Rauner Administration Statement on Labor Negotiations with the American Federation of State, County and Municipal Employees (AFSCME)

CHICAGO –(ENEWSPF)–January 8, 2016. The following statement is attributable to Lance Trover, Director of Communications for Governor Bruce Rauner:

“Today marked the 67th day of negotiations with AFSCME. Like every previous session, AFSCME rejected all of the Governor’s core proposals and insisted that they would never agree to those proposals despite our good faith efforts to address union concerns.

“In light of that position, our negotiators asked AFSCME if they believed we were at impasse. If so, both parties signed a tolling agreement establishing a Labor Board process by which that determination can be made. AFSCME insists that the parties are not at impasse while rejecting the offer for additional sessions next week.

“After a year of no meaningful progress, we must now evaluate the benefit of future sessions given AFSCME’s intransigence. In light of their answers today, we will now decide if the previously-agreed dispute resolution process should be considered.”

The below chart summarizes the status of the negotiations with AFSCME, while comparing it to its previous contract and the contracts the administration has already reached with 17 other unions representing state employees.

Provision	AFSCME Last Contract	Management Proposal to AFSCME	Teamsters Agreed (5 bargaining units of approx. 4,700 employees)	12 Trades Contracts 12 Bargaining Units Approx. 600 Skilled Workers	AFSCME’s Proposal
Merit Pay / Incentives	Not in the contract	Bonuses to employees and units who achieve measurable, objective, attainable goals and/or save costs	Bonuses to employees and units who achieve measurable, objective, attainable goals and/or save costs	Bonuses to employees and units who achieve measurable, objective, attainable goals and/or save costs	Rejected management’s proposal
Hours of Work	37.5 hours a week with OT after 37.5	37.5 hours a week with OT after 40 (federal law)	40 hours a week with OT after 40 (federal law)	40 hours a week with OT after 40 (federal law)	Rejected management’s proposal
Subcontracting and Cost-Effective Alternatives	Cumbersome procedures that impede the ability for parties to work together to finding cost-effective alternatives to outsourcing that promote efficiency and protect jobs	A new, collaborative model that allows management and union to work together to provide low-cost alternatives to outsourcing	A new, collaborative model that allows management and union to work together to provide low-cost alternatives to outsourcing	A new, collaborative model that allows management and union to work together to provide low-cost alternatives to outsourcing	Rejected management’s proposal and proposed additional constraints on the management’s ability to manage costs while protecting jobs
Layoff	Complex bumping rules with 6 different ways in which laid off employees can bump a colleague out of a job	Streamline the layoff procedure to reduce bumping from 6 to 2 levels	No bumping	Virtually no bumping	Rejected management’s proposal
Improving the Hiring and Promotion of Minorities in State Government	Seniority rules block the State’s ability to address minority underutilization in state government	Management can hire or promote a less senior but equally or more qualified minority candidate	Less restrictive rules than in the AFSCME contract	Management can promote a less senior but equally or more qualified minority candidate	Rejected management’s proposal
Wages (steps)	3.8% annual step increases	Freeze steps temporarily	4-year wage freeze	Not applicable; wages set by DOL	Rejected management’s proposal and AFSCME proposed $407M in automatic annual salary increases
Wages (general)	General increases on top of steps in every year of the contract	Temporary freeze of general increases	4-year wage freeze	Not applicable; wages set by DOL	$1000 stipend in Year 1 and General wage increases in addition to steps in the amounts of 2.25%, 3%, and 3% in years 2, 3, and 4 of the contract (if CPI exceeds 3%, next year increase equals CPI)
Insurance	Unaffordable group health plan that provides platinum+ coverage at bronze-level prices	Multiple options for employees: (1) keep plan design but premiums go up; (2) keep premium rate but plan design is modified	Not applicable; State contributes to Teamsters’ Funds	Multiple options for employees: (1) keep plan design but premiums go up; (2) keep premium rate but plan design is modified; (3) opt into a union plan	Negligible changes to current plan, generating virtually no savings