QEO - What State Statute Says

There is some difference of opinion about what state law requires under the QEO statutes, particularly regarding the "required" 3.8% increase. For what it's worth, this is how the statute is worded:

SOURCE:Updated 03−04 Wis. Stats. Database 22

111.70 EMPLOYMENT RELATIONS

(nc) 1. �Qualified economic offer� means an offer made to a
labor organization by a municipal employer that includes all of the
following, except as provided in subd. 2.:

a. A proposal to maintain the percentage contribution by the
municipal employer to the municipal employees� existing fringe
benefit costs as determined under sub. (4) (cm) 8s., and to maintain
all fringe benefits provided to the municipal employees in a
collective bargaining unit, as such contributions and benefits
existed on the 90th day prior to expiration of any previous collective
bargaining agreement between the parties, or the 90th day
prior to commencement of negotiations if there is no previous collective
bargaining agreement between the parties.

b. In any collective bargaining unit in which the municipal
employee positions were on August 12, 1993, assigned to salary
ranges with steps that determine the levels of progression within
each salary range during a 12−month period, a proposal to provide
for a salary increase of at least one full step for each 12−month
period covered by the proposed collective bargaining agreement,
beginning with the expiration date of any previous collective bargaining
agreement, for each municipal employee who is eligible
for a within range salary increase, unless the increased cost of providing
such a salary increase, as determined under sub. (4) (cm)
8s., exceeds 2.1% of the total compensation and fringe benefit
costs for all municipal employees in the collective bargaining unit
for any 12−month period covered by the proposed collective bargaining
agreement plus any fringe benefit savings, or unless the
increased cost required to maintain the percentage contribution by
the municipal employer to the municipal employees� existing
fringe benefit costs and to maintain all fringe benefits provided to
the municipal employees, as determined under sub. (4) (cm) 8s.,
in addition to the increased cost of providing such a salary
increase, exceeds 3.8% of the total compensation and fringe benefit
costs for all municipal employees in the collective bargaining
unit for any 12−month period covered by the proposed collective
bargaining agreement, in which case the offer shall include provision
for a salary increase for each such municipal employee in an
amount at least equivalent to that portion of a step for each such
12−month period that can be funded after the increased cost in
excess of 2.1% of the total compensation and fringe benefit costs
for all municipal employees in the collective bargaining unit plus
any fringe benefit savings is subtracted, or in an amount equivalent
to that portion of a step for each such 12−month period that
can be funded from the amount that remains, if any, after the
increased cost of such maintenance exceeding 1.7% of the total
compensation and fringe benefit costs for all municipal
employees in the collective bargaining unit for each 12−month
period is subtracted on a prorated basis, whichever is the lower
amount.

c. A proposal to provide for an average salary increase for
each 12−month period covered by the proposed collective bargaining
agreement, beginning with the expiration date of any previous
collective bargaining agreement, for the municipal
employees in the collective bargaining unit at least equivalent to
an average cost of 2.1% of the total compensation and fringe benefit
costs for all municipal employees in the collective bargaining
unit for each 12−month period covered by the proposed collective
bargaining agreement plus any fringe benefit savings, beginning
with the expiration date of any previous collective bargaining
agreement, including that percentage required to provide for any
step increase, as determined under sub. (4) (cm) 8s., unless the
increased cost of providing such a salary increase, as determined
under sub. (4) (cm) 8s., exceeds 2.1% of the total compensation
and fringe benefit costs for all municipal employees in the collective
bargaining unit for any 12−month period covered by the proposed
collective bargaining agreement plus any fringe benefit
savings, or unless the increased cost required to maintain the percentage
contribution by the municipal employer to the municipal
employees� existing fringe benefit costs and to maintain all fringe
benefits provided to the municipal employees, as determined
under sub. (4) (cm) 8s., in addition to the increased cost of providing
such a salary increase, exceeds 3.8% of the total compensation
and fringe benefit costs for all municipal employees in the collective
bargaining unit for any 12−month period covered by the collective
bargaining agreement, in which case the offer shall include
provision for a salary increase for each such period for the municipal
employees covered by the agreement at least equivalent to an
average of that percentage, if any, for each such period of the prorated
portion of 2.1% of the total compensation and fringe benefit
costs for all municipal employees in the collective bargaining unit
plus any fringe benefit savings that remains, if any, after the
increased cost of such maintenance exceeding 1.7% of the total
compensation and fringe benefit costs for all municipal
employees in the collective bargaining unit for each 12−month
period and the cost of a salary increase of at least one full step for
each municipal employee in the collective bargaining unit who is
eligible for a within range salary increase for each 12−month
period is subtracted from that total cost.

2. �Qualified economic offer� may include a proposal to provide
for an average salary decrease for any 12−month period covered
by a proposed collective bargaining agreement, beginning
with the expiration date of any previous collective bargaining
agreement, for the municipal employees covered by the agreement,
in an amount equivalent to the average percentage increased
cost of maintenance of the percentage contribution by the municipal
employer to the municipal employees� existing fringe benefit
costs, as determined under sub. (4) (cm) 8s., and the average percentage
increased cost of maintenance of all fringe benefits provided
to the municipal employees represented by a labor organization,
as such costs and benefits existed on the 90th day prior to
commencement of negotiations, exceeding 3.8% of the total compensation
and fringe benefit costs for all municipal employees in
the collective bargaining unit required for maintenance of those
contributions and benefits for that 12−month period if the
increased cost of maintenance of those costs and benefits exceeds
3.8% of the total compensation and fringe benefit costs for all
municipal employees in the collective bargaining unit for that
12−month period.

Posted by Lucy Mathiak at April 13, 2005 4:59 AM
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