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State Teachers Losing Ground to Cost of Living

Wisconsin teachers are losing out to inflation as a result of the new collective bargaining law and its "Qualified Economic Offer" provisions. A new analysis by the WEAC Research and Collective Bargaining Division shows the average base wage increase for Wisconsin teachers was 1.51% in 1994-95 and 1.57% in 1995-96. That is well below the 2.5% annual cost of living increase in each of those years as measured by the U.S. Bureau of Labor Statistics.

The division analyzed contract settlements over the last two years. It found:

  • 384 of 402 contracts have been settled for 1994-95 (29 other contracts settled prior to the QEO law taking effect are not included in the 402 total).
  • 280 of 431 contracts have been settled for 1995-96.
  • The average base wage increase for six benchmarks was $515, or 1.51%, in the 384 districts that have settled their 1994-95 contracts. That brought the average teacher salary in those districts to $34,662 last year.
  • The average base wage increase for six benchmarks was $544, or 1.57% for districts that have settled their 1995-96 contracts. That brought the average teacher salary in those districts to $35,206 this year.
  • Actual salaries rose by about 3% each year, when education and experience credits are added. However, those credits don't apply to everyone and are intended to provide raises above and beyond inflationary increases.
  • Fringe benefits increased about 0.8% each year.

Under the current collective bargaining law, a district can avoid arbitration by submitting a Qualified Economic Offer. A standard QEO is 2.1% in total salary increases (including increments) and 1.7% in benefit increases. However, insurance costs have not been rising as rapidly as was expected, so standard QEO benefit increases have been running about 0.8%. During negotiations, many districts have agreed to put insurance savings back into salaries, although the law does not require them to do so to meet the QEO provisions. In those cases, contracts may have totalled 3.8% but still exceeded the QEO, which would have been about 2.9%.

Creative bargaining in still other districts brought the total salary and benefit increase above 3.8%. In the Lake Country School District, for example, the 1995-96 settlement included a salary increase of 4.45% and a total package increase of 4.54%. St. Francis negotiated 3.12% in salary and 4.31% overall.

Robert West, WEAC director of collective bargaining, said teachers are falling behind inflation even though many districts are exceeding the QEO. "If insurance rates all of a sudden took another kick, the potential for even a salary schedule reduction would be there," he said.

West also pointed out that districts are profiting from the QEO law. As experienced teachers retire and young teachers are hired at much lower salaries, school districts save money, he said. When those savings are factored in, districts are, overall, paying 2.3% in teacher salary and benefit increases, which is below inflation.

Madison teachers go to arbitration

Posted May 1, 1996