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99-860Council File # q �G C� s Presented Referred To RESOLUTION CITY OF SAINT PAUL, MINNESOTA Green Sheet # I Do y5 e'L at Committee Date RESOLUTION ACCEPTING THE REPORT BNTITLED PERFORMANCE AUDIT OF THE CITY OF SAINT PAUL'S LABOR RELATIONS ACTIVITIES 1 WF�REAS, the Saint Paul City Council established a performance audit program for City departments and 2 offices and the City Council directed the Council Investigation and Research Center to conduct the audits; and 3 WFiEREAS, City Councii selected the City's Office of Labor Relations and the City's labor relations activities 4 for a performance audit and that the Council Investigation and Research Center has completed the audit; now 5 therefore, be it 6 RESOLVED, that the Saint Paul City Council accepts the report PerformarzceAudit of the City ofSaiHtPaul's 7 Labor Relations Activities. Requested by Department of: Adoprion Certified by Council Secietary B � a, _ I�s Appi � � Form Approved by City Attomey � Approved by Mayor fox Submission to Council � � � � �� Adopted by Council: Date �� ` `_t�°� council GREEN SHEET q1- 8Go ��r� No � �,� ;; �:. � 2 ,�a sv m4� u�� u��- � �� ..,� m„«� ��,wc o�aee ❑ wwcw�mMw,o.�. wuxn.�,on.,cc.o ❑MIdtWR4tflii111ff) ❑ TOTAL S OE SIGNATURE PAGES (CUP ALL IOCATIONS FOR SlGNATURE) Accept the report entitled Performance Audit of the City of Saint Paul's Labor Relations Activities PLANNING CAMMISSION CIB COMMRTEE CML SERVICE COMMISSION il��. i4•iaA TRANSACTIONf SOURCE (t7wWM F�e mie p�so�rum ewrxakea �mer e camaa ror+nis ckre�reM7 V6s MO Fles tlire Pc+aJfirm aer been a cdY empbyee7 YES NO DaestlNe pe�aqMum D�sa SIdN not ndme%yp� bY �Y aarent citY �WoY�� VE3 NO Is tltia persnUfem a ta/peted vendoR YES 1� COST/REVENUEBUDOETED�pRCLEONq Ip11i71+�`PCld�.7 YES NO �`� —��O & � � � � ; £ � x € � Y § ,� �:� _� °Y � �� a �'_ ,.,,� _ � � � : � � , x �� :;�, � �„ a � „ �. � °_ � � ' ; � �'o � � �� .o �- o � s « p o � = � ° s ��^,.: T O F � a a U 3 u � ■ ■ ■ � a s �� V� �� V� �R - �� b � s.. 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'L3 � ftT � .� .� � .� � 7 � U � O � � � f a s a � a s � e t m a a � . i z s a � g �� = w � � � N o �n -�, �,, . �' k� °� 5 $ � � : v s i � i i € e Ea 8 3 d § � � � � � �i� -�Gd � �. � .� c � U � V R v � � � '� � � C �kC s. �a�p�'"�-" ' „^' � �'6� C.��F s � ee -^�� R . �* U� :;�"'� � � +-+ v1 � ��`�,��,�� N �I�. �, .. ..; _ F .� r . -` �, � . u.> � �� cC N :!: � :/: .Sr - V �Y a `''�- / � C � O � � � � � OFF[CE OF LABOR RELATTONS Terry Xaltiner, Martager CTTY OF SAINT PAUL Norm Coleman, Mayor LABOR RELATTONS 400 City Hal! Annex 25 West FourlTr Street SaintP¢ut, Mim+esota 53702-1631 TelepSone: 651266-8897 Facsimile. 657 292-7656 �� i g6 � 9/8/1999 TO: Council President Bostrom Council Member Benanav Council Member Blakey Council Member Coleman Council Member Hams Council Member Lanhy Council Member Reiter FROM: Terry Haltiner, Labor Relations Manager � �� RE: Addressing the Recommendations specified by the Council Reseazch Audit of the Labor Relations Department Labor Relations staff have reviewed the "Performance Audit of the City of Saint Paul's Labor Relations Activities" and the 72 recommendations contained therein. Of these, there are 22 recommendations that we aze currently working on. These are listed below. The remaining recommendations will be discussed by staff when a new Labor Relations Director has been hired. Whi]e it is doubtful that all the recommendations will be implemented, I assure you they will be given thoughtful consideration. The following are specific recommendations that the Department of Labor Relafions is currently addressing: Recommendation #5: The OLR d'uector should improve intemal communication and take steps to keep staff well-informed. Maintaining a veil of secrecy to shield staff from the important and sensi6ve lssues wili only continue the impression that staff aze not husted. There may be instances when communicarion is not appropriate, for instance if the information communicated is of a highly sensitive nature and is not relevant to the duties of staff. However, our interviews suggest communications have been witUheld when this was not the case. This perception bas created a situation in which staff do not feel empowered to do their jobs. Weekly sraff ineetings are scheduled. Information is communicated to siaff at these rimes. Recommendation #6: D'uector should provide a forum and time by which staff can conhibute to decisions made about the organization, such as specific times set aside in staff meeting, suggestion box, etc. Input from staff is sought at staff meetings. RecommendaUon #7: The OLR D'uector should provide fmancial support for participarion in training and development acrivities. The director should also cieazly inform staff about the Office's membership in several professional organi�ations and urge staff to take full advantage of these memberships. In addition, i¢cenrives to participate in uaining and development activiries, such as posirive mazks on performance evaluations or formal recognition should be used. The budget for training has been increased in the 2000 Mayor's Proposed Budget. Rewmmendation #8: OLR should cukivate relationships with other organizarions that may have the expertise to assist the organizarion in its work. To this end, the OLR should create a City-wide labor relations work teazn wluch would be composed of representarives from the City Attorney's Office, Risk Management Division, the Financial Services Office, the Office of Human Resources and others. Such a task force would coordinate the City activities in the Labor Relations process and re-established relationships which have been neglected. The Labor Advisory Group will be recomened It is comprised of representatives of the above mentianed offices. Recommendation #1Q: The OLR director should immediately request that OLR professional staff receive access to HIJMMERS system. The Office of Human Resources should act posthaste to see this is done. The OLR director should also enswe that professional staff receive necessary training to operate the HUMIvIERS system and are capable of creating customized reports. Staff now have access. Recommendation #11: The OLR should conduct and integrate more complex analyses of labor relations data into its labor relations activities. Because the OLR's success is often determined by the use and analysis of data, this activity is of pazaznount importance. Moreover, the tremendous amount of data that resulu from the City's labor relations acrivities provides for a rich opportuniry for analysis. The OLR d'uector should provide additional training to staff; if necessary, to accomplish this recommendation. Staff are currently working on improving the data base. Recommendation #25: The Qffice of Labor Relations and the Budget Office should complete work on the development of costing models which meet all of the City's needs for contract cost information. Integrated costing models are being developed Recummendation #29: Given the reported staff shortage in the Office of Labor Relations, increasing the participation of the City Attomey in contract drafting and prepazation is warranted. Such an increased role should be explored thoroughly by the next Labor Relations D'uector. Sfaff have been working more closely with the Cify Atiorney's O�ce. Recommendation #32: The City should cease the practice of segregating some positions in the category of "promotional." The practice does not seem to be consistent with state law, it limiu the ability of ouuide qualified candidates to compete, and potentially promotes systemic inequalifies in the make-up of the CiTy's world'orce. Work has begun, with Human Resources, to explore this issue. Recommendation #33: The City should review posifions currently categorized as supervisory to determine if the job duties meet the BMS definirion of supervisor. Work has begun, with Human Resources, to explore this issue. Recommendation #34: The uniform settlement form provides for the development of a scatewide base of information on all public employer negotiated ageemenu and azbitration settlements for the State of Minnesota. As such, it is an important activity for the BMS to undertake, and had the potenrial to create a compararive database for use by all public employers and employees. Notable, the BMS has yet to develop such an informarion source. However, the City of Saint Paul has not consistently complied with this statutory requirement. The City should consistently complete the uniform settiement form in accordance with State law. An elecbonic version ofthis form has been developecl Sta�fare working to complete these forms for recent contracts. Recommendation #35: The Office of Labor Relations, Risk Management, and the Office of Financial Services should increase efforts to sh�eaznline contract implementation. All three offices should clarify communication systems to improve the administration process. This is an ongoing process. Staff will continue this effort. Recommendation #36: T1�e Office of Labor Relations should complete the data bank relating to parallel sections of the collective bargaining agreements. The existence and use of the data bank should he communicated to a11 effected parties, and the data bank should be used to identify azeas for negotiation. Work is continuing on thrs project. Recommendation #44: The OLR should make contract negotiarion training for eligible staff a priority. This should occur either in-house or through continuing educaflon at an off-site facility. The budget for training has been increased in the 2000 Mayor's Proposed Budget. Recommendation #46: The Office of Labor Relations, Financiai Services, Risk Management sbould develop a formal communication system to communicate and implement contract changes. This system is in pZace. Recommendation #47: The City should continue to seek to improve its data collection and analysis capabilities and should implement the total package costing progam. Likewise, unions need to continue to unprove their systems and fmd additional support for those units that do not curtentiy have quality systems. Staff continue to work on this. Recommendation #S2: The OLR needs to examine the role of the Ciry Attomey's Office, the Financial Services Deparhnent and Risk Management co determine if greaser pazmering accompanied by information sharing would be a more effective approach to negotiarion than presently exists. All of these departments should consider surveying their respective customers to determine the'u level of saflsfaction with negofiation and 'unplementation. The Labor Advisory Group shat! be reconvened. Recommendarion #56: The Office of Labor Relations should reinstitute the pmctice of having at least two staff members capable of negoriarion a collective bazgainutg agreemenc at all times. This would take pressure off the primary negoriator and allow the office to deal with administrative and management tasks more efficiently. The City recently fiZZed the Labor ReZations Manager position and is interviewing candidates for Director. Recommendarion #57: All contract employees should be evaluated for performance. This data should be used for planning and process improvement. This will occ�a ifarry are hired. Recommendafion #59: The City of Saint Paul and the collective bargaining units should pmvide funding and rime to anyone iavolved in negotiarions or coniract adminis�ation tn attend the training sessions offered by the Bureau of Mediation Services. Topics include Conflict Resolution, Interest-Based Bazgaining, labor-management committees, mediation, basic labor relations, negotiation, and the Minnesota Public Employment Labor Relations Act. We will consider a11 training optiorrs. Recommendation #65: Make training a priority for Labor Relations staff involved in administering contracts and handling grievances. One way to emphasize uaining may be to make it part of annual review process. T1�e OLR should not use ]ack of time and staff as an excuse, as a lack of uaining makes staff even less productive as they fail to develop their skills. It may well be worth the time to provide training if it improves the process and funcrions of the office. The budget for baining has been increased in the 2000 Mayor's Proposed Budget. Recommendation #68: The City should continue to explore information systems upgrades and reduce reliance on institufional knowledge. Recognize danger of centralizing knowledge in one or two people, and have more widespread rraining on systems. Staff will continue to work on Yhis. If you have any questions regazding this information please contact me at 266-8897. CC: Gerry Strathman, Director of Council Reseazch Performance Audit of The City of Saint PauPs Labor Relations Activities Sair�t Paul City Council Council Research Report August1999 ��'�� Tlus performance audit is, in essence, three different performance audits of tha City's labor relations activities. It exaaunes the contract negoriaYion and grievaace administration processes aad the Office of Labor Retations. Labor relations activities aze very important to both the City's govemment and its employees. There are 24 bazgainiug units which represent 98% of the Cify 3,332 employees. Supervisors and professional staff are represented in Saint Paul City government, bu4 in many parts of the country they are not. Finally, wages and fringe benefits make up 41% of the City's budget—representing the City's lazgeat expense category. PURPOSE OF THE CITY COUNCIL'S PERFORMANCE AUDIT PROGRAM The Saint Paul City Council established the PerFormance Audit Program to help fulfill two major legislative oversight responsibilities: ■" Ensure City practices aze consistent with applicable state and local laws and policies; and ■ Assess the degee af efficiency and effectiveness with which City policies aze being cazried out: EFFICIENCY AND EFFECTIVENESS The report examines whether the City's labor relarions activities are operating at an oprimal level of quality and, if not, what can be done to remedy any deficiencies. Information needed to ***�t –• Criteria fully developed and pracliced. **�* –� Criteria well developed and practiced. ** –i Criteria present and practiced to some extent. review the activities was obtained by document review and interviews. The seven criteria used to assess organizational development and to idenrify quality organizations are: planning, leadership, training and development, inforination and analysis, processes for improvement, customer focus, and results. The summary ratings are described in the box above. OFFICE OF LABOR RELATIONS KEY FIND(NGS & RECOMMENDAT/ONS ■ The Office has done a good job developing and maintaining records, in spite of spotty or poor information support systems available to them. Specifically, good past and current comparative information for negotiations has been developed, as well as a grievance database. ■ Eigh staff tumover and vacancies are an ongoing problem—there are currenUy two vaarncies in a staff of five: the Director and the Clerk IV. Low levels of stafftraining and development are problematic in light of SUMMARY RATINGS * Planning * Leadership * Training and Development ** Information and Analysis ** Processes for Improvement * C�stomer Focus *�t Results high stress levels, vacancies and tumover in the office. A commitment of fimds, time and incentives for ongoing training and development is necessary. ■ The Office has a poor level of communication with its paztners in the conkact negotiarion and grievance processes. ■ The Office nceds to gather, maintain and updaYe better information on customer needs and satisfactio�using a customer base beyond the Mayor. Very little work has been done in flus azea historically. ■ The Office would be very well served by developing and updating short- and long-tetm workplans. The development of these plans should involve ali Office sta� as well as input &om representatives of key customer groups and other City Offices involved in contract negotiation and grievance processes. Also key to tlus planning process is the development and clear communication of a vision for the future of the Office and functions it performs. CONTRACT NEGOTIATION PROCESS KEY FINDINGS & RECOMMENDATIONS ■ The Offioe of Labor Relations should be credited with having done a very good job of gathering and analyzing both lustoric and comparative informarion for the negoriation process. However, information on the negotiation process itself is not collecEed. Such information will assist in determining the costs of the negofiation and improve communication and problem-solving prior to future negotiation_cycles. SUMMARY RATINGS ** Planning ** Leadership ■ Collective bazgaining units shou[d also be credited with collecting good comparative information foi the negotiation process. • In the last 11 yeazs 130 collective bazgaining agreements with the City have been ratified. On average, these _ agreements aze concluded 10 months after the previous agreement expires. In only one case in 1987 was a coIlective bargaining agreement completed prior to expiration of the previous contract. As it is in the interest of both the City and its collective bargaining units, they should work together to make. contract negotiations more timely. ■ The Administration should bring to the City Council for consideration a five-yeaz negotiations timetable—as is outlined in the Administrative Cod�wluch decreases the amount of time between contract expiration and new contract ratificadon. The Administrarion also needs to communicate more regularly with the City Council on the status and progress of collective bazgaiising, as is specified is in the Administrative Code. ■ The City should develop a policy to be vsed by all departments—addressing employee time-off for : participarion in negotiations. ■ The Adminisiration needs to ensure outside labor relations consultants reoeive City Counail approval prior to engagiug in any-negotiations, or providing other services, on the City's behalf, as is outlined in the Adminishative Code. ■ Both the City and collective bargaining units should pursue more agreements that run for 3 years, as opposed to the standard 2 yeara. It would be in the interest of both parties to pursue 3-year agreements until the lag . time between old contract eacpirarion and new contract ratification decteases substantially. ■ Coliective bazgaining units need to ensure that ttieir communicarion with the City, on terms and conditions of employment, occurs with City's designated representative, rather than other City officials. GRIEVANCE ADMINISTRATION PROCESS KEY FIND/NGS & RECOMMENDATIONS ■ The Office of Labor Relarions should be given much credit for the development of the "grievance tracking system." The neact step is to begin using tlus information to prevent grievances in the future. ■ The City provides no contract, grievance resolution or SUMMARY RATINGS. * ri� ** Leadership * Training and Development ** Information and Analysis ** Processes for Improvement ** Customer Focus * Results gnevance adm�mstrahon traming for snpervisors, wanagers or department heads. Such a training progrdm is necessary to ensure that grievances are treated according to conhact provisions and fairly across departments. FOR QUESTIONS, COMMENTS OR A CQPY OF THE REPORT PLEASE CONTACT: Gerry Strathman, Counal Research Director Maraa Mcermond, Policy Analyst (651) 266-8575 or qem.strathmanC�ci.stpaul.mn.us (651) 266-8570 or marcia.moermondk�ci.stoaul.mn.us �iq ^�b CITY COUNCIL RESEARCH REPORT Performance Audit of The City of Saint Paul's � Labor Relations Activities .,�� 8 1 f. :L $ � :�. _, Ig54 °� ,� � M� � � �: � :. , ., . Saint Paul City Council Council Investigation and Research Center Saint Paul, Minnesota �q �� Saint Paul City Council City Council Investigation 8� Research Center Saint Paul, Minnesota 55102 Performance Audit of The City of Saint Paul's Labor Relations Activities 651.266.8560 http://www.stpaul.gov/counciUcirc.html August 1999 Director Gerry Strathman Policy Analysts Jennifer Dunn David Godfrey Marcia Moermond Kenneth Smith Questions? If you have questions regarding this report please contact Gerry Strathman at 651.266.8575 or gerrv.strath manCc�ci. stpaul. mn. u s City Council Research Report ��'`�� Performance Audit of The Ciry of Saint Paul's Labor Relations Activities TABLE OF CONTENTS INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 1 Research Methods . . . . . . . . . . . . . . . . . . . . . . 2 Scope of Performance Audit . . . . . . . . . . . . . . 2 Policy Compliance . . . . . . . . . . . . . . . . . . . . . . 4 Organizational & Pmcess Quality Assessment ............................6 Efficiency and Effectiveness . . . . . . . . . . . . . 