Arbitration system drives wages up
To the Editor:
In September 2008, the Human Resource Committee of the Sheboygan County Board began the biennial task of negotiating contracts for the 2009-10 years with its eight unions (seven of which have mediation/arbitration recourse). The process began to bog down late in 2008 as the current recession became apparent.
In late spring and early summer, we reluctantly agreed with five unions to contracts that included raises over the two-year period of 5 percent or less with little change to benefits. These contracts were a tough sell to the County Board due to the recession; however, the potential disastrous consequences of losing in interest arbitration helped secure the needed votes.
When a union and county fail to agree on a contract, one of the parties can file for interest arbitration. Each side produces a final offer following mediation and argues its case to an arbitrator. The arbitrator must choose one of the two offers, with no compromises allowed.
Wisconsin law provides a list of factors that the arbitrator should consider, including a “greater weight” to economic conditions; however, in practice, arbitrators typically base their decision on comparisons with county and public sector employees of comparable counties.
As a side note, the county and union each get to strike three arbitrators from a list of seven provided. That gives the arbitrators the incentive to have past rulings in favor of both sides, while also giving unions incentive to file for interest arbitration in an attempt to tilt the scale in their direction.
The 5 percent wage raise over the two years offered by the county was not good enough for two of Sheboygan County’s unions – the deputies from the Sheriff’s Department and the social workers. The deputies’ demand, despite the current recession, was 7 percent over the two years.
The arbitrator sided with the deputies, claiming that protective service employees should be treated differently than regular county employees and deferring to what officers get paid in counties such as Ozaukee, Brown and Washington. He additionally failed to consider the current recession “due at least in part to past county fiscal prudence and the county’s current ability to pay” essentially punishing the county for having its financial house in order.
The system needs to change. One person, accountable to no one, should not determine the wages and benefits a county is required to pay its employees. Comparable counties should not be able to drive up the wages of public sector employees, essentially a dog chasing his tail. How can elected officials manage their budgets when they have little control over wage and benefit costs?
I have the utmost respect for those who put on the uniform to protect us and enforce the law. Sheboygan County’s Sheriff’s Department does a fantastic job fighting an increasingly uphill battle. However, the union’s decision to enter arbitration with a 7 percent raise over two years when those they are sworn to protect are unemployed and under-employed seems detached from reality.
When was the last time you received a 7 percent raise? Have your benefits remained constant? Do you pay only 10 percent for your health insurance? Does your employer fully fund a pension for you so that you can retire prior to age 65?
The system needs to change.
Devin LeMahieu, County Board supervisor, 29th District, and vice chair, Human
Resource Committee
