A pay freeze, which retroactively applies to the 2009-'10 school year when teachers were working under the old contract, saves the district from roughly $13.5 million in raises it likely would have paid if the previous contract were renewed. Teachers will be in line for a 3% raise for this school year and 2.5% for 2011-'12. Another 3% raise is set for the 2012-'13 school year. The freeze does not apply to those teachers who were eligible for a step increase, which gives teachers with a certain amount of experience an automatic jump to a higher salary level, union officials said. The average salary of an MPS teacher is $56,000 per year, slightly lower than in districts in outlying areas.
"We didn't get where we wanted to get, but it's a step in the right direction," Superintendent Greg Thornton said, adding that the agreement is still "monumental."
The contract is the first four-year contract negotiated between the district and MTEA. The previous contract expired July 1, 2009, and teachers had been working under the terms of the expired contract since that time.
The Wisconsin Association of School Boards has recommended that its members not enter into contracts that last for more than two years because of the fiscal uncertainty with the state budget. But Thornton said the longer contract will allow both parties more time to work on reforms in the district.
Contract negotiations stalled repeatedly under the previous administration of Superintendent William Andrekopoulos, with the major sticking point being revisions to the teachers' health care benefits.
Under the old contract, MPS offered two health care plans - an HMO plan that costs $16,440 a year for a family, offered by United Health Care, and a PPO plan through Aetna that allows a broader range of choices in doctors and costs $23,820 a year for a family.
In May, the district said that unless various unions agreed to take a lower cost health care plan, it would move forward with layoffs. The district laid off more than 400 teachers in June, though about half of them have since been recalled.
The new agreement maintains the choice of PPO and HMO plans, but both will be provided by United Health Care and will have lower premiums than the Aetna plan did. Under both options, teachers will for the first time contribute a portion of their salary - 1% for single coverage, 2% for family coverage - to their health care package starting in August 2011. The specific costs of the two options are unknown.
| Newsletter signup | Send us your ideas