6 Quality Categories . . . . . . . . . . . . . . . . . . . . 7 Research Methods for Quality Assessment .......................... 9 Criteria Ratings . . . . . . . . . . . . . . . . . . . . . 10 Performance Indicators . . . . . . . . . . . . . . . . . 10 OFFICE OF LABOR RELATIONS . . . . . . . . . 11 Planning .............................. 12 Leadership ............................ 14 Training & Development . . . . . . . . . . . . . . . . . 16 Information and Analysis . . . . . . . . . . . . . . . . . 18 Processes for Improvement . . . . . . . . . . . . . . . . 20 Customer Focus . . . . . . . . . . . . . . . . . . . . . . . 22 Resuks ..............................24 CONTRACT NEGOTIATION PROCESS . . . . 27 Contract NegoHaHon Policy Alignment ........................... 27 Representation ........................ 27 City Representation . . . . . . . . . . . . . . . . . . . 28 Collective Bazgaining Units . . . . . . . . . . . . 30 NegotiationsProcess ...................35 Research/Strategy Planning . . . . . . . . . . . . 35 SchedulingfPlanning ....... . ..... . .... 38 Items for Negotiations . . . . . . . . . . . . . . . . 39 Interest Based Bazgaining . . . . . . . . . . . . . . 44 Communication . . . . . . . . . . . . . . . . . . . . . . 44 Management Rights . . . . . . . . . . . . . . . . . . 46 Meet and Confer . . . . . . . . . . . . . . . . . . . . . 47 Mediation .......................... 48 Arbihation . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Strike .............................50 Ratification of Contracts . . . . . . . . . . . . . . . . 51 Contract Implementation . . . . . . . . . . . . . . . . 52 Office of Labor Relations . . . . . . . . . . . . 52 Risk Management .................. 54 Financial Services . . . . . . . . . . . . . . . . . 54 Collective Bazgaining Units . . . . . . . . . . 55 Quality Assessment for Contract Negatiation . . . . . . . . . . . . . . . . Plaoning ........................ I ,eadership . . . . . . . . . . . . . . . . . . . . . . . Training & Development . . . . . . . . . . . . Informarion and Analysis . . . . . . . . . . . Processes for Improvement . . . . . . . . . . CustomerFocus .................. Results ......................... GRIEVANCE ADMINISTRATION PROCESS ........................... Grievance Process PoGcy Alignment . . . Non-Disciplinary Grievances . . . . . . Disciplinary Grievance Process . . . . General Grievance Process . . . . . . . . Grievance Processing in the Office of Labor Relations . . . . . . . . . . . . Employer Role in Grievance Processing . . . . . . . . . . . . . . . . . . Collective Bazgaining Unit Role in Grievance Processing . . . . . . . . . Grievance Administration Quality Assessment . . . . . . . . . . . . . . . . . Planning ........................ Leadership . . . . . . . . . . . . . . . . . . . . . . . Training & Development . . . . . . . . . . . Information and Analysis . . . . . . . . . . . Processes for Improvement . . . . . . . . . . Customer Focus . . . . . . . . . . . . . . . . . . Results ......................... 56 56 58 61 63 64 65 67 70 70 72 73 74 75 76 FF:? 79 79 80 82 83 84 86 86 PERFORMANCE INDICATORS , . . . . . . . 88 CONCLUSION ............... ........ 90 APPENDIX A: List of Interviews . . . . . . . . . . APPENDIX B: Malcolm Baldridge Quality Assessment Questions . . . . . . . . . . . . . . . . APPENDIX C: Ten-Yeaz History of Collective Bazgaining Agreement Conclusion . . . . . . . . APPENDIX D: Summary of Interest Based Bazgaining ........................ APPENDIX E: Collecrive Bazgaining Agreement Preamble Sample . . . . . . . . . . APPENDIX E: Selected Bibliography . . . . . 93 94 98 1Q1 i02 104 Perform�ceAuditoftheCityof SaintPaui'slaborRelationsActivities 1 aa�� INTR4DUCTION Collective bazgaining and the adminisirarion of labor contracts are of vital importance to the City of Saint Paul's financial stability and operation. Although employces of Minnesota municipalities have been able to bazgain collectively since 1971, the City of Saint Paul is unique among most cities in the state because of its high-]evel of imionization. Twenty-four bazgaining units represent 98 percent of the City's permanent workforce. The only employees not represented aze department heads, non-represented managemenUprofessionals, and some provisional and temporary employees.' The contracts the City signs with its collective bazgaining units set the tertns and conditions of employment which specify employee wages, benefits, hours worked and the type of work to be performed. Labor relations activities, therefore, have the potential to significantly affect the nature and qualiTy of services received by the City's residents. In addition, contracts represent a major commitment of financial resources by the City. Salaries and fringe benefits will account for $199,000,000 of City spending in 1999. This is the lazgest expense category for City government and represents almost 41 percent of its total budgc�t. Because of the substanrial impact of collective bazgaining and conhact administration, the Saint Paul City Council commissioned a perFormance audit of the CiTy's labor relations activities. The City Council, as the goveming body of the City of Saint Paul, is responsible for establishing City policies and ensuring that City practices aze consistent with these policies. As the body responsible for approving the City Budget, the CiTy Council must also assess the efficiency and effectiveness of City operarions. lfierefore, the City Council established a Performance Audit Program in the fall of 1996 to help it fulfill these legislative oversight and budgetary responsibilities and directed Council Research to conduct performance audits of City operations. Performance audits analyze the consistency of departmental practices with City policies and provide insight into how policy directives aze implemented. The performance audit also examines whether an organization's practices aze efficient and reflective of those used by high-performing organizations. This is not a financial audit oFthe outcomes ofthe collective bazgaining process or a study of fiscal implications of Saint Paul's labor relarions environment. While such a project may be interesting and useful, it dces not fall within the guidelines of the performance audit progrnm. Moreover, a basic principle of collective bazgaining assumes labor and management have voluntarily entered 'mto an ageement which is mutually beneficial; if it was not, agreement would not have been reached. With this perspecrive, Council Research believes it is not worthwhile in this performance audit to make jixdgements about particular contracts or their fiscal impacts. � It should be noted here that the authors of this teport are not represented by a coliective bazgai�ing mi[ and are classified as non-represen[ed management professionals. 1999 Saint Pau1 City Council Research �q.�� 2 peffo�mznce Audit ofthe City of Saint Pwl's Labor Relafions AcGviSes RESEARCH METHODS To make certain this performance audit is comprehensive and that all aspects of the Office of Labor Relations, the contract negotiation and the grievance administration processes were reviewed, we used a number of inethods to gather information from a wide variety of sotuces. Review of Documents Numerous City documents e�st pertaining to labor relations activities and we have sought to eacamine them all. Among the many documents we reviewed, the most important have been the City's 1998 budget documents, the City's Administrative Code, and the Minnesota Public Employee Labor Relations Act (Minn. Stat § 179A.03 —179A.25 (1998)]. We also seazched the City Charter, e�sting and previous labor contracts, and located several relevant policies. Analysis of Labor Relations Data A gre�at deal of data results fram the labor relarions activities of the City. We aitempted to review as much of tlus data as possible, including grievance resolution data, the duration of contract negotiations and a review of decisions and rulings made by the State of Minnesota's Bureau of Mediation SErvices pertaining to the Cit�'s conttact negotiarions and coattact administration processes. Interviews Interviews with people who participate in the labor relations processes is the best way to obtain accurate information about the policies and practices of those involved in the City's labor relarions activiries. We conducted numerous structured interviews with a bmad cross- s�tion of labor relations participants. We interviewed the entire Office of Labor Relations statFand all other City officials involved in the labor relarions processes. In addition, we interviewed representaUves of over 18 collective bargaining units, In total, we conducted 40 structured interviews typically involving from one to ten individuals lasting &om one to eight hours each. These structured interviews served to not only obtain answers to prepared questions but also as an oppofiuuty for respondents to eicplain the reasons for their answers and to suggest additional issues about which they thought we should be aware. SCOPE OF PERFORMANCE AUDIT This performance audit is essentially three distinct performance audits of the labor relations activiries of Saint Paul City govemment combined into one document. This was done to idenrify and discuss fhoroughiy, yet separately, the intemal operarions of the Office of Labor Relations and the interaction between the City and the collective bazgaining units that represent its employees. This performance audit should be considered a"snapshot in rime," Z See Appendix A for a list of interview subjects, Appendix B for [he interview questionnaire and Appendix F for the list of and citations of documenu reviewed 1999 Soint PauJ Ciry CormcU Research Perfolm�ce Audit of ihe Ciry of Saint Paul's I.abor Relations Activities 3 �� rather than a history of the City of Saint Paul's labor relations activities. Our intention is to t� provide a cuaent and accurate picture of the City's labor relaYions activiries, to identify problems and to make recommendations to remedy these problems. The scope of the three distinct subjects and the functions and parties associated with each aze discussed below. Office of Labor Relatioos T'he first secrion of the performance audit will exaznine the intemal operations of the Office of I.abor Relations (OLR). Intemal operations include such functions as work and staff assignments, staff training and development, leadership within the OLR, intemal planning, daTa collection and analysis activities. The OLR section will examine, through an organizational quality assessment, the extent to which the intemal operations of the office aze efficient and effective. Interviews with OLR staff and intemal office documents served as the two informational resources for this section of the audit. The stafF of the Office of Labor Relations consist of the Labor Relations D'uector, a Human Resowces Specialist, a Research Analyst, a Clerk Typist, and a Labor RelaLions Specialisi position which, for part of 1998 and up to the present, has remained vacant. This position was recently filled at the higher classification of Labor Relations Manager. Other participanu in the labor relations process, whether representing the City or collective bazgaining units, were not interviewed for this section. Because of the intemal focus of this section, we believe OLR staff are the only appropriate source for information regarding their internal operations. The OLR is responsible for numerous policies. To provide a comprehensive picture of the grievance administration and negotiation processes, the question of whether the OLR practices are consistent with policies will be discussed in the contract negotiation process and contract admivistration policy compliance sections. Contract 1�Iegotiation Process This section of the performance audit will review every aspect of the negotiation process and all parties involved, such as the Office of Labor Relations, the Risk Management Office, the City Attorney's Office, Financial Services, bargaining units and others. The contract negotiation process will be assessed holistically. The process is evaluated as a distinct entity but recommendaYions are made for specific parties involved in the City's labor relation activities. We have also included a discussion of contract implementation. These recommendaYions, we believe, will lead to improvement in the operation of the entire process. This section will include quality assessment and policy compliance discussions. Grievance Administration Process The grievance administration process secrion of the performance audit will address grievance activiUes and the parties involved such as the Office of Labor Relatians, Risk Management, the City Attomey's Office, Financial Services, the bazgaining units and others. The grievance process will be assessed in the same manner as the contract negotiaflon process. This section will indude quality assessment, policy compliance and perFormance measure discussions. 1999 Saint Pavl City Couxci! Research �/,'�� 4 1/' Perfo�mance Audit ofthe City of Saint Paul's Labor Relazions Activi[ies POLICY COMPLIANCE The contract negotiation and grievance adminishation chapters will include policy compliance sections which present the policies under which the City and the collective bazgaining uniu aze expected to operate. The section will then discuss the degree to which current piactices aze consistent with those policies. The policies Council Research considered aze from a number of sources including the City's Administrative Code, the City's 1998 budget, the City's labor contracts and Minnesota Statutes. Over 130 policies were identified and reviewed with the assistance of staff from the Office of Labor Relations, other City staff and representatives from collective bazgaining units. For each process section, the intent of the policies are reviewed, and Council Reseazch findings and recommendations presented It was not Council Research's intent to make specific findings on every individual policy statement. Rather, we tried to focus on groups of policies peRaining to specific topics, and draw conclusions about these topical areas. It is our belief this approach is more useful to both policy makers and the participants involved in the City's labor relations activities. Minnesota State Statutes Public labor relations of Minnesota municipalities aze govemed primarily by the Public Employee Labor Relations Act (PELRA) [Minn. Stat. § 179A.03 —179A25 (1998)]. The Act, passed in 1971, allows for the formation of public emptoyee unions and establishes the legal framework for all aspects of contract negotiation and grievance administration activities. Policies taken from PELRA make up the vast majority of policies reviewed in this audit. Where discrepancies are found between the practices observed in labor relations activities and PELRA, the reason offered for these differences will be provided along with recouunendations to bring policies and practices into alignment. These recommendarions may suggest changes in participants' prackices in order for them to maintain compliance with state law. City Policies The City Coimcil establishes policies that govem the operations of al] City activities including the City's labor relations functions. While there aze many general City policies wluch affect alI City activities, this report addresses only spec:ific policies which apply to the Office of Labor Relations, the contract negotiation and grievance administration processes. City Charter, Ordinances and Council Resolations We searched the CiTy Charter, the Legislative and Administrative Codes, and City Council Resolutions for policies pertaining directly to the CiYy's labor relations activities. A number of relevant policies were found in the Administrative Code and the Charter, although we found tittte in the Legislative Code or Council Resolutions relevant to either ihe contract negotiation or grievance administration processes. The City's Adminisuative Code is the compilation of City Ordinances which pertain to City govemment structure and operations. The City Code is usually explicit and leaves little l999 Saint Paul Ciry Cow+crl Reseamh Perfoimance Audit of @�e City of Saint Pwl's Lalwr Relatons Activities 5 � room for administrative discretion conceming the execution of ordinances. The City Charter - Y � establishes the powers of the City and the form of iu govemment. It is equivalent to a constitution for the City. The Council would view failure to comply with the Charter or the City Code to be a serious matter. The policy compliance sections of this report will identify any differences between ordinances and the charter, and existing practices. In addition, this report will provide expianations of these differences and offer recommendations to resolve these inconsistencies. Budget Performauce Plan Each year, as part of the City budgeting process, the Office of Labor Relations and several other City departments and agencies (i.e. Office of Financial Services Office, Risk Management, and the City Attomey's Office) include in their Activity Performance Plans objectives for labor relations activities. These plans are included in the budget when it is presented to the City Council for approval. The plans identify both the ongoing and annual objectives of each budget activity. The City CounciPs allocation of funds is directly related to these perFormance plans and, as such, these objectives represent City policies. City departments and agencies aze subject to the legislative oversight of the City Council and as part of this legislative oversight function, the City Council has fundamental interest in whether the policies of city agencies and departments aze consistent with their practices. Therefore, these budget performance plans are appropriate for review in a performance audit. While the Council understands that objectives set as part of the budget process may be ambifious and are sometimes thwarted by unforseen developments, the City budget is an official City policy document and city departments and agencies are responsible for operating in conformance with these adopted policy statements. Budget policy directives for 1998, rather than ] 999, are used in order to examine policies that should have been fully 'vnplemented prior to the performance audit. The policy comgliance sections of this report will focus on budget perFormance plans to identify differences between policies and practices and provide the division's explanations of these differences. Recommendations will also be offered to minimize such differences in the future. Collective Bargaining Contracts Labor contracts were also examined for potential policies. These contracts are legally binding agreements which must be approved by Ciry Council resolution. As stated eazlier, this audit does not attempt to evaluate the fiscal impact of the City's labor relations activities. Therefore, we have not examined the fiscal details of any of the City's 24 collective bazgaining contracts. However, almost all collective bazgaining agreements include language in their preambles which express the wish of both parties to pursue a hannonious and mutually beneficial relationship which they hope to maintain over the duration of the contract. We believe this sentiment is central to the quality and productivity of the labor relations processes. Therefore, we included the contract preambles in the group of policies examined for this audit. 