Board of Education Approves Agreement with Naugatuck Teachers

The Naugatuck Board of Education authorized execution of a new collective bargaining agreement (“CBA”) between the BoE and the Naugatuck Teachers League (“NTL”) at a regular meeting held on Thursday, December 8, 2011.  The agreement, which covers the period from September 1, 2012 through August 31, 2015, can be viewed here.  A summary of the fiscal analysis of the CBA prepared by BoE Business Manager Wayne McAllister can be viewed here in both Microsoft Excel and .pdf format.

The BoE authorized execution of the CBA by a vote of seven (7) to one (1), with one (1) abstention.  The NTL ratified the CBA earlier in the week.  Once the CBA is executed by the BoE Chair, it will be delivered to the Borough Clerk.  The Board of Mayor and Burgesses has thirty (30) days from the date of receipt by the Borough Clerk to take action, if any, on said CBA.

Particulars of the CBA are as follows:

Health Care:

The Borough achieved significant cost savings as a result of a change to a high deductible health plan (“HDHP”) in the form of a health savings account (“HSA”).  The NTL agreed to make the HSA the stand-alone plan.  Because the HDHP plan runs on a calendar year, a traditional preferred provider organization (“PPO”) plan will be offered from September 1, 2012, through December 31, 2011, with higher co-pays on various services.

Under the current HDHP, which was not chosen by many teachers, the employee contributed zero (0%) percent toward the premium cost share.  The new HSA will require the following employee contribution rates:

• Beginning September 1, 2012, teachers will pay fourteen (14%) percent toward the premium share;
• Beginning January 1, 2013, teachers will continue to pay fourteen (14%) percent toward the premium share;
• Beginning January 1, 2014, teachers will pay fifteen (15%) percent toward the premium share; and
• Beginning January 1, 2015, teachers will pay sixteen (16%) percent toward the premium cost share.

The annual deductible associated with the HSA plan will be based on a TWO THOUSAND and 00/100THS ($2,000.00) DOLLAR / FOUR THOUSAND and 00/100THS ($4,000.00) DOLLAR structure.  Employees will contribute fifty (50%) percent toward the deductible and prescription co-pays with a fifty (50%) percent employer-match from the BoE.

Projections based on current trends indicate that these changes to the teacher health care plan will result in a cumulative savings to the BoE over the three (3) year period in the approximate amount of TWO MILLION FIVE HUNDRED SEVENTY ONE THOUSAND TWO HUNDRED FORTY ONE and 61/100THS ($2,571,241.61) DOLLARS.  The annual savings are as follows:

• Year One:  FIVE HUNDRED SIXTY THOUSAND TWO HUNDRED SIXTY and 76/100THS ($560,260.76) DOLLARS;
• Year Two:  EIGHT HUNDRED THIRTY FIVE THOUSAND SEVEN HUNDRED FIFTY NINE and 43/100THS ($835,759.43) DOLLARS; and
• Year Three:  ONE MILLION ONE HUNDRED SEVENTY THREE THOUSAND TWO HUNDRED TWENTY TWO and 42/100THS ($1,173,222.42) DOLLARS.

Pensions

The pensions of the overwhelming majority of Naugatuck teachers are administered through the Connecticut Teachers Retirement Board (“TRB”), and not subject to local collective bargaining.

Wages:

Teachers in the NTL will received increases in general wages and step increases for the following years at the following rates:

• 2012-2013:  One Half (1/2) Step on the Salary Schedule and a One and 18/100ths (1.18%) percent general wage index.  The aggregate increase amounts to One and 76/100ths (1.76%) percent;
• 2013-2014:  One Half (1/2) Step on the Salary Schedule with a One and 00/100ths (1.00) percent general wage increase on the top step; and a Zero and 77/100ths (.77%) percent increase on all other steps.  The aggregate increase amounts to One and 96/100ths (1.96%) percent; and
• 2014-2015:  One (1) Step on the Salary Schedule with a One and 00/100ths (1.00) percent general wage increase on the top step; and a Zero and 76/100ths (.76%) percent increase on all other steps.  The aggregate increase amounts to Two and 38/100ths (2.38%) percent.

Other Changes

The CBA also contained the following provisions that improved the grievance procedure, clarified the length of the school year and amount of instructional time, and allows block scheduling to be implemented in the high school beginning in year two (2) of the CBA.

Overall, the total cost of the three (3) year CBA is approximately FIVE HUNDRED FOURTEEN THOUSAND SEVEN HUNDRED NINETY FOUR and 39/100THS ($514,794.39) DOLLARS.  This represents a total increase over said three (3) year period of approximately one and 60/10ths (1.60%) percent, much less than the expected increase in inflation.

This CBA is the first (1st) agreement negotiated on behalf of the BoE by Attorney Nick Grello, who also represents the Borough in collective bargaining.  Attorney Grello and insurance consultants Dr. Joseph Field and Robert Fitzpatrick form a great team, providing valuable expertise to navigate the complex world of municipal labor negotiations and health care.  The terms of the CBA are consistent with recent municipal agreements that offer modest wage increases in exchange for significant savings in health care costs and changes to the structure of such plans.  Our administration would like to congratulate the entire BoE negotiating team and Superintendent Dr. John Tindall-Gibson for the significant amount of time devoted to reaching this agreement and the foresight to focus on future sustainability. BoE Business Manager Wayne McAllister worked tirelessly and effectively as usual to assist the negotiating team.

We would also like to thank all of Naugatuck’s fantastic teachers and their negotiating team for reaching a fair and equitable agreement for teachers and taxpayers alike.  The Naugatuck School District contains some of the best and most caring educators in the state.  The past few years have been very difficult given hard economic times, but Naugatuck teachers have never faltered in their commitment to making lifelong learners of our children.  Through this agreement’s health care savings and previous concessions given during trying times, teachers are affording the Borough the opportunity to provide our students with the best education possible.  We all realize that the complexities of educating children will only increase in coming years, but are confident that Naugatuck’s excellent teachers will be ready to meet these challenges.