MASPA HR: We Have A Problem! December 2, 2010 Jasen M. Witt

 Legal Considerations,  Political Considerations,  Service Considerations, AND  Financial Considerations

 Is the service a non-instructional support service?  Paraprofessionals assigned to the classroom are considered “instructional” support staff.  How will we satisfy the new requirements of PERA (MCL )?  “…union must be given the opportunity to bid on the contract…on an equal basis as other bidders.”  School districts do not have a duty to bargain the procedures for obtaining bids for outsourcing non-instructional support services. (ALJ Peltz, Lakeview Community Schools, MERC Case No. C10C-059, Mt. Pleasant School District, MERC Case No. C10E-104)

 Will the Board of Education & Superintendent support the decision, if it proves to be the best option?  What is the make-up of your community?

 What level of service is currently being provided in this support service area?  Will a change decrease, maintain, or improve our current level of service?  How does this support service area impact our district’s core mission?

 With the current state of Michigan’s economy and public school funding, this should be a financial decision.  What savings will the district realize by contracting with a third party service provider?

 Average or poor performance can be improved by private sector companies whose core mission is: Transportation; Cleaning Buildings; Maintenance of Buildings & Grounds; OR Feeding Large Groups of People. Exceptional performance can also be maintained.

 Any concerns with contracted employees are handled in an efficient manner.  EXAMPLES: Managers Low Performers Misconduct Cases

 Your high performers can take positions with the third party contractor.  TSD Initial Numbers: Transportation – 86% Food Service – 95% Custodial – 40% BOE contracted with all service providers to offer a higher hourly rate & slightly enhanced health benefits.

 Generates real savings (ex. retirement, health care, & workers’ compensation costs) in district budgets which allows for protection of instructional programs and other student programs.  These savings can be maintained through the competitive bidding process. This also helps to maintain the quality of the service.

 New legislative restrictions force high performing retirement-eligible employees to choose between retirement under MPSERS and accepting a position with the service provider.  The politics of this difficult decision may cost fiscally-prudent BOE members at election time.

 Resulting Unemployment Costs (must factor these costs into your projected savings)  The decision to contract services will result in good employees losing their jobs. (Note: Given the new PERA requirements, pro-active union locals may avoid this by submitting a competitive bid.)

 The decision to pursue bids can lead to unrest and reduced productivity.  Counterproductive for employees working to save their positions.  Impact on PLCs? The timing of the BOE’s decision can allow for property (buildings & equipment) damage and suspicious work-related injuries.