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CMS: Lack of union deal won’t impact current wages, but no raises, limited grievances

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Illinois

CMS Memorandum
To: Agency Directors, Personnel Managers, Labor Relations Administrators and Payroll Managers
From: Tom Tyrrell, CMS Director
Subject: Collective Bargaining

The Illinois Department of Central Management Services is currently in the process of negotiating successor agreements with the labor unions that represent State employees. The current collective bargaining agreements with the unions expire on June 30, 2015. CMS remains hopeful that it can reach agreement on the terms of successor contracts with all of the labor unions before June 30th. Whether it can succeed with every union, however, is doubtful. For those contracts on which agreements cannot be reached by July 1, it is likely that the parties will agree to continue to negotiate and that members of those unions will agree to work without a contract. If so, then (with the exceptions described below and until further notice) the State will operate as if the terms and conditions of employment set forth in the current collective bargaining agreements (e.g., procedures for filling vacancies, temporary assignments and layoffs) still apply.

Until new terms are negotiated, employees will continue to be paid their current wages and will remain at their current steps and/or in-hire rate. Therefore, no wage, in-hire, or step/lane increases, or semi-automatic advancements should be awarded under an expired agreement.

Once a contract has expired the State is only required to process certain grievances. Whether a grievance must be processed, in the absence of an agreement, is determined by the facts of the grievance. For example, a grievance over facts that arose before July 1st or a grievance that involves a right that accrued under the expired agreement, such as a denial of a vacation previously approved pursuant to the expired agreement, must be processed. For grievances by employees who are members of unions with which the State has no agreement after June 30th, agencies should consult with CMS Labor Relations before deciding whether to process a specific grievance. If, after consultation, a decision is made not to process a grievance, the Agency should notify the Union in writing that it is not processing the grievance because the collective bargaining agreement has expired.

In other words, no lockout is yet in sight. Time will tell, however.

posted by Rich Miller
Wednesday, Jun 17, 15 @ 1:42 pm

Comments

How will they be paid without a budget?

Comment by The Colossus of Roads Wednesday, Jun 17, 15 @ 1:51 pm
No strike, no lockout, no contract.

Comment by Juvenal Wednesday, Jun 17, 15 @ 1:53 pm
He is going to slash up the budget the legislature is starting to send to him. Wage freezes are going to make up for the shortfall, furloughs, layoffs, and other things he is allowed to do will happen, unless the legislature overrides his veto of the binding arbitration bill if an impasse is declared by CMS or the unions that represent them they sent to him before the budget was fully passed is my guess.

Comment by West301 Wednesday, Jun 17, 15 @ 1:59 pm
Who wrote that last paragraph?

Comment by FIRED! up Wednesday, Jun 17, 15 @ 2:03 pm
- FIRED! up - Wednesday, Jun 17, 15 @ 2:03 pm:

Who wrote that last paragraph?
Once a contract has expired the State is only required to process certain grievances. Whether a grievance must be processed, in the absence of an agreement. Is determined by the facts of the grievance.

Had to be one of the Superstars, right?

Comment by Are Ya Kiddin' Me? Wednesday, Jun 17, 15 @ 2:09 pm
How will this affect promotions?

Comment by Curious Wednesday, Jun 17, 15 @ 2:12 pm
WOWZA! I thought my eyes were playing tricks on me.

Comment by FIRED! up Wednesday, Jun 17, 15 @ 2:12 pm
Well, this sounds pretty blah, despite all the doomsday talk regarding the motives of the evil Mr. Rauner.

Comment by Cassandra Wednesday, Jun 17, 15 @ 2:21 pm
If you actually read the linked memo, the last paragraph is written correctly.

Comment by 1776 Wednesday, Jun 17, 15 @ 2:21 pm
1776 - You’re correct! My bad…

Comment by FIRED! up Wednesday, Jun 17, 15 @ 2:24 pm
===the last paragraph is written correctly===

Yep. My intern transcribed it and I didn’t double check.

