Rule-making notices
Notice of Proposed Rule
Employment Relations Commission
NOTICE IS HEREBY GIVEN That pursuant to ss. 111.70(4)(cm) 8s., 111.71 and 227.11 (2)(a), Stats., and interpreting ss. 111.70 (1) (dm), (fm) and (nc) and 111.70 (4) (cm) 5s., Stats., and according to the procedure set forth in s. 227.16 (2)(e), Stats., the Wisconsin Employment Relations Commission will adopt the following rule as proposed in this notice, without public hearing unless, within 30 days after publication of this notice on June 15, 2006, the Wisconsin Employment Relations Commission is petitioned for a public hearing by 25 natural persons who will be affected by the rule; a municipality which will be affected by the rule; or an association which is a representative of a farm, labor, business or professional group which will be affected by the rule.
Analysis Prepared By the Wisconsin Employment Relations Commission
The Wisconsin Employment Relations Commission proposed to repeal and recreate ch. ERC 33 Appendix Forms A, B and C as part of the complete revision of its administrative rules encompassed in Clearinghouse Rule 02-037. Following consideration of the Legislative Council's Clearinghouse Report and comments from the public, it was the intent of the Commission to include ERC 33 Appendix Forms A, B and C in its Notice of Submission of Proposed Rule to Legislature (which did include ERC 33 and ERC 33 Appendix Form D) and in its own rule-making Order. However, ERC Appendix Forms A, B and C were inadvertently omitted from that Notice and the Commission's subsequent rule-making Order. Therefore, the Commission proposes to repeat the rule making process as to ERC Appendix Forms A, B and C.
The proposed rule interprets Secs. 111.70 (1) (dm), (fm), and (nc) and 111.70 (4) (cm) 5s. Stats.
Sections 111.70 (4) (cm) 8s., 111.71 (1) and 227.11 (2) (a), Stats. give the Commission authority to repeal and recreate these rules.
The proposed rule specifies the manner in which a qualified economic offer is calculated.
There are no federal regulations that address a qualified economic offer nor are there similar rules in adjacent states.
Rule Text:
The Wisconsin Employment Relations Commission proposes an order to repeal and recreate ERC 33 Appendix Forms A, B and C relating to procedures for the administration of the Municipal Employment Relations Act.
SECTION 1. CHAPTER ERC 33 Appendix Forms A, B and C are repealed and recreated to read:
EMPLOYMENT RELATIONS COMMISSION
Chapter ERC 33
APPENDIX
WISCONSIN EMPLOYMENT RELATIONS COMMISSION
QUALIFIED ECONOMIC OFFER CALCULATION
FORM A
This form and Form B must be provided by the district to the labor organization 60 days prior to contract expiration, or whenever a qualified economic offer is made, whichever is earlier.
DEVELOPING A QUALIFIED ECONOMIC OFFER
Developing Employee Base
1. Identify all school district professional employees (as defined by Sec. 111.70(1)(ne), Stats.) who were represented by the labor organization for the purposes of collective bargaining and contract administration on the 90th day prior to the expiration of the current/most recently expired bargaining agreement. School district professional employees who were employed on the 90th day but who thereafter retire, resign or are terminated prior to the expiration of the current/most recently expired contract are included. School district professional employees on layoff, sick leave or leave of absence must be included if they continue to be represented by the labor organization for the purposes of collective bargaining and contract administration. School district professional employees who are replacing employees who are in leave status are not included unless they are represented by the labor organization for the purposes of collective bargaining and contract administration in the same bargaining unit as the employee being replaced.
Developing Fringe Base
2. Identify all fringe benefits and your percentage contribution toward the cost thereof as such benefits and contributions existed on the 90th day prior to the expiration of the current/most recently expired agreement, or the 90th day prior to the date on which your negotiations actually commenced if there is no previous collective bargaining agreement between the parties. If your fringe benefit contribution level is expressed as a dollar amount, convert the dollar amount to a percentage for the purposes of this calculation.
