COMMONWEALTH OF PENNSYLVANIA

PENNSYLVANIA LABOR RELATIONS BOARD

IN THE MATTER OF THE EMPLOYEES OF : : : Case No. ACT 88-09-37-E : NORTHWESTERN LEHIGH SCHOOL DISTRICT :

REPORT AND RECOMMENDATIONS

FACT FINDER: Alex A. Kaschock FOR THE EMPLOYER: FOR THE UNION: Ellis H. Katz, Esquire Mark Lynn, UniServ Representative Sweet, Stevens, Katz & Williams LLP Pennsylvania State Education Association

BACKGROUND Pursuant to Act 88 of 1992 (Act 88) and the Public Employee Relations Act (PERA), the undersigned was appointed

by the Pennsylvania Labor Relations Board (Board) on October 9, 2009, as the Fact Finder in the impasse between the Northwestern Lehigh School District (District) and the Northwestern Lehigh Education Association PSEA/NEA (Association).

In accordance with the Board’s Order of October 9, 2009, the parties filed written statements of the issues in

dispute with the Fact Finder. On November 5, 2009, a hearing was held at the Northwestern Lehigh School District, at which time both parties were offered a full opportunity to present testimony, examine and cross-examine witnesses, introduce documentary evidence and argue orally in support of their respective positions.

The Fact Finder commends both parties for their professional and courteous presentations. The positions of the

parties were clearly articulated and the documentation presented was helpful and informative. In some instances, when a party has proposed adding a new section or changing existing language from the

Agreement, recommendations have been made with little or no discussion. This is intended to indicate only that these proposals are not being recommended as part of the overall proposal for settlement suggested by the Fact Finder at this time and not to negate the concerns expressed by the party offering them. Some of these issues might very well be appropriate for informal discussions between the parties and/or bargaining for future agreements.

The recommendations that follow constitute the settlement proposal upon which the parties are now required to

act, as directed by statute and Board regulations. Pursuant to statutory authority, this report will be released to the public if not accepted. A vote to accept the report does not constitute agreement with or endorsement of the rationales, but rather represents only an agreement to resolve the issues by adopting the recommendations.

ISSUES

The District and the Association have identified twenty (20) general issues as remaining in dispute between the parties at the time of Fact Finding. The outstanding issues, as presented at the Fact Finding hearing, are as follows:

Issue I. Term of Agreement (Article II) Issue 2. Non-Discrimination Clause (Article IV) Issue 3. Association Rights (Article VII) Issue 4. Professional Development (Article VIII, Section 1) Issue 5. Teacher Preparation Time (Article VIII, Section E) Issue 6. Employee Meetings (Article VIII, Section F) Issue 7. Medical Insurance (Article IX, Section A.1) Issue 8. Life Insurance (Article IX, Section A.7) Issue 9. Vision Insurance (Article IX, Section A.8) Issue 10. 125 Health Savings Account (Article IX, Section A.10) Issue 11. Medical Coverage Benefits Waiver (Article IX, Section A.11) Issue 12. Tuition Reimbursement (Article IX, Section B) Issue 13. Personal / Emergency Days, Bereavement Leave (Article X, Section 4,8) Issue 14. Child Rearing Leave (Article X, Section C.3) Issue 15. Salary Schedules (Article XI) Issue 16. Retirement Severance (Article XI, Section B) Issue 17. Homebound Instruction (Article XI, Section C) Issue 18. Assistant Coaching / Extracurricular Activities Salary (Appendix B-1 and B-2) Issue 19. Fractional or Percentage Contracts (Proposed New Section – Article VIII) Issue 20. Behavioral Interventionist and Therapeutic Case Managers (Proposed New Section) These issues are discussed in detail in the following section.

It is important to note that the specific recommendations of the Fact Finder made in this report on each issue, although discussed separately, were made only after consideration of all the issue recommendations taken together and their total combined impact upon both parties in this dispute.

Background / Bargaining History

The Northwestern Lehigh School District is located in Eastern Pennsylvania in Lehigh County. It is part of Intermediate Unit Twenty-one (21). The District includes one (1) high school, one (1) middle school and two (2)

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elementary schools. At the time of the Fact Finding, the bargaining unit consisted of one hundred, eighty-three and eight tenths (183.8) full-time employee positions. The current Agreement between the parties became effective on July 1, 2003 and had an expiration date of June 30, 2007. On April 18, 2007, an extension of that contract was agreed to between the parties. It extended that Agreement for two (2) years, moving the expiration date to June 30, 2009.

DISCUSSION AND RECOMMENDATIONS

During the process of Collective Bargaining that preceded the Fact Finding in this matter, the parties exchanged

their proposals for changes to the contract. These proposals included many suggested changes in contract language that are meant to clarify and/or update existing contract language and that do not require substantive changes in the parties’ mutual working relationship to enact. In the following discussion, recommendations will be made that address only the substantive issues separating the parties.

For those language changes that address clarifications of existing terms and conditions of employment that both

parties agree with, this report recommends incorporating those changes of language into the Agreement. If the proposed language “clarification” is not acceptable to both parties, this report recommends that the language remain “status quo.” Issue 1: Term of Agreement (Article II) Current Status:

The most recent Agreement between the parties was negotiated to cover the period commencing on July 1, 2003

and terminating on June 30, 2007. That contract was extended by mutual agreement to June 30, 2009. Positions of the Parties: District Proposal: The District proposal recommends a two (2) year Agreement. The District argues that in light of the volatile economic conditions, given the current recession and the unpredictability of the budgetary obligation and the resources of the School District in the near future, it is prudent to seek a shorter Agreement. Association Proposal: The Association proposes a three (3) year Agreement. It points out that the District and the Association have a long history of reaching agreements for three (3) or four (4) year terms. The Association argues that a three (3) year contract is of mutual benefit to both parties because it provides for extended labor stability and enables more accurate financial planning into the future. Discussion:

The Association proposes an Agreement that would cover the period from July 1, 2009 through June 30, 2012. We are currently almost half-way into the first (1st) year of that proposed Agreement. Negotiations for a successor Agreement will most likely begin in the fall of 2011. If the Agreement were a two (2) year contract, the next negotiation could conceivably begin in the fall of 2010.

