 Welcome to Sheboygan County government working for you. My name is Adam Payne and co-host of this program with Chairman Mike van der Steen Yes Chairman Mike van der Steen back in the hot seat next to me as you know He's been gone the past few months and it's good to have you back Mike. Thanks much Adam. It's good to be back in the saddle again We have a one of our 21 department heads with us today Mike Collard our HR director And as you know every month we try to bring a different department to you or area of interest in county government and Mike Thanks for joining us. You're welcome. Glad to be here Why don't you start by sharing a little bit about yourself and the primary roles of the HR department? Well, I came to Sheboygan County in December of 2002. So it's been over eight. What is it nine years now and almost nine years now over eight years and worked with a couple of other smaller counties before coming here and and then the leader of a four-person department now and human resources and we deal with all aspects of our Sheboygan County employees including compensation issues and you know rules and regulations and hiring and firing and Employee benefits, of course is a big part of it as well Obviously you have a lot of strengths, but one of the ones I appreciate is your your legal background in your law degree That certainly comes in handy from time to time. It does help There are so many rules and regulations and negotiations involved especially with the union environment. We have now the county as we were Discussing off the air as one of the largest employers in Sheboygan County though. We've gotten smaller not larger Please give our viewers a flavor for What is the size of Sheboygan County? How many employees do we have? Well, there are a total of 932 employees currently if you count everybody all different categories of employees Now that includes people such as the county board members themselves and other citizen board members anyone that gets even a per diem check Occasionally and temporary employees as well. So there are about 850 regular full-time and part-time employees with the county currently and then those employees some are represented some aren't Represented how many unions do we have? We have eight different union groups three different unions, but eight different bargaining units and About 745 of those 800 and 50 some employees are represented by one of the unions in terms of the regular employees So it's about 88% of our workforce. We consider to be unionized now and right now Well, we'll talk about that a little bit more in the program, but right now all of the eight unions have agreements that are in place, correct? Yes, we have bargaining agreements in place now running through the end of next year December of 2012 so we're fortunate to have those things resolved although there are some interesting steps along the way to that point Now as many of our viewers know it seems as though the budget process never ends for government at any level but for Sheboygan County specifically the county board adopts it in November and you take a deep breath and and perhaps Briefly Appreciate that you've gotten the job done and then you start work on the next and of course one of our greatest expenses Is associated with labor and it's not just wages. What else or what are some of the key factors? Associated with the costs of our staff, right? We have about 45 million dollars of taxpayer money in wages every year, but in addition to that It's 11 million or so in tax levy that goes just to the health insurance benefit or health and dental benefit that we provide to To our employees so that's by far the next biggest item in the county budget perhaps after wages After that we also pay some other benefits and the next largest would be the Wisconsin retirement system We do make the contributions for the retirement system for our employees For most of them and that of course is changing as well But the total of those payments is about four and a half million dollars a year So of course salary or your wages your health insurance costs and Pension costs and as I'm sure all of our viewers are aware There's been a lot of consternation in Madison a very contentious issue the last few months with the governor's repair bill and essentially Asking or requiring frankly many employees to contribute more toward the cost of their Pension and also contribute toward health insurance Please set the stage for us a little bit. What was it that the governor introduced and what's the status of the legislation? Well, first of all the status is it's currently on hold Placed on hold by a restraining order issued by the circuit court in Madison judge Sumi, of course And that's been obviously very well publicized And so we're not sure when that law will actually take effect But the way the law is written it affects our collective bargaining situation quite a bit And it also affects our non-union employees The biggest impact especially for non-union employees is that it requires Employee to pay half of those pension costs and our pension system or state pension system is a very well-run system It's it's one of the very few state pension systems that is fully funded or considered fully funded But that requires those steep contributions every year and up till now employees have not been paying toward it It's been just the county that's paid Now with the budget repair bill non-union employees will have to pay half of what the total contributions are and As collective bargaining agreements expire other employees will also have to pay half So I think sometimes there's a misunderstanding in the community community well I thought employees were only paying 5.8% of their pension Please