1999 Saint Paul City Courscil Resemch 6 Perfocmance Audit of the �Ty of Saint Paul's La6or Relations Activities ORGANIZATIONAL 8� PROCESS QUALITY 9Q �� ASSESSMENT The efficiency and effectiveness of each of the subject azeas of this report (i.e. Office of Labor Relations, contract negotiation process and the grievance adminishaLion process) are evaluated using an Organizational Qaality Assessment. While there are several methods to evaluate whether the participants involved in labor relations activities aze effective and efficient, our appmach is based on work done by fhe organizers of the Malcolm Baldridge National Quality Award. Efficiency and Effectiveness The City Council is very interested in the value received by citizens for money expended. Ta�cpayers rightly expect money provided for the operations of the Office of Labor Relations will be spent to achieve the best result with the least expenditure of public funds. In addition, taacpayers have a fundamental interest in the fiscal outcomes that result from the contract negotiations and grievance administration processes. The efficiency and effectiveness of govemment operations and processes can be assessed in many ways. One common approach is for auditors to examine an organization at a micro-level to detemiine if the organization is following sound procurement piactitices, properly protecting iu resources, and complying with the requirements of laws and regulations. Tlvs micro-level appmach to auditing is closely related to financial auditing and is often conducted by accountants who spend a great deal of time and effort examining fhe inner worldngs of the organization. While we accept there are situations where this type of micro-level audiring is appropriate, such as when fraud is suspected, we believe a lugher level audit is most appropriate here. The City Council is less concemed with the minutia of daily operations and more concemed with lmowing if the Office of Labor Relations is a top-quality organization and if labor relations activities of the City of Saint Pau1 are efficient and effective. If not, they want to Imow what can be done to remedy any deficiencies preventing the Office of Labor Relaiions and ail other parties participating in the City's conhact negotiation and gievance adminisharion pmcesses from achieving a high tevel of excellence. Fortunately, there is a vast body of knowledge and experience delineating the characteristics of lugh-performing organizarions. While this lmowledge and e�cperience e�ctends back many decades, it has been crystalized by the Malcolm Baldrige National Quality Awazd. Public Law 100-107 (1987) established the Awazd and gave the responsibility for its development and administration to tfie Secretary of Commerce and the Nationai Institute of Standards and Technology. Pursvant to this charge, criteria for this award were establishad at the national level defining the characteristics of top-perfomung organizations. Assessment methods designed to �amine these characteristics have been developed and refined over the past ten years. In addition, State Councils for Quality aze now established throughout the nation with the Minnesota Council for Quality in the forefront of this movement. The Minnesota Council for Quality has gone beyond the national model by expanding the model into the public and not-for-profit sectors. For example, Councii Reseazch was a participant in fhe 1996 Minnesota Qualiry Award process as were the Eden Prairie School District and the Minnesota Division of the American Cancer Society. Many leading businesses in the nation (i.e., Motorola, Westinghouse, Federal Express, AT&T.) and in Minnesota (i.e., Allina, Dayton's, Ecolab, Honeywell, IBM, 3M) aze using 7999 Saint Pau! City Cormcil Research Perfolmance Audit of the City of Saint Pau1's Labor Relations Activities 7 � these assessment criteria to evaluate their progress. In fact, three Minnesota businesses �� /� (IBM-Rochester, Custom Research and 3M-Dental Division) have won the national Malcolm Baldrige awazd in recent yeazs. In Saint Paul City govemment, the Minnesota Council for Quality used these csiteria to assess Council Research in 1996 and we used similaz criteria in performance audits of Fire Operarions (1997) and Recreation Centers (1998}. Some terminology used in this report aze adaptations of the national and state criteria These adaptations are necessary because some language popular in the private sector is not commonly used in the public sector. For example, we have subsrituted the public sector terms of "developmenY' and "integration" for the less familiar private sector terms of "approach" and "deployment " We believe these adaptations improve the understanding of our public sector audience while retaining the essence of ideas involved. Quality Categories The study of high-performing organizations has identified seven characteristics believed to be essential for an organization to achieve excellence. We apply these criteria to the OfFice of Labor Relations and the labor relations processes. These criteria have been idenfified from studies over many years and are widely accepted as indicators of organizational excellence. The types of criteria used by the Malcolm Baldrige National Quality Awazd and the Minnesota Quality Awazd to assess organizational development and to identify quality organizations aze snmmarized in the table below. Detailed explanations of the criteria foilow. Assessment ❑ Planning ❑ Leadership ❑ Training and Development ❑ Information and Analvsis ❑ Processes for Improvement ❑ Ctiastomer Focus ❑ Results Planning The pursuit of excellence requires a strong futwe orientation and a willingness to make long- term commitments. Planning must anticipate many types of changes including those that may affect customers' expectation of services, technological developments, changing demogaphics, evolving requirements and community expeclations. Plans, strategies and resowce allocations need to reflect these commitments and changes. Quality organizations make both long-term plans extending three yeats or more years and short-term plans covering one to two years. These plans should not only be developed, but they also need to be carried out and updated frequently. Leadership Senior leaders (Labor Relations Director, Collective Bazgaining UniC Presidents and Business Agents) need to set direction, create customer orientation, establish cleaz values and have high expectations. Reinforcing values and expectations requires personal commitment and involvement. The leaders need to take part in the creation of strategies, systems and methods for achieving excellence. These systems and methods need to guide al] activities and ! 999 Sairc( Paul Ciry Cowuil Research 8 Perfo�ce Audit ofihe G5ty of Saint Paul's Labor Relafions Aaivities decisions of organirations involved in the labor relations processes. Seniot leaders need to commit to Yhe development, participation and creativity of their entire staf� membership or �oi,�t�-�. 99-�6 a Training and Development Employces in successful organizations are provided the tools they need to produce quality services. These same employces are given encouragemenY and the resources to develop a set of skills that allow them to contribute effectively to the organization. Successful organizations also liuk the haming and development of their employees to the organiTarion's goais and priori6es. Tlus linkage occurs through the development and implementation of a long-term strategic plan tied to basic organizational values. Information and Analysis Infocmation and analysis are a vital pazt of any organization. Awazeness of how one is performing at all times is important Performance improvement information includes customer, service performance, operation, supplier, employee-related, and financial data. Organizarions should coacentrate on collecting and using data that relate to their goals and plans. Collecting data serves fittle purpose if the information is not analyzed and used to make improvements. Analyses shouid eacamine hends, projections, compazisons, and cause-and- effect relationships. Using data and analysis systematically to set ptiorities is important in ereating goals, developing plans and allocating priorities. Information should be deployed throughout the organizarion and used to evaluate the organization �d assess progress, Information is essential in monitoring performance against measurabie goals and it should play a key role in tfie decision-malong process. Processes for Improvement This category reviews the desigo, management and improvement of intemal organizational prceesses. Improvement processes should be part of the daily work within the organization. They should seek to eliminate problems at their source and be driven by opportunities to improve. improvements may be of several types: (1) enhancing value through new and improved services; (2) improving responsiveness; and (3) improving ef�ciency in the use of all resources. Improvement processes must contain cycles of plaaning, implementation and evaluation wluch requine infom�ation and methods for assessing progress. Sucfi information and methods shou[d provide direct links between performance goals and intemal operations. It is critical that all processes be continuously evaluated to identify problems and successes. It is also important to bave vendor requiremenu in place as vendors provic3e needed goods and services to Yhe organization. In addition to specific vendor requirements, organizations should have indicators used to assess vendor performance, a pmcedure for determining whether vendors are meeting those requirements, and a system for giving them feedback. Customer Focus Attention to customer needs is crucial if an otganization strives for excellence. Organizarions that excel in customer satisfaction have obtained information by crearing and managing (999 Sabu Pad City CounciJ Reseorch Perfoimance Audit of the City of Saint Pw('s T.abor Relations Activities y � relationships with their customers. The organization gathers information from its customers ``' � on service requirements, near and long-term expectations and degrees of customer satisfaction. The successful use of cusiomer satisfaction information is integrally linked to an organization's ability to gather and analyze data conceming customer requirements. Knowing the requiremeNS of its customers enables an organization to develop service standards designed to enhance customer satisfactian. In order for these standards to be effecrive they must be understood by everyone. Results Successfixl organizations know how well they perform. By using results they can calculate their efficiency and effectiveness. A common way for an organization to evaluate its performance is to measure its results. For example, if the goal of the organization is to provide customer satisfaction, then the organization would collect and analyze data indicative of customer expectations, work practices to meet these expectations and the resulting ]evels of customer satisfaction. In addition to customer service results, high-quality organizarions also track human resources, financial and organizational results. The organization can track its performance over time and compaze its results with those of other organizations. These comparisons with other similaz organizations can represent benchmarks against which to compaze outcomes, efficiency and effectiveness. Research Methods for Quality Assessment Both the Malcolm Baldrige National Quality Awazd and the Minnesota Quality Award use a system in which applicant organizations prepaze a self-assessment used as a basis for an evaluation by outside examiners. Outside examiners study the self-assessment report and wnduct a site visit to seek clarifications and verify claims with respect to the qualiry criteria. Awazds aze based on the findings and evaluaiions of the outside e�caminers. Since we aze seeking to assess the efficiency and effectiveness of the Office of Labor Relations and the City's labor relations processes on behalf of the Ciry Council, we used a modified process for this study. We believe the best way to assess the level of an organization's development is to ask those most lmowledgeable about the organization or a process--the people who work in the organization or participate in the process. We believe the people who participate in the City of Saint PauPs labor relations activities lmow the strengths and wealrnesses of their organizations and will, when asked, candidly report their opinions. Therefore, we have gone directly to the participants to ask them about quality. To this end we conducted 40 structured intetviews with key participants involved in labor relations activities. The organizational assessment reports in this section are based on these employee interviews. In the employee and participant interviews, we asked questions designed to elicit evaluative information regarding each of the seven organizational quality criteria. Two analysts conducted each interview and independently recorded responses. The analysts then compazed their recorded notes and resolved any differences with clarification from the participants. There was a very high degree of consistency between the assessments recorded by the analysts during the interviews. 1999 Sa "vu P¢ul Ciry Council Research io PerFormance Audit of Ne Ciry of Saint Paul's Labor RelaROns Ac4vities Criteria Ratings ■ ' • ' We have gathered a wealth of information about the ]abor relations adivities of the City of Saint Paul while conducting this perfoxmance audit. Although caphuing all of this inforniation in any raring system is impossible, we believe a rating system will help decision- makers grasp the essence of the information. We have developed a simple summary rating system that conveys the essence of our findings. This system reflects what interview subjects have told us about the Office of Labor Relations and labor relations processes. While organizafions and processes consist of individuals, we intend these ratings to reftect current organizational practices and should not be interpreted as judgements about individuals. The ratings used in this section aze built upon our assessments regazding development and inYegration of the seven qualiTy criteria. Summary ratings aze intended to portray both the level of development and the level of integration of each quality criteria. The sumuiary ratings used in these sections aze: ��{'r�i Criteria fully developed and practiced. �}�}�}-.� Criteria well developed and pracriced. ��}-� Criteria present and practiced to some eactent. �} ..� Criteria sometimes present, occasionally practiced. Development, in this performance audit, means the extent to which high-valued chazacteristics aze in evidence. High-value characterisrics are ones in which the criteria being examined is systematic, manifest, pro-active, fact-based, and evaluated. Integration tefers to the extent criteria is pncriced in the Office of Labor Relations and in the labor relarions processes. It is possible, indeed likely, for criteria to be pncticed in some parts of the organization, but not in others. In this performance audit vety few of the criteria were fully practiced in either the Office of Labor Relations or in the labor relalions processes. Therefore, integration is discussed only when the development of the critetia has reached a stage when a notable level of integration of the criteria has occurred. PERFORMANCE INDICATORS The Performance Indicator chapter identifies measures which can be used to evaluate the quality of the activities of the labor relation processes. Perfortnance measurement in this perfrnmance audit means the regular collection of specific information about the effectiveness, quality, and efficiency of services and programs 3 The suggested indicators will enable organizations to evaluate whether the labor and financial resources expended oa an activity aze used efficiently, Performattce measures should also be used to determine whether services or programs have the intended effect and result in a quality outcome. Indicatots can be based on information obtained from written records, observations by specially trained staff or surveys from customers. This performance audit will suggest performance indicators for participants and particulaz functions in the processes. However, the audit will not perform the actuai measurements. Tkte Urban Institute (1980). Performance Measurement: A Guidefor Cocal Elected Officia[s. Waslilngtoa D.C.: The Urban Institute, p. 1. 7999 Soint Pnu/ Ciry Covncil Re.search Performance Audit ofthe City of Saint Yau1's Labor Relariosvs Activities ti qq,$�D OFFICE OF LABOR RELATIONS This section of the performance audit will examine the intemal operations of the Office of Labor Relations (OLR). Intemal operations include such functions as OLR work, staff assignments, training and development of OLR staff, leadership within the OLR, intemal planning, and data collection and analysis activities. The OLR section will examine, through an organizarional quality assessment, the eaRent to which the intemal operarions of the office aze efficient and effective. Where OLR operations are found to be inefficient or ineffective, recommendations will be made to correct these deficiencies. The Offtce of Labor Relations is the City of Saint PauPs designated representative for all labor relations activities. As the City's representative, the OLR negotiates the terms and conditions of employment with unions that represent the City's employees. It also represents the City in many of the grievance hearings grieved through procedures estab]ished by collective bazgaining contracts The Office of Labor Relations was created in the City Code as a special office of the administration. The OLR consists, at the moment, of five positions. Their titles and duties aze listed below. Director of the Office of Labor Relarions — The director serves as the City's exclusive representative in all labor relations activiUes, manages the labor relations work for the City, serves as a spokesperson in the collective bargaining process and oversees the administration of the Office of Labor Relations. Human Resources Specialist — This employee investigates and develops cases relating to union contract grievances, provides grievance case ana]ysis and recommendations, and represents the City in grievance meetings with union and management representatives. Researeh Analyst — This employee collects and analyzes labor relations data, information and policies, and makes recommendations regazding the City's labor relations aetivities for the OLR. Clerk IV — This employee performs skilled clerical support services which include scheduling and organizing the work of the OLR and produces documents for the OLR. A fifth posirion exists which has remained vacant since October 15, 1998. This position was classified as a Labor Relations Specialist but has now been upgraded to the level of Labor Relafions Manager. This position was, and will continue to be at its new level, responsible for negoriating some contracts. It should also be noted the Office of Labor Relations Director, who was in place during this audit, resigned on May I I, 1999. As of the publication date of this report, no interim or permanent replacement has been appointed. 4 The City Attomey's Office represents the City in all disciplinary grievances grieved through the contract. The Office of Human Resources represents the City in gievances filed through the Civil Service system. 1999 Saint Poul City Counci! Research �z Perfotmance Audit ofihe City of Saint Paul's Labor R A ct i v iti es LABOR RELATIONS ORGANIZATIONAL CHART 99 �/�� Relations Clerk N Mayor Relations Resources Research Analys! 