A three (3) year Agreement will allow the parties time to better assess the positive aspects of their relationship

and analyze their respective needs with regard to changes in the economic climate. Recommendation:

It is my recommendation that the term of this Agreement be for a three (3) year period from July 1, 2009 through June 30, 2012.

Issue 2: Non-Discrimination Clause (Article IV) Current Status: The current contract language provides:

Article IV. NONDISCRIMINATION CLAUSE

The School District and the Association agree that they will not discriminate against any employee on the basis of race, creed, color, national origin, sex, age, marital status, religious beliefs, political activities, qualified handicaps or participation in the affairs of the Association for the term of this Agreement. This clause is not subject to the grievance / arbitration section of this contract.

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Positions of the Parties: Association Proposal: The Association proposes to add the category “sexual orientation” to the language of this provision in order to prohibit the discrimination of employees at the District on the basis of their sexual orientation. The Association argues that as Educators, it is incumbent upon those in the profession to teach by example the lessons of tolerance and acceptance to students. Inclusion of this language in the contract is appropriate and should be part of the Collective Bargaining Agreement. District Position: The District argues that the language in the current Agreement between the parties is already in compliance with the Equal Employment Opportunity Commission. The District believes that additional language is not necessary. Recommendation:

It is my recommendation that the status quo be maintained with regard to this contract language.

Issue 3: Association Rights (Article VII) Current Status:

Currently, there is currently no language in the Agreement that addresses the position of Association President.

Positions of the Parties: Association Proposal: The Association proposes to add the following language to the Agreement in Article VII: C. ASSOCIATION PRESIDENT The Association president will be relieved of bus duty, hall duty, recess duty and homeroom. The superintendent shall introduce the President of the Association at the orientation program for the new professional employees and also at the first general meeting of professional employees at the beginning of the new school term for a few remarks, at the President’s request.

The Association argues that it is in the interest of both the School District and the Association to have the elected President of the Association available on short notice to perform the Association functions such as investigating working conditions and potential grievances during the workday. The Association President can help to calm a situation and also expedite its resolution.

Regarding the President of the Association being granted some time on the Agenda for the New Employee

Orientation, as well as the first general meeting at the beginning of the year, it is the Association’s position that these items are already occurring in practice, and it seeks to incorporate this existing practice into the contract.

District Position: The District can agree to release time for the Association President from hall, bus, recess and cafeteria duty. However, homeroom and first period are integral to the student educational day, and the District argues that it would have a negative impact on student education to release the Association President from those duties. With regard to the Association President’s involvement in Orientation Day and the first day of in-service training, the District argues that the Association President is already invited to speak at these events. The District argues that additional language in the contract is not necessary and may impact on Management prerogatives to adjust those agendas. Recommendation:

It is recommended that the following language be placed into the Collective Bargaining Agreement in Article VII:

C. ASSOCIATION PRESIDENT The District agrees to provide for release time for the Association President from bus, hall, recess and cafeteria duty on short notice in order to pursue appropriate Association functions such as investigating working conditions and potential grievances during the workday.

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Issue 4: Professional Development (Article VIII, Section 1) Current Status: The language of the current Agreement states: “For the purposes of curriculum development, extra overtime hours (not within contractual time) may be made available to members by the District’s administration at an hourly rate of $27.50 for 2009-10 and $27.50 for 2010-11.” Positions of the Parties: Association Proposal: The Association seeks to increase the hourly rate as follows:

School Year Hourly Rate

2009-2010 $30.50

2010-2011 $31.50

2011-2012 $32.50

The Association points out that the compensation rate for this function has not been increased since the contract

year 2006-2007. The rate should be increased for this professional function.

District Position: The District seeks to freeze the hourly rate at $27.50 for 2009-2010 and 2010-2011. The District desires to be conservative with expenditures during this period of economic instability. Discussion:

Data presented at the hearing shows that Northwestern Lehigh School District pays less for professional development activities than surrounding School Districts. In this instance, a modest increase is appropriate.

Recommendation:

It is my recommendation that the contract be amended to provide for the following increase in the hourly rates for professional development:

School Year Hourly Rate

2009-2010 $29.00

2010-2011 $30.00

2011-2012 $31.00

Issue 5: Teacher Preparation Time (Article VIII Section E) Current Status: The language of the current Collective Bargaining Agreement states:

Article VIII. E. TEACHER PREPARATION TIME

Each teacher employed in the Northwestern Lehigh School District shall be entitled to two hundred (200) minutes of unscheduled teacher / pupil time per week. Positions of the Parties: Association Proposal: The Association proposes adding the following language to Section E (above):

This total shall be achieved with a minimum of 1 (one) 40 minute increment of self-directed preparation time per student instructional day. The student instructional day is defined as the time between student arrival and student dismissal.

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The Association argues that an uninterrupted block of prep time during the student workday is critical for a teacher to be most effective in the classroom. Currently, especially at the elementary level, the two hundred (200) minutes of guaranteed prep time is often achieved in a piecemeal fashion, twenty (20) minutes here, twenty (20) minutes there. Some days, the time is interrupted or lost entirely due to the scheduling of meetings or other responsibilities.

District Position: The District opposes the language proposed by the Association. Recommendation:

It is my recommendation that the following language be inserted into the Teacher Preparation provision of the Agreement: The School District will make every effort to schedule a forty (40) minute preparation period in each student instructional day. The preceding sentence is not subject to the provisions of the grievance procedures contained in this Agreement. Issue 6: Employee Meetings (Article VIII Section F) Current Status: The language of the current Agreement states:

Article VIII. F. EMPLOYEE MEETINGS

To facilitate a well rounded in-service program, to continue formal as well as self-evaluation yearly, and to have all professional employees available for District professional meetings and engagements, the following course will be followed:

1. During the 2003-2004, 2004-2005, 2005-2006, and 2006-2007 school years there shall be a minimum of nine (9) full days of in-service to include two orientation days prior to the start of the student school year (which may include teacher preparation, faculty meetings, principal goal sharing, staff development, student orientations and/or association activities), one record day after the close of the student school year, and a minimum of five (5) Staff Development Days which will include staff development activities and may include grade, department, building and district curriculum development activities.

