IN THE MATTER OF FACT FINDING

BETWEEN

THE OHIO PATROLMEN’S BENEVOLENT ASSOCIATION

AND

MEDINA COUNTY SHERIFF

SERB CASE # 16-MED-08-0751, 02, 03, 04

Robert G. Stein, Fact-finder

LEAD ADVOCATE FOR THE UNION:

Max V. Rieker, Esq. THE OHIO PATROLMEN’S BENEVOLENT ASSN.

10147 North Royalton Road, Suite J North Royalton, OH 44133

mrieker@opba.com

LEAD ADVOCATE FOR THE EMPLOYER:

Jonathan J. Downes, Esq. ZACHIN & RICH

17 South High Street, Suite 900 Columbus, OH 43215

jjd@zrlaw.com

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INDEX OF RECOMMENDATIONS

Issue 1 Article INSURANCE (APPENDIX A) p 29

Issue 2 Article RATE OF PAY p 30

Issue 3 Article DURATION p 30

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CRITERIA

In the finding of fact, the Ohio Revised Code, Section 4117.14(C) (4) (E) establishes

the criteria to be considered for fact-finders. For the purposes of review, the criteria are as

follows:

1. Past collective bargaining agreements

2. Comparisons

3. The interest and welfare of the public and the ability of the employer to finance the

settlement

4. The lawful authority of the employer

5. Any stipulations of the parties

6. Any other factors not itemized above, which are normally or traditionally used in

disputes of this nature.

The recommendations contained in this report are guided by the above statutory criteria

and are intended to be in accordance with them.

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INTRODUCTION

The parties to this matter are the Ohio Patrolmen’s Benevolent Association (hereinafter

“Union” or “OPBA”) and the Medina County Sheriff, Medina County, Ohio (hereinafter

“Employer,” “County.” The Employer is located in Medina County, which is located in

northeast Ohio. The Sheriff’s office and its employees are responsible for providing care and

ensuring the security of persons held in the county jail; providing emergency dispatching services

for law enforcement and other emergency responders; and enforcing the laws of the state.

There are four (4) bargaining units involved in this fact-finding. The bargaining units consist of all

full-time Deputy Sheriffs (Approx. 30), Deputy Sergeants (Approx. 11), Corrections Officers

(Approx. 55), Corrections Sergeants (Approx. 4), and Dispatchers (Approx. 17) who work for the

Sheriff. There are approximately 117 members of the bargaining units. For purposes of

convenience only, the Deputy Sheriffs contract will be referenced in terms of article numeration.

General/State/Local Economic Overview: The economy has been improving on the

national, state, and local levels for several years now. According to a number of increasing

economic indicators (e.g. unemployment rate, new job growth, company profits, etc.) the

economy in the United States and in Ohio is getting incrementally healthier, but possibly

showing some signs of leveling off economically (According to BLS, the unemployment rate

in Ohio as of January 31, 2017 was 5.00%, for the same date in 2016, it was 5.00%, in 2015,

it was 5.10%, in 2014 it was 6.50%, and in 2013 it was 7.40%). As another indicator of

economic health the stock market has performed extremely well, with particularly surge

since the November election. However, with a new administration at the helm at this point

it is unclear what is in store for the United States and in turn state and local governments,

though early signs appear to indicate that the new administration is supportive of law

enforcement. Globally, continued widespread uncertainty appears to be pervasive

regarding an unpredictable North Korea, a war torn Middle East, uncertainty regarding the

European Union’s economic strength minus Great Britain, the impact of Russia and China

on the world stage, and a genuine concern over a major act(s) of terrorism, which has not

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abated, and depending on magnitude could cause further instability at any time. Based

upon these worries and others, such as a new administration in office that is off to a

disordered start marked by mixed signals as to direction and policy, one can only conclude

that it is folly to predict on the long term the direction of the economy. And, if the political

climate at the moment is any indicator, unrest persists among the majority of the electorate

regarding their own security and economic welfare.

Only very recently have wages moved from eight (8) years or more of stagnation. For the

first time since the Great Recession of 2008 incomes rose for middle class workers, but said

wages are still on average $1,000.00 below the 2008 average. Fortunately the rate of

inflation has remained low helping employees to retain purchasing power, and giving relief

to Ohio public employers who have had to manage with less economic assistance from the

state. The majority of Americans acknowledge signs of sustained economic improvement

as evidenced by more help wanted signs appearing in front of businesses. But in larger part

newly created employment opportunities, while growing steadily, now come with lower

wages, less benefits and less job security. In fact, the current popular term regarding

employment is “contingent work”, which now makes up over 40% of the jobs being created

in the United States. As reported on by the U.S Department of Labor on their Website:

V. Contingent Workers

1. General Observations

As employers seek new ways to make the employment relationship more flexible, they have increasingly relied on a variety of arrangements popularly known as "contingent work." The use of independent contractors and part-time, temporary, seasonal, and leased workers has expanded tremendously in recent years. The Commission views this change both as a healthy development and a cause for concern.

On the positive side, contingent employment relationships are in many respects a sensible response to today's competitive global marketplace. The benefits are clear that various forms of contingent work can offer to both some management and some workers. Contingent arrangements allow some firms to maximize workforce flexibility in the face of seasonal and cyclical forces and the demands of modern methods such as just-in-time production. This same flexibility helps some workers, more of whom must balance the demands of family and work as the numbers of d On the negative side, as the Fact Finding Report noted, contingent arrangements may be introduced simply to reduce the amount of compensation paid by the firm for the same amount and value of work, which raises some serious social questions. This is particularly true because contingent workers are drawn disproportionately from the most vulnerable sectors of the workforce. They often receive less pay and benefits than traditional full-time or "permanent" workers, and they are less likely to benefit from the protections of labor and employment laws. A large percent- age of workers who hold part-time or temporary positions do so involuntarily. The expansion of contingent work has contributed to the increasing gap between high and low wage workers and to the increasing sense of insecurity among workers noted in the Fact Finding Report, (pp. 93-94).

