 On Sept. 2, a state administrative law judge, or ALJ, handed taxpayers a partial
victory over the American Federation of State, County and Municipal Employees,
the state’s largest government-worker union.
The ALJ ruled that AFSCME and the state are at impasse, or stalemate, on some
issues in the negotiations over a new contract for state workers.
The previous contract expired June 30, 2015.
Although appeal to the Illinois Labor Relations Board is expected, the ruling
means the state is one step closer to implementing a final contract offer on at
least of some contract provisions it had offered to state workers represented by
AFSCME.
State-AFSCME contract negotiations and the ALJ decision
Negotiations between AFSCME and the state dragged on for months, with 67 days of
meetings and over 300 different proposals. Despite the fact Illinois state
workers are already the highest-paid state workers in the nation when adjusted
for cost of living, AFSCME is making demands – such as salary hikes and
platinum-level health insurance at little cost to workers – that would cost
state taxpayers an additional $3 billion in wage and benefit increases.
On the other hand, throughout the negotiations, Gov. Bruce Rauner has sought to
bring union costs more in line with what taxpayers can afford. The governor has
proposed a four-year temporary wage freeze and a 40-hour workweek (as opposed to
just 37.5) before overtime accumulates, as well as state-employee health
insurance more affordable for the state’s taxpayers, and that provides more
options for state workers.
Negotiations came to a halt in January 2016, when an AFSCME negotiator left
negotiations saying, “I have nothing else to say and am not interested in
hearing what you have to say at this point – carry that message back to your
principals.”
Prior to this, the state and AFSCME had entered into three tolling agreements in
which the parties agreed to continue contract negotiations in good faith until
impasse is reached. The tolling agreements provided that, if either side thought
the parties had reached a stalemate in contract negotiations, either side could
ask the Illinois Labor Relations Board to step in and determine whether impasse
exists.
That is exactly what Rauner did in January 2016.
In her decision Sept. 2, the ALJ agreed the parties are at impasse on a number
of issues, including mandatory overtime and vacation, holiday scheduling, and
leaves of absence. If that recommendation stands, the state will be able to
implement its offer on those provisions in the contract. But the ALJ concluded
the parties are not at impasse on other issues, and she passed on making an
impasse determination altogether on such issues as wages and health care
insurance. She recommended the parties continue to negotiate on those subjects.
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 What’s next: Appeals process
Once an ALJ announces a recommended order and decision, the parties
can file exceptions, which are like an appeal, with the Illinois
Labor Relations Board. In this mixed decision, it is likely that
both parties will file exceptions.
If the labor board ultimately agrees the parties are at impasse on
all or some of the contested issues, Rauner can implement the
state’s last and best offer on those issues. This potentially could
include contract provisions such as the temporary wage freeze,
implementation of merit pay and requiring 40 hours of work (instead
of just 37.5) before overtime kicks in. AFSCME, in turn, could
choose to strike. (AFSCME reportedly has already polled its members
on their willingness to strike, should the state be able to
implement his last offer to the union.)
If the labor board decides the parties have not reached impasse, or
agrees with the ALJ that the parties are not at impasse on some
issues, AFSCME and the state must return to the negotiating table to
discuss those issues.
Once the parties’ written arguments are filed with the Illinois
Labor Relations Board, it will review the ALJ’s decision and the
parties’ arguments. The board meets once a month, and the arguments
likely will not be filed in time for the board to have time to
consider them before its October meeting.
This means the earliest date at which the board can review the ALJ’s
decision is at its November meeting. No decision will come before
then.
But even in November, things will be far from over.
Under Illinois law, either party can appeal the board’s final
determination to a state appellate court. And with tension running
high between AFSCME and the state, that is exactly what is expected
to happen. That decision, in turn, can be appealed to the state
Supreme Court for a final determination. This means the Illinois
Supreme Court will likely make the ultimate decision on whether the
parties are at impasse – and with the timeline currently in place,
that decision may not happen until sometime in 2017.
In other words, the resolution of the AFSCME contract is just
getting started.
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