Sisters and Brothers,
As you may know, the biennial 2013-2014 Legislative Session is adjourned. This has been the most successful biennial session for Teamsters Local 320 in over a decade and since the Local Union pushed for the PERA Correctional Pension in 1997. We have successful victories in many areas which impact Teamsters every single day. Please review the following for important legislative changes.
Supplemental Budget
For Teamster members at the Minnesota State Colleges and University (MnSCU) system you will know that Local 320, MSUAASF and the MnSCU administration fought hard to secure additional funding to the Fiscal Year (FY) 2015 budget at $17 million, and $34 million for the FY 2016-2017 budget cycles. This was needed in order for ASF faculty to attain comparative economic settlements to state AFSCME and MAPE settlements. Our collaborative efforts were successful!
Biennial Bonding
The MnSCU system was another big winner in the bonding arena securing $159,812 million in project funding, $42,500 million of which is for the Higher Education Asset Preservation and Replacement (HEAPR) program. The University of Minnesota was the second biggest winner capturing $119,367 million in project funding with $42,500 million for HEAPR. Lastly, the Metropolitan Council secured $45,968 million for project funding with $15,000 million for the Transit Capital Improvement Program.
Pensions
There were changes made to the PERA General Pension system and the MSRS General Pension system. Legislation has now annualized the PERA Membership Eligibility Threshold which was previously based on a monthly determination. The PERA Membership Eligibility Threshold is what determines whether a PERA-covered public employee will receive a pension. The threshold is now set for two categories: school district employee and non-school district employee. The formula is set: school district employee membership eligibility threshold at $3,800 annual salary compensation. If a school district employee meets or exceeds the threshold for their annual salary compensation they will receive a PERA pension. If they fail to meet or exceed the $3,800 annual threshold they will not receive a PERA pension. Non-school district employee membership eligibility threshold is at $5,100 annual salary compensation.
Another area of change is the contribution rate for the PERA General Plan and the MSRS General Plan. The Post Retirement Adjustment Trigger requires Minnesota’s public pension systems to maintain a 90 percent funding ratio. Both the PERA Gen. and MSRS Gen. plans dipped below 90 percent funding. In response, the State Legislature raised the PERA Gen. employee contribution 0.25 percent to 6.5 percent total employee contribution. The MSRS Gen. employee contribution was raised 0.50 percent to 5.5 percent total employee contribution. The changes to the PERA Membership Eligibility Threshold will take effect January 1, 2015. The contribution increases will take effect July 1, 2014.
Workers’ Rights-
1. PERB: Public Employees Relations Board
The State Legislature strengthened workers’ rights for public employees by creating a Public Employees Relations Board (PERB) under the Bureau of Mediation Services. The Board handles Unfair Labor Practice (ULP) charges (listed under PELRA) administratively, replacing the current practice of handling ULP charges through the district courts. Before PERB, the process of bringing charges through district court was very expensive, cumbersome and time consuming. The typical cost for a labor union to bring a charge was $50,000 to $75,000, and could take years for a decision. PERB now makes it less costly and much quicker to get a decision regarding a ULP charge.
2. Joint Powers Protection
More and more local governments are looking to contain costs and streamline services; many governments are merging services with other local governments. Mergers can sometimes cut costs, but usually are chaotic for the frontline workers who administer the services. When public services merge many employee rights and benefits are negatively impacted. During past mergers workers had no protections. The Joint Powers Protection Act protects workers’ rights and benefits until a successor agreement is ratified by the affected workers. The legislation will take effect January 15, 2015.
