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Whitefish Bay Instructional Employees Compensation Committee September 12, 2013

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Whitefish Bay Instructional Employees Compensation Committee. September 12, 2013. Why a Committee?. Wisconsin Act 10 and its impact on teacher compensation Evolution of teacher compensation systems Uniform (traditional) salary schedule. Ad hoc schedule modifications following Act 10 - PowerPoint PPT Presentation

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Page 1: Whitefish  Bay Instructional  Employees Compensation Committee

Whitefish Bay Instructional Employees Compensation Committee

September 12, 2013

Page 2: Whitefish  Bay Instructional  Employees Compensation Committee

Why a Committee?Wisconsin Act 10 and its impact on teacher

compensationEvolution of teacher compensation systems

Uniform (traditional) salary schedule.Ad hoc schedule modifications following Act 10

Laws and other limitations on the design of teacher compensation systems.

Design components of teacher compensation system

Page 3: Whitefish  Bay Instructional  Employees Compensation Committee

2011 Wisconsin Act 10Collective Bargaining Changes (effective June 29, 2011)

Prohibits bargaining collectively with respect to any condition of employment except wages, which includes only total base wages and excludes any other compensation, such as overtime, premium pay, merit pay, performance pay, supplemental compensation, pay schedules, and automatic pay progressions.

Limited to bargaining over a percentage of a total base wage increase no greater than the percentage change in the consumer price index.

Page 4: Whitefish  Bay Instructional  Employees Compensation Committee

2011 Wisconsin Act 10School boards are prohibited from bargaining over

The salary schedulePay for additional years of service (step movement)Pay for professional development (lane movement)

School boards are not prohibited from having a salary schedule or paying step or lane movement – these are now unilateral decisions made outside of bargaining. (issue of affordability)

Act 10 gives school boards the power to design new teacher compensation systems outside of bargaining.

Page 5: Whitefish  Bay Instructional  Employees Compensation Committee

Evolution of Teacher Compensation Systems

Uniform salary schedule.Ad hoc schedule modifications following Act 10.Alternative compensation systems.

Page 6: Whitefish  Bay Instructional  Employees Compensation Committee

The Uniform Salary ScheduleStep BA BA+6 BA+12 BA+18 BA+24 BA+30 MA MA+6 MA+12 MA+18 MA+24 MA+30

1 39,573 40,335 41,032 41,858 42,620 43,382 44,144 44,936 45,734 46,661 47,588 48,5142 40,103 40,865 41,625 42,389 43,150 44,042 44,936 45,799 46,594 47,521 48,779 50,0403 40,765 41,527 42,290 43,051 43,812 44,774 45,799 46,726 47,521 48,449 49,973 51,4944 41,847 42,610 43,372 44,134 44,894 45,855 46,991 47,917 48,714 49,641 51,230 52,8185 42,932 43,694 44,456 45,220 45,979 46,940 48,183 49,110 49,906 50,833 52,488 54,1466 44,017 44,778 45,539 46,302 47,063 48,023 49,375 50,305 51,098 52,024 53,746 55,4667 45,860 46,624 47,385 48,147 49,107 50,568 51,496 52,291 53,228 55,005 56,7998 46,945 47,707 48,468 49,232 50,191 51,760 52,689 53,482 54,409 56,264 58,1199 48,028 48,789 49,552 50,314 51,274 52,952 53,879 54,674 55,600 57,523 59,438

10 49,219 49,981 50,744 51,506 52,465 54,210 55,138 55,933 56,860 58,846 60,83811 51,175 51,935 52,698 53,658 55,468 56,528 57,323 58,251 60,304 62,35712 52,367 53,127 53,890 54,983 56,860 58,052 58,846 59,774 61,891 64,01613 53,592 54,352 55,115 56,342 58,284 59,608 60,470 61,431 63,615 65,80414 54,851 55,613 56,374 57,732 59,774 61,232 62,158 63,152 65,404 67,65315 56,142 56,903 57,697 59,188 61,397 62,987 63,981 65,008 67,327 69,64616 59,089 60,777 63,151 64,907 66,032 67,093 69,577 72,050

• Vertical steps represent pay for added year of service.• Horizontal steps represent pay for additional education.• Vertical and horizontal step movement is automatic – the school district has

committed itself to pay the salary increases inherent in step movement.

