2003

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2003 2005 IFO/MnSCUTENTATIVE CONTRACT
SETTLEMENT

• Recommended by the IFO Board of Directors

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Your Negotiating Team

• Marilyn Vigil, Chair
• Rod Henry, Bemidji
• Georgia Holmes, Mankato
• Gary Starr, Metropolitan
• John Tesch, Moorhead
• Bill Langen, St. Cloud
• Brent Jeffers, Southwest
• Matt Hyle, Winona
• Jim Pehler, IFO
• Frank Conroy, IFO

The Negotiating Team, Action Chair and members of
the IFO Staff persevered over 15 months to
achieve this settlement.
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Background

• 4.6 billion budget shortfall last year in State
  of Minnesota, largest in its history.
• Thousands of unionized state workers laid off.
• 191 million cut from MnSCU for biennium (FY04
  FY05).
• MnSCU average tuition increase totals almost 30
  at state universities for FY04 FY05.
• More than 550 MnSCU (central office and campus)
  employees laid off.
• NO IFO layoffs occurred.

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Total New Dollars in Settlement
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Summary of Economic Settlement

• Returning Faculty
• FY04 (year ending June 30, 2004) no change from
  previous years salary.
• FY05 (year ending June 30, 2005) one-step
  increase (2.4).

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Summary of Economic Settlement

• Promoted Faculty
• Two-step (4.8) salary increase in addition to
  step increase as returning faculty.
• Promotion steps not contingent on status of
  contract negotiation.
• Retiring Faculty
• Two-step (4.8) increase for notice of
  retirement.
• Retiring faculty at step 48 in either FY04 or
  FY05 receive a one-time salary supplement of
  4,800 (prorated for less than full-time
  appointment in year of retirement).

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Summary of Economic Settlement

• Career Steps
• Two-step (4.8) increase in either FY04 or FY05
  for faculty who have completed 10, 20 or 30 years
  of service as of the end of the prior fiscal year.

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Summary of Economic Settlement

• Adjunct and Community Faculty Summer Session
  Minimum Rate
• Effective fall semester 2004, the minimum rate
  rises from 1,075 to 1,100 (2.4 increase) per
  credit hour.
• For summer session 2005, faculty with salaries
  below 48,889 will receive 1100 per credit rate.

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Summary of Economic Settlement

• Minimum Salary Placements Increased by One Step
  for FY05.
• Effective July 1, 2004
• Instructors will not be placed below step 11.
• Assistant Professors will not be placed below
  step 16.
• Associate Professors will not be placed below
  step 18.
• Professors will not be placed below step 20.

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Summary of Economic Settlement

• Dependent Health Insurance Premiums Payment
• Effective January 1, 2004 the Employer will pay
  85 of dependent health insurance premium.
• This represents a benefit reduction of
  approximately 95 per month for faculty electing
  dependent insurance coverage.
• Payment of health insurance premiums are
  automatically treated as before-tax payments.

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Health Insurance Premiums 03-05
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Summary of Economic Settlement

• Employer Contribution to Medical/Dental Expense
  Reimbursement Account
• Effective January 2005, the employer shall
  contribute 500 annually to the medical/dental
  expense reimbursement account for all
  insurance-eligible faculty.
• For the year 2005, an additional 100 (600 in
  total) will be contributed to this account.

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Summary of Economic Settlement

• Health Reimbursement Arrangement (HRA) Accounts
• Employer agrees to contribute to each
  insurance-eligible faculty members HRA account
  (rather than the medical/dental expense
  reimbursement account) as soon as HRA accounts
  become available (anticipated in March 2005).
• These funds may be placed into investment-type
  accounts and any balance may be carried over.

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Summary of Economic Settlement

• Insurance Premiums for Faculty Electing the Early
  Separation Incentive (ESI)
• The one year health insurance premiums previously
  paid by the employer shall now be deposited in a
  lump sum into the post-retirement health care
  expense account at the time of separation.

