April 1998

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Repeal of the Qualified Economic Offer law

UPDATE

The Legislature approved the governor's proposal to require districts to apply cost savings in benefit packages to salary under a QEO. The provision was signed into law June 2.

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Background:

Between 1966 and 1977, Wisconsin Education Association Council and Wisconsin Federation of Teachers members went out on strike in 50 school districts throughout the state. The most famous was the 1973 Hortonville strike, where 84 teachers lost their jobs. From 1978 to 1993, school employees and school boards in Wisconsin peacefully settled labor contract disputes by referring impasses to neutral third-party arbitrators.

In January 1993, Governor Thompson's 1993-95 biennial budget included a virtual cap on total compensation packages for school district employees. The Legislature amended the budget bill to restrict a K-12 teacher association's access to binding arbitration on "economic issues" if the school district management submits a Qualified Economic Offer (QEO). The governor signed this provision into law as part of the 1993-95 budget bill.

The law currently restricts a K-12 teacher association's access to arbitration if the QEO is equivalent to a 2.1% increase overall on the salary schedule and a 1.7% increase (as a percentage of the total compensation package) in the cost of benefits. These provisions were originally set to expire in June of 1996.

The Wisconsin Legislature passed and Governor Thompson signed the 1995-97 biennial budget bill, which repealed the sunset date for the QEO law and made it permanent.

Recent Legislative Action:

Three key proposals, introduced during the 1997-98 regular session of the legislature, deal with the QEO.

• AB 681, which repeals the QEO, received a public hearing in the Assembly Ways and Means Committee.
• SB 318, which is an amended version of the QEO, was released from the Senate Education Committee but was not scheduled for a vote.
• The Governor's 1998 mini-budget bill (AB 768/SB436) contains a provision to require that any cost savings in benefit package be applied to salary under a QEO.

WEAC/WFT Position:

The Wisconsin Education Association Council and the Wisconsin Federation of Teachers support full repeal of the Qualified Economic Offer law.

Talking Points:

The QEO is unfair:

• The QEO singles out and penalizes one group of public employees, a majority of whom are women.
• The QEO results in teacher salary increases below the cost of living.
• The QEO penalizes employees who are planning to retire by giving them a life sentence of reduced pensions.

The QEO destroys collective bargaining:

• Employers are allowed to unilaterally impose a QEO forcing employees to "take-it or leave-it." The employees only recourse for dispute resolution is to engage in job actions.
• The QEO blocks discussion of creative solutions to the challenges facing public schools (such as proposals dealing with class size and teacher preparation).
• The QEO discourages consensus bargaining.

The QEO harms the quality of public education:

• The QEO reduces collaboration between labor and management resulting in increased tension in the workplace which interferes with educational quality.
• The QEO discourages the best and the brightest from entering and staying in the education profession.
• The QEO contributes to lower employee morale.

For Additional Information:

Contact John Stocks in the WEAC Government Relations Division at 800-362-8034 or by e-mail at stocksj@weac.org with any reaction, comments or questions.