Collective Bargaining Transparency

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State law empowers government unions to be the exclusive representative of employees during contract negotiations with an employer. This is known as collective bargaining. Negotiations can have far reaching implications because they set compensation for tens of thousands of public employees, costing Pennsylvania taxpayers billions of dollars a year. Despite the enormous impact on taxpayers, the negotiation process is shrouded in secrecy.

The Scope of State Collective Bargaining Contracts

  • Governor Wolf’s Office of Administration is in the early stages of contract negotiations with 16 government unions. These contracts cover approximately 44,600 workers, costing taxpayers nearly $3.38 billion.
  • Traditionally, the American Federation of State, County, and Municipal Employees (AFSCME) contract is settled first. It is the “Master Agreement” that serves as the model for other union contracts.

Union Contracts 2015

Union

Description

Employees

Avg. Total Compensation

Total Cost

Expiration

AFSCME

Master Agreement

30,808

$72,243

$2,225,662,344

6/30/2015

SEIU Local 668

Social Workers

8,955

$81,152

$726,716,160

6/30/2015

SEIU Healthcare

Nurses, Non-Supervisory

1,142

$106,460

$121,577,320

6/30/2015

UFCW Local 1776

Liquor Store Clerks

1,437

$59,947

$86,143,839

6/30/2015

ISSU

Liquor Store Managers

689

$79,049

$54,464,761

6/30/2015

CIVEA

Corrections Education Teachers

353

$104,257

$36,802,721

6/30/2015

FOSCEP

Educational & Cultural

306

$99,173

$30,346,938

6/30/2015

OPEIU

Nurse Supervisors

228

$124,071

$28,288,188

6/30/2015

PLEA

Liquor Law Enforcement Officers

111

$79,696

$8,846,256

6/30/2015

PSRA

DCNR Rangers

86

$86,614

$7,448,804

6/30/2015

FOP

Capitol Police

74

$90,015

$6,661,110

6/30/2015

CBA

PUC Attorneys

25

$128,113

$3,202,825

6/30/2015

PSEA

Non-Tenured Teachers

27

$104,018

$2,808,486

6/30/2015

ALES

Liquor Law Enforcement Supervisors

24

$102,027

$2,448,648

6/30/2015

PDA

Physicians

142

$172,197

$24,451,974

6/30/2012

UGSOA

Security Officers

177

$64,716

$11,454,732

8/31/2014

Total

 

44,584

 

$3,377,325,106

 

Contracts: http://www.oa.state.pa.us/portal/server.pt/community/collective_bargaining_m_d/20137

Compensation Data: http://www.oabis.state.pa.us/SGWS/2015/SGWS_MAIN.html

 

  • In 2011, contracts negotiated by Governor Corbett included an 11.24% increase in costs over four years. A similar increase would represent approximately a $380 million annual increase in annual spending after four years. This does not include higher pension contribution rates, which are set at a percentage of salary.
  • Contract negotiations have no legislative input or oversight. The terms of the contracts–pay increases, health insurance benefits, work rules, etc.—are negotiated behind closed doors and agreed to at the sole discretion of the governor.
  • Union contracts don’t just govern salary schedules and benefit packages. They also include provisions for the automatic deduction of union dues, fair share fees, and direct campaign contributions from employee paychecks, as well as remission of those funds to union bank accounts.

Lack of Transparency

  • In practice, collective bargaining negotiations are usually held away from the public eye. In fact, the final contract is not posted until after an agreement has been reached, as Pennsylvania law does not require contracts to be placed in the public domain before or even after ratification.
  • At the school district level, the process is just as opaque. Government unions and school boards are not required to make collective bargaining negotiations or contracts public before ratification.

Potential Conflict of Interest in Negotiations

  • Due to the unique nature of collective bargaining in government, Governor Wolf will be negotiating contracts with some of his biggest campaign contributors: government unions. Six of these government unions negotiating or soon to be negotiating with the Wolf Administration contributed more than $2.6 million to Wolf’s campaign.
    • Much of the $2.6 million given to Governor Wolf was collected using taxpayer resources. State contracts, as well as many school and local government contracts, include provisions authorizing public payroll systems to deduct campaign contributions to union political action committees.
    • If Governor Wolf were to approve new union contracts permitting taxpayer collection of campaign contributions, he could see a direct benefit during his next campaign.

Promoting Transparency in Collective Bargaining

  • The importance of state contract negotiations cannot be understated. Reforms are essential to make the process more transparent, allowing input from taxpayers who have a stake in the negotiations.

1. Require collective bargaining proposals to be posted online before a ratification vote.

2. Provide taxpayers with an estimate of the costs associated with each collective bargaining proposal before a ratification vote.

3. Open collective bargaining negotiations to the public.