1 PLANNING Summary Rating � KEY PLANNING CONCEPTS; � Set Strategic Direction o Develop Action Pians o tv� work w�cn ri� The development and implementation of plans which anticipate changes in an organization's environment aze crucial for a quality organization to develop a strong future orientation and an ability to fulfill long-term commifinents and goals. Set Strategic Direction Witttin the last frve yeazs one long-temi plan has been developed. A written, strategic plan was developed in 1994 by the Mayor's Chief of Staff, the City's Budget Director, the City Attomey and the Office of Labor Relations Director. The plan included the AdminisVation's goais for the City's external labor relations functions and the internal operations of the Office of Labor Relations. In 1996, this plan was updated by the OLR director. Neither department and agency heads nor the OLR staff, with the exception of one senior OLR pmfessional employee, were involved in the development or revision of the office's intemal operations segment of the long-term planning effort. One explanation provided by the OLR Director as to why OLR staff were not involved in long-term pianning was staff 7999 Saint Paul Ciry Cowcil Research PerEormance Audit of the City of Sa'urt Paut's iabor Reialions Ac[ivities 73 tumover and inexperience. Only one member of the OLR staff reported knowing of the �f �, � G/ � e�stence of the long-tecm plans. � There is a prevalent belief among staff that long-term planning is not possible in the dynamic environment in which the Office of Labor Relations operates. In addition, it was suggested long-tecm planning was limited by the lack of Imowledge about the size of the City's budget for the long-term. These explanations, however, do not appear to be reasonable given that planning should anticipate a diverse array of changes in the organization's environment. The fact that an organization's environment is dynamic and its fuhue resources ue unknown does not excuse the need for ]ona term planning. Moreover, organizations for which much of the future is unknown would particulazly benefit from planning activities. Action Plans The Office of Labor Relations regularly makes unwritten short-term plans. Most of these plans aze created in a circumstantial and reactive manner. The short-temi plans aze made in response to the Mayor's labor relations goals, the budget process and upcoming contract negotiations. In addition, both written and unwritten planning calenders aze created for specific negotiations. Staff inembers, however, report the OLR Director does not frequently engage staff in planning efforts. Most plans aze developed by the OLR Director, the City's Financial Services Director and the Mayor's Office. Furthermore, these plans aze not regulazly updated or revised. The OLR staff repor[ed they are often unawaze of the content of specific plans. Short-term plans known to staff aze reported to be implemented frequently. Plans regazding attempts to reduce the future liability of re6ree health care insurance costs and plans for upcoming negotiations were reported to have been successful. Many of the Office of Labor Relations short-teim planning efforts aze not consistent with the characteristics of a quality organization. Short-term plans aze reactive and aze, at most, a year in duration. T'here is no evidence that plans aze made to anticipate changes in the environment; i.e. changing demographics, evolving requirements, and shifting customer and community expectations. Rather, plans appeaz to be made as a result of such changes. Align Work with Alans The Office of Labor Relations Director is the primary person responsible for monitoring both long-term and shor[-term plans. The Duector of Financial Services and the Mayor's Chief of Staff also monitor the implementa6on of plans. The OLR staff, with one exceQtion, stated they are never involved in overseeing plans. This is not surprising considering the OLR staff are unawaze of the existence of plans and do not participate in their development. The Director believes the disconnect between planning activities and staff is the result of their lack of experience and tenure. For the purpose of this gerformance audit, formal evaluation is defined as a systematic, data- based inquiry which pmvides leaders with information to assist them in the decision-making process. Evaluation is important in the planning process because it enables leaders to determine whether existing plans have their intended effect. In addition, evaluation results provide data which inform fuhue planning efforts. No formal evaluation occurs in the QLR regarding the internal operations of the office, customer satisfaction or whether the OLR is achieving its desired goals. 1999 Sarnt Paul Ciry Cour+cil Reseorch ia of Sain[ Paui's i�bor Relalions Acfivities 99-g/� � Reeom�nendation #1: T7re OLR should create regular, wrinen long- and short-term plcros. Plans shoutd rrot only focus on the contract negotiation and grievance adminisbation pracess but also on how to make the internal operatiorrs of the OLR as e�cient and effective as possible. Planning e�'nrts should include the entire sinfj° Serious and continuing e,[j`orts must be made to ensure employees fully understand all plans and are regularly remiruled of how they can contribute to !he achievement of these plans. The OLR director should require stafj,' with the exception of interns and other terr�pormy employees, to monitor the implementation of all plans. �21 no time should plarrs be kept secret from staff because they are deemed to be too "sensirive" or "important. " Recommendation #2: The OLR occasionally implements new work processes or systems to improve its inteneal operation cmd the City s labor relatiorrs activities. The OLR should systematically evaluate new work processes or systems in order to determine whether plans have been successful. Information from evaluafiotts should be used to direct future planning efJ'orts. LEADERSHIP Summary Rating: � KEY LEADERSH(P CONCEPTS: � Mission 4 Vision � Values o Communication In high-quality organizations, senior leaders set direction, create cvstomer orientation, establish clear values and have high expectations. Leaders must detnonstrate a lugh-level of personal commitrnent and involvement in creating strategies, systems and methods which guide all activities and decisions of the organizarion. Communication is an important aspect of efT�ective leadership, Effective communication must include the ongoing demonsUation that values, direckions and eacpectations are the basis for the organization's key directions and actions. In addition, senior leaders need to commit to the development, pazticipation and creativity of their entire staff. OLR staff state the D'uector only rarely or occasionally provides a cleaz ard comprehensive vision of the fubue for the organization. The OLR director aclmowledged that a vision which reflects �ganizational values and goals has not baen articulated regulazly. Occasionally staff are informed at weekly staff meetings about certain objectives. ParCicularly conceming is that some staff members questioned whether it was even possible, given the dynamic and sometimes chaotic nature of labor relations activities, to provide a clear organi7ational vision for the OLR. Whi1e it is important for leaders in any organization to provide a clear vision, it is patkiculazly important to fiunish a clear vision for new staff who lack experience, as is the case in tiie OLR The OLR Director has made a more concentrated efforf to provide city department heads with updates regazding her vision for the OLR Updates take place at the Directors and Office Directors meerings. However, similaz discussions are not conducted with OLR staff. The Mayor is idenrified by both the staff and the OLR Director as the prunary source for a future vision of the OLR. The Dircctor believes the creation of a vision is the responsibility of the Mayor and it is her job to implement the vision. The OLR Director meets with the Mayor once every two to three weeks to discuss labor relations activities. This deferential appmach is not sufficient if the OLR is to become a high-quality organization. While the 1999 SairttPaul Cny Coumcil Res�earc)� Pafo+mance Audit oflfie CSIy of Stint PaW's Iabor Itelations Activities 15 �` Mayor is clearly invested in the work of the OLR, the OLR Direc.�tor oversees the daily a"{'� U operations of the office and, therefore, must convey the Mayor's vision to the staft: The Dinector should also communicate her own vision which cleady outlines how she expec.�ts the Mayor's ideas to be implemented. Aowever, when staff were asked, they staYed they were imaware of the specifics of the Mayor's vision for the Office_ Tfiere is a significant lack of commimication regazding the intemal operations of the Of�ce of Labor Relations. Staff report it is difficult to get fcedback from the OLR Dir�tor at times other than regulaz staff meetings. In a short-lived and hapha�ardly imptemented effort to provide a regulaz forum for communication, the Director set aside a block of one or two hours daily for staff questions. This umovation lasted for several months unril it was discontinued once a new mund of negotiations began. In addition, staff are not toid about the content of most of the OLR's plans, nor are they told about ttte Mayor's goals and objectives for the Office. One staff member was of the opinion there were some issues which were inappropriaYe for OLR stafF to know about conceming the direc.-tion of the OLR It is hard to imagine such a situation eacisring if the OLR Direetor had tcvst and confidence in the sfaff. One explanation given by the Director for the dearth of communication within the OLR is the stal�s relative ineacperience. However, staff inexperience is not sufficient justification for keeping them ill-informed For the organization to meet its goals, staff must beinformed aboutthe Director'sthe values and expectations. Becognizing staff contribtrtions is another mechanism for communicating organizational values and expectations. Staff contributions in the OLR aze recognized through informal mechanisms such as verbal recognition at staff meetings and through the annual individual performance evaluations. Staff reported an excellent environment was maintained in the Office of Labor Relations for women and other protected classes of employees. No discemable evidence of discrimination was reported. The OLR director, staff noted, is very committed to creaYing a fair organization for everyone and strongly values diversity in the workplace. Recommendation #3: The director should develop as+d articulate a clear vision of the future and enlist OLR staff to make this vision a reality. The director needs to create opportuniHes to express this vision to staff on a regular basis. Likewise, the director must develop an ongoing process for errsuring employees fully understand how they can individually or collectively participate in making this vision a reality. A part of this i�rvolves greater personal recognition of the contributions of staff who are advancing the vision, including formal acknowledgments. Recominendation #4: The impanance the OLR director places on the Mayor's goals and objectives for the City's tabor relatiorts activities demands they be fully communicated ro OLR staff on a regular basis. These goals cmd objectives should be explicitly incorporated into the Office's short- arrd long-term plarrs. Recommendatinn #S: The OLR director should improve internal communication and take steps to keep staff well-informed. Maintaining a veil ofsecrecy to shield stafjfrnm the important arrd sensitive issues will only continue the impression that staff are not trustecl. There may 8e irrstances when communication is not appropriate, for i»stance if the information communicated is of a highly sensitive nature and is not relevant to the duties of staff. However, our interviews suggest communications have been withheld when this was not the case. This perception has created a situation in which staff do not feel empowered to do their jobs. 1999 Soint Pou1 City CouncilRerearch 16 petformance Audit oFthe Ciry of Saint Pau]'s LaborRe�lions AcKivifies TRAINING � DEVELOPMENT Summary Rating: � KEY TRAINING 8� DEVELOPMENT CONCEPTS: � Job Design 99 8�8 o Recognition � Education & Training Employee Well-Being Employees in successful organizations are provided the tools they need to produce quality services. These same employees aze given encouragement and the resources to develop skills that allow them to contribute effectively to the organization. Successful orgaztizations also tink training and development to the organization's goals and priorities. There aze several key organizational factors that should make training and development functions of particulaz importance to the Office of Labor Relations. The cuaent staff, with the exception of the Director, has had a brief tenure with the OLR. Cunently, the longest serving staff inember is the Clerk Typist IV, who has been with the Office for less than three years. One professional employee has been with the organization for a year and half and the other for less than eight months. In addition, the two professional staff members do not have prior professional eacperience working with public sector labor relations. Inexperience creates acute problems in labor relations enduonment because, as the OLR Direc:tor reports, capabte labor relations professionats mainly leam their cratt through on-the-job experience. The Director reports it is a profession-wide norm for labor relations professionals to have at least seven yeats of expetience prior to becotIIillg cluef negotiators. Moreover, as noted in ihe intraduction, this is a very small staf� with a total of fow employees, that must operate in a compleac and sttessful work environment. The challenges faced by an orgaoization tlus size have been magnified by a professional staff vacancy that has remained unfilled for the last nine mornhs. The Office has also experienced a significant level of staff tumover which has lead to the loss of institutional Imowledge and experience. Job Design There is agreement between the OLR Director and staff that opportunities aze created for only some employees to contribute to decisions made about the operations and procedures used in the Office. T1te clerical staff member reported she has contributed to decisions made about procedutes used for the contract implementation process and other administrative prceesses. Professional staff have had less chance to contribute to decisions made about the Office's labor relations functiona No specific process exists for staff to contribute to important decisions. The OLR director will request their input, on occasion, in staff meetings. However, professional staff report the D'uector does not regulazly engage them in flus type of activiTy and it is often very difficult to bring forvvud ideas and suggestions. One staff member believed they were not consulted on a regulaz basis about action pians or strategies because the Director didn't consider them to be peers. The Director more or ]ess confirmed tlus view by explaining that pzofessional staff were not consulted on certain issues because they lacked necessary experience. Not surprisingly, one of the pmfessional employees felt little opportunity eacisted to contribute meaningfiilly to the organization's goals. Office of Labor Relations employees aze evaluated formally once a year during their annual performance review. The Dir�tor conducts more frequent perFormance reviews of new employees. Staff report no formal, systematic review of specific work products. However, informal feedback through coaching is given on a regulaz basis. One area for concetn is that 1999 Samt Pau! Ciry Counci! Research PerFormance Audit ofihe Giy of Saint Paul's Labor Itelstions Acfivities 17 evaluation methods are frequently changed with no explanation to staff. Staff report being �� v� confusecl and nervous about the criteria an wtrich they are to be judged. Despite the lugh demands of the wark load and the identified inexperience of the OLR statF, there appears to be only limited uTilization of other staff in the City govemment that may be able to ameliorate some of the work load problems facing the OLR The OLR imder the current Administration has made less use of professional staff from the City Attomey's Office and the Risk Management Division than in the past. These offices, in recent yeazs, have lost staff with significant labor relazions experience. However, little attempt has been made to cultivate relationslups with current staff who might be able to assist with the City's labor relaYions activities. Employee Well-Being Since maintaining a positive work environment that is conducive to the well-being and gowth of all employces is seen as the foundation for improved work perFormance, this issue was investigated in our interviews. OLR staff reported that a fair or poor work environment was mainGVned. Interestingly, staff members in general reported a more positive view of the environment than the Director, who reported the work environment to be a poor one. All OLR interviewees reported being overworked and that the environment is stressful and hectia The Director identified the overwhelming work load and the staff's inexperience as the primary reasons for her negative assessment of the office environment. Education and Training The OLR does not make significant use of t�aining opportunities for staff. Staff state they are encouraged by the Director to take advantage of such opportunities but these have been limited by time and budgetary consuaints. Professional staff reported attending the Minnesota Public Employee Labor Relations Association annual conference. Both employees e�cpressed iY was an excellent experience and wished for similaz oppor[unities in the furiue. Qne professional employee also reported attending a seminaz about work-place wnduct invesrigation at the University of Minnesota. The OLR Director identified computer training as an area that needed specific attention. However, staff reported no participation i� any computer haining. Given the Office of I.abor Relations Director's concems about staff inexperience and the impact this has on their ability m particigate fully in Yhe work of the organization, one would expect strong support for training and development activities. The Director cites budget constraints as the primary reasan for not making greater use of these opportunities. Staff members stated the I?irector would support more training if the OLR had greater resources. One employee also stated that low utilization of training and development activiries was not the fault of the Director but was endemic to City govemment. The OLR Director supports participarion in professional organizations for staff through office memberships in the Minnesota Public Employers AssociaYion and the National Public Employers Association. The Office is unable to support individual memberships in r�ent years because of budget cuts. The majority of staff were unaware of the office's membership in these organizatians and indicated the subject of individual memberships has never been discussed. I999 SairAPaut City Cotmcil Resem'ch 18 Performance Audit of ihe City of Saint Paul's Labor Relations Acfivities Recommendation #6: The OLR Director should provide a forum and time by which sta,�j"can contribute to decisions made about the organization, such as specific times set aside in stafj" meeting, suggestion box, etc. 99-�'�D Recom�nendation #7: The OLR Director should provide fina»cial support for participation in training and development activities. The director should also clearly inform staff about the �ce's membership in several professional organizations and urge staff to take full advantage of these memberships. In addition, incentives to participate in training and development activities, such as positive marks on performance evaluations ar formal recognition should be used. Recommendation #8: The OLR should cultivate relationshiPs with other organizatians that may have the expertise to assut the organuation in its worl� To lhis end, the OLR should create a City-wide labor relations work team which would be composed of representatives from the City Attorney s Office, the Risk Management Division, the Financial Services O,�Sce, 1he O, ffice of Human Resources and others. Such a task force would coordinate the City acrivities in the Labor fte[atiotts process and re-establish relationships which have been neglected. Recommendation #9: The OLR Director should promptly alert staff when methods for perf'ormance evaluation are changed. The new methods should be ezplained clemly and well in advance of the employee's annual performance review. INFORMATION AND ANALYSIS Summary Rating: �r� KEY INFORMATION & ANALYSIS CONCEPTS: o Collection of Data � Use of Data o Analysis of Data Information gathering and analysis are vital fimctions for I a Comparison with Others � any organization. Quality organizations should collect _ _ _ _ _ _ _ _ _ _ _ _ data on customers, service performance, operations, suppliers, emptoyees and costs. Organizations should concenRate on coltecting and using data that relate to their goals and plans. Data collected should be analyzed and used to make improvements. Information is essential in monitoring performance against measurable goals and it should play a key role in the decision-making process. Collection of Data The Office of Labor Relations oollects a sizable aznount of data from the contract negotiation and grievance adtninistration processes. Indeed, labor relaiions is a field in which data plays a vitai roie. The data available often determine whether negoriation items or gtievances aze won. The OLR Director should be credited with making data wllection a high prioriry. 