Copyright ©2012 by The Segal Group, Inc., parent of The Segal Company. All rights reserved. COLLECTIVE BARGAINING—THE CRISIS: Impact on Retirement, Tenure and Faculty Mobility What is the Impact? April 2, 2012 Lawrence Singer Senior Vice President and Public Sector Health Care Practice Leader 333 West 34 th Street New York, NY

1 Segal’s Role in Collective Bargaining  Technical resource on benefits and compensation programs  to one party or the other  to both parties (or more than two parties)  Facilitator to the bargaining process  Identifying positive sum, negative sum and zero sum issues  Organizing and presenting data  Help define the process to be employed in the bargaining process  Questions to be addressed  Nature of the inquiry  Roles of various parties  Timing

2 The role of perspective in addressing any issue Where Do Good Ideas Come From?  What problems are being solved?  What new problems might flow from solutions… and how might they be addressed?  How does perspective shape the bargaining process?

3 Examples of Perspective What Is a Health Plan?  Reimburse incurred medical expenses  Resource to maintain good health  Resource to maintain employee productivity What should be discussed?  Choice/Access  Quality/Comfort  Education/Responsibility  Outcomes

4 Examples of Perspective continued What Is a Retirement Plan?  Wealth accumulation tool  Income replacement tool  Job mobility tool  Staff management tool What Should be Discussed?  Staffing needs: recruitment, retention and turnover  Economic security needs of employees regarding income replacement and capital accumulation  Institution's short and long term access to income and capital  Treatment of annual variances

5 What Labor and Management Need to Discuss  Design  Funding Arrangement  Who pays First from a Strategic and then from a Tactical Point of View  Why  How  Who  How much