AFSCME, State go to binding arbitration

DES MOINES - Negotiators for the state and its largest public employees union Thursday asked an independent arbitrator to resolve an impasse over wages and health benefits that prevented the two sides from reaching a voluntary settlement on a new two-year collective bargaining agreement.

Danny Homan, president of American Federation of State, County and Municipal Employees (AFSCME) Council 61, said talks broke off with the two side close to agreement on a wage provision that would boost pay for about 18,000 AFSCME members by about 6 percent over the two-year agreement that would begin July 1 and run through June 30, 2017. For the first time, he said, his union agreed to pay a share of their health insurance premiums but could not accept significant concessions sought by state negotiators that would have saved $48 million for the state but would have clawed back 4 percent of the wage gains from his members in the process.

AFSCME began negotiations in November seeking a 2 percent wage hike at six-month intervals over the life of the contract and wanted status quo on health benefits. The state opened talks offering a 1 percent across-the board wage hike each of the two fiscal years. Current 4 percent 'step” increases for eligible employees would carry over to the new contract.

Homan said AFSCME agreed to modify its wage proposal to a 2 percent raise July 1, 1 percent on Jan. 1, 2016, 2 percent on July 1, 2016, and 1 percent on Jan. 1, 2017. The state's final offer called for a 2.5 percent raise on July 1, 2.25 percent on July 1, 2016, and 1.25 percent on Jan. 1, 2017, and called for a redesigned health insurance plan that would have most union members paying a share of their monthly insurance premiums with a wellness rebate if they enrolled in health maintenance programs.

Since the 2010 election campaign, Republican Gov. Terry Branstad has called for all state employees to pay 20 percent of their health insurance premium - an issue that went to arbitration in 2013 with the union position prevailing but getting a clear signal that position likely would have to soften in the current round of contract talks.

Homan told arbitrator Curt Behrens, a retired resource management instructor at the University of Northern Illinois, during Thursday open arbitration hearing that the only 'breakthrough” during closed-door talks was the union's offer for members currently paying no health insurance premium to pick of a share of the cost. However, he did not believe the state responded in kind with a financial concession.

'The disagreement is on whether the quid pro quo is sufficient, right? You're not arguing that the state has offered nothing,” state representative Jeff Edgar asked Homan during cross examination at Thursday's arbitration hearing. 'The state thinks it is sufficient.”

To which Homan responded: 'You did not offer a quid pro quo. I don't believe there is one. I believe there's a win-win in your proposal and both of those wins are for the state of Iowa. We pay more in premiums and we pay more in plan design and you pay less. Where's the quid pro quo? I don't see any.”

Behrens, who will rule separately on the wage impasse and the benefits disagreement, has until March 15 to issue a decision which is binding to both parties.