EMU contract negotiations: Employees say low raises, increased benefit costs may result in pay reduction
Joe Braunschneider describes his experience as a negotiator seeking a new contract for police officers at Eastern Michigan University this way: "It's like having all bark and no bite."
Braunschneider, a retired Ypsilanti detective and current EMU Department of Public Safety officer, is leading negotiations between the EMU Police Officers Association patrol unit and university administrators.
After months of negotiating, the roughly 20-member POA patrol unit is unsatisfied with the university's offer of minimal raises and an increase in heath care costs. Progress, Braunschneider says, is slow.
"All you really have are your arguments. You go to the table with something you want and they say 'Why do you want it?'" Braunschneider said. "It's like asking your mom and dad 'Hey, can I have something?' and they say 'No.'"
The way EMU sees it, there's a good reason for that answer. Drastic cuts in its state appropriation for 2011-12 and a modest increase for the coming year are forcing the school to cut costs.
Braunschneider, who was formerly the head of the Ypsilanti Police Department officers union, has plenty of experience negotiating contract agreements. When officers and city administrators couldn't agree during Ypsilanti negotiations, parties would turn to binding arbitration —a process by which a state appointee decides on disputed negotiation terms. However state law limits binding arbitration to municipal fire and police departments, and thus it's not an option at EMU.
"That's part of the frustrating part of being here," Braunschnider said.
In addition to negotiations with the POA, EMU has been in contract talks with the roughly 250-member clerical union since March. Last week the school commenced contract negotiations with the faculty union.
Both the clerical and officers unions are battling the school on healthcare offerings and raises. The new plans offer higher deductibles and co-pay costs and unions contend they shift costs on the employee too heavily. The plan changes, coupled with low raises, actually decrease pay for workers, union leaders say.
Susan Moeller, an EMU business professor and head of the university chapter of American Association of University Professors, estimates the healthcare changes would result in a 5.5 to 18 percent pay cut for clericals, depending on which plan they chose and whether they're married or single.
"That is really going to hurt those people," Moeller said. "They were told that the university will not negotiate with them on the healthcare, they'll just negotiate with them on raises. They'd have to get huge raises to compensate and that's not going to happen."
Clerical union president Karen Hanson said the average EMU secretary earns $34,600. Hanson declined to comment on the raises offered by administrators, saying she did not want to sour good faith negotiations. Hanson did say that EMU secretaries "don’t make enough money for the changes."
Braunschneider, however, said EMU proposed the following raise scale for the three-year officers' contract: No raise the first year, a 1 percent raise the second year and a 2 percent raise the third year.
He said EMU police officer salaries range from $42,000 to $60,000.
Susan Moeller at a 2010 EMU AAUP rally
Change in healthcare
EMU predicts healthcare costs will rise 8.5 percent annually, from $25 million in 2012 to nearly $32 million in 2015. In 2011, EMU paid $11,041 in insurance costs per employee. By 2012 that figure rose to $12,159.
New plans proposed by EMU raise deductibles and shift some cost from the university to the employee. The University of Michigan has implemented a similar shift in recent years.
EMU Vice President of Communications Walter Kraft declined to comment on specific issues of negotiation but directed AnnArbor.com to information on 2013 healthcare changes for non-unioned employees, including coaches and administrators.
EMU is eliminating its premium plan that costs $1,512 per year for a single individual and doesn't include deductible or major co-pay costs. It's retaining a moderate plan, which includes a 10 percent co-insurance rate and $250 deductible for a single person and $750 deductible for a family. The cost for a single individual will rise from $564 annually to $624 annually.
The university will also offer new plans with deductibles ranging from $500 to $1,500 per single individual, co-insurance rates ranging from 20 to 30 percent and annual premiums from $120 to $360. Annual out-of-pocket maximums for a single individual will range from $1,620 to $2,360.
Depending on negotiation outcomes, union employee plans may or may not resemble these healthcare offerings.
"That all has to be worked out at the negotiating table," Kraft said. "We designed this for those employees that are not covered by a collective bargaining agreement."
Under current contract conditions, police officers have the option of a plan with no premium or a plan under which the premium is $779 per single employee. Those options were not offered to non-unionized employees this year.
EMU has a history of tense labor union contract negotiations. Employee groups went on strike in 2006, 2004 and 2000. In 2010 the faculty union threatened to strike, citing increasing healthcare costs that union leaders said equated to a 2 percent pay cut.
That year premiums for a typical family increased from $1,139 to $2,950 but the administration agreed to give all faculty members a one-time payment of $1,000. The police officers' and clerical unions weren't negotiating then and weren't asked to partake in the more costly heath care plans until now.
