New WERC Rules on Base Wages

On Friday March 30, Governor Walker approved revised emergency administrative rules for determining base wages for bargaining under Act 10. Under these new rules, base wages will no longer be equivalent to an individual’s actual salary, but rather a lesser amount that excludes compensation for educational attainment, credentialing, lump sum merit, and overtime, among other items. While this change applies to state and municipal employees, it will likely affect our K-12 and tech college teacher locals disproportionately, as many of our teacher union contracts include educational attainment salary bumps.

These new rules reflect a departure from the Wisconsin Employment Commission’s original interpretation of how base salary should be calculated. The original emergency rule, which was unanimously approved by the Commission, defined base wages much more broadly. At Walker’s request, the Commission redrafted the rules to further limit unions’ ability to negotiate on their members’ behalf. These new rules were approved by the Commission along partisan lines. James Scott and Rodney Pasch, the two Walker appointees voted in favor of the new rules, while Judy Neumann, the remaining Doyle appointee on the Commission, dissented. For a copy of the new rules, go here: http://werc.wi.gov/selected_press_releases_and_werc_world_articles.htm#maximum_base_wage_increase_rules_redrafted.

The revised rules set the base wage, and, therefore the CPI increase, substantially below the amount needed to pay teachers their current salaries. For instance, if the union contract has a base salary for a starting teacher with a BA of $38,000, but a starting salary for a teacher with an MA is $50,000, the bargained salary increase up to CPI will be figured on the teacher’s base salary of $38,000 rather than her actual salary of $50,000. Any increase beyond this amount—and, in fact, any part of the teacher’s current salary that is attributed to educational attainment or other “supplemental compensation”—will not be bargainable under the new rules.

These new administrative rules are another example of Governor Walker’s overreach and his willingness to use the political process to bust our unions and undermine public education and state services. Under the new rules for municipal employees, general employees are divded into essentially two classes—teachers and other general employees whose salary increases have not been linked to educational attainment. As a result, the rules seem to discriminate against teachers: there is no rational basis for treating teachers' salaries differently than other general municipal employees. Further, the new rules may have the consequence of reducing teachers’ take-home pay. The union is looking into both these matters.

The news is dire, but it does not necessarily mean that teachers will see a pay cut. Nothing in the rules requires districts to cut teacher pay. Districts still have the ability to seek input from the union on supplemental salary plans, and they still have the ability to include salary increases for educational attainment in policy or handbooks. There is strong incentive for districts to continue the educational attainment increase. Students benefit from having teachers who have continued their own education. Our union locals should be working with their administrations and boards and with the larger community to ensure that educational attainment increases are preserved in the handbook and/or in board policy.

These rules are also yet another reason in a long list for recalling Governor Walker and his Republican cronies in the legislature. This is not only a matter of union rights. It is a matter of protecting and perserving Wisconsin public education. To participate in the recall election process, email Jessica Ulstad at ulstad@aft-wisconsin.org.

If you have questions about the new administrative rules, please contact your AFT-W staff rep. You may also contact that AFT-Wisconsin office directly at 608-662-1444.