1n the past, this has not been an azea in which the Office performed adequately. Data cotlected in the contract negoriation process includes information about comparable wages and benefits in other jurisdictions, calculations of future wages and benefit cosu, histories of pay-rate increases, rates of sick Ieave use, and specific contract language which is identified as obsolete, aznong other items. Data is collected in anticipation of upcoming 1999 Saint Paul City Comrcil R¢snvrclt Perfoimance Audit of the City of Saint Pwl's Labor Relations Activities 19 ��{� � V contracts and during negotiations. Staff state they will attempt to obiain any daYa that can be� measured for an issue which they know is or will be contested. This information is usua]ly used only for the duration of the contract cycle. Some daTa is collected on issues that are ongoing concems such as retiree health care benefiu. Data collection for grievance administration is even more well-developed. Over the last year and a half the OLR has implemented a computerized grievance database. The database stores information regazding the number of grievances outstanding, the types of grievances submitted, how the grievances aze resolved, the level in the process at which resolution takes place, the numher of grievances by department and bazgaining unit, and the amount of time taken to resolve the gcievance. If the gtievance has gone to arbitration, the OLR collects information about the results and arbitrator information, such as previous decisions and biases. The Office of Labor Relations has �perienced difficulties integtating and accessing data from other information services (IS) systems in the City. Over the last year professional staff have sought, but have not gained, access to the Office of Human Resowces's HUMMERS database. HUMMERS contains daca and pre-arranged reports containing employee information which would great]y assist the OLR in pteparing for negoria6ons and grievance hearings. In addition, staff have sought training on how to customize reports from the HUMMERS system but this has not been forthcoming. Staff also report IS support services have traditionally been weak but have recently improved. Anatysis and Use of Data As noted above, data is collected and used on a regulaz basis for the OLR's activiries. Analysis, although it occurs, is done less frequently. Analyses of grievance activity is often done and pzesented to department heads and managers. Basic analyses of contract negotiation outcomes are done through comparisons with other jurisdictions. More, however, could be done in both areas. Comprehensive analysis of grievance data for grievance prevention putposes would be very useful. Analysis of data also appears to be lilndered by the IS system integration difficulties the OLR has experienced. For instance, full implementation of the costing model would allow for a more comprehensive budgetary analysis of newly negotiated contracts. Comparison with Others The OLR regularly compares results data from the contract negotiation and administration process with similaz govemmental units. For a further discussion of these comparisons please see the Results section of tiris chapter. No data comparisons are made by the OLR regazding human resources, customer service or intemal budget and operations. The OLR has developed a solid foundation fot future efforts to collect and analyze data. Fur[her efforts need to be taken to analyze data and to ensure IS systems aze accessible to OLR staff for the Information and Analysis eriteria to be fully integrated within the organizarion. 5 HC7MMERS is a concocted expressiou which stands for Human Resources. 1999 Saint Pou! Ciry Councr! Research 20 Pertoimance Audit oftbe City of Saint Paul's Labor Relations Asliviries Recommendalion #10: The OLR Director should immediately request that OLR �q g�0� professional stg�°receive complele access So HpM�Lf�RS system. The O�ce of Human Resources should act posthaste to see this is done. The OLR Director should also ensure that professional staff receive necessary training to operate the HUMMERS system attd are capable of creating customized reports. Recommendation #11: The OLR should conduct and integrate more complex analyses of labor relations data inlo its labor relations activities. Because the OLR's success is of}en determine by the use and analysis of data, this activity is of paramount importance. Moreover, the tremendous amount of data that results from the Ciry's labor relations activiries provides for a rich opportuniry for analysis. The OLR director should provide additional training to sta}j, if necessrny, to accomplish this recommendation. See also Recommendation #25, page 37 on contracl costing. PROCESSES FOR IMPROVEMENT Summary Rating: �� KEY PROCESSES FOR IMPROVEMENT CONCEPTS o Improving Services o Impmving Support Services � Impmving Supplier Services Processes for improvement includes the design, management and improvement of intemal organizational prceesses. Improvement pmcesses shoutd be part of the daily wotk within tfie arganization. They should seek to eliminate problems at theu source aud be driven by opportunities to improve. Improving Services In general, the Office of Labor Relations employs reactionary methods for improving practices. While the Office should be given credit for making improvements in particulaz problem areas, most efforts undeRaken have been circumstantial and ad hoc. The OLR I3irector approaches making improvements from a coping mode rather than a pro-active, managing mode. Staff reported that practices fi�equendy changed reactively when they or the Director realize current practices are not working. Acc;ording to sta� this type of activiry occurs hvo ot three times a yeat. The OLR Director states work assignments are reviewed for improvement at three to s'vc month intervals. Sta� however, state work assigunents are rarely, if ever, reviewed and there is no formal mechanism by which this activity can occur. When the subject is brought up, it occurs at staff meetings and the discussion is usuaily regazding specific projects, not about ongoing'or peimanent adjustments in work assig�uneczts. One statF member said changing work assignments was very difficult because the positions in the OLR are very distinct� Tlvs difference in perception is very conceming. Improving Supplier Services Vendors and oontractocs are rarely reviewed Labor telations consultants are the primary form of contractor employed by the OLR. A consultant was most recexrtly contracted for the period of hme 1, 1998 to January 1, 1999 to negoriate contracts. Another consultant was 1999 S¢iwt Pau'City Coaxil Resemich P�frnmaece Audit oflhe Criy of Saint Pwl's Iabar Relztions Activities 21 � hited in 19941995 to work on the merger of the City and County public health agencies. ��'" � The OLR Director is solely responsible for evaluating consultants. Tiaditionally, tUis has been done on a regulaz, yet informal, basis. Staff reported the most recent consultant received a gmat deal of feedback from the Director regacding his performance. Over the coutse of the consultanYs contract period the OLR Director iniriated a formal evatuation process ofhis work. Other vendors the OLR uses, such as copier and office supply companies, are shared with and contrac[ed by the Office of Human Resources. While these vendo� appear to meet the nceds of the OLR, the Office provides little or no feedback to Human Resoutces about the perfannance of these vendots. Past Efforts to Improve Practices The Office of Labor Relations and its director should be credited with undertaking a number of efforts to improve practices which have been problemaric in the past. ❑ The OLR has reviewed and restructured the intemal system for processing grievances. This endeavor was the result of problems experienced with the City not processing grievances in a timely manner. ❑ The OLR has attempted to begin to coilect data abouY grievancES in a grievance-tracking database. The analysis detived from the data assists the Office in identifying problem areas that could be impmved ❑ The OLR is working with the Financial Services Office to streamline the contract implementation process by creating a consistent process by which a contract is implemented. ❑ The OLR also created a data base to identify what they described as "old or obsolete" contract language and has worked with the Financiat Services Office to create a conuact costing model which could be used by both offices. 0 The OLR developed a staff manual for adjusting on building trade union wage rates and benefits. ❑ The OLR augmented the record system to ensure appropriate historic information would be available for future negotiations. While si�ificant attemgts have been made to nnprove organizational practices, improvements have been idendfied tUrough informal means. In addition, follow-tluough and the initial completion of these projects is a substanrial problem. The e�cistence and import of the �ievanc�tracldng system has not been communicated to the OLR's stakeholders; despite the fact the OLR has an explicit budget objeetive calling for this. Also, the contract language data base and costing models have not been developed to the point where they aze useful to staff. While undeRaking improvements is admirable, impmvements must be implemented and integrated into the organiaation for them to be effective. Recnmmendation #IZ: The OLR shauld create processes by which improvements can be made and reviewed. These processes should be used regulardy to examine work assignmenrs, evaluate vendors and identify other areas of the OLR internal operations which may be improved. Regutar stafjmeetings would be an excellent forum for this activity. Moreover, 7499 S¢int Paul Ciry Cavncil Re.searcfi � Pafotm�ce Audit ofthe Ciry of Saint Paul's Iabor [telations Aclivities stq�'should be empawered to take a leadership role in overseeing mcmy of these � d � � improvement processes, p Reeommendation #13: The OLR should work with the Human Resources Division to provide feedback on mutual ve�rdors. Recommendatio» #14: The OLR should make a greater effort to follow-through with improvement practices undertaken and communicate these improvements to appropriate sYakeholders who would benefit from such information. A City-wide labor relaiions committee would be excellent vem�e for communicating these activities. CUSTOMER FOCUS Summary Rating: � Attention to customer needs is crucial for otgaztizations to �� achieve excellence. Thmugh the creation attd managecnent of relatianships with their customers, organi�ations which excel in customer satisfaction obtain information on customer service requirements, eas�ectatipns and satisfaction. Knowing the requirements of its customets enables an otganization to develop standards which aze designed to enhance customer satisfaction. For these standards to be effective, they must be undersYood by everyone in the organization. KEY CUSTOMER FOCUS CONCEPTS: � �stomer ldenrification � cuscomer Know�edge � Customer Relations Castomer ldentificadon In order to design standards which enhance customer satisfaction, an organi�ation must clearly identify its customers. Once customets are identified, the organization must determine their needs and satisfaction. Unfo�ately, consensus does not exist in the Office of I.abor Relations about who their customers are. When asked to identify their customers, staff were consistent in identifying the Mayor, City Council and department heads. There was not consensus on whether citizens, union representatives or ciry employees were aiso customers. One staffmember stated during his tenute there has neva been a discussion of who were the OLR's customers, This is problematic, since cleatly identifying customers is a necessary steg� for determining customer needs and satisfaction. If an organiration has multiple definitions of their customer group, it is difficult to consistently meet all customer needs. From the interview responses it is cleaz the OLR Director and staff recognize the Mayor as tlteir primary customet As noted above, the Mayor is perceived by OLR stat£ as setting the vision and strategy for the organization. In addition, given the effect labor relations activities have on goods and services delivered by the City and the import of these ac[ivities on the budgetary process, it is not surprising that OLR staff would idenUfy the Mayor as the primary customer. What is remazkable, however, is the magnitude by which the Mayor's needs and eacpectations are held in much higher esteem by OLR when compared to the needs and expectations of other customers, such as the City Council or department heads. This is obvious when examining the extent to which ihe Mayor's needs and saYisfaction are monitored compared to the other customers. 7999 Sairrt PouJ Ciry Cmmci! ResemcPr Perfolmance Audit of the City of Saint Paul's Labor Relations Activibes Customer Knowledge � q°'�� With the exceprion of the Mayor, the OLR makes no systematic attempt to monitor the needs and e�cpec.�tations of its customers. The OLR IIirector meeu with the Mayor once every hvo- three weeks. At these meetings, the IJirector provides the Mayor with updates on the labor relations activities and the Mayor provides fcedback to the Direc[or about the OLR's work. The OLR Duector does not communicate this fcedback to staff. Despite not being fiilly awaze of the Mayor's customer requirements, the Office of Labor Relations staff report a high-level of responsiveness to the Mayor's needs and expectations. Out research indicates, despite this inconsistency, the OLR has maintained a well-developed level of customer focus in its relationslup with the Mayor. Monitoring the needs and expectaYions of depar[ment heads, management-level staff and the City Council is less developed. The Office of Labor Relations will meet with these parties if specific problems occur or if they request meerings. With the exception of a reported periodic survey of department and office directors, the OLR does not systematically seek out these parties for fcedback on services provided by the organization. Nor does the OLR director provide regulaz updates to these parties on labor relations activities. This situation indicates a disconnect between the customers identified and the customers monitored. The OLR Director is the organization's only staff person to monitor customer needs and expectations. Staff are not given the opportunity to monitor customer needs and e�cpectations. It is not surprising they demonstrate little resgonsibility or ownership of the organization's customer focus functions. This situation is emblematic of a more general pmblem, identified throughout this report, of staff not being involved in decisions or activities which are of vital importance in creating a quality organization Customer Relations Formal standatds assist organizations in communicating the values and expectations of organizations. No written or formal customer service standards exist within the OLR. Staff report success in meeting its customers' significant needs; i.e. negotiating contraets beneficial to the City. However, they are less succ�ssful meeting less significant customer needs; i.e. retuming phone calls in a timely manner. Having customer service guidelines for some of these low-level tasks may assist the OLR in meeting these needs. However, stafF do abide by unwritten professional standards or ethics. These standards typically have to do with treating customers, City employees and representatives from bazgaining units with respect and fauness. Staff also identified the OLR has problems managing customers expectations. Very often customers put pressure on the Office to produce results that aze unreasonable or, even, illegal. OLR staff believe these unrealisric elcpectations elcist because of a lack of understanding on the part of the Mayor's Office, department heads and managers about what can be achieved through the negoriaYion and grievance processes. This lack of understanding by key customers may also result from the lack of communication between eustomers and the OLR. The OLR has idenrified this as a problem azea, especially in the contract administration process, and intends to create a teaining program for managers. With the exception of monitoring the Mayor's needs and expectations, there is very little evidence this function has been integrated throughout the entire organization. The Mayor's customer requirements, while monitored, are not regulazly communicated to OLR staff. Therefore, we cannot say these requirements have been fully integrated into the organization. 1999 SoiM Paul Ciry CouncAResemch Z PerFotmmce Audit of ihe City oFSaiM Paul's labpr Relations Activifies Recnmmendation #1 S: In order for customers to have a realistic understanding of the services that are provided by the OLR, rhe OfJ"zce should undertake a broad effort 10 educate its customer-base about all aspects of public Iabor relations, especially grievance processing. CiCI - �� Zj Recommendation #16: The OLR should create customer service guidelines for activiNes in which its sta,/J'have contact with customers. 77rese guidelines should include expectations such as the number of hours in which a phone call should be reherned and protocols regca�ding how to handle frequently asked questions or requests. Recommendatiox #1 �• The OLR should collect and analyze customer informarion on other custnmers it identifies beyond the Mayor. .4 system should be created by which all OLR customers can be monitored on a regular baris. In order for staff to have a good understanding of customer information, this efjort should encourage all s1a,�'to monitor cusiomer expectations attd needs. If customer information is gathered and monitored by the director, there should be a clear communication to sta,�"of key non-confulential fzndings. RESULTS Summary Rating: ��r Successful organizations lmow how well they perform. The measurement of results is a common KEY RESUtTS CONGEPTS: o Customer Satisfaction o Financial Outcomes ° SupPlier Performance � Organization Oufcomes way for an organization to evaluate its perFormance, efficiency and effectiveness. Organizations should track their performance over rime and compaze their results with other organizations. Finauciat Outcomes Labor relations activity is, by its very nature, results-oriented work. Par[ies involved in labor relations processes continuously focus on ihe outcomes of negotiations and grievances. Unions and management, alike, have an inclination to compare resvlts with the past and with similaz organi7ations. The Office of Labor Relations is no different in having this resuhs-focus predisposition. However, the OLR's focus on results is almost entirely on the outcomes from the comract negotiation and grievance administration process, :ather than its own intemal operarions. The OLR &equently coilects results regatding outcomes of specific contract negotiations. The results exan�ined include the percentage increase in pay and benefits &om the previous contract, the totai financial cost of the contract, changes in sick leave and vacation hours provided, specific language changes in contracts and arbiUation settlements. Comparisons of these results are made wiffi previous contracts or with comparable govemmecttat units. The OLR has a set of five governments in the state of Minnesota with which it compates the conhac;ts of the City's non-pubiic safety woricforce. The group consists of the State of Minnesota, the City of Minneapolis, Hennepin County, Ramsey County and the Metropolitan Council. These govemmental uaits were selected because they have similaz work forces and aze, along with the City of Saint Paul, among the lazgest 1999 Saint PaulCity Cowrcil Research Perfmmance Audit ofthe City af S�nt Paui's Labor Aelazions AcHvides 25 � govemmental units in the Minneapolis-Saint Paul metcopolitan uea The OLR also uses the"t� � something cailed the Vemon Model for comparisons. This model, developed by a professor of the same name from the University of Wisconsin, compares the contract resuits of Saint Paul's workforce to the 15 ciries which aze ranked'unmediately above Saint Paul in population and the 15 cities ranked immediately below Saint Paul. The data for the City's puhlic safety workforce is compazed to Cities in the Northem United States. T'his was done because of the lack of a comparable public safety worl�orce aznong all but one of the governmental units used for comparisons for the non-pubiic safety workforce. Percent of pay increase, total cost of the contract, sick leave, vacation hours and the comparison of pay scales for specific job classifications aze the primary measurements compazed with other governmental units. It should be noted that the data for results compazed are not hacked over time and the reliability and validiry of the indicators used are not reviewed on a regulaz basis. The OLR also collects a significant amount of information about results associated with the gievance process. They include information regazding how each grievance is resolved and at what leve] in the process, the number of grievances by department and bazgaining unit, and the amount of time taken to resolve the grievance. If the grievance has gone to arbitration, the OLR collects infotmation about the results and tracks who was the azbitrator. Results aze not collected for the contract implementation process. Customer SatisFartion Despite this orientation to collect results, the OLR makes no similaz effort to collect information about the outcomes of its internal operations. Collecting data on customet sa6sfaction results, such as surveying department heads about contract administration services provided, would be valuabie information for the organization. Collecting customer satisfact3on results would also assist the OLR staff in evaluating how to best serve their customers and provide it with information on its performance. Organizational Outcomes The OLR does not collect human resources results, such as measuting employee satisfaction or absenteeism. Collecting such results may help explain the high-level of tumover the OLR has experienced and may provide some helpfiil information on how to address the "unacceptable levels of stress" reported by OLR staff. The OLR Director and staff report the organizarion has achieved most of its desired goals. While the organization appears, upon casual observation, to perform many of its basic functions well with limited resowces, it is difficult to state conclusively that desired goals aze aclueved efficienfly without systematically measuring the resuks of the OLR's intemal operations. The OLR has done a good job integrating results from the contract negotiation process, and to a lesser extent those from the grievance administrarion process, into the regulaz work of the organization. However, there may be other performance indicatars the OLR is not using to evaluate these processes, such as measuring the timeliness of the negotiaUon process and emgloyee sarisfaction. These aze discussed in greater detail in the Performance Indicators Chapter of this audit. As noted above, the OLR has not developed measures for its intemal operations. Therefore, no integra6on of this aspect of the category can be said to have taken place. 