2. All professional employees will be required to attend a maximum of ten (10) after-school faculty meetings per year, with no single meeting exceeding one hour in length. As part of the professional position, members of the bargaining unit will be required to attend two (2) evening educational activities as designated by the school administration.

Positions of the Parties: Association Proposal: The Association seeks to modify the provision as follows:

Article VIII. F. EMPLOYEE MEETINGS

To facilitate a well rounded in-service program, to continue formal as well as self-evaluation yearly, and to have all professional employees available for District professional meetings and engagements, the following course will be followed:

1. During the 2009-2010, 2010-2011, and 2011-2012 school years there shall be a minimum of nine (9) full days of in-service to include two orientation days prior to the start of the student school year (which may include teacher preparation, faculty meetings, principal goal sharing, staff development, student orientations and/or association activities), one record day after the close of the student school year, three (3) days will be scheduled as days at the end of grading periods 1, 2, and 3 for the purpose of grading, report card preparation and technology integration, and a minimum of two (2) Staff Development Days which will include staff development activities and may include grade, department, building and district curriculum development activities. The 9th day will be satisfied as follows: As part of the professional position, members of the bargaining unit will be required to attend two (2) evening educational activities as designated by the school administration. The combined time not to exceed 6 hours total.

2. All professional employees will be required to attend a maximum of ten (10) after-school faculty meetings per year, with no single meeting exceeding one hour in length.

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The Association argues that their position if adopted will allow the District and the Association to utilize the in-service days more effectively.

District Proposal: The District wishes to modify the language as follows:

Article VIII. F. MEMBER MEETINGS

To facilitate a well rounded in-service program, to continue formal as well as self-evaluation yearly, and to have all members available for District professional meetings and engagements, the following course will be followed:

1. During the 2009-10 and 2010-11 school years there shall be a minimum of eleven (11) full days of in-service to include two (2) orientation days prior to the start of the student school year (which may include teacher preparation, faculty meetings, principal goal sharing, staff development, student orientations and/or association activities) and one record day after the close of the student school year. The remaining eight (8) days shall be scheduled during the school year and will include staff development activities and may include grade, department, building and district curriculum development activities. The in-service days shall be planned in collaboration with the District Professional Development Council with the Administration having the final decision making authority for the content of the in-service days.

The District seeks no substantive change to Section F.2. The District believes that the obligation to plan the use of

in-service days in collaboration with the District Professional Development Council will improve the use of in-service days and provide an effective forum for Association input throughout the contract. The District opposes the proposal of the Association. Recommendation: It is my recommendation that the language changes proposed by the District be incorporated into the new Agreement between the parties.

Issue 7: Medical Insurance (Article IX, Section A.1) Current Status: Currently, the District provides for ”Classic/Indemnification” health insurance coverage through the Lehigh County Health Insurance Consortium for each professional employee and his/her family. The medical insurance coverage contributions in the District are:

Type of Coverage Cost per month

Individual $25.00

Dependent $50.00

The District provides prescription coverage through the Consortium. Currently, the deductibles are:

Retail Mail Order

Brand $35.00 Brand $40.00

Generic $ 5.00 Generic $ 5.00

Positions of the Parties: District Proposal: The District proposes language to define part-time employees eligible for medical coverage through the District as employees who are working equal to or greater than fifty percent (50%), but less than one hundred percent (100%) of standard full-time employment. The member contributions for part-time employees were previously the same as full-time employees. The proposed language changes the contributions for part-time employees to be equal to the premium costs multiplied by the difference between one hundred percent (100%) and the percentage of time contracted for. The District proposes to expand the medical plan options from only the “Classic/Indemnification” plan to a choice of plans. These plans include a “PPO A Plan”, “PPO B Plan” and a PPO C Plan. The District proposes the following medical insurance contributions for the respective plans:

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Medical Insurance Plan Percentage of Premium 2009-2010

Percentage of Premium 2010-2011

“Classic/Indemnification” Plan 12% 14%

PPO A Plan 10% 12%

PPO B Plan 5% 7%

PPO C Plan 2% 4% The proposal deducts medical insurance contributions from each by-weekly pay [twenty-six (26) pay periods].

Significantly, the District proposal provides that the employee contributions be based upon payment in five (5) levels of coverage (Single, Husband and Wife, Parent and Child, Parent and Children, and Family). In prior contracts, the contribution rate was for only two (2) levels of coverage (either Single or Dependent).

The District maintains that these changes in the health insurance coverage are needed to address the significant

and sustained increases in health care costs. As these costs increase, it is appropriate for members to contribute a proportionate amount towards the costs of benefits received.

The District’s health insurance costs increased eight percent (8%) for the 2009-2010 school year. Highmark Blue

Shield has estimated that the insurance costs for 2010-2011 may increase by ten percent (10%) to twelve percent (12%). The District believes that aligning the member contributions with the actual premiums will allow the member contribution to fluctuate with the District’s costs. Understanding the impact of claims paid to the District’s health insurance costs will be an incentive to the member to proactively participate in managing choices impacting their overall health and medical utilization. Offering a variety of health plans will allow members to participate in the benefits of managing their health and wellness.

The District proposes the following changes in prescription co-payment in various categories:

Retail Brand Non-Formulary

Retail Brand Formulary

Retail Generic

Mail Brand Non- Formulary

Mail Brand Formulary

Mail Generic

$45.00 $25.00 $10.00 $90.00 $50.00 $20.00 The changes reflect the proposed dates of the Collective Bargaining Agreement and update the amount of co-payments for each associated prescription. The District continues to offer both retail and mail services and is proposing a three (3) tiered prescription choice for both options. This choice allows members to select either a formulary or non-formulary brand name drug or a generic equivalent. Formulary brand drugs are a preferred list of drugs that are medically effective and payable at a lower co-payment. Non-formulary brand drugs are those not included on the formulary list. Utilization of a formulary brand prescription will result in a reduction of the amount paid by the member from their current retail brand co-payment. This three (3) tiered choice will also help minimize the increasing health care costs associated with the prescription coverage. The increase in the mail co-payments will align the cost of the retail drugs for a thirty (30) day supply with the ninety (90) day supply received through the mail. Members with contracts of fifty percent (50%) or greater and less than one hundred percent (100%) full-time contract will be required to pay the differential between a one hundred percent (100%) contract and their percentage contract as a member contribution for the elected medical (health, prescription and dental) benefits. Association Proposal: The Association proposes that the status quo remain with regard to health care coverage, except that the Association wished to incorporate the following language concerning inserting PPO coverage into the Agreement: “The then current Lehigh County Health Insurance Consortium PPO coverage will be offered as an alternative to the standard health coverage previously described. Premium share contributions for those electing the PPO coverage will be $0.00 for the life of this Agreement.