Page 7: Whitefish  Bay Instructional  Employees Compensation Committee

The Uniform Salary ScheduleProblems:

Pay increases are automatic.Sustainability- State Resources/Ability to payBoards and administrations lack control over teacher continuing

education yet must pay increased salaries for it. School board cannot control cost increases resulting from step movement. The public may question whether the school board has given up too much.

Advantages:Pay increases are automatic. There is a mechanism to move new

teachers through the schedule to eventual pay equity with senior teachers.

Uniform schedule was highly predicable for teachers.

Page 8: Whitefish  Bay Instructional  Employees Compensation Committee

Schedule ModificationsBefore Act 10, most unions resisted modifications of the

uniform salary schedule.Act 10 gave school boards the power to change the

schedule and determine salary increases without union consent.

Many school boards made salary decisions to meet immediate needs without thought of long term implications.

The immediate need was the reduction in state aid and revenue limit authority in 2011-12.

Page 9: Whitefish  Bay Instructional  Employees Compensation Committee

Ad Hoc Schedule Modifications -Collective Bargaining

2011-12:Approximately 2/3rd of Wisconsin schools settled contracts

before Act 10 took effect. Most of those settled while Act 10 was pending. Typical settlement involved no salary increase and no step and

lane movement, employee payment of the employee share of WRS and a greater employee contribution toward insurance.

Page 10: Whitefish  Bay Instructional  Employees Compensation Committee

Ad Hoc Schedule Modifications -Collective Bargaining

2011-12:The other 1/3rd of Wisconsin schools:

Many also froze teachers in step and lane. All required employees to pay employee share of WRS and most

required greater employee insurance contributions. Across-the-board pay increases were more common with the

schools that did not settle before Act 10 became law. Some schools eliminated salary schedules, replacing those with

lists of names and salaries. A very small number of schools started working on alternative

compensation systems.

Page 11: Whitefish  Bay Instructional  Employees Compensation Committee

Ad Hoc Schedule Modifications -Collective Bargaining

2012-13:About 1/3rd of schools have pre-Act 10 contracts.Many schools freeze step and lane movement again,

although some are realizing that doing so creates a long term problem.

Teacher unions prioritize across-the-board pay increases.

Page 12: Whitefish  Bay Instructional  Employees Compensation Committee

Ad Hoc Schedule Modifications -Unilateral Actions

Schools with no pre-Act 10 contract start making unilateral modifications to schedules:If the starting pay is too low, board may delete step from

schedule, effectively giving step movement to some teachers but not others.

Schools that have froze teachers in step for one or more years grant lane movement to some teachers but not others.

Page 13: Whitefish  Bay Instructional  Employees Compensation Committee

Ad Hoc Schedule ModificationsLong term implications of the ad hoc/transitional schedule

modifications: An arbitrary salary schedule where it becomes increasingly

difficult to explain why teachers are paid what they are paid. Teachers in similar positions with similar education and years of

service may be paid different amounts. Teacher morale may suffer, staff turnover may occur Discrimination suits over compensation may become a possibility.

Page 14: Whitefish  Bay Instructional  Employees Compensation Committee

Laws and other limitations on the design of teacher compensation

systems

Page 15: Whitefish  Bay Instructional  Employees Compensation Committee

Considerations – Legal Implications

Individual Contract: Relationship to Wis. Stats. 118.21 and 118.22, i.e. teacher contract statute and teacher renewal of contracts statute.◦ Wis. Stats. 118.21 requires that the teacher’s

salary be listed on the individual contract.◦ Can salary be reduced without going through

the nonrenewal process under Wis. Stats. 118.22?

