 of current salary: $129.92.	Cumulative dollars paid per $1,000 of current salary: $65.52. Note: If FY 2010 tax revenues reached $20.3 billion, the cumulative dollars per $1,000 of current salary would be: $85.88. - and - If FY 2010 tax revenues reached $21.4 billion, then cumulative dollars per $1,000 of current salary would be: $106.23.