But the faux outrage here over a couple of typos is truly goofy.

Grow up, people.

Comment by Rich Miller Wednesday, Jun 17, 15 @ 2:25 pm
Memo gives me hope that cooler heads will prevail.

Comment by RNUG Wednesday, Jun 17, 15 @ 2:29 pm
It may as well have read, ‘On July 1, the State can start treating state employees like crap because we won’t have to acknowledge their grievances. Have at ‘em boys and girls.’

Sounds like a great way to push the unions into a strike, then Rauner can get the labor strife he craves and make the unions into to “bad guys.”

Comment by Hyperbolic Chamber Wednesday, Jun 17, 15 @ 2:32 pm
I think the MJM/Cullerton mantra of “in moderation” “not in the extreme” is having an affect.

Comment by facts are stubborn things Wednesday, Jun 17, 15 @ 2:33 pm
no budget and no contract are two different things of course.

Comment by facts are stubborn things Wednesday, Jun 17, 15 @ 2:33 pm
Munger has issued an email that notifies nonprofits, employees and medicaid providers as to the dates when payments stop due to no authority to issue due to no budget.

Comment by illinifan Wednesday, Jun 17, 15 @ 2:33 pm
With a wage freeze and reduced grievances just what compels the Administration to push the negotiations?

Comment by Keyser Soze Wednesday, Jun 17, 15 @ 2:34 pm
Wonderin’ if the grievance language is the same as previous episodes (i.e. preTeamBungle)? Did JRT, BlinkyJim, George, Blagoof and PQ get to pick their grievances too. Maybe one of the experts could comment before clean up (which is about 90 minutes before clock out).

Comment by Anonin' Wednesday, Jun 17, 15 @ 2:40 pm
A little pretending there’s going to be an agreement with the unions or some before June 30th or by July 1st (?) has to be more than doubtful?
I’m not in the room, but could Rauner possibly agree to even a cola without looking like an hypocrite, and what union could agree to what Rauner would push at the table?
If you’re going to put something out like this, be honest.
We will have no agreements by the end of the month(!), they can still come to work and make what they make now, the contracts will expire, no raises or steps should be given, before processing a grievance call the lawyers.
Superstar!

Comment by Subzero Wednesday, Jun 17, 15 @ 2:42 pm
Interesting about disposition but politically meaningless…

Comment by Liberty Wednesday, Jun 17, 15 @ 2:44 pm
So what happens to *exempt* state employees after 6/30?

Comment by Exempt Wednesday, Jun 17, 15 @ 2:51 pm
= With a wage freeze and reduced grievances just what compels the Administration to push the negotiations? =

The current state employee health plan stays in place - which means Gov. Ranuer’s assumed budget savings in group health (also effectively assumed in the Democratic budget) slowly evaporate.

Comment by cover Wednesday, Jun 17, 15 @ 2:52 pm
Rauner can easily sign a reduced budget and state government will continue to operate.

Comment by Cassiopeia Wednesday, Jun 17, 15 @ 2:55 pm
We’re beginning to see why all the outrage. Faux or not. Either way, that’s a tough frame of mind to do something rational with.

Comment by A guy Wednesday, Jun 17, 15 @ 2:56 pm
I work for an agency that isn’t considered a code agency. We also have two different unions representing staff. AFSCME covers support staff and another union covers professional staff. The professional staff has had one step increase in 7 years now. Our contract expired June 30, 2013, so we don’t get any raises but we are still protected by the union under the previous contract. When I hear people talk about how overpaid state employees are and how lazy we are, etc., I want to scream. I have to wonder how people in the private sector would handle 7 years with one increase? By the way, we aren’t the reason the state is in the mess it is either.