7999 Saint Paul Ciry CovncrT Research � Perfocmance Audk ofthe Citv ofSaint Paul's Lalwr Reiaeons Activities Recommendation #18: The OLR should develop comparisonr for contract administration re,sults and attempt to form partnerships with other jurudictionr to 6enchmark these results. The OLR should utilize relarionships it has developed with other public employers to create these partnerships. l�C�_ g� Q Recommendation #19: The OLR should develop measurements for i�rternal organizational resalts. Customer needs and satisfaction shou2d be surveyed on a regular basis. The OLR Director should survey stajj'to identify areas for improvement in the OLR's work errvironmenr. The OLR d'uector shouid also measure outcomes that may serve as a good indicator of human resources and workload results. Recommendation #20: The OLR should review the relrability and validiry af the indicators used for the comparison of results. This will ensure indicators are memaingjul mrd consistent with what other jurisdictions are nsing. Comparisons should also be tracked over time for a more informed and complete analysis of whether the OLR's long-term goals are being accomplished. t 999 Saint Paul Ciry Council Rcsea.ch Perfamance Audit of We City o. Saint Pavl's Iabor Re�tions ActiviHes 2�� /�� CONTRACT NEGOTIATION PROCESS The Conhact Negotiation Process chapter of this report is divided 'urto two seations. The fust discusses relevant policies and the City's and bazgaining units' alignment with those policies. The second section provides a quality assessment of the contract negotiafion process. CONTRACT NEGOTIATION POLICY ALIGNMENT Contract Negotiation Policy Alignment will address the many state and local policies which pertain to the contract negotiation or collective bargaining process. The discussion is organized more or less chronologically as the collective bazgaining process occurs. First to be&scussed is representation of the interested par[ies in the process. Then the actual negotiation procedures are presented, including: greparation, the items negoriated and methods for conducting negotiations are presented. Finally, conhact preparation, ratificaYion and implementation aze discussed. Each section will present the relevant laws, ordinances, policies, Council Research findings and recommendations. REPRESENTATION There aze essentially two key parties involved in municipal govemrnent contract negotiation: the city and the bazgaining unit. The City is represented in negotiations by its Office of Lalwr Relations. The employees aze represented by their respective bargaining units, 27 in all. However, before this discussion begins, it should be noted that public sector collective bacgaining is recflgnized as having significandy more "interested parties" than the traditional private sector negotiation process. Most important is the role of local politics. Bazgaining units are reco�ized as lobbying orgazuzations and tndirionally play an active role in local elections. The contract ratification process for the City also introduces the City Council as an indirect partieipant. The citizenry and the media should be recognized as currently inactive, but potential participants in the process. The role of public perception can be very strong, not oniy in the negoriation process itself, but in the long-term relationship between the City workforce as a whole, and the citizenry it works for. Finally, although local govemment does engage the issue of financial solvency, its influence is not generally understood to be as powerful as the private sector's "bottom line." The roles of these less directly involved par[ies will be discussed throughout the section. 1999 Soint Paul Ciry Council Researcfi 28 Perfo+mance Audit of ihe Criy of Saint AaW's Labor Relalions Activilizs City Representation �/9-�/v0 City representation in the bazgaining process is perFormed mainIy by the Office of Lalwr Relations, However, there are a number of other key City departments and offices which should be mentioned. These participants are ouYlined below: ❑ Office of Labor Reladons is chiefly responsible for conducting negotiations for the CiTy. ❑ City Attorney's Office plays a key role in the provision of legal advice in negotiations, as well as in reviewing contracts prior to their submission Yo the City Counci] for ratification. ❑ Payroll function within Office of Financial Services implements wage changes from contracts and therefore should be consulted in contract negotiation. O Risk Management within the Technology and Management Services Department implemenu benefit changes &om contracfs and therefore shouid be consulted in contract negotiation. ❑ Budget Office within the Office of Financial Services partners wiYh the Office of Labor Relations in the preparation of contract cost projections. ❑ Mayor's Office pmvides political and poticy direction to the Office of I.abor Relations. ❑ City Counci! rarifies contracts and indirectly provides political and policy direcrion. 4 Departments provide advice to the Office of Labor ReIations prepazatory to negodations. Effective communication and understanding among these parties is essential to a coherent City negotiation strategy. Additionally, the roles of the various participants must not be blurred because the City's "management position" must be presented with clatity. Policies relating to each of these puticipants will be discussed throughout the Con4ract Negoriation Policy Alignment Chapter. Office of Labor Relations Office of Labor RelaRons Neeotiation Reoresentation Policies Ezecutive Respvrrsibility ['The] office of the tnayor shall: Make periodic teports to the city counci] on the status and progress of the colledive bargaining process. Saint Paul Administrative Code, Chapter 23: Collective Bargaining Process, Sec. 23.03. Unfair labor practices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees aze prohibited from restraining or coercing a public employer in the e[ection of representatives to be employed to meet and negohate or to adjust grievances. Minnesota Srare Srarure l79A: Public Employees Labor Relalions Act 179A.13. 1999 Saint Paul Ciry Cormcil Research Saint Paul's Labor Relatioas Acfivifies r1/11�1�gS � �� 1) The Office of the Mayor, through its delegate for collective bazgaining, the Office of Labor Relations, has provided some perialic reports to the City Council on the status and progress of the collective bazgaining process. However, these updates have tended to take the form of annual briefings of individual Counci]membets. The Council rarely holds closed sessions to discuss specific negotiations or grievances. Generally, the Council as-a-whole is rarely updated on collective bugaining. 2) There is no evidence to suggest collective bazgaining units have tried to influence the selection of the City's representative to meet and negotiate or adjust grievancss. Recommendation #ll: The Office ofLabor Relarions should undertake measures to consistently inform the City Council of the status and progress of the collective bargaining process. This report should include among other things the number of settlements, staff changes, time lines and settlement statistics. This could be in the form of a quarterZy report thai would be sent to customers and presented to the City Council by the Labor Relations Director at designated council meerings. Consultants The City, from time to time, lures consultants to assist in the contract negotiation process. The policies goveming these consultants tend to more closely mirror those relating to the hire of outside counsel than those pertaining to other types of consultants. This is likely because labor relations constiltants aze empoweted to negotiate agreements on behalf of the City, as is the case with outside counsel. Cousultants Policies Legislative Responsibility (2) Approve and ratify by resolution the selection of labor consultants to aid and assist in labor relations aetivities as determined by the executive branch of government. Sninr Pmd Adminisaa[ive Code, Chaprer 23: Coltective Bargaining Process, Sea 23.02 Executive Responsibiliry [The] office of the mayor shall: Select with the approval of the city council labor relations consultants to assist in the colSective bazgaining process when deemed necessary by the mayor to carry out the city's responsibili- ties in an efficient and competent manner. Saint Paut Admin,s�arive Code, Chaprer 23: CollectiveBargainingProcess, Sea 23.03. Supervision of consultants Labor relations consultants selected in accordance with section 23.03(1} herein and approved by the city council shall take direc:tion and be under the supervision of the office of the mayor. The specific duties and responsibilities of consultants shall be set forth in an agreement to be approved by teSOlUhOn Of thC city cAUncil. Saint Paul Administrative Code, Chapter 23: Collec[ive Bargaining Process, Sec. 23.05. Findings 1) Two labor relations consultants have been hired by the City in recent years. In both cases, there is no evidence the City Council was consulted prior to ihe wnsultants assuming 1999SamtPaul CdyCouncdResearch 30 PerFom�ance Audit of H�e negotiaiion responsibilities. However, in both cases, the Council ratified the �pfioin�inents prior to payment for services being made. Councii Reseazch believes this pattern is not consistent with the City's Administtative Code provisions. Given the weight accorded to the appointment of labor relations consultants, we view this to be a very problema6c situation. 2) The supervision of labor relafions consuitants has been conducted by the Office of Labor Relations on behalf of the Office of the Mayor. Recammendation #22: The Office ofLabor Relations and O�ce of the Mcryor should henceforth ensure that labor relations consultant appointments are approved by the City Council prior to their urrdertaking negotiation responsibilities. Risk Management Office Risk Managemeat Office Negotiarion Representation Policies Provide management and negotiating assistance in the bazgaining unit contcact piOCeSS. Risk and Employee Management Services Division: I998 Ongoing Budget Program Objectives Finding Risk Management provides a limited amount of ne$otiating assistance to the Office of Labor Relations. Assistance typically involves cost estimates for ftinge benefits, suggested contract ianguage changes for clarity and possible attematives to current proposals. According to interview comments on this policy, signi&cantty more assistance has been provided in the past. Collective Bargaining Units There aze 24 active colledive bargaining units in Saint Paul City govemment. Despite maay similarities, there aze distinct govemance struchires within each of these bazgaining units. All collective bargaining units elect officers, such as the president and vice president of the unit The eleded officers of the bargaining unit are often refernd to as the e-boazd (executive board). Some bargaining units have business agents/managers who provide advice or act on their behalf in negotiations and grievance settlement. There are several bargaining units with large enough membership bases to have stewazds disseminate and gather information. Finally, most bazgaining units have conhact negotiating teams wlrich are separate from their e-boazd, although there may be some duplication in their composition. One consultant referred to is Dennis Goldberg whose contract was approved by the City Counci] on August 12, 1998. This contrnct was back-dated to provide a June 1, 1998 start. However, billing records shared with Council Research staff indicated the first work billed was for August 12. This is aot consisteni wiih the spirit of the City Code indicating the Council approve ffie selection and responsibilities of labor relations consultants. The second such consultant was Craig Ayers, whose contract was approved by tfie City Comcil on May 26, 1999, whose duties also began well prior to Council approval of the conhact. This situakon is a clear violarion of the City Code relating to Labor Reladons Consultants. IA99 Saint PorJ Ciry CormciPRuearch Perfo:mmce Audit of the Ciry of Saint Paul's [ abor Relarions Aaivifies 31 �� Collective bargaining units represent the vast majority of the City's 3,332 employees. I3on-'"�� represecrted employees include some mayoral staff, legislative aides to Councilmembers, Council Research professional staff, department and office heads, plus a handfut of other department management staff. Also included as non-represented employees are RivecCentre employees and special employees, such as stage hands, house custodians, lifeguards and intems. Finally, City Attomeys are listed as appointed in the City's financial records, aithough they are represented by AFSCME-Legal. Therefore, in practice, the City's permanenf worl�orce has approximately 2% unrepresented. City of Saint Paul 1998 Employment by Full Time Equivalent (FPE) Represented Employees Appointed : Ciry Attomeys 3,101 F'I'E's 44 FT'E's 3,332 FT'E's The City of Saint Paul is somewhat unique in that its supervisory and wnfidential employees aze represented by their own collective bazgaining units. In many settings, these types of posirions have been classified as "managerial" and thereFore were not represented. However, Saint Paul has tradirionally defined management very narrowly. Formafion & Jurisdictioa The majority of the City's collective bazgaining units have been in place since the early and mid-1970s. Therefore, most of the jurisdictional and exclusive representation selection activities occurred at that time. Aowever, from time to time some groups of employees are switched from one cnllective bargaining unit to another, either by their own petition to the Bureau of Meditation Services (BMS) or the City's. This has been the case with some employees moving between Classified Confidential Employees Associarion (CCEA) and Professional Employees Association (PEA). Additionally, on rare occasion, groups of employees who were not previously represented may form a collective bazgaining unit, as occurred with AFSCME-Legal, Finally, a group of employees may break away from a collective bazgaining unit which has previously represented them to form the'u own unit, which was the course of action taken by the Fire Supetvisory Association. The majority of the following discussion will focus on these types of situations. Collective Bareainina Units Formation & Surisdiction Policies Legulative Resporrsibility (1) Recognize by resolution exclusive representatives of employee organizarions in accordance with state law. Sainr Paul Administ,ari,�e Code, Chapter 23: Coltective Bargaining Process, Sec. 23.02 1999 Saint Paul Ciry Council Auearch I�Ion-Represented Employees (breakdown below) 231 FTE's 32 PerFormance A¢dit of the City of Saint Paut's Labor RelaROrts Activiries Collective Bargaining Units Formatian & Jurisdiction Policies, ConHnued 99 Public employees have the right to form and join labor or employee organizations, and have the right not to form and join such organizations. Minnesota Srare Srarure 179A: Pvblic Employees Labor Relations Act 179A.06 Rights and obligations of employees. An employer shall eaRend exclusive recognirion to a representative of or an organization of supervisory or confidential employ�s...for the purpose of negotiating terms or conditions of employment, in accordance with sections 174A.01 to 179A.25, applicable to essential employees. Minnesara Srare Srarwe 1 �vA: Public Employees l,abor Relatio+cr Act 179.4.06 Rights and obligations of employees. Empioyee organizations, their agents or representafives, and public employees are prohibited from calling, instituting, maintaining, or conducting a strike or boycott against any public employer on accoant of any jurisdicrional controversy. �nnesara State Statute 179A.• Public Employees Iabor Relatiorxs,4ct 179.4.13 Unfair labor pracrices. Subd. 3. Emp[oyees. Employee organizations, their agents or representatives, and public employees aze prohibited from coercing or restraining any person with the effect to force or require a public employer to recognize for representation purposes an employee organization not certified by the commissioner. Mnnesora Srare srarure t79A: Publ;c Employees Labor Relatians Rct 179A.13 Unfair labor pracfices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees are prohibited &om forcing or requiring any employer to assign pazkiculaz work to employees in a particulaz empioyee organization or in a particulaz trade, craft, or class rather than to empioyees in anather employee organization or in another trade, C73ft, Ot C1355. Minnesota State S[atute 179A; PvLlic Employees Labor Relations Act 179A.13 Unfair labor practices. Subd 3. E»1j1jOyBeS. Nonteachers. [If] on the eacpiraYion date of an e�sting contract a representation proceeding is before the commissioner, section 179A.18, subdivision 1, clause (1), shali apply. In those cases, however, the employer and the exclusive representative of the employees shall execute a written contract or memorandum of contract no later than 45 days after a certification by the commissioner of a new or different exclusive representative or the resoludon by the commissioner of a I'0p70SeRt2tlOn pI'OCeCding. Minnesota State Statute 179A: Public Employees Labor Relationt Act 779A,77 New exc[usive representatives. Subd. 2. Findings 1) The City recognizes, by resolution, e�cclusive representatives of employee organi�ations. 2) The vast majoriTy, 98%, of the CiTy's permanent workforce is represented by collective bazgaining units. Therefore, there is ample evidence to infer that employees' right to organize has not been infringed upon. However, there do appeaz to be differing interpretations of the term "exclusive representative" and whether it refers to an organization, or an individual representing an organization. This issue has caused some difficulty in AFSCME-Legal where it was reported that the business agent was not allowed to attend at least some negotiation and grievance resolution sessions. It shou[d be noted that the Minnesota Bureau of Mediation Services certifies exclusive representatives, and the AFSCME-Legal business agent is so certified. 7999 Saint Paul Ciry Counci! Ruearch Perfolmmance Audit of the Gty of Saint Paul's Labor Relarions Activiries 33 �jy (j U 3) Supervisory and confidential employees of the Ciry aze represented by collective `� bazgaining units, including Saint Paul Supervisors Organization (SPSO), Manual and Maintenance Supervisors (M&Ms), Fire Supervisors Association, and the Classified Confidential Employees Association (CCEA). 4) There have been no strikes of any unions in the City workforce over the last two decades, and therefore, there have been no shikes due to jurisdictional controversies. 