NJSBA on Recent Trends in Contract Negotiations

The latest issue of NJ School Boards Association print mag, School Leader, reviews average teacher union settlement rates for the 2011-2012 school year. As last year, it's a big year for impasse: currently 136 NJ districts (our of 591) are operating under unresolved contracts (teacher still get paid, of course), 89 have formally declared impasse (which means they turn things over to a state-appointed mediator), and 23 have reached the stage of "fact-finding," which happens when mediation is unsuccessful and both sides pay for a higher-level mediator. All resolutions suggested by the mediators are non-binding, which means that these things can drag on for quite a while.

(NJ used to have a "last, best offer" statute which resolved the most contentious cases. No more.)

According to NJSBA,

For contracts settled since October 2010, the average increase -- inclusive of the cost of increment -- for the 2011-2012 school year is 2.11 percent. Continuing the broad downward trend, for those settled in the third quarter of 2011 (the latest available statistically valid quarter) the increase was 2.09%. 

Also, "77% of districts with contracts covering this school year report that there has been some type of giveback by the local teachers association," including additional instructional time. In addition, the pension/health benefits contribution reform bill passed by the Legislature increases individual payments for both pensions and benefits.

The drop in settlements correlates, of course, with the recent 2% cap on school budget increases. When settlements averaged 4-4.5%,  the cap was 4%.