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Obviously, the revenue of a City is affected if a growing number of its citizens are only being

offered contingent work. In fact much of the middle class wage gain of several percent

announced by the U. S. Labor Department on 9/14/16 was largely due to income made by

employees on overtime and or secondary employment and not a result of a large wage

increase related to their main employment. The sobering reality is that

Conditions post 2008 will never be the same as they were prior to the “Great Recession”

and its aftermath. The number of good paying manufacturing jobs lost in Ohio And, that

reality has caused a sea change in the manner local governments operate and finance the

services they provide to the public. In Ohio, structural unemployment, the substantial loss

of the manufacturing base, and drastic cuts Local Government Funds and the elimination of

the Estate Tax continue to challenge all local governments to seriously examine more

efficient methods to deliver vital services to the public based upon less certain revenue.

Yet, more help wanted signs are appearing in businesses throughout Ohio, and there

appears to be optimism concerning the economy. But like public employers, public

employees have endured continued increases in health care costs, and have been seriously

challenged to maintain their own personal and family household budgets.

ISSUES

The advocates for both parties, being seasoned and competent negotiators, were able to

skillfully reduce the number of issues to essentially rates of pay and health insurance. The

Union’s and the Employer’s detailed positions and rationale on the unresolved issues can

be found in their respective Pre-hearing Statements and in the evidence in the record. All

previously TA’d issues reached prior to and during impasse proceedings are recommended

in this report, as is current language not changed during negotiations.

The issue of duration is not in dispute but because it is dependent on the outcome of rates

of pay and health insurance it remains an open issue. Additionally, in negotiations,

mediation, and fact-finding the issues of rates of pay and insurance were closely linked as is

often the case. In addition, the parties agreed in principle, but not formally to “roll in” the

current separate pays for various differentials, certifications, and proficiencies into the

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base pay rate which will be addressed herein. The following will identify the positions of

each party on the both issues under a single heading along with abbreviated rationale (a

complete version of the parties’ arguments and reasoning can be found in their Pre-hearing

Statements and closing briefs. The recommendations contained herein will follow the

same pattern.

ISSUE 1 & 2 Article 23 Insurance & Article 30 Rates of Pay

COUNTY’S POSITION: The County is proposing the following:

The County’s proposals are presented as two (2) separate options, for all contracts with

different wage proposals dependent upon acceptance of the County’s health insurance proposals.

Under Option 1, the insurance language in the contract would continue thus employees would

not be eligible to participate in the reduced-premium wellness program. Under Option 2, Article 23

and Appendix A are modified; employees would be eligible for the wellness plan with reduced

premiums of 5% which under the current family plan rates would mean approximately $150 per

month or $1800 per year or approximately a 3% value on the top step salary of a deputy of

approximately $60,000. The County will be required to fund this amount for employees who

participate in the wellness plan.

The County endeavors to effectively manage the increases in the health insurance costs

through the employee participation in the wellness plans, and thus the County is willing to assume the

risk of paying more of the employees’ share of the premiums for the long term ability to effectively

manage the plan design, which is already agreed in the other contracts in the County and is

overwhelmingly the standard in other Counties.

Because the impact of the County’s proposed health insurance would result in greatly reduced

premium costs to employees and increased costs to the County, the County’s proposal for wages in year

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3 in the 2nd option contains a lower wage increase; the year of the wellness plan is available. The net

effect to the employee under the County Option 2 is greater economically than the current language

and the higher wage increase.

Finally, the County proposal is for all contracts to have the same benefits and wage increases.

To sever any one group will create distinctions in both the wage increases and the insurance benefits.

OPTION 1 - COUNTY PROPOSAL FOR INSURANCE AND WAGES PACKAGE

ARTICLE 23: INSURANCES

The Employer proposes the current contract language for Article 23, with the following changes:

Section 23.03: Delete the sentence beginning “Dental coverage will cover…” Section 23.06: Employee contribution to Plan 1 increased to 15%. Section 23.10: Employee contribution to Plan 2 increased to 11%. Section 23.15: Increase from current 25% to 50% the threshold for spousal exclusion.

The Employer proposes the following changes for Appendix A:

Removal of the schedule of benefits for dental insurance

The Employer’s proposal is to provide dental benefits coverage on the same terms and conditions as

that coverage is made available to other employees of the Medina County Commissioners. Dental

coverage to such employees is provided through a separate group benefit plan.

Under this proposal, employees in the bargaining unit will not be eligible for participation in the

Wellness plan options.

ARTICLE 30: RATES OF PAY

The Employer proposes wage increases of 2.50% in each of the three (3) years of the CBA. Wage

increases will be effective the first full pay period in each year. Any employees who separate between

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January 1 and the date of execution of the CBA would not receive any of the changes, including wage

increases.

The Employer proposes the deletion of language Section 30.08, standby pay for detectives.

OPTION 2 - COUNTY PROPOSAL FOR INSURANCE AND WAGES PACKAGE

ARTICLE 23: INSURANCES AND APPENDIX A

The Employer proposes revisions to the language of Article 23, as detailed fully in legislative draft

format in the County proposal and the deletion of Appendix A.

The Employer’s proposal would preserve the current plan structure for 2017. Thereafter, the

Employer’s proposed language would assimilate the bargaining unit members into the same terms

and conditions by which the County provides medical benefits to other non- bargaining unit employees

in the County.

Under this proposal, employees would be eligible in 2018 for participation in the reduced-premium

Wellness plan options already provided to other employees of the Medina County Commissioners.

Employees not subscribing to the Wellness plan option would be eligible for the County’s general plans.

Employee premium contributions would increase to 15% (Plan 1) and 11% (Plan 2).

The Employer’s proposal is to provide dental benefits coverage on the same terms and conditions as

that coverage is made available to other employees of the Medina County Commissioners. Dental

coverage to such employees is provided through a separate group benefit plan.

ARTICLE 30: RATES OF PAY

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The Employer proposes wage increases of 2.50% in 2017, 2.25% in 2018, and 1.5% in 2019. Wage

increases will be effective the first full pay period in each year. Any employees who separate between

January 1 and the date of execution of the CBA would not receive any of the changes, including wage

increases.