Total Base Cost Calculation
3. Using the employees identified in Step 1 and the fringe benefits and employer percentage contribution levels identified in Step 2, complete Form B to calculate the employer cost of compensation and fringe benefits for the year preceding the expiration date specified in your current/most recently expired contract. For the purposes of this calculation, assume that any cost increase incurred during the year was in effect for the entire year. In your calculation, you must include the cost of any benefits Step 1 employees who retire will receive/received prior to the expiration of your current/most recently expired contract. Do not include the cost of providing benefits to employees who retired before the 90th day prior to the expiration of the current/most recently-expired contract.
Enter the total base year salary and fringe benefit costs from Form B here.
Salary   ________
Fringe   ________
Total   ________
QEO 1 Dollar Amounts
4. Calculate 3.8%, 2.1% and 1.7% of your Step 3 total and enter here
3.8% = _______ 2.1% = ________ 1.7%= ________.
For the purposes of the following calculations, do not assume any change in: (1) the identity of Step 1 employees; (2) the level of service they provide to the district or (3) the fringe benefits Step 1 employees received or the applicable employer % contribution level. Do assume that any cost increase incurred during the year was in effect for the entire year.
QEO 1 Fringe Benefit Calculation
5. Using the same employees identified in Step 1 and the fringe benefits and employer percentage contribution levels identified in Step 2, calculate the actual employer cost of maintaining the fringe benefits and employer percentage contribution levels for the first 12-month period following the stated expiration date in the current/most recently expired contract. If your contract will have a duration of less than 12 months, prorate your cost calculation to reflect your actual contract duration, if appropriate. Enter this cost here and on Form B, QEO 1, fringe benefit cost. ________
6. Subtract your Step 3 base fringe benefit cost from your Step 5 cost and calculate the result as a percentage of your total Step 3 base year cost. Enter the result here and on Form B, QEO 1, fringe benefit percentage. ________
QEO 1 Step Calculation
7. For the first 12-month period following the stated expiration date in the current/most recently expired contract, calculate the total additional cost of providing each employee identified in Step 1 with any salary increase to which they would be entitled by virtue of an additional year of service on the salary schedule (longevity is to be included if part of salary schedule). Enter this cost here and on Form B, QEO 1, Step Advancement ___________.
8. Calculate your Step 7 cost as a percentage of the total Step 3 base year cost. Enter the result here. ________
End of first year QEO calculation
If you are bargaining a contract with a duration of 12 months or less, stop and proceed to the Qualified Economic Offer Instruction, Form C.
Start of second year QEO calculation
Total QEO 1 Base Cost Calculation
9. Repeat Step 3 for the first 12-month period following the stated expiration date of your current/most recently-expired contract. Enter the total QEO 1 salary and fringe benefit costs from Form B here.
Salary ________
Fringe ________
Total ________
QEO 2 Dollar Amounts
10. Calculate 3.8%, 2.1% and 1.7% of your Step 9 total and enter here:
3.8% = ________ 2.1% = ________ 1.7% = ________.
QEO 2 Fringe Benefit Calculation
If your contract will have a duration of less than 24 months, prorate your QEO 2 cost calculation to reflect your actual contract duration, if appropriate.
11. Repeat Step 5 for the second 12-month period following the stated expiration date in the current/most recently expired contract. Enter this cost here and on Form B, QEO 2, fringe benefit cost ________.
12. Subtract your Step 9 fringe benefit cost from your Step 11 cost and calculate the result as a percentage of your Step 9 total QEO 1 cost. Enter the result here and on QEO 2, Form B, fringe benefit percentage ________.
13. Repeat Step 7 calculation for the second 12-month period following the stated expiration date in the current/most recently-expired contract. Enter the cost here and on Form B, QEO 2, Step Advancement. ________.
14. Calculate your Step 13 cost as a percentage of your Step 9 total QEO 1 cost. Enter the result here ________.
Proceed to the qualified economic offer instruction Form C.
ERC 33 Appendix     WISCONSIN ADMINISTRATIVE CODE
FORM B
This Form and Form A must be provided by the district to the labor organization 60 days prior to contract expiration, or whenever a qualified economic offer is made, whichever is earlier.
Salary     Base
    Year QEO1 1/
QEO2 1/
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