The Association believes that its request to add the PPO A Option will keep it in line with what is currently offered to the Administration and Support Staff in the District as well as most of the other Districts in the Lehigh County. The Association argues that there are significant advantages and monetary savings available to the District by having this option available. As an incentive to encourage professional employees to move to the PPO, the Association’s proposal suggests no premium share contribution for the life of the Agreement for those members who choose to move to the PPO plan. Discussion: For many years, health care costs have consistently risen at more than double the rate of inflation. Those costs continue to rise, and the employees covered by an employee health care plan have increasingly recognized their need to

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contribute to the costs of such coverage. When compared to surrounding districts, Northwestern Lehigh School District currently has a lower employee contribution rate than the majority of comparable districts. The majority of those districts, however, do contribute a fixed dollar amount for the cost of their coverage and the percentage contribution rate suggested by the District would exceed the contribution rates of any of the surrounding districts. Recommendation:

It is my recommendation that the substantive language in the current Agreement be continued with the exception

of the additional offered “PPO A” plan. The medical insurance monthly contribution rates applicable to employees in these plans should be:

Medical Insurance Plan 2009-2010 2010-2011 2011-2012

“Classic/Indemnification”

Single $30.00 $40.00 $55.00

Family $70.00 $80.00 $100.00

“PPO A” Plan

Single $10.00 $15.00 $20.00

Family $20.00 $30.00 $40.00 The prescription plan language proposed by the District that included Brand Formulary and Brand Non-Formulary categories should be adopted into the contract in the second (2nd) year of the Agreement. The prescription co-payments during the contract period should be as follows:

Contract Year

Retail Brand Retail Generic

Maid Brand Mail Generic

2009-2010 $35.00 $5.00 $40.00 $5.00

Retail Brand Non-Formulary

Retail Brand Formulary

Retail Generic

Mail Brand Non- Formulary

Mail Brand Formulary

Mail Generic

2010-2011 $40.00 $20.00 $10.00 $80.00 $40.00 $20.00

2011-2012 $45.00 $25.00 $15.00 $85.00 $45.00 $25.00 Note: Co-payments reflect thirty (30) day supply for retail purchases, ninety (90) day supply for Mail Orders.

Issue 8: Life Insurance (Article IX, Section A.7) Current Status: “A term life and accidental death and dismemberment policy in the amount of $45,000.00 will be provided by the District to all members of the Association.” Positions of the Parties: District Proposal: The District proposes to change the language as follows: “During the term of this Agreement, the District will provide at its cost a term life and accidental death and dismemberment policy in the amount of $45,000.00 or the member’s annual salary, whichever is lesser, to all members of the Association.” Association Proposal: The Association proposes to change the language as follows:

“A term life and accidental death and dismemberment policy in the amount of $45,000.00 or 1x the employee’s annual salary at time of death, whichever is greater will be provided by the District to all members of the Association.” Discussion: Currently, this District has the lowest pay out of any of the comparable Districts. The cost of placing this District’s employees in the mainstream of surrounding Districts with regard to this issue is achievable without excessive expense to the District.

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Recommendation:

It is my recommendation that the changes suggested by the Association’s proposal should be adopted. The language should be modified to state that this benefit would apply to “all members of the bargaining unit.”

Issue 9: Vision Insurance (Article IX, Section A.8) Current Status: The current contract language makes available a total of ten thousand dollars ($10,000) for each year of the Agreement to cover the vision care needs of members. The maximum reimbursement for a member is one hundred and eighty dollars ($180) and such funds are distributed on a first-applied, first-paid basis. Once the fund for the year has been exhausted, no more payments are made. Positions of the Parties: District Proposal: The District seeks to modify the Vision care provision as follows:

Article IX. F.8 VISION The District shall make available for the vision care of members of the Association as a group, the noncumulative total sum of $10,000 for each year of this agreement. The maximum reimbursement for a member of the Association shall be a total of $180.00 for the 2009-10 and 2010-11 school years for an examination by a licensed vision care practitioner and/or for a change of lenses. The District shall distribute the vision care fund dollars for each school year effective July 1 on the first-applied, first-paid basis. There shall be no reimbursement to any member of the Association who shall apply after the fund for that year has been exhausted. An itemized proof of payment must be submitted to the Business Administrator for reimbursement. All requests for reimbursement must be submitted no later than August 1 following the end of the school year. Association Proposal: The Association proposes the following changes:

Article IX. F.8 VISION Each member of the Association shall be reimbursed a total of $200 for the 2009-2010 school year, $220 for the 2010-2011 school year and $240 for the 2011-2012 school year for an examination by a licensed vision care practitioner and/or for a change of lenses in each year of this agreement for themselves and their dependents. Any unused funds will carry over to the employees account for the next year. Recommendation:

It is my recommendation that the language proposed by the District be incorporated into the Agreement except that

the language should be modified to change the application of the benefit to members of the bargaining unit or “members.”

Issue 10: 125 Health Savings Account (Article IX, Section A.10) Current Status: Currently, there is no language in the Agreement that provides for a flexible spending account under Section 125 of the Internal Revenue Code. Positions of the Parties: Association Proposal: The Association proposes the following new language: Article IX, Section A.10 SECTION 125 PLAN The Employer will adopt and maintain a plan designed to permit employee contributions (maximum allowed by law) to a flexible spending account and a dependent care benefit program on a pre-tax basis pursuant to Section 125 of

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the Internal Revenue Code. Under the flexible spending account an employee may elect to have amounts withheld from current pay to be used to fund out-of-pocket medical expenses incurred by the employee during the calendar year. Under the dependent care benefit program an employee may elect to have amounts withheld from current pay to be used to fund dependent care costs incurred by the employee during the calendar year. The above-defined IRS Section 125 plan will be administered by a contractor selected by the Employer and approved by the NLEA President in compliance with the Internal Revenue Service rules and regulations governing such arrangements. The Employer shall be responsible to administer a comprehensive Section 125 Plan.