clarify that's five point eight percent of their wages. That's right the total contribution for most employees And there are some different categories Requires that the county pay eleven point six percent of wages into that system. So that's a very that's why it's such a high expense Half of that eleven point six percent of course is five point eight percent So that amount will change every year depending on what the total is determined by the actuaries in Madison But currently five point eight percent of wages is being paid into those Retirement accounts by non-union employees and now some of our union employees as well So now a little better than half of our employees are contributing toward their pension Most are paying the five point eight some a little less depending on the contract status And what about health insurance costs on average? What are employees? contributing there well right now Most of our employees are paying I'd say a majority are paying twelve and a half percent of the premium All full-time employees are paying at least ten percent Depending on the status of their union contracts and many of those are going up to twelve and a half Or in some cases fifteen percent of premium next year in 2012 And that's another area. I think of misunderstanding when the governor proposed the budget repair bill and Asked that all employees make these concessions At the same time there were cuts made to local government should Boyden County government And the thought was at least from the state level that though we're going to be passing on these cuts in shared revenue or other Cuts that are necessary to balance the state budget We're also going to pass on this additional flexibility the local units of government where now they can get more concessions from their employees in the form of Pension and health insurance Contributions but the fact is that in Sheboygan County because of the proactive steps of Mike collard and the HR committee and the full county board Our employees have been contributing more toward their health insurance for a number of years now So it is no one-for-one though Sheboygan County will without question be part of the solution and without question Those additional contributions will help us balance our budget. It isn't a one-for-one We're still going to have to make cuts in other areas or health insurance plan design changes or What have you we're going to have to get creative Mike as as you've looked at your tenure here the last eight or nine years Without question. We have made plan design changes. We have incrementally increased the contribution from employees But as you know in the governor's Budget repair bill it didn't treat all employees the same some will be contributing more toward that their pension Some won't be Touch on that, please sure the the bill exempts sworn law enforcement Personnel from having to pay the 5.8 percent of wages toward retirement or toward half or any portion really of their retirement obligations which are actually would pay more for the law enforcement personnel because of the higher risks and the better retirement benefit that goes along with those positions, but Those employees will not be required to pay anything under the bill so of course we're gonna have to follow that that lead and They won't be be part of the mix also as you said on health insurance We even before the bill was introduced We had agreements with several unions to go to twelve and a half percent of the premium Which is the goal really announced by the governor's we were already most of the way toward the goal on health insurance And just to be clear those the law enforcement aren't required to immediately begin making that 5.8 percent contribution That doesn't preclude them from contributing in the future. It's just that it will be negotiated it's always a matter for negotiation and so the law would change that by taking it away from negotiations and Requiring it but for for sworn law enforcement such as our sheriff's department deputies Yes, that will be subject of our next negotiation and one where frankly we're gonna need all employees to step up and be part of that Solution and helping contribute last question before I turn it over to Mike all this consternation at the state level You know, it's certainly I mean whether you support What's been proposed or not In my opinion, whether it's friendship marriage or good government Respect and compromise are also always essential and I think the process at the state level One could conclude has not been real respectful between Democrats and Republicans and and has created a lot of consternation How has it impacted employees here other than them contributing more? What's the morality you think of staff at the at the county? Well, obviously our employees are very concerned about the law and the Change is taking place in their union contracts and the change is taking place for non-union employees So there's a lot of concern. There are a lot of thoughts, but overall I'm still very proud of the way people have reacted among our county workforce People have handled it very professionally. They've been concerned have disagreements Been talking about it But that hasn't kept them from keeping their focus on providing the services that they provide It hasn't kept them from treating each other and management with respect and I hope we treat continue to treat them with respect and I certainly believe we have done so and We haven't had any disruption of activities based on that when the Protests first started in Madison I know many of our viewers have seen reports of the teachers calling in sick and the doctor signing sick notes and a lot of behavior I personally didn't like to see Some of our