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Medical Accounts IFO Contract

• Health and Dental Premium Payroll Deductions
• Medical/Dental Expense Account (Flexible Benefit
  Plan)
• Health Reimbursement Arrangement Account (HRA)
• Post-Retirement Health Care Trust Account

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Health and Dental Premium Payroll Deductions

• Employee pays portion of premiums
• Automatic
• Pre-tax dollars used

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Medical/Dental Expense Account (Flexible Benefit
Plan)

• Voluntary employee pre-tax deduction
• Reimbursement of medical expenses
• Annual maximum deduction of 5,000
• Use or lose at calendar year-end

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Health Reimbursement Arrangement Account (HRA)

• New
• Available March (?) 2005
• Employer funds with tax-free contributions
• Unused balance carries over from year to year

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Post-Retirement Health Care Trust Account

• Created automatically upon separation with
  severance payment (unused sick leave).
• Available until balance in account is exhausted.
• Early Separation Incentive dollars from health
  insurance premiums now deposited into account.

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Summary of Economic Settlement

• Salary Equity Adjustments
• Contract settlement dollars include funding to
  implement the Salary Review Committees (SRC)
  recommendations for salary adjustments based on
  the salary study through FY02.
• SRC to address FY03 Annual Review at its
  September 2004 meeting.

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Summary of Language Changes

• Salaries (Article 11)
• Restructured by type of appointment rather than
  by fiscal year.
• Promotion steps (two steps or 4.8) are no longer
  tied to a particular fiscal year.
• All part-time faculty, other than those holding
  adjunct or community faculty appointments, are
  paid pro rata based upon the salary schedule.
• Salary schedule simplified and now reflects only
  one numbering scheme for steps.

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Summary of Language Changes

• Supplemental Retirement (Article 15)
• Supplemental deductions and employer matched
  payments are no longer tied to a specific fiscal
  year.

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Summary of Language Changes

• Tuition Waiver (Article 27)
• Effective fall semester 2004, the number of
  credits eligible for tuition waiver is increased
  to 30 credits from the present 27 credits. The
  counting of such credits will begin with fall
  semester and continue to the following summer
  sessions.

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Summary of Language Changes

• Oral Reprimands (Article 24)
• Limits record in personnel file to a notation
  that an oral reprimand has been given.
• Investigative Suspensions (Article 24)
• Length reduced from 30 to 20 days unless formal
  notice from campus President given to FA to
  extend by 10 more days.
• Expedited Arbitration (Article 28)
• Shall be used for all disciplinary actions
  labeled as such by administration. May be used
  for other arbitrations by mutual agreement.

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Summary of Language Changes

• Head Coach Evaluation (Article 10)
• Evaluated by campus evaluation timeline, rather
  than by March 1.
• Notice of non-renewal given within 20 days
  following conclusion of relevant sport season,
  rather than by March 15 in the final year of
  appointment.

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Summary of Language Changes

• Fixed Term Hiring Priority (Article 29)
• Prior consideration will be given for
  probationary appointments for which they are
  qualified.

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Summary of Language Changes

• Tenure Granted to Transferring Tenured Faculty
  Member (Article 31)
• After consultation with the department, the
  President may grant tenure to a transferring
  faculty from another Minnesota State University
  who holds tenure at that institution.

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Summary of Language Changes

• Use of E-Mail and Internet for IFO/Faculty
  Association Communications (Article 6)
• Subject to applicable laws and policies, the IFO
  and local Faculty Association may use campus
  e-mail and Internet postings to communicate with
  faculty.

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Summary of Language Changes

• Advocated by the Negotiating Team
• Joint Taskforce on Faculty Salary Competitiveness
  (Article 10)
• Taskforce will assess all aspects of faculty
  compensation and make recommendations to IFO
  Board and MnSCU Board of Trustees.
• Joint Taskforce on Costing (Article 10)
• Taskforce will develop methodology for costing
  teaching assignments and alternative assignments.

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Contract Ratification Process

• No Proxy Ballots.
• Only IFO members permitted to vote on September
  15, 2004.
• Polls close at 400 PM.
• Campus-by-campus results, along with statewide
  totals, announced to membership.

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Member Contract Ratification Process

• For ratification, the tentative agreement needs
• Affirmative vote from majority of those IFO
  members casting ballot, and
• Majority affirmative vote of those IFO members
  casting ballots on a majority of campuses (4 of
  7).

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If IFO Ratifies Then

• MnSCU Board Approval (September 22)
• Legislative Sub-Committee on Employee Relations
  (JSER) Approval
• Contract Implemented
• Legislative Approval in 2005 Session