The Association is requesting the addition of the Section 125 Flex Spending Program to the contract. It argues that the plan will provide significant savings in out-of-pocket medical costs and dependent care costs to employees. Because these accounts are set up on a pre-tax basis, professional employees can save up to twenty-five percent (25%) or more on these expenses. The District also benefits by employment tax savings in such a plan. The nominal expense incurred by the District is far outweighed by the savings obtained by all employees of the District. Throughout the Lehigh County and Eastern Region, Section 125 Flex Spending accounts are a staple of Collective Bargaining Agreements because of the substantial benefit they provide.

District Position: The District opposes this proposal. The District argues that it does not have the resources to implement the flexible spending account and would have to pay fees for an outside Administrator to implement this program. Recommendation:

It is my recommendation that the Association proposal be adopted in the new Agreement between the parties. The language should specify that in the event Administrative costs are necessary to implement this provision, such costs would be shared equally by the Employer and the individual employees who set up flexible spending accounts under this language.

Issue 11: Medical Coverage Benefits Waiver (Article IX, Section A.11)

The District currently offers a medical insurance benefit waiver through the Section 125 Plan. The monthly opt out payment is seventy-five dollars ($75.00) or nine hundred dollars ($900.00) per year. Positions of the Parties: Association Proposal: The Association wishes to include language that would provide payments to employees to receive:

Type of Coverage Opted Out of Amount Received

Family Coverage $4,000.00 per year

Two-Party Coverage $3,000.00 per year

Family Coverage – Takes Single Coverage $2,000.00 per year

Family Coverage – Takes Two-Party Coverage $1,000.00 per year

Two-Party Coverage – Takes Single Coverage $1,000.00 per year

The Association argues that the current practice does not encourage the professional employee to opt out of their insurance coverage. The Association points out that a survey of current professional employees found that significantly more would utilize this item with the Association’s proposal in place. The Association’s proposal will save the School District and taxpayers’ money by encouraging professional employees to utilize the cost containment provision. Both the School District and the professional employee will benefit from this proposal. District Position: The District opposes the Association’s proposed language. It believes that a higher insurance benefit waiver will not result in the reduction of covered members, but will increase the total payments the District must make to Highmark and the members. Recommendation: It is my recommendation that the status quo be maintained with regard to this issue. Issue 12: Tuition Reimbursement (Article IX, Section B)

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Current Status: The District currently reimburses employees for eligible college credits at actual cost up to the current Kutztown University rate per graduate credit. Positions of the Parties: District Proposal: The District proposes to change the reimbursement rate to “actual cost up to $357.00 per graduate credit.” Association Position: The Association opposes the District Proposal and wishes to maintain the language in the current Collective Bargaining Agreement. Recommendation:

It is my recommendation that the status quo be maintained with regard to this issue. Issue 13: Personal / Emergency Days, Bereavement Leave (Article X, Section 4,8) Current Status:

The current language of the Agreement provides that professional employees shall be entitled to three (3) days personal / emergency leave. This leave may be carried forward. The number of days carried forward is not limited.

An employee may not use more than five (5) days in any one (1) year. The use of this leave shall not result in more than ten percent (10%) of the staff being absent. The use of the leave is not permitted during the first or last week of school.

Positions of the Parties: District Proposal: The District has proposed to include editorial changes in the section entitled Personal / Emergency days. In addition, it has proposed the following language that reflects the District’s obligation under the School Code with regard to Bereavement Leave and which reflects the current practice in the District. B. BEREAVEMENT LEAVE Members will receive bereavement time for the loss of the member’s immediate family member of a relative of the member as outlined below. The member will receive their regular full day pay when utilizing Bereavement Leave. Three (3) Days: For the death of immediate family, as defined in Section 1154(b) of the Pennsylvania School Code; father, mother, brother, sister, son, daughter, husband, wife, parent-in-law, or near relative who resides in the same household, or any person with whom the employee has made his/her home. One (1) Day: For the death of a near relative, as defined in Section 1154(c) of the Pennsylvania School Code; first cousin, grandfather, grandmother, aunt, uncle, niece, nephew, son-in-law, daughter-in-law, brother-in-law or sister-in-law. Association Position: The Association proposes to revise the language of the Agreement to provide for three (3) personal days being earned each year that may be carried from year-to-year and that are limited to five (5) days per year usage.

In addition, the Association proposes a new section entitled Emergency Leave that would provide two (2) full days for emergency reasons in each school year. Emergency Leave days are not cumulative.

The Association also proposes a Bereavement Leave section what would provide a maximum of five (5) days for

a death of an immediate family member, three (3) days for a near relative and one (1) day for the death of a close friend. Recommendation: It is my recommendation that the language proposed by the District that addresses Bereavement Leave be inserted into the new Agreement. Otherwise, the language of the Section should remain unchanged and reflect the status quo (except for mutually agreed upon editorial changes). Issue 14: Child Rearing Leave (Article X, Section C.3)

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Current Status:

The current language reads: CHILD REARING LEAVE

a. An employee may take a leave of absence without pay and fringe benefits for child rearing. The leave shall terminate at a time consistent with the commencement of a nine (9) week rating period. Child rearing leave shall not exceed eighteen (18) calendar months (not working months) – unless agreed upon by the administration and employee. Leave for child rearing must end within 18 months after the birth, or in the case of adoption, placement of the child. In no case will child rearing leave be granted for children who have reached their fifth birthday. The leave must terminate at the beginning of the 9 week grading period prior to the child turning 5 years of age.

Positions of the Parties: Association Proposal: The Association seeks to modify the above paragraph by deleting the second sentence, “ The leave shall terminate at a time consistent with the commencement of a nine (9) week rating period.” The Association argues that the employee’s leave in this instance should not be tied to a nine (9) week rating period. They point out that it is advantageous to have the students’ regular classroom teacher return as quickly as possible. Since child rearing leave in many cases is non-paid, it is often an economic hardship for the employee to have to wait until the start of a new grading period to return to work. District Position: The District opposes the proposal. The District attempts to hire long term substitutes to fill vacancies for child rearing leave. Consequently, it wants to attract highly qualified substitutes. Long term substitutes work a minimum of one (1) complete semester. The current system provides the best educational outcome and the least hardship on the employees involved. Recommendation: It is my recommendation that the status quo be maintained with regard to this issue.