The proposed wage rates are modified from Option 1, because of employee eligibility for Wellness plan

resulting in a large decrease in premium contribution by employees and a large increase in the

amount the County’s health insurance premium contribution beginning in 2018.

The Employer proposes the deletion of language of Section 30.08, standby pay for detectives.

FOR BOTH OPTIONS THE COUNTY PROPOSES THE FOLLOWING:

ARTICLE 30 (DEPUTIES): RATES OF PAY,

ARTICLE 31 (DEPUTIES): FIREARMS PROFICIENCY ALLOWANCE,

ARTICLE 30 (CORRECTIONS OFFICERS): RATES OF PAY

The Employer proposes the addition of new language in Article 30, Section 30.07, regarding the timing

of paycheck issuance: “This is subject to change if done so by the County Auditor.”

The Employer proposes that, for the applicable classifications, the Road Deputies Differential

(Deputies, Article 30, Section 30.10), the Firearms Allowance (Deputies, Article 31), and the

Certifications Allowance (Corrections Officers, Article 30, Section 30.10) would be proportioned to and

included in the classification hourly base rate before annual wage increases would be applied for

2017. The supplemental wage provisions would then be deleted from the respective contracts.

UNION’S POSITION: The Union is proposing the following:

As was articulated in the body of the Union Position Statement, because there are four separate collective bargaining agreements, the parties have been and continue to use the Deputy Sheriffs contract as the model for purposes of negotiation and the mediation/fact-finding process. ARTICLE 23 INSURANCES

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23.01 The Employer shall offer the same managed health care program as it did in 2014 as it

relates to Plan 1. (See, Appendix A.) The plan design document of Appendix A is incorporated

by reference. Employees shall, annually, have the option to select either the traditional plan

known as “Plan 1” or the “County Plan” described in Section 23.08.

23.02 There will be a high benefit plan (Plan 1) with a per person deductible of four hundred

($400.00) dollars per single or eight hundred ($800.00) dollars per family. Following the

deductible there will be an 80/20 co-pay until the single employee has expended a maximum of

two thousand ($2,000.00) dollars or the family has expended four thousand ($4,000.00) dollars.

After this is met, eligible expenses from a network provider will be fully paid. However, if an

employee elects to use a doctor or hospital which is out of network, there will be a 60/40 co-pay

until the single employee has expended a maximum of four thousand ($4,000.00) dollars or the

family has expended eight thousand ($8,000.00) dollars. After this is met, eligible expenses from

a non-network provider will be fully paid, except for the initial deductibles of eight hundred

($800.00) dollars, individual and one thousand six hundred ($1,600.00) dollars, family.

23.03 Plan 1 will include a managed prescription drug program wherein drugs are to be

purchased at one of many network pharmacies and will include a mandatory mail order

program providing twenty-five ($25.00) dollars (generic), seventy-five ($75.00) dollars (brand

name), and one hundred twenty-five ($125.00) dollars (non-formulary) co-pay deductibles. A

retail pharmacy program that includes a ten ($10.00) dollar (generic), thirty ($30.00) dollars

(brand name) and fifty ($50.00) dollar (non-formulary) co-pay deductibles. Dental coverage will

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be offered in accordance with the County Plan. A voluntary supplemental dental plan will be

offered at a separate cost to employee.

23.04 The inclusion of preventative services mandated under State and/or Federal law

pertaining to group health plans will be covered by the plan, at mandated benefit levels, when

using in-network providers. Mandated covered services are determined based upon a person’s

age and may include screenings and tests for diseases, vaccines, and immunizations, well baby

and well child visits and periodic physical exams.

23.05 The insurance benefits provided in Plan 1 of this Article shall be reduced when, or to the

extent, they are duplicated or supplemented in whole or in part resulting from federal or state

statutes requiring such benefits or by any employer paid insurance plan under which an

employee may be listed as a spouse of dependent.

23.06 Employees shall contribute ten (10%) percent of the plan’s actuarially estimated cost

each month.

23.07 The Employer agrees to set a cap of twelve (12%) percent on the employees’ maximum

monthly contribution, as set forth in Section 23.06, if the Employer’s estimated cost for Plan 1

increases in year 2016. If an increase is necessary, it will be effective approximately the first

pay period of 2016. Any increase above the twelve (12%) percent cap, based on the Employer’s

annual estimated cost, shall be borne by the Employer.

23.08 In place of Plan 2 from the incumbent collective bargaining agreement, the Employer

shall offer, as an employee option, the “County Plan.” The terms of the County Plan shall be as

follows in this Section:

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(A) The Employer shall make available to full-time employees health

insurance benefits under the group benefit plan generally provided to the non-union

employees (those not under other collective bargaining agreements) of the Medina

County Commissioners and on the same terms and conditions on which those benefits

are generally provided to those employees. The Board of County Commissioners, in its

sole discretion, may modify such benefits, the Employer's share of the cost of such

benefits, the terms and conditions by which such benefits are provided, and/or the

means by which such benefits are provided, so long as any such modifications are

applicable generally to non-union employees of the Medina County Commissioners.

(B) National Health Care Program. In the event that during the term of this

Agreement a National Health Care Program imposes new or additional payroll

taxes/costs on the Employer, or reduces in whole or in part the deductibility to the

Employer of its contribution to the health care plan, or modifies the coverage which is or

may be provided by the Employer, the terms of the health care plan will be modified to

the extent possible and permitted by law to conform with any such National Health Care

Program and to the extent necessary to avoid any new or additional payroll taxes/costs

or loss of deductibility.

(C) Wellness, Incentive and Other Programs. The Employer may enter into

wellness, incentive and other cost containment agreements with insurance providers at

any time during the life of this Agreement. The Union and bargaining unit employees

agree to participate in any educational program offered for this purpose, and further

agree to comply with any and all policy/plan requirements of the

provider/administrator. In addition to the wellness programs the Employer may offer

other incentive programs or other programs to promote health of employees and

address health insurance costs.

