Updated 10/26: Very Small Raise and Change in Health Plan for Norwalk Teachers

A new teacher contract reached between the Norwalk BOE and the Norwalk Federation of Teachers is expected to save millions of dollars of savings for Norwalk according to BOE member Jody-Bishop Pullan.

"This new contract will result in substantial savings to the city," she said in an interview with NorwalkNet.

The savings will come primarily from the changes in health care which are to begin as of Jan 1, 2010. The savings amount to $2 million each year of the contract and $1 million this budget year according to a press release issued on Friday.

The parties also agreed to a salary increase, however it is the smallest increase that the BOE has ever given--1.35%, 1.36%, and 1.37% each year respectively.

"I am pleased with this contract. I think it is fair to everybody and it will save a lot of money," said Ms. Bishop-Pullan. "These are difficult economic times and next year's budget will be even tougher than this year's. We need to have the funds to protect our programs and protect our staff."

In addition to the changes in the health care plan and the salary increases, Ms. Bishop-Pullan said that the the accumulation of sick leave was capped to 15 days per year and severance pay was eliminated for new hires. The longevity pay schedule which rewards teachers for seniority in the system and was a major point for contention for Bruce Mellion, president of the NFT, remains unchanged.

When asked about the timing of the contract negotiation and its resolution just prior to election day, Ms. Bishop-Pullan said that timing was wholly determined by the State and not political.

"We had to meet the time requirements set by the State," said Ms. Bishop-Pullan. "There is no wiggle room. We have to reach a settlement within a certain time. In Norwalk, it just happened to be around election time."

Are you a teacher? What do you think about this new contract?

Below is the official press release from the BOE about the outcome of its arbitration with Norwalk Federation of Teachers.

NORWALK BOARD OF EDUCATION
OCTOBER 23, 2009 PRESS RELEASE

After two days of arbitration, the Norwalk Board of Education and the Norwalk Federation of Teachers were able to reach a settlement which resolved all outstanding issues in dispute between them. Their new three year agreement was adopted by the panel of arbitrators on October 22, 2009 as a stipulated settlement in arbitration. The Board had hoped to have been awarded more of its proposals but feels that in the end the settlement was both fair, and economically sensitive to the needs of the City of Norwalk, in a variety of meaningful ways.

The general wage increase in each of the next three years will be 1.35%, 1.36%, and 1.37%. This is among the lowest salary settlements, if not the lowest salary settlement ever. Additionally, to offset even these relatively modest salary increases, the parties agreed to replace the current PPO group health insurance plan with a high deductible health savings account (“HSA”) group health plan. It is estimated the new HSA plan will save the Board of Education in excess of $2,000,000 in each of the three years of the contract which begins September 1, 2010 and will provide for a financially neutral budget settlement. Furthermore, the parties agreed to implement these plan changes this year, by January 1, 2010, or as soon thereafter as Anthem can implement them. This will result in reductions in the health insurance account estimated to save an additional $1,000,000 between January 1 and August 31, 2010, the months remaining in the final year of the current contract.

By state statute, teachers are entitled to 15 sick leave days per year, cumulative to a minimum of 150 days. In Norwalk, the accumulation of sick leave days by teachers has always been unlimited. Beginning with this new contract, the accumulation of sick leave days will be capped. The Board was also able to eliminate the severance pay fringe benefit for all employees hired after the expiration of the current contract. It was a long process but it is felt that the results are fair to teachers and will benefit the community and it’s nearly 11,000 students.