Issue 15: Salary Schedules (Article XI) Current Status:

The current salary schedule for employees in this unit contains seventeen (17) longevity steps and four (4) columns including a Bachelor’s Column, a Bachelors +24 (Credits) Column, a Masters Column and a Masters +24 (Credits) Column.

The most recent salary increases negotiated at the District were a 4.25% salary increase in 2007-2008 and a 4.25% salary increase for the 2008-2009 school years, which were incorporated in the extension Agreement negotiated and signed in April of 2007. Positions of the Parties: Association Proposal: The Association proposes a three (3) year Agreement with the following changes to salary and salary schedule:

4.9% each year including increment Collapse one (1) step from the bottom of the schedule in years one (1) and three (3). Add columns Masters +12 (Credits) in year one (1); Masters +36 (Credits) in year two (2) and Masters +48

(Credits) in year three (3).

The Association argues that the District’s professional employees are not compensated appropriately when compared to surrounding districts. The professional employees’ salary has not kept pace with County salaries and the result is that the District’s teachers are falling behind.

The Association seeks recognition that they believe they deserve by their performance. They would like their salaries and

salary schedules to reflect their comparable status among their peers in the County who work in the surrounding school districts.

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District Proposal: The School District has proposed a two (2) year Agreement that includes a freeze on raises and movement on step during the contract period. The Board believes that the 2008-2009 salary schedule as is, with no increases, should remain in place for two (2) years. The Board argues that this is necessary because of the challenges associated with the current economic recession, the limits of Act 1, the projected revenue shortfalls and the sharp expenditure increases expected by the District. Discussion: The exhibits presented at the Fact Finding showed comparative negotiated increases in school districts in Lehigh County, contiguous districts and districts who belong to the same Intermediate Unit as Northwestern Lehigh School District. Of these districts that had agreed to contractual wage increases for the years 2009-2010, 2010-2011 and 2011-2012, the average salary increases have been between 4.5% and 4.7% over these years. It is recognized by the parties that most of those contracts were negotiated prior to the economic collapse in the fall of 2008. It is quite probable that future settlements in the area will become more conservative. However, other districts are likely to reach contractual agreements that contain a modest increase to insure that their professional staffs do not fall behind, causing those locations to face severe inequities in the longer term. A review of the current salaries of the professional employees at other districts in the three (3) comparison areas outlined above shows that the employees of Northwestern Lehigh are quite near the average in the categories of average bargaining unit salary and career rate as well as starting salary in all three (3) categories of comparison. Many of surrounding districts have fewer steps and more columns than the Northwestern Lehigh salary schedule contains. While the stresses of the economic situation currently in existence is recognized as a challenge for the Board, the school administration and the professional employees of the District, I am convinced by the information presented at the hearing that modest increases and changes in the salary schedule of the professional teacher staff can be afforded by the District. Recommendation: Accordingly, I recommend the following: Effective July 1, 2009, the following increases will be applied to the salary schedule of the District:

School Year Percentage of Salary Increase

2009-2010 3.5 % - Including Increment Costs

2010-2011 3.5 % - Including Increment Costs

2011-2012 3.25 % - Including Increment Costs

The salary schedule will be changed in the contract year 2010-2011:

One (1) step will be collapsed from the bottom of the schedule resulting in a sixteen (16) step salary schedule.

A column will be added to the schedule for a Masters +12 (Credits) Column. The cost of the placement of eligible employees on the column will be in addition to the 3.5% raise recommended for that year.

The pay schedules corresponding to this recommendation are attached in Appendix A of this document.

Issue 16: Retirement Severance (Article XI, Section B) Current Status:

The current Agreement provides that unused sick days will be counted to an amount (specified) for a post

retirement 403(b) contribution. The contract provides for a medical benefits conversion formula. Positions of the Parties:

Both the Association Proposal and the District Proposal offer extensive substantive changes in the retirement severance provision.

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Recommendation: I recommend that the status quo be maintained with regard to this Article except for the editorial changes agreed to by both parties.

Issue 17: Homebound Instruction (Article XI, Section C) Current Status:

Compensation for homebound instruction is currently paid at the rate of $27.50 per hour at the District. Positions of the Parties: Association Proposal: The Association proposes that the rate of pay for homebound instruction be increased as follows:

School Year Rate of Pay

2009-2010 $30.50 per hour

2010-2011 $31.50 per hour

2011-2012 $32.50 per hour

District Position: The District opposes the Association position and proposes that the rate of pay for homebound instruction remain at $27.50 per hour. Recommendation: It is my recommendation that the hourly rate of pay for homebound instruction be changed as follows:

School Year Rate of Pay

2009-2010 $29.00 per hour

2010-2011 $30.00 per hour

2011-2012 $31.00 per hour Issue 18: Assistant Coaching / Extracurricular Activities Salary (Appendix B-1 and B-2) Current Status:

The contract provides in Appendix B-1 and Appendix B-2 for the calculation and payment of Assistant Coaching Salaries and for Extra-curricular Stipends. Positions of the Parties: Association Proposal: The Association proposes that the total pool of money be increased by the same percentage as salary increases. A committee of Association members and Administrators will meet to determine the allocation of new money in each category. The Association also proposes longevity increases for professional employees who have remained in their positions over a period of years. District Position: The District opposes the Association proposal and proposes that these salaries be frozen for the contract period. Recommendation: It is my recommendation that the pool of money in both areas be increased in accordance with the following schedule:

School Year Increase

2009-2010 No Increase

2010-2011 3% Increase

2011-2012 3% Increase

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A committee of an equal number of Association members and Administrators will meet to determine the allocation of the new money in each category. If the committee cannot agree on a mutual recommendation by September 10th of the year of the increase, the results of their deliberation shall be forwarded to the Superintendent who will make the final decision on any outstanding issues.