(D) Preventive Services. The inclusion of preventative services mandated

under State and/or Federal law pertaining to group health plans will be covered by the

plan, at mandated benefit levels, when using in-network providers. Mandated covered

services are determined based upon a person's age and may include screenings and tests

for diseases, vaccines, and immunizations, well baby and well child visits and periodic

physical exams.

(E) Federal or State Programs. The insurance benefits provided in Plan 1 of

this Article shall be reduced when, or to the extent, they are duplicated or supplemented

in whole or in part resulting from federal or state statutes requiring such benefits or by

any employer paid insurance plan under which an employee may be listed as a spouse of

dependent.

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(F) Employee Contributions. Employees shall contribute fifteen (15%)

percent of the plan's actuarially estimated cost each month. Employee contributions

may be increased during the term of this Agreement in the event the County raises the

employee contributions for other non-union employees of the Medina County

Commissioners.

(G) Lower Level Benefit Plan. There may be a lower level benefit plan if such

is offered to other non-union employees of the Medina County Commissioners.

(H) Employee Contribution Lower Level Plan. Employees shall contribute

twelve (12%) percent of lower level plan actuarially estimated cost each month.

Employee contributions may be increased during the term of this Agreement in the event

the County raises the employee contributions for other non-union employees of the

Medina County Commissioners.

(I) Notice of Change of Carriers. The Employer may change insurance

carriers. Union must be given sixty (60) day advance notice of any change in carriers.

23.12 The Employer shall provide a group term life insurance policy for each full-time employee

in the amount of thirty thousand ($30,000.00) dollars.

23.13 The Employer will make every effort, but does not guarantee, to permit any bargaining

unit employee who desires to purchase at their cost additional life insurance through the County

Plan.

23.14 The Employer may change insurance carriers if co-pays, deductibles, benefits and out-of-

pocket maximums are substantially similar to those provided in 2013 and the Union must be

given sixty (60) day advance notice of any change.

23.15 The spouse of any employee who is eligible to participate or becomes eligible to

participate, as a current employee or retiree, in a group health insurance plan sponsored by

his/her employer or retirement plan, must enroll with that Employer or retirement plan for

sponsored group insurance coverage. The spouse’s plan will be considered as primary coverage

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for the spouse. The spouse may opt to additionally enroll in Medina County employee health

plan, but the County’s plan will only provide secondary coverage, and spousal enrollment will

require the employee to contribute to the monthly cost based upon the full funding rates

established on an annual basis by Medina County.

This requirement does not apply to any spouse who must pay more than twenty-five

(25%) percent of the single premium amount to participate in his/her employer or retirement

group health insurance plan.

The Employer will distribute a request for written certification verifying the spouse’s

eligibility to participate in another group health plan. An employee’s spouse will be removed

from the Medina County health plan if documentation is not provided within fourteen (14) days

of distribution.

It is the employee’s responsibility to immediately notify Medina County of any

subsequent change in a spouse’s eligibility to participate in his/her employer or retirement

health plan. If a spouse accepts a new job where coverage is available, he/she must

immediately enroll in that plan and the employee must notify Medina County within fourteen

(14) days of any change in their spouse’s eligibility.

ARTICLE 30 RATES OF PAY

DEPUTY SHERIFFS

30.01 Effective the first pay period of 2017, the $150.00 “Firearms Proficiency Allowance” contained in Article 31 of the incumbent collective bargaining agreement shall be rolled into each employee’s base rate of pay. Effective the first pay of 2017, the $.20 per hour “Road Deputy Differential” contained in Article 30.10 of the incumbent collective bargaining

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agreement shall be rolled into the base rate of pay for all employees who are eligible to receive Road Deputy Differential. Effective after the above roll-ins, but still in the first pay period of 2017, all employees shall receive a 2.5% wage increase in accordance with the following pay schedule: Deputy Sheriffs who are not eligible for Road Deputy Differential Annual Hourly

Step 1 (Start) $51,605 $24.81

Step 2 (6 months) $53,830 $25.88

Step 3 (after 1 year) $55,515 $26.69

Step 4 (after 2 years) $58,157 $27.96

Step 5 (after 3 years) $60,965 $29.31

Deputy Sheriffs who are eligible for Road Deputy Differential

Annual Hourly

Step 1 (Start) $52,021 $25.01

Step 2 (6 months) $54,246 $26.08

Step 3 (after 1 year) $55,931 $26.89

Step 4 (after 2 years) $58,573 $28.16

Step 5 (after 3 years) $61,381 $29.51

30.02 Effective the first pay period of 2018, all employees shall receive a 2.5% wage increase in accordance with the following pay schedule: Deputy Sheriffs who are not eligible for Road Deputy Differential Annual Hourly

Step 1 (Start) $52,894 $25.43

Step 2 (6 months) $55,182 $26.53

Step 3 (after 1 year) $56,909 $27.36

Step 4 (after 2 years) $59,613 $28.66

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Step 5 (after 3 years) $62,483 $30.04

Deputy Sheriffs who are eligible for Road Deputy Differential

Annual Hourly

Step 1 (Start) $53,331 $25.64

Step 2 (6 months) $55,598 $26.73

Step 3 (after 1 year) $57,325 $27.56

Step 4 (after 2 years) $60,029 $28.86

Step 5 (after 3 years) $62,920 $30.25

30.03 Effective the first pay period of 2019, all employees shall receive a 2.5% wage increase in accordance with the following pay schedule: Deputy Sheriffs who are not eligible for Road Deputy Differential Annual Hourly

Step 1 (Start) $54226 $26.07

Step 2 (6 months) $56,555 $27.19

Step 3 (after 1 year) $58,323 $28.04

Step 4 (after 2 years) $61,110 $29.38

Step 5 (after 3 years) $64,043 $30.79

Deputy Sheriffs who are eligible for Road Deputy Differential

Annual Hourly

Step 1 (Start) $54,662 $26.28

Step 2 (6 months) $56,992 $27.40

Step 3 (after 1 year) $58,760 $28.25

Step 4 (after 2 years) $61,526 $29.58

Step 5 (after 3 years) $64,501 $31.01

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30.04 Assignments to any position shall not be deemed a promotion or demotion, and any

employee may be assigned or reassigned to any of these duties at the Sheriff’s discretion. Such

assignments or reassignments are not grievable or disciplinary.