Limiting raises and health care costs is part of an ongoing strategy by EMU to reduce personnel expenses. Last summer the school eliminated more than 80 positions, saving $4.2 million in salaries.
Comments
GL
Wed, Jun 13, 2012 : 4:17 a.m.
Will annarbor.com please do a FOIA regarding the following comment: "In recognition of the heavy state budget cuts and to help limit costs, EMU administrators as a group had a pay freeze this past year."
Geoff Larcom
Wed, Jun 13, 2012 : 4:02 p.m.
You can Google the stories on this, including one in the dot.com. Just type in EMU and pay freeze. This would not apply to someone who changed jobs, such as going from an interim to a permanent top administrative position, or the few employees with a long-term contract with set terms, such as a head basketball coach. http://www.annarbor.com/news/ypsilanti/eastern-michigan-university-to-freeze-administrator-pay/
notta
Wed, Jun 13, 2012 : 1:30 a.m.
" limiting raises" must only apply to the working class at EMU. Top administrators and athletic coaches recieved hundreds of thousands in raises over the past twelve months.
u812
Mon, Jun 11, 2012 : 11:45 p.m.
401k's were great if you cashed out before April 2001 since then they are snake oil put forth by the republican machine to further erode the middle class.
harry
Thu, Jun 14, 2012 : 5:22 p.m.
90 years of history of the stock market shows we should all make money. Thats a lot of history.
u812
Thu, Jun 14, 2012 : 1:48 a.m.
harry wait until it's time to retire and we'll see what that stock is worth or worthless.
harry
Tue, Jun 12, 2012 : 8:05 p.m.
The dow jones started 2001 at 8235. Today it closed at 12,500. I am not sure what you are talking about. Most people in 401K's have made money since 2001 including me. What could you possibly had invested in to lose money. Europe maybe.
clownfish
Mon, Jun 11, 2012 : 9:44 p.m.
Why not ask the administrators at the insurance companies to take a 5-10% pay cut? They add nothing to the health care of the insured. It is taxpayer money they are getting, after all.
Lac Court Orilles
Mon, Jun 11, 2012 : 5:57 p.m.
This article shows good "Republican" family values of drastic cuts in state appropriation for 2011-12 and a pathetic miniscule increase for the coming year which forces the school to cut costs by forcing public sector employees to work for less and less and less. And.... of course the Republican family values require students to cough up more more tuition. Don't like it? Call Republican Representative Rick Olson, Republican Senator Randy Richardville, and Republican Governor Rick Snyder and ask them why?
harry
Tue, Jun 12, 2012 : 7:50 p.m.
Your right. The cuts should have come directly from the teachers wages and benefits, retired and active.
harry
Mon, Jun 11, 2012 : 4:48 p.m.
It is really hard to take the teachers side when one year at EMU is about $14,000.
harry
Tue, Jun 12, 2012 : 5:10 p.m.
CORRECTION GREGS WEB SITE IS http://www.emich.edu/sbs/calc.php Whats even worse is you got 4 people to agree with you.
harry
Tue, Jun 12, 2012 : 5:08 p.m.
greg too Come on GREG... Read your own web site..I quote "Below is an estimated cost of attendance for in-state and out-of-state freshmen students enrolled in 15 credit hours for one fall or winter semester. In-State/Ohio Residents Out-of-State Tuition & Fees: $4,341.60 Tuition & Fees: $11,547.60 Room & Board: $3,947.50 Room & Board: $3,947.50 Total: $8,289.10 Total: $15,495.10 http://www.chacha.com/question/how-much-is-tuition-and-board-at-eastern-michigan-university
greg, too
Mon, Jun 11, 2012 : 7:21 p.m.
Clarification, it is $8500 with room and board added in..not that anyone would want to stay in the dorms at EMU. That's where the nearly half comment came from.
greg, too
Mon, Jun 11, 2012 : 7:19 p.m.
14? Even though that is almost twice what it really is (around $4300 for a new freshman without room and board at a commuter school), that's a bargain. It's 3 times that at Umich. http://www.emich.edu/sbs/calc.php http://www.finaid.umich.edu/TopNav/AboutUMFinancialAid/CostofAttendance.aspx Harry, do us all a favor and do a little research before you post something.
SW40
Mon, Jun 11, 2012 : 4:41 p.m.
oh thats right, all of the administrators have taken giant pay raises in the last year. Go Eagles!!!
GL
Wed, Jun 13, 2012 : 4:19 a.m.
Guess who made $85,850.00 in 2011?
