There are times when both unions and management are faced with an issue where their respective goals and objectives are compatible. A bilateral acknowledgment of a longstanding problem like health insurance cost inflation is the first step in recognizing that the limited resources that individual school districts and their local unions can bring to bear are better combined. The constraints of the bargaining table are often ill-suited for wide ranging single issues that may require considerable research, fact finding, technical expertise, and time. The typical strategy of negotiated “tradeoffs” may not be the strategy of choice in actually resolving complex, longstanding problems. Innovative joint approaches over the long term may be better suited to the task of managing health insurance cost containment.

Many parties are finding that the increasing costs of health care, combined with a troubled economy and less than adequate financial resources, are framing a common problem that apparently will just not go away. Coming to grips with health care inflation can become a common search for a solution that meets the underlying interests of both parties: Accessing an optimal amount of health benefit insurance, for the least cost, in the most efficient manner.

Labor-Management Committees create opportunities, but not guarantees, for problem resolution. They do however, provide a forum for communication, information gathering, research, rigorous debate, and joint problem-solving.

Labor-Management Committees are created through collective bargaining. The composition, structure, participants, and purpose of the committees are determined in negotiations. Critical considerations in creating such committees are as follows:

• The most typical composition is for each party to appoint an equal number of participants;
• The purpose or charge to the committee should be stated in clear, unequivocal language;
• The authority of the committee should be precisely articulated in the contract. If the authority of the committee is to make recommendations, publish a report, or make operational decisions, it should be clearly stated.
• Internal operating structures and procedures of the committees have typically been left up to the committees themselves. The relative importance of specifying those procedures and structures in the contract is directly related to the actual power of the committee itself. Advisory committees usually allow some degree of self-determination. Committees actually making decisions for the parties often have their decision-making process specified in the contract, e.g., “All committee decisions shall be by a majority vote of a quorum of the voting members appointed to the committee.”
• Define the committee’s chair or convener. Co-chairs (one from labor and one from management) or some rotating chairs are common arraignments.
• Time lines for committee formation, duration, and expiration should be part of the authorizing contractual language. Standing committees often have the terms of individual members specified. Ad hoc or topic limited committees typically have a time limited duration for all committee functions.
• Establish the meeting schedule. Regular meetings appear to be key for successful committees.
• Generic Labor-Management Committees often have general problem-solving purposes to encourage labor-management cooperation. These committees can be informal meetings of the union president and the superintendent or a very formalized structure and membership (see an attached example of a labor-management committee brochure from Willamette ESD and its union, OSEA).
• Conducting employee surveys to discover utilization rates and the most needed/used benefits are not typically structures in school district committees but are often integral parts of private sector health and wellness committees.
• Access to individuals with sufficient expertise in insurance issues is often a critical factor in long term success of school district insurance committees. The technical and complex nature of health care combined with the sometimes arcane nature of the insurance industry can often be a daunting prospect to school employees. Regular attendance of Business Managers, or Agents-of-Record may be needed to help insure a successful committee structure. Some reliance on outside experts may be essential for understanding and coping with health care utilization and cost containment features.

Good example used by Willamette ESD (94k )

Labor-Management Committees as a Subject for Bargaining

Early rulings from the Employment Relations Board (ERB) from the 1975 trilogy have indicated that advisory "committees" are generally mandatory subjects of bargaining. South Lane Education Association v. South Lane School District No. 45J, Case No. C–280, 1 PECBR 459, 471 (1975). Springfield Education Association v. Springfield School District No. 19, Case No. C–278, 1 PECBR 347, 365 (1975). Eugene Education Association v. Eugene School District No. 4J, Case No. C–279, 1 PECBR 446, 454 (1975).

In 1993, ERB ruled language in a collective bargaining agreement regarding a labor management committee, designed to address workload issues, and meeting during regular work hours, is a permissive subject of bargaining. ERB’s rationale was the committee structure might not actually result in actions directly affecting the working conditions of bargaining unit employees, but it potentially interfered with the employer's right to assign non-represented employees to duties during the workday. Oregon Public Employees Union v. State of Oregon, Executive Dept., Case No. UP–71–93, 14 PECBR 14/746, 14/771 (1993).

While “advisory” committees leave the final decision to the parties, committees that have broad ranges of powers and scope are found to be permissive subjects restricting management rights and prerogatives. The most common committee structure in a collective bargaining agreement, both in licensed and classified contracts, is the committee that makes “recommendations” to the parties. Very few committees create a bilateral committee structure that binds both parties to their decisions. Such committees do exist in Oregon school districts, however. One of the most long-standing insurance committee is in Lane County’s Eugene School District. The purpose of the committee is the design and management of the district benefit programs, reserve funds, and communication with bargaining unit members. In the authorizing licensed agreement, four members are appointed by the association and four by the district. Labor-management Co-chairs of the committee are designated and all decisions are made by consensus. The committee has a budget line item for support and about a $50K insurance reserve account with funds disbursed by the committee. The committee has a Benefit Coordinator who, by agreement, is a bargaining unit member with duties assigned by the committee. The Benefit Coordinator position is funded equally by both parties.

Licensed Agreements: Characteristics of Insurance Committees

A summary of the purposes, structure and unique features of 37 school districts’ 2004-2005 collective bargaining agreements which contain language for insurance committees are provided below.

Purposes: The most common purposes of insurance committees are to explore and recommend various carriers and plans for consideration by the parties in negotiations. Typical purposes are to:

• Review benefits; investigate creative program designs for optimal use of resources;
• Receive quarterly report regarding use of benefits, UCR changes, and potential cost increases;
• Compare benefits and costs about any carrier change;
• Gather information and submit a recommendation regarding benefits, service levels, and related program costs.

Structure: Equal members from labor and management appears to be the defining characteristic of these committees. Representation from all employee groups (licensed, classified, administrative, confidential) appears to be increasing in frequency. Typical internal operating structures and procedures are largely absent from contract language.

Unique Features: Some committees appear to have atypical powers or duties. Examples are:

• Act as a referral panel for employee request for changes in specific coverages;
• Provide yearly summary of benefits fro each employee;
• Conduct an election for carrier selection with bargaining unit members;
• Study team to investigate the possibility of independent insurance.