30.05 All newly hired Deputies shall be initially hired at Step 1. The Employer reserves the

right to start a newly hired employee at a greater step, based on previous work experience.

30.06 Any Deputy who is designated as the officer in charge of the road division or the jail

division and acts in the capacity of Sergeant shall be compensated at one step below the

corresponding Sergeant’s rate of pay.

30.07 Any employee assigned to the position of Detective shall receive a “detective differential”

in the amount of one hundred ($100.00) dollars per month.

30.08 Paychecks will normally be issued every other Friday with the Thursday night shift

receiving the checks at the end of their work shift.

30.09 The Sheriff shall provide two hundred ($200.00) dollars Field Training Officer (FTO) pay

for a maximum of six (6) Field Training Officer appointments. The Sheriff shall determine all FTO

appointments. FTO appointments are not grievable. Detectives who are assigned stand-by shall

receive four (4) hours straight-time pay for each week so assigned.

30.10 Employees working in the Transport Division that are assigned to be in on-call status

during off duty hours, shall be paid three (3) hours overtime for every week assigned to on-call

duty.

DEPUTY SERGEANTS

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“30.01 Effective the first pay period of 2017, the wages of all employees holding the rank of Sergeant shall be computed at 7% above the base wage rate of the highest paid Deputy for Step 1 and 14.5% for Step 2. Step 1 (Prob.) $65,678 Step 2 (1 Yr.) $70,281 30.02 Effective the first pay period of 2018, the wages of all employees holding the rank of Sergeant shall be computed at 7% above the base wage rate of the highest paid Deputy for Step 1 and 14.5% for Step 2. Step 1 (Prob.) $67,324 Step 2 (1 Yr.) $72,043

30.03 Effective the first pay period of 2019, the wages of all employees holding the rank of Sergeant shall be computed at 7% above the base wage rate of the highest paid Deputy for Step 1 and 14.5% for Step 2. Step 1 (Prob.) $69,016 Step 2 (1 Yr.) $73,854

The remainder of this Article would be current contract language.

CORRECTIONS OFFICERS AND CORRECTIONS SERGEANTS

“30.01 Effective the first pay period in 2017, the $150.00 Red Cross training pay articulated in Article 30.10 of the incumbent labor contract shall be rolled into the base wage of all employees. Thereafter, all Corrections Officers shall receive a base wage increase of 2.5% in accordance with the following pay schedule: Annual Hourly Step 1 (Start) $38,917 $18.74 Step 2 (6 months) $42,058 $20.22 Step 3 (after 1 year) $45,427 $21.84 Step 4 (after 2 years) $49,046 $23.58 Step 5 (after 3 years) $52,125 $25.06 30.02 Effective the first pay period of 2018, all Corrections Officers shall receive a base wage increase of 2.5% in accordance with the following pay schedule: Step 1 (Start) $39,957 $19.21 Step 2 (6 months) $43,118 $20.73 Step 3 (after 1 year) $46,571 $22.39

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Step 4 (after 2 years) $50,274 $24.17 Step 5 (after 3 years) $53,435 $25.69 30.03 Effective the first pay period of 2019, all Corrections Officers shall receive a base wage increase of 2.5% in accordance with the following pay schedule: Step 1 (Start) $40,955 $19.69 Step 2 (6 months) $44,200 $21.25 Step 3 (after 1 year) $47,778 $22.97 Step 4 (after 2 years) $51,522 $24.77 Step 5 (after 3 years) $54,766 $26.33 30.05 Effective the first pay period of 2017, the wages of all employees holding the rank of Corrections Officer Sergeant shall be paid the following: Step 1 (Prob.) $55,774 Step 2 (1 Yr.) $59,423 30.06 Effective the first pay period of 2018, the wages of all employees holding the rank of Sergeant shall be paid the following: Step 1 (Prob.) $57,175 Step 2 (1 Yr.) $60,916

30.07 Effective the first pay period of 2019, the wages of all employees holding the rank of Sergeant shall be paid the following: Step 1 (Prob.) $58,600 Step 2 (1 Yr.) $62,433

The remainder of this Article would be current contract language.

COMMUNICATIONS TECHNICIANS

“30.01 Effective the first pay period in 2017, the $250.00 APCO certification pay articulated in Article 30.03 of the incumbent labor contract shall be rolled into the base wage of all employees. Thereafter, all Corrections Officers shall receive a base wage increase of 2.5% in accordance with the following pay schedule:

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Step 1 (Start) $42,411 $20.39 Step 2 (6 months) $43,784 $21.08 Step 3 (after 1 year) $45,302 $21.78 Step 4 (after 2 years) $46,758 $22.48 Step 5 (after 3 years) $48,214 $23.18 30.02 Effective the first pay period of 2018, all employees shall receive base wage increases of 2.5% in accordance with the following pay schedule: Step 1 (Start) $43,472 $20.90 Step 2 (6 months) $44,949 $21.61 Step 3 (after 1 year) $46,426 $22.32 Step 4 (after 2 years) $47,923 $23.04 Step 5 (after 3 years) $49,420 $23.76

30.03 Effective the first pay period of 2019, all employees shall receive base wage increase of 2.5% in accordance with the following pay schedule: Step 1 (Start) $44,554 $21.42 Step 2 (6 months) $46,072 $22.15 Step 3 (after 1 year) $47,590 $22.88 Step 4 (after 2 years) $49,130 $23.62 Step 5 (after 3 years) $50,648 $24.35 The remainder of the article would remain current contract language. The Employer argues:

The County experienced minimal recovery in its General Fund (“GF”) revenues over a ten-year

period. Cumulatively, GF revenues have risen only 0.23% over the past ten years, (compare 2007 to

2016) while inflation (CPI-U Midwest) has totaled 14% over the same period.