3. WESA: Women’s Economic Security Act
- Fights the “motherhood penalty” by helping mothers stay in the workforce. It expands family leave and requires employers to provide reasonable accommodations for women who are pregnant or nursing,
- Expands the ability to use sick leave and other benefits for a variety of family caregiver situations and for victims of sexual violence,
- Expands access to high quality, affordable child care,
- Expands Minnesota’s pay equity laws beyond state and local governments: A new provision requires outside contractors who do at least $500,000 in state business also give their male and female employees equal pay for work of equal value,
- Makes it illegal for employers to retaliate against workers who discuss their pay with others,
- Provides economic and educational incentives to reduce “job clustering” and instead employ more women in higher-paying, “nontraditional” jobs; and
- Increases the possibility of retirement security by having the state explore running retirement savings plans for private-sector workers.
For more on WESA: http://mn.gov/governor/images/2014_05_11_wesa_fact_sheet.pdf
Minimum Wage:
The State Legislature enacted a major increase in the state minimum wage. Legislators have pushed the hourly wage to $9.50 by 2016. The new rate will be tied to inflation beginning in 2018, but the commissioner of the state Department of Labor and Industry can prevent automatic inflationary increases if the state hits a future economic downturn. It is estimated that 350,000 low-wage Minnesota workers will get a raise from the increase.
School District Health Insurance: Health Care Transparency and Accountability Act (HCTA)
The HCTA provides a sealed bidding process for insurance providers at school districts and for more disclosure from school administrators and board members when dealing with health insurance contracts. The process requires three mandatory bids from competing insurance providers including one from the Public Employee Insurance Program (PEIP).
For More on HCTA: http://www.educationminnesota.org/advocacy/at-the-legislature/health-insurance-transparency-bill.aspx
Joint Powers Tax Relief:
The State Legislature provided sales tax exemptions for Joint Powers or Special Districts for the following implements:
- Housing services
- Public safety services
- Sewer and water services
- Correctional services
- Wastewater treatment services
- Road and lighting maintenance services
- Ambulance services
- Chore or homemaking services for the elderly or disabled
This law includes Teamsters Local 320 groups such as: the Anoka-Champlin Joint Powers Fire Board, South Lake Minnetonka Police Department, Central Minnesota Community Corrections, Rice-Steele County Joint Dispatch Board and the Stearns-Benton Employment and Training Council.
MNTLEL:
The State Legislature has eliminated licensure for part-time peace officers prohibiting law enforcement agencies from hiring new part-time peace officers, prohibit part-time peace officers from moving to new agencies and prohibit the Board of Peace Officer Standards and Training from licensing new part-time peace officers as of June 30, 2014. Current part-time officers would be grandfathered in until they retire. The legislation was created to professionalize peace officers in the state and encourage part-time peace officers to get the necessary schooling to be eligible for full-time status.
The State Legislature prohibits individuals from possessing weapons if they are subject to domestic violence restraining orders. The legislation requires individuals to surrender their firearms if they have been convicted of domestic offenses. The legislation provides penalties for those who fail to comply.
The State Legislature increased the time-limit for warrantless arrests from 24 hours to 72 hours in misdemeanor and gross misdemeanor domestic abuse offenses. This bill also clarifies probable cause arrests for violations of protection, restraining, and no contact orders.
The State Legislature created legislation to require a special tracking warrant when a device is used to find a person’s location by their cell phone or other electronic devices. A government entity may not obtain the location information of an electronic device without a tracking warrant. A tracking warrant granting access to location information must be issued only if the government entity shows that there is probable cause the person who possesses an electronic device is committing, has committed, or is about to commit a crime.
Areas Where the State Legislature Fell Short:
The State Legislature failed to take action on pension improvements for 911 Operators, Probation and Security Officers. Teamsters Local 320 will continue to monitor the issue with great concern and try to find avenues for compromise with legislators and the groups affected.
The State Legislature failed to provide Veterans Preference Hearings to be paid for by the employer. This was a good bill that would help Minnesota’s veterans but was opposed by employer groups such as the League of Minnesota Cities, the Minnesota County Association and the Inter-County Association.
Overall, Governor Mark Dayton and the DFL-controlled State Legislature have done more for Minnesota’s workers and public employees than we have seen in a generation. Please thank Governor Dayton and the DFL leadership for their help and support.