Issue 19: Fractional or Percentage Contracts (Proposed New Section – Article VIII) Current Status: Currently there is no language in the Agreement that addresses this subject. The District has proposed new language under Article VIII Section K. Sub-Section 2 of the District’s proposal has been agreed to by the Association. The language of Sub-Section 1 is in dispute.

At present, the employees covered by this provision receive full benefits that are not prorated as desired by the District.

Positions of the Parties: District Proposal: The District proposes the following language in Sub-section 1 of this Article: K. FRACTIONAL OR PERCENTAGE CONTRACTS

1. Fractional or percentage contracts will be established based on program, student and District needs. Fractional or percentage contracts equal to or greater than 50% will receive limited benefits and the value of the benefits will be pro-rated based on the factional or percentage value of their contract. The prorated benefits are limited to sick days, personal days, salary, medical benefits, vision, life insurance, and long term disability only.

The District desires to continue to provide benefits to members working equal to or greater than fifty percent

(50%) but less than one hundred percent (100%) of a full schedule. This language will allow the District to prorate benefits for sick days, personal days, salary, medical benefits, vision, life insurance and long term disability consistent with the contract percentage.

Association Position: The Association believes that these employees should be given the benefits that they understood they would receive when they were hired by the District. There are approximately five (5) people affected by this provision. Recommendation: It is my recommendation that the language proposed by the District in Section 1 be incorporated into the contract and apply only to Fractional Employees hired after the date of the contract signing. Benefit coverage for current employees in this category shall remain as currently applied for the duration of their employment in these positions. Issue 20: Behavioral Interventionist and Therapeutic Case Managers (Proposed New Section) Current Status:

Recently these positions were added to the bargaining unit by mutual agreement between the District and the

Association. These individuals had contracts with the District that required them to work two hundred and ten (210) days to complete work over the summer made necessary by the nature of their work. There are three (3) employees currently occupying these classifications. Positions of the Parties: Association Proposal: The Association has proposed the following new language to address the issues raised by the inclusion of this staff in the bargaining unit: Therapeutic Case Managers and Behavioral Interventionists shall work 210 days per year. These additional 19 days will be compensated at the following per diem rate: 1/191. These days shall be scheduled by mutual agreement between the Professional Employee and the District.

The Association believes that the necessary work over the summer has not decreased and the three (3) employees should be appropriately compensated for the extra time spent above and beyond the one hundred and ninety-one (191) days provided for in the Collective Bargaining Agreement.

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District Position: The District does not seek to disadvantage these employees because of their accretion into the bargaining unit, but desires to review the matter more closely to insure that the language inserted into the Agreement accurately reflects their current employment status. Recommendation: It is my recommendation that language be inserted into the new Agreement that establishes that these employees shall maintain the same number of work days and per diem salary rate that they received prior to entering the bargaining unit. Any salary increase agreed to between the parties will apply to these classifications.

ALL OTHER MATTERS

Any other matters not previously agreed upon or specifically addressed herein are recommended to be withdrawn. Any agreements mutually made prior to the commencement of the Fact Finding that are not specifically addressed in this report are recommended to be included, as agreed upon, in the Agreement. Dated: November 18, 2009 ______________________________ Alex A. Kaschock, Fact Finder Camp Hill, Pennsylvania

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APPENDIX A

To Top Steps Bachelor B+24 Masters M+2416 1 39,000 39,900 41,150 42,65015 2 39,500 40,400 41,650 43,15014 3 40,000 40,900 42,150 43,65013 4 40,700 41,600 42,850 44,35012 5 41,400 42,300 43,550 45,05011 6 42,400 43,300 44,550 46,05010 7 43,400 44,300 45,550 47,050

9 8 44,400 45,300 46,550 48,0508 9 45,600 46,500 47,750 49,2507 10 46,800 47,700 48,950 50,4506 11 48,600 49,500 50,750 52,2505 12 50,800 51,700 52,950 54,4504 13 53,300 54,200 55,450 56,9503 14 56,680 57,580 58,830 60,3302 15 60,880 61,780 63,030 64,5301 16 66,180 67,080 68,030 69,830

Top 17 71,500 72,400 73,650 75,150

2008-2009 (Base Year) Northwestern Lehigh School District

2008-2009 (Base Year) Matrix

To Top Steps Bachelor B+24 Masters M+24 Total16 1 1.00 1.00 0.00 0.00 2.0015 2 7.00 0.00 3.00 1.00 11.0014 3 5.00 0.00 0.00 1.00 6.0013 4 9.00 1.00 3.00 1.00 14.0012 5 2.00 1.40 1.00 2.00 6.4011 6 2.00 1.00 5.00 0.00 8.0010 7 1.00 2.00 10.60 0.00 13.60

9 8 0.00 3.00 10.80 2.00 15.808 9 0.00 1.00 6.00 0.00 7.007 10 0.00 1.00 3.00 0.00 4.006 11 0.00 0.00 2.00 0.00 2.005 12 0.00 2.00 4.00 1.00 7.004 13 0.00 0.00 5.00 3.00 8.003 14 0.00 3.00 2.00 0.00 5.002 15 0.00 2.00 4.00 1.00 7.001 16 0.00 0.00 5.00 1.00 6.00

Top 17 0.00 10.00 26.00 25.00 61.00

Total 27.00 28.40 90.40 38.00 183.80

1,988 Average $ Increase3.50% Average % Increase

2009-2010

2009

To Top Steps Bachelor B+24 Masters M+2416 1 39,666 40,856 42,343 43,84315 2 39,973 41,163 42,650 44,15014 3 40,473 41,663 43,150 44,65013 4 41,173 42,363 43,850 45,35012 5 41,873 43,063 44,550 46,05011 6 42,873 44,063 45,550 47,05010 7 43,873 45,063 46,550 48,0509 8 44,873 46,063 47,550 49,0508 9 46,073 47,263 48,750 50,2507 10 47,273 48,463 49,950 51,4506 11 49,073 50,263 51,750 53,2505 12 51,273 52,463 53,950 55,4504 13 53,773 54,963 56,450 57,9503 14 57,153 58,343 59,830 61,3302 15 61,353 62,543 64,030 65,5301 16 66,353 67,543 69,030 70,530