Year GF Revenue

%

Change CPI-U

%

Change

2007 $ 38,299,783.11 193.183

2008 $ 37,076,392.38 -3.19% 200.753 3.92%

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2009 $ 34,885,189.97 -5.91% 198.953 -0.90%

2010 $ 34,964,936.56 0.23% 203.686 2.38%

2011 $ 34,001,637.94 -2.76% 211.123 3.65%

2012 $ 34,140,123.05 0.41% 215.605 2.12%

2013 $ 34,679,448.04 1.58% 218.398 1.30%

2014 $ 35,176,267.41 1.43% 221.429 1.39%

2015 $ 36,765,535.34 4.52% 219.102 -1.05%

2016 $ 38,388,084.45 4.41% 220.267 0.53%

Change 2007-2016 0.23% 14.02%

Local Government Funding has been reduced by over 50%, from $3,260,730.91 to

$1,487,996.54. Interest revenue fell from $1,221,326.23 to $970,459.18 between 2010 and 2016. Since

2008, carryover balances have been below 12%. The County’s carryovers have been below

recommended GFOA levels by an amount of $1.5 to $2.5 million each year. During this period the

County suffered a bond rating downgrade.

Year Total Receipts

December 31

Cash Balance

Cash

Balance

as % of

Receipts

GFOA

Recommended

Carryover

(16%)

Difference

(GFOA to

Actual)

2007 $ 38,299,783.11 $ 6,927,587.25 18.09% $ 6,127,965.30 $ 799,621.95

2008 $ 37,076,392.38 $ 4,430,469.95 11.95% $ 5,932,222.78 $ (1,501,752.83)

2009 $ 34,885,189.97 $ 3,576,045.84 10.25% $ 5,581,630.40 $ (2,005,584.56)

2010 $ 34,964,936.56 $ 3,974,852.06 11.37% $ 5,594,389.85 $ (1,619,537.79)

2011 $ 34,001,637.94 $ 3,876,097.95 11.40% $ 5,440,262.07 $ (1,564,164.12)

2012 $ 34,140,123.05 $ 3,814,614.02 11.17% $ 5,462,419.69 $ (1,647,805.67)

2013 $ 34,679,448.04 $ 3,413,653.07 9.84% $ 5,548,711.69 $ (2,135,058.62)

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2014 $ 35,176,267.41 $ 3,156,706.03 8.97% $ 5,628,202.79 $ (2,471,496.76)

2015 $ 36,765,535.34 $ 3,812,531.54 10.37% $ 5,882,485.65 $ (2,069,954.11)

2016 $ 38,388,084.45 $ 4,546,698.53 11.84% $ 6,142,093.51 $ (1,595,394.98)

Unions often improperly view cash carryover as available funds to provide wage increases that

can be absorbed without impact to the operating budgets. The carryover balance is similar to a

savings account- once spent forever gone. The view that the carryover balance is “fruit to pick” for a

wage increase is a misleading, incomplete, and inaccurate portrayal of the fiscal health of a county.

First, cash carryover balances are not a self-renewing fund supported by any particular revenue

stream; this is “one-time money”. The use of the carryover for wages would necessitate corresponding

cuts in other operating expenditures. Second, the GF carryover balances each successive year’s

budget to meet initial expenses and the carried-over expenses from the prior-year. Third, external

reviewers (State Auditor and bond rating services) assess the County’s financial health which

considers cash carryover balances. Fourth, treating the County’s efforts to maintain adequate

carryover balances as a viable funding source for wage increases is tantamount to penalizing the

County for prudent fiscal practices.

In 2011, the County closed a wing (or “pod”) of the Jail which resulted in the layoff. The pod

only recently re-opened in late 2016 with limited-time grant funding of approximately $300,000 from

the state; operating costs for the pod are approximately $500,000.

Capital improvement projects throughout the County were delayed and shelved. Necessary

expenditures were for Safety forces. In 2015, the County spent $1.250M for installation of a

multichannel UHF radio system with additional $500,000 in 2017. The Jail roof was replaced in 2016

at a cost of approximately $1,000,000. A new Medina County Courthouse has been repeatedly delayed

which cost is estimated at $23M or $1.2M to $1.4M in annually.

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The rising cost of health insurance – exacerbated by rigid inflexibility in plan design stemming

from the language of Article 23 and Appendix A - is a significant concern. The total annual cost of over

$22,000 for a family plan and when added to the top salary of the Deputy the total value of the

compensation for Medina County employees is top of the comparisons.

The County’s Health Insurance expenditures have risen sharply over the past 11+ years. In

2006, plan from $8.01 million to more than $12.07M in 2016, an increase of 51%. Year-end balances

for the health insurance fund plummeted between 2007 and 2012 and there were three years in which

the County had negative balances in its health insurance fund.

The County maintains two health insurance plans. Within the Sheriff’s Office 99 employees

participate in “Plan 1” and 20 participate in “Plan 2.” The total monthly premium cost for family

coverage on Plan 1 is $2,095 (County pays $1885). For Plan 2, the premium has risen to $1,275. The

total monthly premium for the County’s primary plan (Plan 1) is now 37% higher than the SERB

statewide average of $1,526 and more than 44% higher than the SERB regional average of

$1,446.

With regard to rates of pay the Employer argues:

Members of the bargaining units receive comparable wages to their counterparts in

comparable, similarly-situated jurisdictions – particularly when wages are viewed through the lens of

employee total compensation (wages, supplements, and value of fringe benefits). Comparing “total

compensation” (inclusive of top salary, longevity, uniform allowances, education premiums, firearm

allowances, and employer contribution for health insurance), Medina County deputy compensation

exceeds the average (compare $87,467 to $81,871) and exceeds key comparators such as Geauga

County whose nominal top wages figure is notably higher, but whose contributions toward employee

insurance are much lower.

