Subcommittee on Employee Relations legislative Coordinating Commission

72 State Office Building St. Paul , MN 55155- 1201 Telephone (651) 296-2963 or (65 1) 296-9002 Fax (651 ) 297-3697 www.ser.leg.mn

Senate

House

Senator Mike Parry, Chair Senator Michelle Benson Senato r Ted Daley Senator Chris Eaton Senator James Metzen

Representative Representative Representative Representative Representative

Steve Drazkowski, Vice Chair Mike Benson Keith Downey Leon Lillie Ryan Winkler

August 30, 2012 Ms. Barbara Holmes Assistant Commissioner Minnesota Management and Budget 658 Cedar Street, St. Paul, MN 55155 Dear Commissioner Holmes, The Legislative Coordinating Commission Subcommittee on Employee Relations adopted a th resolution at its August 30 meeting disapproving proposed collective bargaining agreements with AFSCME Council 5 and with MAPE. A copy of that resolution is attached. The resolution requires that you be notified ofthis action. The Subcommittee's rationale is described in item 2 of the resolution. Please let me know if you have any comments or questions. Sincerely,

Greg Hubinger

Cc: Elliot Seide, AFSCME Council 5 Jim Monroe, MAPE Senator Mike Parry, Chair Representative Steve Drazkowski, Vice-chair

SER5 LEGISLATIVECOORDINATINGCOMMISSION SUBCOMMITTEEONEMPLOYEERELATIONS RESOLUTIONREGARDING COLLECTIVEBARGAININGAGREEMENTS RepresentativeDrazkowskimovesthattheLCCSubcommitteeonEmployeeRelations: 1)Disapprovethecollectivebargainingagreementswiththefollowingexclusive representatives: a)AgreementwiththeAmericanFederationofState,CountyandMunicipal Employees,Council5,submittedtotheSubcommitteeonAugust8,2012; b)AgreementwiththeMinnesotaAssociationofProfessionalEmployees, submittedtotheSubcommitteeonAugust8,2012. 2)InformtheappropriatepartiesthattheSubcommittee,asprovidedinMinn.Stat.3.855, Subdivision2,rejectstheseagreementsbecause: a)Theproposedcontractsdonotincorporatechangestothehealthinsuranceprogramthat wouldmakethemmorecomparabletothoseintheprivatesectors.Theinitialroundsof negotiationforthesetwoproposedcontractsincludedthediscussionofa10%employeepremium. Employeesshouldberequiredtocontributeameasurableportiontowardtheirmonthlypremium. Thefinalagreementsfailedtorecognizethiskeyelement; b)Theproposedcontractsprovideconventionalacrosstheboardandstepincreases.Salary increasesareonlyappropriateiftheyarebasedonarigorousevaluationoftheemployees performancerelatedtotheemployeesgoals,theperformanceoftheemployeesprogram,andthe performanceoftheagencytowardmeetingitsoutcomes. 3)CommunicatetotherespectivenegotiatingpartiestheSubcommitteesexpectationthat futurecontractproposalswillbeaccompaniedbyanassurancethatuniondueswillnotbe increasedduringthetimeperiodcoveredbythecontract. 4)Directthepartiestoreturntothebargainingtabletoattempttonegotiateasettlement thatisacceptabletobothpartiesandthatcouldberatifiedbytheSubcommitteeandthe Legislature; 5)DirecttheCommissioneroftheBureauofMediationServicestoworkwiththeparties toassistinreachinganegotiatedsettlement; 6)Directstafftoinformtheappropriateofficialsofthisdecisionanditsrationale.
Adopted August30,2012