Geoff Larcom
Tue, Jun 12, 2012 : 1:48 p.m.
Yes. My title should be noted. My apologies.
ahi
Mon, Jun 11, 2012 : 10:38 p.m.
Mr. Larcom is Executive Director of Media Relations for EMU. May or may not be relevant disclosure.
SW40
Mon, Jun 11, 2012 : 10:04 p.m.
Geoff, The last police chief received a raise from around 136,000 to 170,000 that is not a pay freeze. The current police chief received a raise from 120,000 as temporary chief to 128,000 for taking the perminent position. One lieutenant took a pay raise from 90,000 to 110,000. Please don't mislead the public because an administrator in another department didn't take a raise. This conversation is about the police department and their administrators have taken giant raises. Some would say they are paid far too much for the little work they actually do.
Geoff Larcom
Mon, Jun 11, 2012 : 6:37 p.m.
In recognition of the heavy state budget cuts and to help limit costs, EMU administrators as a group had a pay freeze this past year.
SW40
Mon, Jun 11, 2012 : 4:40 p.m.
Just so everyone is aware, EMU police do not have pensions and they do not receive health care benefits when they retire. While some arguments against public sector unions may be valid they aren't relevant to this conversation. No pension, no health care after retirement, these aren't exactly the golden benefits that most of us are against. Sounds to me like their benefits are in line with the private sector. I'm ok with them getting a raise if all the administrators at EMU are taking raises. If the football coach, president of the university and all other administrators take a giant pay cut then the police should as well.
Sparty
Mon, Jun 11, 2012 : 6:20 p.m.
Kemper, TIAA-CREF plans are not pensions .... they are the equivalent to 401(k) plans that many have in private businesses, that employees contribute to and their employers add a match to - hence the term "defined contribution". These are hardly the golden pensions that are being referred to by some posters.
Kemper
Mon, Jun 11, 2012 : 5:31 p.m.
I believe the EMU Police do have a pension. Their retirement plan is a defined contribution plan run by TIAA-CREF. EMU pays 10% of the officer's gross earnings into the plan. An officer earning $50,000 per year gets an additional $5000 paid into this officer's retirement account.
Cash
Mon, Jun 11, 2012 : 5:24 p.m.
harry, SW40 did not say they don't get BENEFITS, he said they don't get health benefits after they retire. I'm not getting your message here....do they get too much or not enough. Hard to follow.
harry
Mon, Jun 11, 2012 : 4:51 p.m.
If I was offered a job with no health I would not take it. Even the guy who collect carts and Meijer (assuming they are full time) get health benefits. Who fault is it that they work for a organization that doesnt pay benefit. Quit or go to Meijers.....EMU will get the message when nobody wants to work for them.
catfishrisin
Mon, Jun 11, 2012 : 4:31 p.m.
Why pay police and faculty when we can use that money to pay for an athletic program that drains resources from the university? It's all about priorities.
greg, too
Mon, Jun 11, 2012 : 7:14 p.m.
Sparty, not at all at EMU. Have you seen their teams and their games? There are more people participating in the events than there are in the stands. The administration is trying so hard to make a commuter school seem like a traditional university (sports, cosmetic updates, etc.) that they are bankrupting it in the process. And, ironically, their dorms are stuck in the 1960's. Here is a list from 2011 of the few athletic departments that fund themselves. http://businessofcollegesports.com/2011/06/16/self-sustaining-athletic-departments-more-than-what-meets-the-eye/
Sparty
Mon, Jun 11, 2012 : 6:15 p.m.
Isn't the athletic program self-sustaining and independent from the University general funds? It certainly is at UM ....
northside
Mon, Jun 11, 2012 : 4:28 p.m.
I love conservative economics. The richest 1% having 40% of the wealth is the natural order of things, but a 50K/year cop or 34K/year secretary seeking a raise is sending the nation into ruin.
harry
Mon, Jun 11, 2012 : 4:54 p.m.
I don't agree with socialism so you will get no sympathy here. I love america. Make as much as your hard work will get you. I dont agree with telling the 5 brothers and sisters of Walmarts how much they can make. Or the Ford family, Bill Gates......and list goes on.
bernie
Mon, Jun 11, 2012 : 2:10 p.m.
While the State of Michigan has an unemployment problem ??? We have Joe Braunschneider a big time double dipper, receiving a pension check from the State of Michigan, and hefty check as a contract negotiator for the union ??? I say if you receive a pension check from the State, City, County or federal government and if you decide to continue to work in the labor market, the pension check should stopped immediately ??? Level the playing field and have the eligible age to receive a pension check the same as it is with Social Security ????