5) There has been no instance of the City being forced to recognize, for representation purposes, any collective bazgaining unit not recognized by the BMS. 6) Although there was a low-level problem reported in the assignment of particulaz work to a particular bazgaining unit reported in the trades area, there have been no complaints filed. Therefore, it agpeats there have been no violations of this policy. 7) When initiating their own bazgaining units, both the Fire Supervisors Association and AFSCME-Legal went tluough the memorandum of understanding and BMS certification processes articulated in statute with apparently no problems. The only situation which could be problematic would be if one of the bargaining units did not wish the change, in which case there wotild be a hearing at the BMS. This too has occurred with some City collective bazgaining units according to the ptocess spelled out in state statute. Recommendation #23: Measures should be tnken by AFSCME-Legal and the Ciry to ensure that a consistent understandings of the term "exclusive representative, " is developed and applied--crs the City has an obligation to meet with the exc[usive representative of employee groups. Elections There have been relatively few significant changes in the representation of City employees in the collective bargaining process, as discussed previously. However, collective bargaining nni do elect officers periodically according to their bylaws. City designation of a chief staff negotiator is based on Mayoral selection and Council approval. Collective Bareainin¢ Units Election Polices Public employees in an appropriate unit have the right by secret ballot to designate an exclusive representative to negotiate grievance procedures and the terms and conditions of employment with their employer. �,mesora Sr�e Sraru:e 1 �9A: Public Employees Labor Relations Act 179A.06 Rights and obligations ojemployees. � Public employers, their agents and representatives are prohibited from violating rules established by the commissioner regulating ihe conduct of representation eleCtions. Mirsnesota State Statute 179A: Public Employees Labor Relations Act 179A.13 Unjair laborproctices. Subd.2. Employers. Employee organizations, their agents or representatives, and public employees aze prohibited from violating rules established by the commissioner regulating the COIIdUCt Of YCpiC5Ci1t3ti0Il CiCCtIOIlS. Minnesota State Stahete 779A: Public Employees Labor Relations Act 179A.13 Unfair labor practices. Subd. 3. Emplayees. I999 SaintPaul Ciry Council8esearch 34 Performance Audit of the City of Saim Paul's Iabor Relafions Activities Findings �ff�_ g�� 1} No pmblems were identified with the election/designation of exclusive representative to negotiate by secret ballot. 2) No instances of City interference in the selection of bargaining anit representarive were reported. Sunilazly, there were no reported instances of bazgaining unit interference in the selection of City negoUators. Rights and Responsibility of Representatives The majority of the CiTy's supervisory and confidential employees are represented by collective batgauvng units. Yet it is recognized their pazticipation in the negotiation of wntracts for other employee groups represents a potential for conflicts of interest. Therefore, their participation is limited by state law. Public employers, for their part, must provide reasonable time off for employees to participate in negotiating their contracts. This time off is recogrrized as time spent on behalY of the bazgaining unit. It stands in contrast to the time bargaining unit representatives spend in the grievance resolution pra;ess which is considered to be time spent on behalf of the City. and Responsibility of Representatives Policies Supervisory or confidential employee organizations shall not participaze in any capacity in any negotiations wluch involve units of employees other than supervisory or confidential employees. Min,resora State Srarure 179�: Public Employees Lnbor Relations dct 179A.06 Rights and obligations of employees. A public employer must afford reasonable time off to elected officers or appointed representatives of the exclvsive representative to conduct the duties of the exclusive representative and must, upon request, provide for leaves of absence to elected or appointed of�iciais of the exclusive representative.... Minnesora Srare Siatvte 179A: Pub(ic Employees Labor Relations Act 179A.07 Rights and obligatinns aJ employers. Subd, 6. Time off. Findings 1) Supervisory and confidential employees of the City of Saint Paul do not par[icipate in the negotiation of contracts other than their own. These employees do occasionally support the negodation process with information and analysis they prepaze as a part of their overall job duties. Notably, City officials must patrol this boundary carefully, because even the perception of a conflict of interest can damage the negotiation process. 2) Reasonable time off has been afforded by the Ciry to employees involved in the collective bargaining process.� However, there are significant differences beiween deparhnents in how time off is handled. Some departments allow for schedule modifications, so employees will � Eiected baz aznin unit re resentatives aze ovided time oPf to work on B� g p pr gievance situations. ]999 Saint Paul Ciry CoumciJResearch Performance Audit of the City of Saint Paul's Labor Relations Acdvipes 35 not be required to take vacation or other leave time. Other deparhnents have tacit agteements that time off for negotiazing will be paid_ Finally, some departments simply enswe time off is pzovided, buL the employee is required to take leave. Notably, many negotiazion sessions take place in the evenings, after standard work hours to accommodate employee work schedules. Reco�nmendation #24: There should be greater equity across City departments in the poZicies for provision of time to participate in the negotiation process. A City-wide policy addressing this usue should be developed by the Administration for Council review and adoption. This policy should then be clearly communicated to the City's management and supervisory stajf. NEGOTIATIONS PROCESS The negotiation process section of this chapter breaks down the contract negotiation process into several major pieces. First to be discussed is the planning and scheduling required of both parties before entering into negotiation. Ne�ct to be discussed aze the actual items that are required to be in collective bazgaining agreements. Following this, negotiation methods and procedures will be �amined. Included in this discussion are those policies relating to impasses in negotiation and methods for resolving those differences. A diagram portraying the wntract negotiation process appears on the following page. Research and Strategic Planning Research and strategic planning are necessary elements in preparing to undertake any negotiation. This is required of all parties involved to justify the detnands they bring to the table. The policies wluch follow provide legal guidance about prepararion prior to negotiation. Note the quality assessment of the contract negotiation process includes a discussion on planning. Research and Strategjc Planning Policies With the Budget Office, develop computer costing model which is usable both for negotiations and general budgetary considerations. O�ce ofLabor Relations Ongoing Budget Program Objectives and 1998 Budget Project Objectives. Make recommendarions to Mayor regarding improved methods for handling vita] economic issues in bazgaining. Of�'ice ofLabor Relations Ongoing Budget Program Objectives and 1498 Budget Project Objectives. Develop azbitration strategy w]uch will fiuther City interest in keeping wage and benefit increases at a level St. Paul can afFord. O�ce of Labor Relations Ongoing Budget Program Objectives and 1998 Budger Project Objectives. Reduce City's unfimded liability on retiree health inswance, via negotiations. Office of Labor Relatiorrs Ongoing Budget Program Objectives and 1998 Budget Project Objectives. �(�D 1999 Saixi Pau! Ciry Caursci! Ruenrch 36 PerFormance Avdit of ffie City of Saint Paul's Iabor Relations Activilies CONTRACT NEGOTIATTON PROCESS 99�8'�Od Notification for Negotiation Exclusive representative and employer meet and negotiate No �� Mediation at BMS No BMS declares Impasse I�erest Arbitrationbegins either. • Upon request of either party for esse�iai emptoyees; or �lpon request of both pafies for non essential empioyees BM5 catifies issues for arbitration Pa�ties agt� ro a couhact Contract submitted to City Council for Approval by resoluGon CoMract ser� to Financial Services w►�hin 10 days of �pprovaf by Counc PaAres agree to a coNract Non�esse�ial choose to shike PaAies agree to a conhad Final Co�ract �ilf�BfOf ISSU25 award decision, binding on both pafies (In City of Sai� Paui, City's finat position must be approved by the City Council� May be appealed m Dishict cou�t Co�ract su6mitted to C�y Council for Approval by resolution Co�ract sent to Financial Services within 10 days of approval by Council 1999 Soint Pau! City CouncU Research Performance Audit of ihe City of Saint Paul's Iabor RelaCOns Acdvipes Research and Strategic Planning Policies, Continued Public employers, their agents and representatives are prohibited &om refusing to provide, upon the request of the exclusive representative, all informarion pertaining to the pubtic employets 6udget both present and proposed, revenues, and other finanoing informarion provided that in the executive branch of state govemment this clause may not be considered contrary to ihe budgetary requirements of (Minnesota 5tatuYes] sections 16A.10 and 16A.11. Minnesota State Statute 179A: Public Emptoyees Iabor Relations Act 179A.13 Unfair tabor practices. Subd. 2. Employers. Findings 37�� I _� �)� 1) The City cunently assesses wllective bazgaining agreements for financial unplicazions four times. First, the Office of Labor Relations applies "total package cosY' formulas widely used in the field of labor relations for calculating the cost of a contract that takes into account the old costs versus the costs of the new contract. Second, the Budget Office assesses the agreements for impact on the City budget for the term of the contract. Third, Risk Management determines if there are any changes in fringe benefits costs. Their calculations are forwazded to the Office of Labor Relations and the Budget Office as appropriate. Fourth, the City prepazes a uniform settlement form to be sent to the state. The Office of Labor Relations, in cooperation with the Budget Offic�, is developing a computer costing model which is usable for negotiations, general budgetary considerations and preparation of the uniform settlement form. This system is intended to ptovide sound information on the impacts of various negotiation proposals, as well as a financial assessment of the final negotiated agreement for the City. 2) Staff in the Office of Labor Relations report they proactively provide reaommendations to the Mayor on improved methods for handling vital economic issues in bazgaining. 3) Strategy development for azbitrations which furthers the City's interest in keeping wage and benefits at a level the City can affotd is not yet fuily developed. Notably, City staff prepaze for azbitrations on a case-by-case basis. There has been one azbitration in recent years, and "staff preparations° for three others. Staff report data aze being collected and analyzed wlvch wou]d assist in a broader planning effort. However, only one person interviewed articulated an azbitration strategy or described its implementation. 4) The Office of Labor Relations, in conjunction with Risk ManagemeM and the Budget Office, have successfully negotiated substantial decreases in the City's unfimded liability on retiree health insutance. These negotiated_decreases were lazgely accomplished in negotiations occurring three to four yeazs ago. 5) The City has provided all financial, budget and revenue information requested by bazgaining units. Although the City has provided this information, there were some reported delays and misunderstandicigs in the provision of such informarion, but none of these have translated into unfau practices complaints. Recommendation #25: 77te Of�'ice of Labor Relatiorrs and the Budget O�ce should complete work on the development of costing models which meet all of the City s needs for contract cost information. J999 Saint Paul Ciry Councit Ruearch 38 PerFocmance Audit of ihe City af Saint Pau L ab o r R ela t io n s Activilies Recnmmendatinn #26: The Of)5ce af Labor Relatiorzs, in concert wiJh other imolved City agencies should arsess the appropriateness of the following budget objective language: `Develop mbitration strate� which wi11 further City interest in keeping wage and benefit increases at a level Saint Paul can a�'ord. " Given the very small number of mbitrations, it would likely be better ro refer to individual arbitration situations. C1 CI_,�� Recommendation #27.• The Office ofLabor Relations change its budget proposal references to decreasing the City's unfunded liability for retiree health insurance until such time as it intends to again actively pursue these issues in negotiations. The budget references should clearly indicate this is a long-term goal, rather than orre that will rrecessarily be applied in all contract negotiations for all cycles. This would honor negotiation "etiquette" which maintains you should not seek concessions on the same issue for two consecutive negotiations. Recommendation #28: All Ciry agencies in a position to provide budget, revenue and finance informarion should work with bargaining units in a way that leads to clearer expectations as to the availability of such data and the time required to assemble it. Similarly, bargaining units should be ezplicit in all requests for these types of data. Scheduling and Planning Negotiation Sessions The contract negotiation process requires meetings and meeting rooms be scheduled, drafts of proposals circulated and agreements dratted. The following policies from the City's Administrative Code and state statutes specify responsibilities for these activities. and Plannin¢ Policies [The] office of the mayor shall: Carry on the day-to-day collective bugaining process, including, but not limited to, the planning, scheduling and conducting of negotiation sessions; the drafting and prepazation of necessary documents and agreements in coordination with the office of the city attorney. Sainr Pau[ Adminrsbative Code, Chapter 13: Collecfive Bnrgeining Process, Sec. 23.03 Ezecukve Respnnsibility Responsibility of labor representatives and employees (2) Submit written demands conceming desired changes in the terms and conditions of employment in accordance with a timetable to be established by the mayor and approved by the city couticil. Sairst Paul Administrative Code, Chapter 23: Col[ective B�vgaining Process, Sectian 23.04. Initiation of negotiation. When a party to a contract desires to meet and negotiate an agreement subsequent to the initial agreement, the party shall give written notice to the other party and to the commissioner at least 60 days before the termination date of the e�sting contract. Minnesota Srate Srarure 179A: Public Employee� Labor RelaBons AM 179A.14 NegoNation procedures. Subd I. Public meetings. All negotiafions, mediazion sessions, and hearings between public employers and public employees or their respective representatives are public meetings except when otherwise provided by the commissioner. titinnesora State Statute 179A: Public Employees Labor Re[ations Act 179A.14 Negadntion pracedures. Subd. 3. 1999 Sainr Paul Ciry Cormcil Rerearch Perfotmance Audit of tlm City of Saint Paul's I.alwr Relations Activities 39 � � I Findings �Q � 1) The Office of Labor Relations does plan, schedule and conduct negotiatian sessions. For the past fow years, the City Attorney has maintained a muumal role in the drafting and prepazation of negotiated agrcements. The Office of Labor Relations reports the City Attomey is consulted from time-to-time on specific points of law. The City Attomey does not actively participaYe in negoriations ot the drafting of collecrive bazgaining agreements. 2) Collec[ive bazgaining units are required to submit written demands conceming desired changes in their terms and conditions of employment. However, the City's Administrative Code speci6es these submissions aze to occur in accordance with a tirnetable established by the Mayor and approved by the Council. No such timetable has been developed in at least the last five years. 3) There aze two instances of reported problems associated with the initiation of negotiation via written notice, once with openting engineets and once with the Fire Supervisors Association. In neither case did the City pursue penalties against the bazgaining units. 4) Although state statute requires negotiations be[ween public employers and public employees be public meetings, there are no examples in recent history of parties, other than those negotiating, being present at a session. Notably, tlus openness is wntrary to traditional negotiation practice in the private sector, where negoriations are closed. However, many states and localities have opened the negotiation process in view of the fact that the services provided by govemments are public by their very nature. Recommendation #29: Given the reported staff shortage in the Off'ice of Labor Relations, increasing the participation of the Ciry Attorney in contract drafting and preparation is warranted. Such an increased role shautd be explored thoroughty by the next Labor Re[ations Director. See also Recammendation #31, page 43 on the development of a, fiveyem timetable for negotiations. Items for Negotiations There are three key items which must be included in any pubiic employee collective bargaining agreement in the State of Minnesota, in addition to the fact that collective bargaining agreements must not be contraty to state or local laws. The three elements which are in these contracts aze: ❑ Terms and conditions of employment; ❑ Grievance procedures; and ❑ Contract duration provisions. Terms & Conditions Terms and conditions broadly describes both performance expectarions for employees and compensarion from the employer in the form of wages and fringe 6enefits. Although there aze no policies covered here which directly relate to these, there are several which provide some parameters. 1999 Saint Pav7 Ciry Council Research M1 Perfoimance Audit of tLe City of Saint Pa�il's Labor Relations Activities Terms & CondiHons Policies 7 9 Meet and negotiate. Public employees, through their certified exclusive representaYive, have the right and obligation to meet and negotiate in good faith with their employer regarding the tern�s and conditions of employment. Minrsesora State Statute 179A: Public Employees Labm Relations Act 179A.06 Rights and obligations of emp[oyees. Subd. 5. Meet and negotiate. A public employer has aa obligation to meet and negotiate in good faith with the exclusive representative of public employees in an appropriate unit regarding grievance pmcedures and the tenns and condirions of employment... Minnesotn State SJatute 179A: Pub7ic Empinyees Labw Relntions Act 179A.07 Rights and obligations ofemployers. Subd. 2. Former employee benef:ts. A contract may not obIigate an employer to fund all or part of the cost of health care benefits for a former employee beyond the duration of the contract, subject to section 179A.20, subdivision 6. Minnesora Srnee Srature 779A: Public Employees Labor Relatians Ad 779A.20 Corttracts. Subd. 2a. Former employee benefits. A pecsonnel policy may not obiigate an empioyer to fund all or part of health caze benefits for a former employee beyond the duration of the policy. �nnesota State Stande 179A: Pvblic Employees Labor Relations Act ]79A.20 Co�et>nMS. Subd.la Former employee benefits. A policy may not erctend beyond the teanination of the contract of longest duration covering other employees of the employer or, if none, the temiination of the budgetary cycle during which the policy is adapted. Minreesota State Stahite 179A: Public Employees Labor Relations AM 179A.20 Contracts. Subd. 2a. Findings 1) There were no reported cases of collective bazgaining units or the City not meeting and negotiating in good faith. 