Medina County Sheriff's Office and OPBA - Total Compensation

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County Sheriff

Office Max

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Medina (OPBA) $60,517 $800 $1,300 1,664 $416 $150 $64,847 $1,885 $22,620 $87,467

Cuyahoga (OPBA) $59,259 $750 $1,400 $0.00 N/A N/A $61,409 $1,566 $18,801 $80,210

Geauga (OPBA) $68,598 $1,000 $1,000 $0.00 N/A N/A $70,598 $1,418 $17,01 $87,618

Greene (GCDSBA) $64,604 $300 $600 $400 N/A N/A $65,904 $1,525 $18,302 $84,207

Lake (FOP) $65,665 $650 $0.00 $800 N/A N/A $67,115 $1,334 $16,010 $83,126

Licking (IBT) $55,361 $450 $1,175 $500 N/A N/A $57,486 $1,524 $18,296 $75,782

Lorain (LCDA) $59,987 $880 $1,000 $0.00 N/A N/A $61,867 No data No data No data

Summit (FOP) $56,284 $562 $1,400 $0.00 N/A N/A $58,247 $1,369 $16,434 $74,682

Average $61,284 $674 $984 $420 $63,434 $18,212 $81,870

Source: SERB Contracts as of February 23, 2017

Note: Pension pickup calculated on 10 year employee

(1) Medina Co. Education Premium: Additional $.80 per hour for any employee having earned a Bachelor's Degree

(2) Medina Co. Road Deputy Differential: Additional $.20 per hour for any Road Deputy or Deputy working as detective.

Additionally the Employer points out the relative to the CPI-U the bargaining unit raises over the

past ten years were approximately 29% and exceeded the rise in inflation, approximately 16%,

over that same time period.

The CBA has contained the specifications of the health care plan for a considerable period

of time and prohibits changes without negotiating them. However, in response to the

Employer’s arguments the Union avers:

The Union position is that many of our members may and probably will voluntarily opt for the

County Plan in the future. We feel that the County’s proposal is too much, too soon. As the Factfinder

appropriately identified during mediation, there is quite a lot of psychology involved with such a

radical and unknown shift – especially regarding one of the most important components of these or

any collective bargaining agreement.

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Therefore, the Union proposes, as it did during mediation, an employee option for either the

current contract language OR the County Plan for years 2018 and beyond. In other words, since

insurance and plan selections for 2017 are done, employees would have the option to select either the

existing Plan 1 contained in Article 23 of the current CBA or the County Plan as proposed by the

Employer. The County Plan would take the place of the existing Plan 2.

If the County Plan is truly more advantageous, then covered employees will gravitate toward

that plan on their own. Essentially, market forces within the Medina County employee population will

fill the County Plan rolls with OPBA members. However, if the County Plan ends up not being as

advantageous as the County purports, then the employees covered by these CBA’s will have a viable

existing option at their disposal. Logically, every employee who does opt for the County Plan would

end up saving Medina County money. This arrangement would be an incentive to make the County

Plan as advantageous as possible in order to entice employees over. Without the existing Plan 1, the

County would have no contractual or monetary incentive to bolster the benefits provided in the County

Plan. An employee option, as proposed by the Union serves two purposes. First, it provides the voting

membership some assurances in order to help them be in a position to hopefully ratify the Factfinder’s

Report; and it keeps a low level of healthy pressure on the County to make sure that it does the right

thing for it’s employees. Absent the existence of Plan 1 for a portion, if not all of the successor CBA, the

covered employees are simply left with the County’s idea of “just trust us….” This writer is not at all

convinced that such a level of trust exists and that the County’s position on the issue is enough to

engender ratification by the union membership. We need the employee option to select the plan, at

least until the plan is up and running for a significant portion of time.

Further, the County has never demonstrated any legitimate operational or fiscal need to

effectuate it’s proposal for a radical and unilateral upending of long-standing contract language.

Neither the General Fund nor the Health Insurance Fund are in any sort of dire straits; rather, both of

those funds are more robust than they have been in several years.

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DISCUSSION:

There is little debate that the issues of wages and health insurance have been equated in

terms of importance over the last several years. Whether it’s due to aging workforce, the

shifting of premium costs to employees, or in general the fact that health care costs have

become a significantly greater burden for both public employers and employees, the fact

remains health care and wages are currently viewed as major issues in collective

bargaining. And, the definite trend in managing health care costs while attempting to

maintain good health care coverage is for an employer to find whatever economies of scale

it can employ. It has been increasingly difficult for employers to maintain multiple plans

for different groups and the trend is to have all employees covered by a single plan or at

most two plan options.

What the Employer is proposing here makes sense economically, provided that a

reasonable transition takes place. The County argues that other employee groups, (except

the Teamster’s bargaining unit which uniquely has access to the national Teamster Heath

Care Plan) have accepted the County plan. However, the fact is the County is asking for a

change here on several levels, not the least of which is relinquishing control of the plan

design to the Employer. It is not clear that the other bargaining units were required to

relinquish as much in negotiations as what is being asked of the bargaining unit in the

instant matter or what they received in return. Yet, the safe guard in going with the County

plan is that the plan must cover both employees and management alike, generally

providing a self-infliction “governor” on any drastic changes that may greatly disadvantage

bargaining unit employees. It is also noteworthy that the Employer is in the mainstream on

moving toward one plan for all.

In reviewing the facts and proposals it does not appear that ability to pay a competitive, yet

prudent wage increase exists in any substantial way in this matter. As recently reported in

a local paper in Medina County, on January 19, 2017 an economist for Huntington Bank and

a former chairman of the Economic Advisory Committee of the American Bankers’

Association predicted a very healthy economic outlook for Ohio’s economy and he also

predicted an inflation rate of 2.4% in 2017. (Economist: Robust Recovery in Ohio, the

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Gazette, January 20, 2017). The County provided internal comparable settlements of 2%

each year for a number of its bargaining units, and in 2016 the inflation rate was 2.1%

(Robust Recovery in Ohio, The Gazette, January 20, 2017.) When the internal comparable

contracts were negotiated presumably in 2015 and 2016 a 2% or less inflation rate was

expected. Fortunately, the economy is even healthier now as evidenced by the recent

multiple raises in the Federal benchmark interest rate by the Federal Reserve. And, with

more increases predicted in the future this benchmark rate is a reliable indicator of

expected increases in inflation, the predictions of which support a wage settlement more in

line with expected inflation for 2017 and beyond. According to the BLS, the CPI-U from

February of 2016 to February of 2017 rose 2.7%. (Tradingeconomics.com) A January

2017 Wall Street Journal Poll predicts inflation for 2017 to be 2.2%. (What Economists Are

Predicting For 2017 Under President Trump, Money Tips.com) And, as another indicator

since the election, the 10-year Treasury yield has increased from 1.88% to 2.45%. (Money

Tips.com) If the Trump administration embarks on a massive infrastructure project for the

nation, as it has promised, it is likely the cost of many items will see an increase, but

hopefully better paying jobs and increased tax revenue will accompany these higher prices.