Top 17 71,693 72,883 74,370 75,8703.50%

2.00% M1.60% B+24

2009-2010Schedule Cost

To Top Steps Bachelor B+24 Masters M+24 Total16 1 0 0 0 0 015 2 39,973 41,163 0 0 81,13514 3 283,309 0 129,450 44,650 457,40913 4 205,863 0 0 45,350 251,21312 5 376,854 43,063 133,650 46,050 599,61711 6 85,745 61,688 45,550 94,100 287,08310 7 87,745 45,063 232,750 0 365,5589 8 44,873 92,125 504,030 0 641,0288 9 0 141,788 526,500 100,500 768,7887 10 0 48,463 299,700 0 348,1636 11 0 50,263 155,250 0 205,5135 12 0 0 107,900 0 107,9004 13 0 109,925 225,800 57,950 393,6753 14 0 0 299,150 183,990 483,1402 15 0 187,628 128,060 0 315,6881 16 0 135,085 276,120 70,530 481,735

Top 17 0 728,826 2,305,470 1,972,620 5,006,916

Total 1,124,362 1,685,078 5,369,380 2,615,740 10,794,560Total Payroll Cost 10,794,560Total Payroll Increase 365,480Average Salary 58,730Increase Ave Salary $ 1,988Increase Average Salary % 3.50%Avg Incremental Cost $ 1,210Avg Incremental Cost % 2.13%

2,058 Average $ Increase3.50% Average % Increase

2010-2011

2010

To Top Steps Bachelor B+24 Masters M+12 M+2415 1 40,631 41,946 43,823 44,823 45,82315 1 40,631 41,946 43,823 44,823 45,82314 2 40,938 42,253 44,130 45,130 46,13013 3 41,638 42,953 44,830 45,830 46,83012 4 42,338 43,653 45,530 46,530 47,53011 5 43,338 44,653 46,530 47,530 48,53010 6 44,338 45,653 47,530 48,530 49,5309 7 45,338 46,653 48,530 49,530 50,5308 8 46,538 47,853 49,730 50,730 51,7307 9 47,738 49,053 50,930 51,930 52,9306 10 49,538 50,853 52,730 53,730 54,7305 11 51,738 53,053 54,930 55,930 56,9304 12 54,238 55,553 57,430 58,430 59,4303 13 57,618 58,933 60,810 61,810 62,8102 14 61,818 63,133 65,010 66,010 67,0101 15 66,818 68,133 70,010 71,010 72,010

Top 16 71,908 73,223 75,100 76,100 77,1003.50%

2.50% M1.75% B+24$1,000 M+'s

2010-2011Schedule Cost

To Top Steps Bachelor B+24 Masters M+12 M+24 Total15 1 0 0 0 0 0 015 1 0 0 0 0 0 014 2 40,938 42,253 0 0 0 83,19113 3 291,468 0 134,490 0 46,830 472,78812 4 211,691 0 0 0 47,530 259,22111 5 390,044 44,653 139,590 0 48,530 622,81710 6 88,677 63,914 47,530 0 99,060 299,1809 7 90,677 46,653 242,650 0 0 379,9798 8 46,538 95,705 527,138 0 0 669,3817 9 0 147,158 550,044 0 105,860 803,0626 10 0 50,853 316,380 0 0 367,2335 11 0 53,053 164,790 0 0 217,8434 12 0 0 114,860 0 0 114,8603 13 0 117,865 243,240 0 62,810 423,9152 14 0 0 325,050 0 201,030 526,0801 15 0 204,398 140,020 0 0 344,418

Top 16 0 878,670 2,628,500 0 2,081,700 5,588,870

Total 1,160,033 1,745,171 5,574,282 0 2,693,350 11,172,836Total Payroll Cost 11,172,836Total Payroll Increase 378,276Average Salary 60,788Increase Ave Salary $ 2,058Increase Average Salary % 3.50%Avg Incremental Cost $ 1,211Avg Incremental Cost % 2.06%

1,975 Average $ Increase3.25% Average % Increase

2011-2012

2011

To Top Steps Bachelor B+24 Masters M+12 M+24

15 1 41,197 42,909 45,191 46,191 47,19114 2 41,504 43,216 45,498 46,498 47,49813 3 41,811 43,523 45,805 46,805 47,80512 4 42,511 44,223 46,505 47,505 48,50511 5 43,511 45,223 47,505 48,505 49,50510 6 44,511 46,223 48,505 49,505 50,5059 7 45,511 47,223 49,505 50,505 51,5058 8 46,711 48,423 50,705 51,705 52,7057 9 47,911 49,623 51,905 52,905 53,9056 10 49,711 51,423 53,705 54,705 55,7055 11 51,911 53,623 55,905 56,905 57,9054 12 54,411 56,123 58,405 59,405 60,4053 13 57,791 59,503 61,785 62,785 63,7852 14 61,991 63,703 65,985 66,985 67,9851 15 66,991 68,703 70,985 71,985 72,985

Top 16 72,081 73,793 76,075 77,075 78,0753.25%

3.00% M2.25% B+24$1,000 M+'s

2011-2012Schedule Cost

To Top Steps Bachelor B+24 Masters M+12 M+24 Total

15 1 0 0 0 0 0 014 2 0 0 0 0 0 013 3 41,811 43,523 0 0 0 85,33412 4 297,577 0 139,515 0 48,505 485,59711 5 217,555 0 0 0 49,505 267,06010 6 400,600 46,223 145,515 0 50,505 642,8429 7 91,022 66,112 49,505 0 103,010 309,6498 8 93,422 48,423 253,525 0 0 395,3707 9 47,911 99,246 550,193 0 0 697,3506 10 0 154,268 580,014 0 111,410 845,6925 11 0 53,623 335,430 0 0 389,0534 12 0 56,123 175,215 0 0 231,3383 13 0 0 123,570 0 0 123,5702 14 0 127,406 263,940 0 67,985 459,3311 15 0 0 354,925 0 218,955 573,880

Top 16 0 1,106,891 2,814,775 0 2,108,025 6,029,691

Total 1,189,899 1,801,836 5,786,122 0 2,757,900 11,535,757Total Payroll Cost 11,535,757Total Payroll Increase 362,921Average Salary 62,763Increase Ave Salary $ 1,975Increase Average Salary % 3.25%Avg Incremental Cost $ 1,180Avg Incremental Cost % 1.94%