Page 16: Whitefish  Bay Instructional  Employees Compensation Committee

Considerations – Legal ImplicationsPublic Records:

Teacher compensation is a public record that is subject to release.

Teacher evaluations are not a public record subject to release.

A pay system that pays teachers more for positive evaluations is subject to release.

Page 17: Whitefish  Bay Instructional  Employees Compensation Committee

Considerations – Legal Implications

Employment Discrimination Law: How will the compensation system be structured in order to minimize exposure to the following:Age discrimination in employment claims;Gender/sex discrimination in employment

claims; andOther prohibited bases of discrimination under

state and federal law.

Page 18: Whitefish  Bay Instructional  Employees Compensation Committee

Considerations – Legal Implications

Title VII of the Civil Rights Act of 1964Wisconsin Fair Employment ActEqual Pay Act Section 1981Section 1983Americans with Disabilities ActAge Discrimination in Employment ActRetaliation

Page 19: Whitefish  Bay Instructional  Employees Compensation Committee

Considerations – Legal Implications Equal Pay Act ◦ The Equal Pay Act prohibits employers from

discriminating against both male and female employees on the basis of sex by paying different rates ". . . for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions . . . ." (29 U.S.C. 206(d))

◦ Exceptions exist where the difference is due to a bona fide seniority system, merit system, a system which measures compensation by quantity or quality of production or a differential based on a factor other than sex. The law is enforced by the EEOC.

Page 20: Whitefish  Bay Instructional  Employees Compensation Committee

Considerations – Legal Implications

If the Compensation System uses Student Data◦ Student Progress

Value added models Individual student tracking [measurements within a

specified period of time] Implications 118.30 (2) (c) The results of examinations

administered under this section or under 20 USC 6311 (b) (3) to pupils enrolled in public schools, including charter schools, may not be used as the sole reason to discharge, suspend, or formally discipline a teacher or as the sole reason for the nonrenewal of a teacher's contract.

Page 21: Whitefish  Bay Instructional  Employees Compensation Committee

Designing a Compensation System

Page 22: Whitefish  Bay Instructional  Employees Compensation Committee

Design Components of Teacher Compensation System

What do we want out of our compensation system?Attract and retain the best staff.

Some differentiation in starting wage may be necessary to attract teachers to hard-to-fill certifications.

Some differentiation in starting wage may be needed to attract other skill sets such as multiple certification teachers or teachers with special training.

Minimize damage to teacher morale resulting from salary differentiation.

Page 23: Whitefish  Bay Instructional  Employees Compensation Committee

Design Components of Teacher Compensation System

What do we want out of our compensation system? (Continued)Motivate staff to pursue professional development of value to the

school district. Professional development to meet specific needs of the district. Professional development that helps individuals improve their

performance to increase student achievement. Develop and utilize teacher leaders to support peers and the

district initiatives.Ensuring equity in the system by not rewarding under performance.Sustainability / Ability to FundConsideration of long term financial health of the School District.

Page 24: Whitefish  Bay Instructional  Employees Compensation Committee

Design Components of Teacher Compensation System

Where do teachers new to the district start?BA Base?Pay increases for years of service or experience?Pay for prior experience in other districts?Additional pay for continuing education?Additional pay for difficult to fill certification?Other differentiations?

Page 25: Whitefish  Bay Instructional  Employees Compensation Committee

Next StepsEducate and Study:

Analyze Compensation from Districts with whom we compete for employees.

Study other compensation models.Develop Compensation System - propose to the School

Board Key Steps in the Process:

Involve instructional employees (from each school) in committee work. Solicit feedback from instructional employees on criteria for

compensation structures. Provide appropriate progress reports and communications to the School

Board and Stakeholders. Assess the cost implications of proposed structures on School Districts

financial resources.