Comment by StateWorker Wednesday, Jun 17, 15 @ 3:01 pm
“How will they be paid without a budget?”
I’m guessing Comptroller vouchers!!
Last In - Last Out!
Employees will see the money in 6 to 9 months, with a juicy 12% interest bump, just like most all of Illinois service vendors!
/snark

Comment by WhoKnew Wednesday, Jun 17, 15 @ 3:02 pm
If there is a voucher or IOU system, then many credit unions will extend short term loans for those vouchers.

Credit unions will also step in if state paychecks are delayed starting July 15.

Comment by Frenchie Mendoza Wednesday, Jun 17, 15 @ 3:06 pm
This has happened before (2007?) and is pretty standard procedure. As I recall the battle raged on and then magically on or around July 15 when payroll was due, everything got settled and agreed upon. Not saying that will be the case this time, all kinds of precedents are being set this year.

Comment by Former Merit Comp Slave Wednesday, Jun 17, 15 @ 3:11 pm
== I have to wonder how people in the private sector would handle 7 years with one increase? ===

Ask them. They’ll tell you. They lost jobs, lost hours, took pay reductions, paid much higher health premiums or lost them altogether. Those years were very hard on the private sector. That’s part of the resentment you’re hearing and seeing. They had no guarantees whatsoever and lived very scared lives themselves. For many, it’s not over.

That being said, state workers are NOT the reason we’re in the situation we’re in.

Comment by A guy Wednesday, Jun 17, 15 @ 3:15 pm
A guy…you are describing some people in the private sector and for them it is rough and they are not shedding tears for government workers. I know people in the private sector during the past years who made more money they had previously earned (they were in the financial industry), saw regular raises and no change in benefits. The hardest hit they saw was a few years of no bonuses. How the world is seen is based on where you sit. It frosts me when I hear these folks complaining about what government workers have especially when I hear their sweet deals. The last person who said government workers had too much complained that her company was raising her health insurance deductible from $250 a year to $500.

Comment by illinifan Wednesday, Jun 17, 15 @ 3:22 pm
A Guy.

Is that a million people? Ten million? Maybe 90%? How about 75%? Can you help out us old folk and cite a Department of Labor or other reliable government source regarding how the private sector population fared? It would be appreciated. Thank you.

Comment by LINK Wednesday, Jun 17, 15 @ 3:26 pm
” Former Merit Comp Slave - Wednesday, Jun 17, 15 @ 3:11 pm:”

This is a very scary time for our State.

Comment by Anonymous Wednesday, Jun 17, 15 @ 3:29 pm
If past is prologue, and Bruce is being advised by folk who advised Ahhhnold in Calif, I will be surprised if he does not order 3 Furlough days a month. It sidesteps layoffs, lockouts, strikes and shutdowns.

Comment by Ben Franklin Wednesday, Jun 17, 15 @ 3:32 pm
- Cassandra - Wednesday, Jun 17, 15 @ 2:21 pm:

It is a big deal to not get Step increases.

Comment by Anonymous Wednesday, Jun 17, 15 @ 3:35 pm
Ben Franklin @ 3:312pm: If a typical month has 20 workdays, 3 furlough days per month works out to about 15% hit to your Gross pay. So, if you make $70,000 per year, that comes to about reduction, if in fact that was done for 1 years time. Quite a financial hit for most households.

Comment by Capitol Fax Follower Wednesday, Jun 17, 15 @ 3:38 pm
Re CapitolFaxFollower @ 3:38pm: had omission above. Meant tosay, in one years time, that wouldamount to a decrease in your Gross pay

Comment by Capitol Fax Follower Wednesday, Jun 17, 15 @ 3:40 pm
Ten Thousand Five Hundred dollars reduction in gross pay. Not sure why it won’t print this when I type it as numbers, so I will now try spelling put the numbers

Comment by Capitol Fax Follower Wednesday, Jun 17, 15 @ 3:41 pm
“Until new terms are negotiated, employees will continue to be paid their current wages & will remain at their current steps &/or in-hire rate. Therefore, no wage, in-hire, or step/lane increases, or semi-automatic advancements should be awarded under an expired agreement.”