employees were at those protests But they all arranged to take leave to do that and got permission to have leave from their jobs I don't know of anyone who called in sick falsely and I can back that up with some numbers We went and look at our sick time usage for that period when the protests were going on It was actually less sick time usage in our county workforce than there was the previous month before the budget repair bill was introduced So no sign of any disruption of our workforce disagreements. Yes, but Attention to business is still there very good. Thank you, Mike Mike the county board just recently approved two contracts and they had included significant contributions concessions by our employees of those two groups Could you give us a little bit of an update on on our eight contracts and and then focus a little bit on Rocky Noel Especially and why that one was so important for us. Sure There are as I said eight bargaining units that we have and all eight are now on the same timetable Which we like to see they're all settled in terms of our agreements through the end of 2012 Six of them. I should say seven of them were settled before the budget repair bill was enacted, let's say So those weren't really so much at issue One of them was unsettled, which was our largest group supportive services But we did two things we settled the supportive services group after the budget repair bill Which was a little bit controversial, but there were some good reasons for it I think and then we reopened the Contract with most of our employees at Rocky Noel health care facility Even though we didn't have to since we already had a contract That Rocky Noel bargaining group contract. I would say is the most interesting one I've been involved in negotiating in the in the 13 years. I've been doing these negotiations for different county governments It really makes a lot of changes more than I've ever seen made in a union contract And there's some really remarkable features to it First of all it goes out for a longer term than you normally see. We're actually settled with that group now through the year 2016 You may wonder why but there again are some real advantages to the county and doing it that way and advantages to the union and that they Get to keep the union agreement in place under the old law until then So really is a win-win situation and it came about I think because the employees to their credit recognized that You know the health care facility is an optional venture for the county to be in and that they Saw themselves more and more is really in partnership with the county to keep Rocky Noel going the way it is it's a great facility as you know and Everyone wanted to keep it going as a county facility. The question is would the economics permit us to do that? that's the employees really stepped up and saw themselves as partners in that decision and Realized they had to make some changes in order to help us Reduce expenses make it economically viable So there's really a trade off there And as a result we made a lot of changes that will help save money Not just in the long term through 2016, but right now in 2011 and 2012 Which we could not have saved if we had not done that longer-term deal under the old contract The the facility was losing quite a bit of money currently because of low census and higher expenses a lot of factors As a result of this contract the county will save about two million dollars in 2011 and 2012 which we would not have saved if we had not renegotiated and extended the contract Like what were some of the real specific interesting things that you negotiated in that contract and are some of those going to be Kind of a template for future contracts that we're going to do with other employee groups after the the current contracts expire I don't know if they'll be a template I think there are two Provisions that I'd really call out as being something that that you don't see very often in public sector contracts The first is the graduated benefits provisions a new hire a new employee starting out at Rocky and Ola now will not have health insurance benefits Or most of the other benefits that cost the county money Right away when they're hired Those benefits we phased in gradually over a three-year period so there's a tremendous cost savings to the county associated with that and It also provides more incentive to employees to continue to develop in their careers and stay with Rocky Noel Once they learn their jobs and have a greater expertise there They're more valuable to us and they get a greater benefit as compensation for that So it also will hopefully go to reduce our turnover out there, which is always an issue in a nursing home industry The second thing which I have never seen before frankly in a public sector contract But really like to see is the incentive bonus payments We locked in that contract the overall wage increases to 1% over the next four years five years Which is probably very likely I should say lower than the rate of inflation The only other pain crease will result from incentive bonus pay that employees can get That and bonus pay has to be earned every year or it won't be paid And it's earned through a combination of factors such as is the facility Rocky Noel as a whole meeting its goals towards Census number of residents reducing overtime shifts and Reducing a number of employees who call off a shift and just don't show up for work or Excuse, you know, whether it's a sick excuse or what have you The more employees step up and contribute to those facility-wide goals. They're gonna make a little extra money That's the kind of thing you might see in a public company private business Where they really want to bring employees