Administrative law judge: State and AFSCME are at partial impasse in contract negotiations
Illinois taxpayers have won a partial victory in the first round of impasse proceedings between the state and the American Federation of State, County and Municipal Employees, as the administrative law judge’s ruling puts the state closer to implementing its last contract offer to state AFSCME workers.
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.
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.