The County’s advocates made a compelling argument for the need for change in the

structure and provision of health insurance, particularly in a health care environment,

where reasonable people need to find a path of cost savings coupled with a future design

that minimizes risk and maximizes what economies of scale that Medina County can create

and maintain. The Union’s advocate and its bargaining team reasonably pointed out that

many of its members, once they understood the new County plan along with its wellness

component, would likely opt for the cost savings and coverage associated with the County

plan, but in order to avoid resistance for resistance sake, change to be accepted needs time

and education of the bargaining unit. It is reasonable to surmise that when County

employees outside of the bargaining unit are realizing substantial health care savings from

wellness initiatives that will be readily noticed by bargaining unit members and they too

will be more receptive to make a change and participate. It’s the old axiom, “I was okay

until I found out you were doing better.” The evidence supports a change for credible

reasons and the bottom line here is through the leadership of the County executive, Medina

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County is planning for the future in order to be in the best possible position to maintain in

the long run quality health coverage for its employees at an affordable price.

Anecdotally and based upon evidence submitted by the County, the comparable data at the

county level in Ohio indicates the Employer’s initiative in this matter is currently the

common approach taken to address the health care conundrum. One procedural glitch that

appears from the facts is timing for a change to the County Plan as soon as 2018. The

wellness program requirements and schedule make it somewhat difficult at this juncture

for an employee to understand and then take advantage of cost savings of the County

program for 2018. Based upon the facts provided, in order to meet the wellness objectives

for 2018, an employee must have completed his/her assessment requirements in the first

part of 2017 or within weeks of a possible ratification of this report. That does not give

employees in the bargaining unit and their families much time to adjust to a new plan.

There is considerable anxiety regarding health care coverage and one only has to consider

the recent failure of the U.S House of Representatives to replace the ACA and all the

attending unrest associated with it by citizens to verify this fact. The parties worked very

hard, with the assistance of the fact-finder and came close to total resolution of all issues.

Logically, it is where the fact-finder should fashion his recommendation.

RECOMMENDATION(S)

HEALTH INSURANCE

A. For 2017 and 2018 the current Health Care Insurance and plan structure shall remain the same per the CBA language. The employee premium shall be increased and capped at 12% effective May 1, 2017 and 13% effective January 1, 2018. Plan 2 employee premiums shall be 10% effective May 1, 2017 and 11% effective January 1, 2018. Also, the current dental plan schedule of benefits in Appendix A shall be removed and replaced with the Employer’s new dental plan to the bargaining unit that is provided to the other employees in Medina County.

B. For 2019 The County Plan shall be effective and the employee premium for health insurance shall be capped at 15%. Plan 1 and Plan 2 shall be eliminated and Appendix A shall no longer be applicable. (Employees will be eligible to participate in the Wellness Program in 2018 as required in order to be eligible for the 2019 plan year savings).

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RATE OF PAY

A. Retroactive to January 1, 2017 and applied following the applicable Roll-ins being added to the wage rate as provided in the Roll-ins provision, the rate of pay shall be increased for all bargaining unit employees by 2.5% (Employees who separate between January 1 and the date of ratification of the CBA would not receive any of the changes, including wage increases)

B. Effective the first full pay period in January 1, 2018 the rate of pay shall be increased for all bargaining unit employees by 2.5%

C. Effective the first full pay period in January 1, 2019 the rate of pay shall be increased for all bargaining unit employees by 2.5%

ROLL-INS

ARTICLE 30 (DEPUTIES): RATES OF PAY,

ARTICLE 31 (DEPUTIES): FIREARMS PROFICIENCY ALLOWANCE,

ARTICLE 30 (CORRECTIONS OFFICERS): RATES OF PAY

Add new language in Article 30, Section 30.07, regarding the timing of paycheck

issuance: “This is subject to change if done so by the County Auditor.”

Road Deputies Differential (Deputies, Article 30, Section 30.10), the Firearms

Allowance (Deputies, Article 31), and the Certifications Allowance

(Corrections Officers, Article 30, Section 30.10) shall be proportioned to and

included in the classification hourly base rate before annual wage increases

would be applied for 2017. The supplemental wage provisions shall then be

deleted from the respective contracts.

30.08 Field Training Officer Supplement shall remain as current language.

DURATION Article 38 38.01 This Agreement shall become effective at 12:01 A. M. January 1, 2017 and shall continue in full force and effect, along with any amendments made and annexed hereto, until midnight, December 31, 2019. This Agreement supersedes any previously entered collective bargaining agreements.

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TENTATIVE AGREEMENT

Any tentative agreements reached by the parties as well as any current language that is not changed or not addressed above shall be considered to be recommended in the successor Collective Bargaining Agreement. The fact finder respectfully submits the above recommendations to the parties this _____ day of April 2017 in Portage County, Ohio.

____________________________________ Robert G. Stein, Fact finder

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Fri, 04/14/2017 12:58:39 PM SERB

TENTATIVE AGREEMENT

Any tentative agreements reached by the parties as well as any current language that is not changed or not addressed above shall be considered to be recommended in the successor Collective Bargaining Agreement.

The fact finder respectfully submits the above recommendations to the parties this 10~ day of April2017 in Portage County, Ohio.

Robert G. Stein, Fact finder

31