in and provide bonus based on the company's performance And we have something like that in place right now at Rocky Noel as a result of this contract Those are some real neat provisions Our largest group our supportive services group We began their contract negotiations early on But we didn't finish up with the approval of that contract till after the budget repair bill had been approved and And in doing that we we had the option to just wait and let that kick in with the budget repair bill provisions Why was it a good move for the county board to renegotiate this contract as well? I think there are really three reasons The first reason is it puts that union on the same timetable as all of our other unions Which is good to have people lined up so they perceive they're being treated fairly and equally But there are two other more important. I think reasons one of which is that There's a lot of uncertainty when that budget repair bill will take effect And a bird in the hand as they say is worth two in the bush. And so right now You know, we're achieving a million dollars in savings that we might not achieve And if that budget repair bill doesn't take effect the longer that goes the more uncertainty there is The more we pass up the potential for savings by agreeing to a contract now We ended up with most of the benefits to the county that the budget repair bill would give us Certainly not all but most And we have them right now as opposed to at some unknown point in the future when that takes effect The third reason is there actually are some features of our agreement That are better for the county than if we had just followed the budget repair bill For instance under the budget repair bill overall wage increases May go up to the rate of inflation the consumer price index increases So we think it would be very hard to negotiate under the budget repair bill a wage increase less than that But our wage increases that we have now negotiated as part of the contract are actually less Than they probably would be under the budget repair bill in terms of the overall across the board increases like By doing that contract at the time we did this affects the the union as far as Being recertified and things like that the budget repair bill at certain provisions And I think now Is it true that they can't Decertify that union until the end of the contract if they even if they wanted to that's right the budget repair bill As you know would require the unions to be recertified every year through a vote of the employees And that's one thing that obviously is different because we we reached a contract We're not having to vote to recertify for 2012 They will have to have a vote and recertify for 2013 and beyond But that is certainly a motivation I think the union had and waiting to keep You know the the mandatory union membership and union news provisions in place as well as a lot of the other contract language In place at least through the end of 2012 Although I would say that the the two biggest Priorities the county had in changing contract language were addressed in the agreement we had So we didn't leave all the contract language alone either. We got all of the financial advantages of the budget repair bill and probably a little further And we got the two big contract language items that we wanted In exchange for letting the rest of the contract language and the union provisions stay in place That's great. Now as far as our non-represented employees the ones that aren't represented by a union How are we dealing with those employees right now? Well, we've elected or I should say the human resources committee of the county board has determined that it would Start treating non-union employees as if essentially the provisions of the budget repair bill were in effect right now So so adam and I are paying right now 5.8 of our wages toward retirement Benefits as are all the other non-union employees in the county today other than elected officials Now as we go forward in these contracts that end at the end of 2012 expire What new policies and procedures are we going to have to put in place as we go into 2013? Most of our union contracts contain something like 30 pages full of Work rules and rules involving benefits and how sick days can be taken and what vacation schedules are and How employee work schedules may be changed and a host of other things All of those things have been mainly dealt with through those union contracts since the 1970s at the county level All those those things after December 2012 are going to be determined by county policy And so we really have to dust off our employee policies and really determine if They apply the way we want them to and whether they do the things we want to be doing To provide employees with a good work environment and still give departments the flexibility They need to to manage the workforce and to make changes when they need to change them So we're going to have to look at every one of those policies as a county government between now and and the end of 2013 And really make sure that that we put all those work rules scheduling benefit and other policies In place in the way that will meet the needs of the department What sounds like, you know, normally you have an off year when you don't have to do negotiations But that off year is going to be busy writing all those new policies and getting ready for For that expiration of those contracts as I said to the human resources committee You know, you may look forward to not having to do union negotiations To the extent we've done them every year, although we still have to negotiate about wages after 2013 But it's actually going to make our job harder and make more work Because we actually now