1. What does in-hire mean?
2. Can people be retire or be fired and replaced during this no contract period?

Comment by Mama Wednesday, Jun 17, 15 @ 3:43 pm
Oops…that should state Can people retire & be replaced, or be fired & replaced…

Comment by Mama Wednesday, Jun 17, 15 @ 3:44 pm
“In-hire” means the rate for newly hired employees.

Comment by Secret Square Wednesday, Jun 17, 15 @ 3:47 pm
There’s nothing wrong with long term civil servants making a reasonable living. This tiresome us versus them arguing among all us wage slaves is exactly what the haves want.

Comment by In The No Wednesday, Jun 17, 15 @ 3:54 pm
- In The No - Wednesday, Jun 17, 15 @ 3:54 pm:

Thank you

Comment by Anonymous Wednesday, Jun 17, 15 @ 3:59 pm
You can safely say that some private industry folks didn’t have pay reductions, ie Rauner’s staff.

Comment by A Jack Wednesday, Jun 17, 15 @ 4:30 pm
This is a reasonable approach (that has the added effect of advancing the argument that the administration has negotiated in good faith if/when the shiitake mushrooms hit the fan later this summer).

Comment by Sage Wednesday, Jun 17, 15 @ 4:35 pm
Does “no step increases” apply to just contractual step increases or does it also include the statutory increases (i.e. 5, 10, 15)?

Comment by Anon Wednesday, Jun 17, 15 @ 4:52 pm
- Sage - Wednesday, Jun 17, 15 @ 4:35 pm:

You say that because the Step increase delay is not effecting you. You should be forced to take a 50% reduction in pay immediately.

Comment by Anonymous Wednesday, Jun 17, 15 @ 6:39 pm
- Anon - Wednesday, Jun 17, 15 @ 4:52 pm:

No one gets them and Sage and Cassanda along with “ck” and Rauner can enjoy their destruction of State Workers standard of living.

“ck” and Rauner think that it will be good when many State Workers quit and go elsewhere but they are wrong.

The people that will stay are the ones who can’t go anywhere else.

Comment by Anonymous Wednesday, Jun 17, 15 @ 6:42 pm
Rauner wants all of the Tier One employees to quit.

He might get his way when he forces a lock out and tries to lower our pay and benefits.

Comment by Pedro Wednesday, Jun 17, 15 @ 6:45 pm
Pedro good thing he has plans to make more jobs for us old fogies to go to. Really people?

Comment by sad Wednesday, Jun 17, 15 @ 6:56 pm
Just because the contract is expired July 1, doesn’t mean the state is going to start treating anyone any differently than they did on June 30th. As far as promotions go until a new contract is negotiated, read the article, it is in there.

The union has rabble roused against Rauner because he’s not going to play their big government, tax and spend politicians game. It is those politicians who have put the state into the mess it is in and it is far past time that the spending and waste gets reeled in. The union is mad because any cuts in the size of agencies or government will probably result in loss of membership - read that money coming in to them in the form of union dues….. That is what the union is really concerned with.

Comment by BBishere2 Wednesday, Jun 17, 15 @ 7:08 pm
3 furlough days a month would cause a huge backlog in processes. That’s 15% less time spent processing Foid cards, concealed carry permits, professional licenses, oversight of various industries, inspections, home visits for people/children under state supervision, construction, highway maintenance, bridge repair, DMV office staffing, all sorts of things. Believe it or not, the state does need employees to function.

Will 15% hurt state employees financially? yes, but their payroll deductions will go down… less taxes taken out (we do pay taxes too), less pension contributions. I’ll reduce my deferred compension contribution (think 401K no matching). I’ll spend my time off catching up on home repairs, etc. I’ll save my vacation days for later as will others …. which will result of further delay of all those things I mentioned over the next year as people take their vacation days.

