Ellwood City Area School District Negotiations Update

To provide the public with accurate information regarding the status and progress of the negotiations between the School District and the Service Employees International Union (SEIU), Local 32BJ (hereinafter referred to as “Union”), the Board is posting this Negotiations Update which summarizes the Board’s efforts to reach a new Collective Bargaining Agreement with the Union.

• Since January 2017, the Board has attempted to negotiate a new Collective Bargaining
  Agreement with the District’s custodians, cafeteria employees, instructional assistants
  and clerical employees all of which are represented by the Union. The parties have held
  multiple negotiation sessions with little progress to date.

• Cafeteria Services: The District employs approximately nineteen (19) cafeteria
  employees. The current operation of the cafeteria services costs the District tens of
  thousands of dollars each year. In April, the District advertised for competitive bids to
  subcontract the operation of the cafeteria services. If the District move forward with
  subcontracting its cafeteria services, the District’s employees will have an opportunity to
  apply for positions with the successful bidder. Based upon the cafeteria bids received by
  the District, the District could save approximately $185,000 per year by subcontracting
  the operation of its cafeteria services. Over a 3-year contract, the District would save
  almost $600,000. Despite this significant cost savings, the Board decided to wait another
  year before subcontracting the cafeteria services so that it could continue to negotiate in
  good faith with the Union. If a new CBA is not reached within the next six (6) months,
  the District will once again seek bids for the operation of the cafeteria services.

•  Custodial Services: The District employs approximately eighteen (18) custodial
  employees. This number does not include the District’s maintenance employees. In
  September, the District received competitive bids to subcontract the District’s custodial
  services. If the District move forward with subcontracting its custodial services, these
  employees will have an opportunity to apply for positions with the successful bidder.
  Based upon the bids received by the District, the District would save approximately
  $500,000 per year by subcontracting its custodial services. Over a 3-year contract, the
  District would save approximately $1,500,000.

• If the Board accepted the cafeteria and custodial services bids for the start of the 2018-
  2019 school year, the District would save approximately $700,000 per year. To put this
  figure in perspective, in the 2017-2018 budget, the Board approved the purchase of
  approximately 450 Chromebook computers for the students at the High School. This
  One-to-One Program would provide each student with their own Chromebook computer.
  The total cost of the Chromebooks was less than $117,000. In addition, the District
  purchased $328,000 worth of new textbooks. However, the cost of these new textbooks
  needed to be paid over three (3) school years because of the District’s financial condition.
  Also, the District needed to increase taxes and borrow money to pay for approximately
  $600,000 of repairs at Lincoln High School and Hartman Elementary School. Finally,
  the District is spending $64,000 this year for STEM labs at the High School. Each of
  these expenses could have been funded and potentially expanded with the money saved
  by subcontracting just the cafeteria and custodial services.

• If the Union does not begin to negotiate in good faith and work with the Board to address
  the unsustainable costs of the cafeteria and custodial services under the expired
  Collective Bargaining Agreement, the Board will have no choice but to move forward
  with the subcontracting both the cafeteria and custodial services.

• It is important to note that the Board does not intend to seek bids for the instructional
  assistant and clerical employees.

• When negotiations resume, the Board will continue to negotiate with the Union to reach
  a financially responsible Collective Bargaining Agreement that meets the educational
  and operational needs of the District.