have to really make decisions about what benefits ought to be what the work rules should be And we can't hide behind the union agreements anymore for those things Okay, with that I'll hand it back over to Adam In one of the other areas we discussed along the the contracts and the new policies and procedures is Personally, I'm glad that it didn't hit us starting next week or next month Not only do we have everyone lined up to expire 12 31 2012 Consistent approach Locked in the savings that we need to be successful But as Mike just alluded to it gives us some time to prepare those policies and procedures And not be the guinea pig. There are going to be some municipalities out there that are going to have to Need jerk react immediately to begin developing these whereas we can take the next year Benefit from the experience of others and hopefully make less mistakes Absolutely an employee grievance procedure is a good example of that every county and every municipality now has to develop its own Grievance procedure to take the place of the one in the union contracts We have the luxury of being able to sit back and I can collect the 12 best examples I find and then see if I can improve Taking the best of each of them before you put ours into place It's it's often good to lead But this is an area where it's going to be nice to have the benefit of others experience Speaking of experience you've done a lot of wonderful things in your eight nine years here as you mentioned earlier Whether it's the negotiation of these contracts policy and procedure development health plan design changes and one of the Areas that I know we both take a lot of pride in is the county establishing its own in health clinic please Share with our viewers when it was that we created the county in health clinic and why did we what were the benefits Well, it'll be three years ago this june And so one of the interesting things going on is we need to renegotiate our contract to extend our clinic operation because we did hire a private company to come in and basically run a nurse practitioner clinic for just for our employees And that does two things one is it provides our employees with a great option to get basic health care from someone who's completely independent Devoted to their care and their overall well-being and nothing else Uh, and that's great for employees. The other thing it does is it really ties together or pulls together all of our county's wellness efforts If we're spending 11 million dollars of taxpayer money a year just on employee health care Obviously we have an interest in making sure that people are getting the right health care Addressing things when they should be addressed before they become big expensive problems And that can make a huge difference in that overall health cost increase that we see every year Now our increases over the last five years Have have been well under five percent per year on average And most counties counties statewide have had an average increase of eight percent So it's efforts like that that really try to keep our cost increases More moderate than than they otherwise would be Big part of our efforts in that wellness area now we're going to be devoted to Increasing participation in these health risk assessments so that each employee And our health plan will have to come in and get some very basic tests done Do a report a report will be prepared based on their history Identifying health risk factors We offer free health coaching through the clinic so they can address those Health risks in the best possible way The most convenience to the employees and we're really providing some incentive next year in terms of a Reduced health premium contribution for the employees that take take that risk assessment package and At least get some basic information about what they should be doing for their health And we'd like to see other local units of government join us I know we've extended knowledge branch to the schools district and to the The city of shabuigan and our hope is the city of shabuigan in particular might be joining us sooner rather than later Very likely and I think the main hold up right now is just that we are Renegotiating that contract and once we get it established what we'll be doing For the future without arrangement. I really think we're going to bring some other employers into that clinic Especially the city excellent excellent overview We covered a lot of ground and of course if you have more questions Or want to follow up on any of the information you're pleased don't hesitate to contact mike collard at the hr Office or our county board chairman mike van der steen You can contact the county clerk's office all the numbers are in the phone book But if you contact the county clerk's office julie glancy, they'll put you in touch with whoever you'd like to assist you And I want to again thank mike for his leadership and the very good work that he's done and you know, we aren't one to Beat her own drum here, but since chairman van der steen has returned from a brief absence here Chairman van der steen now has been the county board chairman three of the last four years and three of the last four years Sheboygan county government has reduced its property taxes We're the only county in the state that's done so and thanks to mike's work and the work of the full county board We've also continued to provide excellent service. We've got excellent morale in the department in the county And just a good team in place good people making good things happen So we thank you for your support We thank you for joining us and again next month erin brault will be here to talk a little bit about our non-motorized transportation program Thanks for joining us