Comment by thoughts matter Wednesday, Jun 17, 15 @ 7:21 pm
“- BBishere2 - Wednesday, Jun 17, 15 @ 7:08 pm:”

“ck” your working late today

Comment by Anonymous Wednesday, Jun 17, 15 @ 7:26 pm
It is not what you think. A 500% increase for insurance premiums is one sticking point, and decreasing one’s salary is another sticking point. There are many more issues than salary and insurance on the table.

Comment by Mama Wednesday, Jun 17, 15 @ 7:31 pm
BBishere2 too late they already have.

Comment by sad Wednesday, Jun 17, 15 @ 8:05 pm
A 15% reduction of gross wages due to “furlough days” would result in a lower pension for employees near retirement.

Comment by DuPage Wednesday, Jun 17, 15 @ 8:49 pm
Dupage - it will hurt those who retire during this process if their pension is based upon their final years salary. For those whose retirement is bard on the highest four years of their last 10, it won’t be all that big of a deal. People will either immediately retire or wait until it is all straightened out. The last furlough days were ignored for terms of retirement calculation by order of the legislature.

Comment by Thoughts Matter Wednesday, Jun 17, 15 @ 8:56 pm
“The union has rabble roused against Rauner because he’s not going to play their big government, tax and spend politicians game.”

Then why has the great “tough decisions savior of Illinois” offered a tax hike?

Comment by Jorge Wednesday, Jun 17, 15 @ 9:02 pm
Thoughts, what pension is based on the “final year’s” salary? I t can’t think of one-do you mean final day (SERS-Alternative)?

Comment by Arthur Andersen Wednesday, Jun 17, 15 @ 9:28 pm
-AA-,

here’s the general breakdown by system:

GARS (Legislature) is final salary.

JRS (Judges) is final year.

SERS (normal State employee) is highest consecutive 48 months of last 10 years

SERS (alternative formula, ie, law enforcement, etc.) is either (a) same as normal SERS, (b) average of last 48 months or (c) final rate of pay with some limits on which applies.

SURS (university) varies based on a couple of things, but generally based on the highest consecutive 48 months of earnings at any time during their career

Comment by RNUG Wednesday, Jun 17, 15 @ 10:27 pm
At the risk of sounding like a broken record, I have to remind everyone, public and private sector alike, of our total state and local tax rates as a percentage of income by income group:

• lowest 20 percent: 13.2%
• second 20 percent: 11.8%
• middle 20 percent: 10.8%
• fourth 20 percent: 10.1%
• next 15 percent: 8.7%
• next 4 percent: 7.4%
• top 1 percent: 4.6%

As for the current flat income tax at 3.75%, IL billionaires pay a lower rate than the lowest bracket in Wisconsin (4% for single w/ income up to $10,910). This is why we have a structural revenue problem. This is why property taxes are too high.

It’s clear why 1 percenters don’t want to leave IL and Rauner doesn’t want the public to know this. But why don’t the Democrats demand that their leadership pick this up, publicize it, and propose to do something about it. There is no way for the Raunerites to answer. How can a quasi-billionaire explain why his is about 1/3 of the tax rate for the working poor? Game over.

Comment by X-prof Wednesday, Jun 17, 15 @ 10:51 pm
For that matter, when will the press step up and ask the governor to explain this?

Comment by X-prof Wednesday, Jun 17, 15 @ 10:57 pm
Maybe I’m reading too much into the last paragraph, but it sure sounds to me like the management equivalent of labor’s “working to rule”. This is not a neutral tactic but a serious pressure technique meant to provoke a strike.

Comment by Robert M Roman Thursday, Jun 18, 15 @ 6:13 am
If it is any indication of what is to come, brand new high tech locks were installed n the outer doors in the state building I work in over the weekend. In fact it makes the building non-ADA compliant since it was clearly a rush jib and the handicap accessable button for the door does not work. Why are new locks being installed when we already have 2 badge swipe locks to go through already. Methinks these locks are intended to keep us out here very soon.

Comment by If any indication Thursday, Jun 18, 15 @ 7:37 am