Matt Cooper
Mon, Jun 11, 2012 : 5:21 p.m.
"We have Joe Braunschneider a big time double dipper, receiving a pension check from the State of Michigan, and hefty check as a contract negotiator for the union ???" Ummm....1. Did you ever stop to wonder how many years Braunscheider put in at the YPD? If he's retired, I'd venture a guess that he served enough years to have earned his pension. 2. I read the article and I don't recall it saying anything aobou his personal finances, so I'm wondering where you come up with the notion that he getting a "hefty check". Can you explain that for me please? " ...if you decide to continue to work in the labor market, the pension check should stopped immediately ???" Really? SO instead of working 30 years for the same employer and socking away what little you can eack week for 30 years, you should be punished by either not being allowed to work anywhere, for anyone...or, you stop collecting the money you worked and saved for 30 years in the first place? Please explain to me how that makes even a shred of sense. The thing you seem to forget is that the man worked for his pension. It's his money based on his years of service to his employer. It is not your money to dip into, or to deny him, as you see fit. And who are you to tell him he can't have that pension he worked for simply because he decided he wants to keep working?
Mike
Mon, Jun 11, 2012 : 2:53 p.m.
The biggest problem we have with all of these government pensions is that people are allowed to collect them prior to the social security retirement age. This is not sustainable; just look at all of the other countries in the world who are becoming finacially insolvent due to promises (AKA political payoff) made which can no longer be kept. We need to fix this problem now before it is too late.
xmo
Mon, Jun 11, 2012 : 2:01 p.m.
Where does all of the money to pay for salaries and benefits for EMU staff come from? US so, why does everybody write a check for $1,000.00 so EMU staff can get what they want. Then Write a $1,000.00 Check for the City workers, then write another check for the state workers......We have to keep them happy!
mgoscottie
Mon, Jun 11, 2012 : 12:38 p.m.
When are people going to realize how much money we waste on health insurance? I pay 50,000 a year between my wife and I for bad insurance....just give me 40k and we'll call it a day....
harry
Mon, Jun 11, 2012 : 4:57 p.m.
$50,000 per year???? I pay a max of $8,000 out of pocket for my family and I thought my insurance sucked. You need to find another insurance company.
SEC Fan
Mon, Jun 11, 2012 : 1:35 p.m.
if you're implying you two spend $50K on insurance premiums...I think that's a slight exaggeration. If you mean your total medical bills are $50K a year due to bad insurance...that I would believe. My wife used to have private (small business owner) BCBS for $450 per month.
walker101
Mon, Jun 11, 2012 : 12:37 p.m.
I guess some people never had their parents say "NO" when they asked for something. Unions need to get used to the word, administrators should also follow the golden rule, you don't always get what you want. If Obamacare kicks in and the Bush tax cuts are lost you need more than a raise, you'll need another job, sorry their won't be any to have.
northside
Mon, Jun 11, 2012 : 4:08 p.m.
Yup, those EMU police officers making $42,000 to $60,000 a year and secretaries making $34,000 are the ones dragging the country down.
Cash
Mon, Jun 11, 2012 : 3:02 p.m.
Oh another one who sees red when they read the word "union"..... Administrators should follow the golden rule, correct. In other words be fair as you have been fair to yourselves. That kind of negotiation would actually be worthwhile.
Cash
Mon, Jun 11, 2012 : 11:51 a.m.
A clerical at EMU is an account clerk, financial aid processor, an admissions processor, student service aide etc....even the few secretary positions do accounting, keying entry, payroll, problem resolution for students etc. I think perhaps your "vision" of a secretary is antiquated. To identify a clerical in higher ed......The clerical is the person up front who is visible to help students with their financial aid, with their bills, with their class load, with their parking problems, with their refunds, with the dorm issues......in short the clerical is the front line student service worker.
nekm1
Mon, Jun 11, 2012 : 11:22 a.m.
Secretaries? What are those? With the advent of all of the digital offerings with Microsoft, most private business has moved away from clerical positions. Why is it the Public businesses like universities, continue to support employment of horse and buggy type positions? How about putting that money back to work for the students who can't afford the higher tuition year after year. Maybe next, EMU would like to bring back mimeograph machines, dictaphones, and carbon paper?
SEC Fan
Mon, Jun 11, 2012 : 1:29 p.m.
@nekm1...we tent to call them Admins now...
northside
Mon, Jun 11, 2012 : 12:14 p.m.
The private sector has done away with secretaries? If written tongue-in-cheek that's very funny. If written seriously that's very oh my, you need to get out of the house more.