2) City contracts are all in accordance with state and other laws with respect to former employee benefits. Notably, the City included provisions on former employee benefits prior to statutory prohibition of tlus practice. Therefore, the practice is continued and legai in the City's negoriated agreements. Grievance Procedure Grievance Procedure Policies Meet and negotiate. Public employees, through their certified exclusive representarive, have the right and obligation to meet and negotiate in good faith with their employer regarding grievance procedures. �nnesora Srare Srarute t7va: Public Employees Labor Relationr Act 179A.06 Rights and obligations of e�nployees. Subd. S. 1999 Saint Paul CUy Cormcil Resemch Performance Audit of the Ciry of Saint Paul's Labor Relazions Activi5es Grievance Procedure PoHcies, Continued 41� � �� (\ �ll Meet and negotiate. Public employees, through their certified exclusive representative, have the right and obligation to meet and negotiate in good faith with their employer regazding grievance procedures. Mtmlesma 5:me Stanue 1�9A: Public Employees Labar Relations Act 779A.06 Rights and obligations of employees. Subd. S. Grievance procedure. (a) All contracts must include a grievance procedure provlding for compulsory bmding arbitrarion of grievances including all written diSCiplinary actions. Mimrerota Stme Stmute 179A: Public Employeu Labor Relations Act 179A.20 Contiacts. Subd. 4. Grievance procedure. Notwithstanding any home rule charter to the contrary, after the probationary period of employment, any disciplinary action is subject to the grievance procedure and compulsory binding arbitration. Mtnneso:a Srate Sraru:e 179A: Public Employees Labor Relations Act 779A10 Contracts. Subd 4. Findings 1) There were no reported cases of either the City or collective bargaining units not meeting and negotiating in good faith on grievance procedures. 2) All contracts were reviewed and found to have grievance procedures with compulsory binding azbitration provisions. Contract Prohibitions Contract Prohibition Policies No contract provisiorrs contrary to law. No provision of a contract shall be in conflict with the laws of Minnesota. Minnesora Srme Siatute 179A: Pubtic Emptoyees Labor Relations Act 179A.2Q Contracts. Subd. 2. No contract provisiorts conirary to law. No provision of a contract shall be in wnflict with rules gromulgated under law, or municipal charters, ordinances, or resolutions, provided that ffie rules, charters, ordinances, and resolutions aze consistent with this chapter. Minnesora srare Sraruse 17va: Puvt�a Emptoyees Labor Relations Act 779A10 Contracts,Subd. 2. Finding There aze currently no reported contradictions between state or local law and the provisions in the City's collective bazgaining agreements. One case was reported of a sick leave provision that required updating in a contract to be consistent with state provisions that sick leave may be used for the care of a sick child. These updates typically occur as a result of staff review of professional literature and state and local laws. Both collective bazgaining units and the City aze alerted to such changes. 1999 Saint Pau! Ciry Counci! Resemch 42 PaCom�e Audit ofthe CSLY of Samt Paul's I abo r Relatims e4tivrties Contract Duration I/ V .,/ Contract Duration Policies ��-- ��— = Duration. The duration of the contract is negotiable but shaii not e�cceed three �' � = - yC'drs. Af'tnnesota Stmte Statute 179A: Public Er�loyees I.abor Relatiom�.1M 179A.20 '__ ° Comracts. Svbd, 3. _ - --- —�°_��--�`,--�_ ° . --�� Finding Almost all City conhacfs with collective bargaining units aze negotiated for a dimation of two years. Occasionally, canuacts are negotiated for a duration of three yeazs. 17us has usually occ�rred when contract negotiations are concluded approximately one year after the expiration of tfie previous agreement. Thus, the agreemeut still reaches out only two yeazs into the firture. The main reason providad for tlus durnrion of ageemeut is the increasing level of unceRainty for both parties fiuther into the future. Recommendarion #30: The City cmd cdleclive bargaining units should pursue more negotiated agreements that run for three years. Such a strategy, although iniroducing in some slight increase in uncertpinty offuture revcmues, Dras the potential to significantly decTease the costs of negoiiating agreements for both pm7ies. Such casts could be calculated in terms of time imolved in negotintion and contract implementation adminisirarion overhead. Negotiation Practices Negotiation practices are govemed by state policies wluch outline e�cpected negotiation behavior. These policies state, in essence, that both pmties aze to meet and negoriate in good faith and comply with decisions of the Bureau of Mediation Services. Prac4ces Policies Public employers, the'u agents aad representatives are prolubited from refusing W mee[ and negotiaYe in goad faith with the exclusive cepresenAative of its employees in an apprapriate unit M'urnesota State SYahrte 179.4: Public Employees LaLor Relations Aet 179A.13Unfairlaborpractices. Subd.2. Employers. Public employers, their agerns and representatives are prohibiled from riolating or refusing to comply with any lawfui order or decision issued by tfie commissioner. �rmesnta Stote Stahue 179A: Public Employees Zabor Relations Act 179A.13 Unfair labrn practices. Subd 2. Employers. Employee organizations, their agents or xepresentatives, and public employees are prohibitad &om refusing to meet and negotiaze in good faith with a public employer, if the employee organization is the exclusive representative of employees in an appropriate unit Afzrrreesota State Statute 179A: Public Employees Labor Relations Act 179A.13 Unjair labor practices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees are prohibited from violating or refusing to compiy with any lawfiil order or decision issued by the commissioner. Minnesota State Starute 179A: Public Employees Labor Relations Acr 179A.13 Unfair labor practices. Subd. 3. Employees. 1999 SauuPavl Ciry Coancil ResearcA rsr«�a�a s�me�w•s�x�v�an�.�a Findings a 1) There were no teported cases of either the City or a collective bazgaining unit refusing to comply with a decision of the BMS. 2) There were no reports of either collective bazgaining �mits or the City refusing outright to meet and negotiate in good faith. However, there were some serious concerns iaised about the rimeliness of the negotiation process. Typically, these concems centered on the City's propensity to slow negoriations through delays, rescheduling and lack of preparation. The primary reason given for these delays was lack of City slaff dedicated to the negotiarion process. Another reason for "Ciry-eaused" delays is the City's effort to decrease the City's unfunded liability for retiree health insurance. "Union-caused" delays were reported to be related to intemal union politics, union delays pending outcomes of local elecrions and the AFSCME lawsuit relating to the City's plan to reduce retiree health care benefits. The vagueness of the term "good faith" complicates this situation. It is certainly a possibility that such delays could be a negotiation tactic, although it is very difficult to substantiate. Appendix C provides data on contract ratifications over the last ten years. From it we can see a definite pattem of contracts being concluded long after the previous contract has expired Specific increases in tardiness can also be connected to the content of the negotiated agreements, such as decreases in the City's unfunded liability for retiree health insurance in 1994 and 1995. That being said, it is also apparent that the average lateness of 130 contiact conclusions over the last 10 years is 10 months. The chronic state of lateness of contract conclusions is especialiy troubling if it is used as a negotiation tadic. The following table briefly eacamines some of the costs and benefits of delaying contracts. Although all of the possible advantages and disadvantages can not be listed, when they are looked at more closely, we see that the City has some advantage over the bargaining units in delaying. Brief Cost Benefit Analysis for Contract Conclusion Delays Benefits Costs C�j� • Retum on investment of • Adminishative costs of rehoactively implementing money not paid to contract (m;o;n,;�Pa by fact that e�cisting staff used) employees during • Additional reso�ces required for negotiating (often negoriation minimi7zd by fact that e�cis[ing staff used) + Increased negotiation � Budget pxocess becomes more compleac and imcettain leverage ■ Potendally bad public relations Ci0112Ct1Y@ • Increased leverage • Lost use of increased wages iesulting from contract Bargaining ' Mayassistpoliticalgoals • Potentiallybadpublicrelations UI11tS of uaion leadership for ■ Increased unpaid time spent in negotiarions local or union elections Xecommenda6on #31: The City should develop a fiveyear workplan with spec� timetables--ns required in the Administrative Code--which provides for the conclusion of most of its callective bargaining agreements prior to their expiration. This is especially irrrponant in tight of the many parties interview who indicated the negotiation process was untimely. 1999Sa�tPaa1 CiryCounc�l Research 44 Perfocmance Audit of the City of Saint Paul's Labor Rela4ons Activities Interest Based Bargaining �9�g�� Traditional (also known as adversarial) bargaining is most often viewed as an adversarial process which leads to an agreement that offers the most of what is desired by the negotiating parties at the least cost to each. It is, almost by definirion, a secretive process where not ali irue goals aze shared at the negotiating table. In recent yeazs an altemative to this style of bargaining has increased in popularity: interest based bazgaining. Interest based bazgaining provides for a more open sharing of true negotiation goals aad joint problem solving. Appendix D provides a summary of the interest based bargaining process. The City has also endeavored to use this process, as is reflected by the following City budget policy statement. Notably, interest based bazgaining should not be seen as a panacea for problems associated with traditional bazgaining methods. It is also inappropriate to use interest based bazgaining in some negotiaYing situations, such as when there are very low levels of trust between the parties. Interest Based With at least one compatible union, conduct bazgaining using interest-based b2ig3tI11IIg. O�ce of Labor Relatiotts Ongoing Budget Program Objecb'ves and 7998 Bvdget Project Objectives Findings 1) Interest based bargaining was used with the Police Federarion in 1997 and 1998 for 21 issues addressed in the contract. Notably, it was not used for wage-related negotiation items. The City also used a modified version of the interest based bazgaining process with Tri- Council in the same contract cycle. Z) Severai coilective bazgaining units indicated that although they had expressed interest in using interest based bazgaining, the City chose not to use this altemative negotiation method with them. Communication Complex communications is a hallmazk of the public collective bargaining process. This is in lazge measure due to the many "stakeholders" involved, including not only supervisors and employees, but also potentially, department heads, professional staff in the Office of Labor Relations, City Attorney's Office, Human Resources, Risk Management and occasionally elected officials. In Saint Patil's case, the situation may be complicated fixrther by the decentralized nature of City govemment with its semi-autonomous departments. Also, the number of collective bargaining units with which the City negotiates agreements inevitably complicates communicarion. Communicaflon about tertns and condirions of employment between pubiic employers and public employees is clearly govemed by state statute. These laws specify that public employers and employees may talk about the terms and conditions of empioyment only with designated representatives. The statutory language is intended to protect both pazties from unofficially negotiated, but potentially Iegally binding, contract changes. 1999 SointPaul Ciry Cowxi7Research PerFolmance Audit of iLe City of Saint Ywl's Labor Relations Activities Communication Policies Responsibiliry of Zabor representatives and employees (1) Conduct discussions and negotiations conceming tem�s and conditions of employment only with the designazed representative of the city. Saini Paul Adminisnarive coae, Chapter z3: Collective Bargaining Process, Sec[ion 23.04. Other communication. If an exclusive representative has been certified for an appropriate unit, the employer shall not meet and negotiaie or meet and confer with any employee or group of etnployees who are in that unit except through the exclusive representative. Minnesota State Sratute 174A: Public Employees Labor Relaiions Act 179A.07 Rights and obligations ojemployers. Subd. 4. Findings 45 �Q-$�' 1) Communication between the City and labor representatives and employees does not consistenUy occur with the City's e2cclusive representative. Rather, other City representatives, without the aid and advice of the Iabor Relations Office, purposefiilly or unintentionally discuss and make decisions on matters relating to the tetms and conditions of employment. This type of situation was reported to occur in a variety of ways and is discussed in the following findings. 2) The lowest level of this problem seems to occur when an employee or labor representative makes an inquiry of City staff, be it about fringe benefits, titles and classifications or other matters. City staff then proceed to answer the question to the best of their Imowledge. However, there aze a number of circumstacices where the answet requires an interpretation of the collective bargaining agreement. The individual City stafF member's interpretation may or may not be consistent with other interpretations that have been given by other City representatives at other times. This creates a situation where sophisticated employee representatives could, and reportedly do, shop for the best answer. 3) The grievance process involves a number of steps, the first two of which do not require the involvement of the Office of Labor Relafions unless over $7,500 is involved. This lowest level of problem resolution is believed to be the best because it involves fewer people and less time and frustration. Grievance resolution, by definition, involves interpretation of the contract and probably discuss"son of the tetms and conditions of employment. Therefore, it is very easy to develop situations where grievance settlements are not consistent within employee groups or across departments. Thus the set[lement may seem fair and appropriaYe for an individual however, it may create inequities in the way other employees are treated, or have been treated. Several such instances were reported. 4) There were also reported instances of other professional City staff acring to settle a grievance without the full knowledge and participation of the Office of Labor Rela6ons. These situations seem to atise when there is the involvement of mukiple City representatives, such as the depaRment head, the Office of the City Attomey, Human Resources or others, in addirion to the Office of Labor Relations. $ A policy statement in ffie Collec[ive Bazgaining Units Fonnation and 7urisdiction section of this report, from the Minnesota Statz Statutes Ci�apter 179A.06, covers [lus situation as well. 1949 S¢int P¢ul City Council ReseurcA � Perfmm�ce Audit oFihe City of S�nt Paul's [abor Rela4ons Aclivities 5) There were no reported instances of the City and employees or employee groups meeting and negotiating terats and conditions of employment, other than through the bazgaining units' exclusive representative. () (�_ (y / !� 7 f� (O U Management Rights Management dghts, also known as management pr�erogatives, clarify those responsibilities wltich management traditionally does not allow to be negotiated. They are considered to be automarically within the purview of management. An example of the e�ccercise of management rights is the requirement that some employees, such as police of6cers, weat uniforms. The terms and conditions nelated to the requirement wluch would likely be negotiated is who pays for the uniforms. There is one state law reviewed in this audit which addresses this ana. PoGcies Inherent Managerial Policy A public employer is not required to meet and negotiaYe on matters of inherent managerial policy. Matters of inherent managerial poticy include, but are not limited to, such areas of discretion or poticy as the fimctions and pmgrams of the employer, its oveiall budget, ukilization of technology, the organizationai structiue, selection of personnel, and direction and number of personnel. No public employer shall sign an agreement which limits its right to select petsons to serve as supervisory employees or state managers under section 43A.18, subdivision 3(Managerial Plan, 1989� or requires the use of seniority in their selection. Minnesora State Sraute 779A: Public Emptoyees Labor Relations Acf 779A.07 Rights mtd obligations of employas, Subd. I. Finding The concept of pmmotional positions is embodied in most of the City's collective bazgaining agreements, as the "Maintenance and Standards" clauses often, by reference, include the City's Civtl Service mles in the signed conhack The City does make "promorional positions" available only to current City employees and flvs is allowed according to the City's Civil Service Rules. However, if any of these positions have supervisory responsibilities the City's actions are likely inconsistent with state law. Some of the promotional positions aze snpervisory. Therefore, by definition, the City wluch is a public employer, has limited supeivisor selection to only cutrent employees. This situation may be further complicated by the fact that the BMS has a list of criteria wiuch determine whether positions are supervisory. The application of these criteria would ]ikely produce a different list of supervisors than the City currenfly uses in practice. Recommendation 32: The City should cease the practice of segregating some positions in the category of "promotional. " T7re praclice does not seem to be consistent with state law, it limits the ability of outside qualified candidates Co compete, arul potentially promotes systemic inequalities in the make-up of the City's workforce. 9 The concept of inherent manageriai rigfits is also covered in Minnesota Statutes under Employer Rights and Obligations, Minnesota Statute 179A.067. I999Sain[ Pav1 LYty Councif Rerearch PerFotmance Audit of ihe CiTy of Saint Paul's Labox Relatio� Activities 47 (, G �� Recommendation 33: The City should review positions currently categorized ar supervisory to determine if t&e job duties meet the BMS definirion of supervisar. Meet and Confer Meet and confer policies aze designed to provide a forum for the discussion of workplace issues which aze not terms and condirions of emgloyment T'hey aze intended to address the needs of nonrepresented professional employees, but in practice, all employees may meet and confer with the City. A hypothetical meet and confer conference could discuss computer usage in an office or government policies. Meet and Confer Policies Professional employees have the right to meet and confer under section 179A.08 with public employers regazding policies and matters other than terms and CAn(Iltions of CTI1p1oyIltCrit. �nnesota State Srature 1 �9A: Pubtic Employees Labor Relationr Act 779A.06 Rights and obligatians ojemployees. Subd. 4. Meet and confer. A public employer has the obligation to meet and confer, under section 179A.08, with professional employees to discuss policies and other matters relating to their employment which are not terms and condirions of employment. Minnesora Srare Stahtte 179A: Pvblic Employees Labor Relations Act 179A. D7 Rights and obligations of employers. Subd. 3. Meet and co»jer. The professional employees shall select a representative to meet and confer with a representative or committee of the public employer on matters not specified under section 179A.03, subdivision 19, relating to the services being provided to the pUb11C. �nnesota State Stahtte 179A: Public Employees Labor Relalions Act 779A.0 Rights and obligations oJemployers. Subd. 2. Meet and confer. The public employer shall provide the facilities and set the time for [meet and confer] confBiCrices to t31Ce p12Ce. Minrresota Sraie Stariere 179A: Public Employees Labor Relations Act 179A.08 Policy consultants. The par[ies shall [attend meet and confer conferences] at least once every fow IDonths. Minnesota State Statute 179A: Public Employees Labor Relations Act 779A.08 Policy cnnsultants. Finding In practice, meet and confer policies apply to all employees. However, they were written with the intent of providing a discussion forum for unrepresented professional staff. In the City's case, that means the non-managerial staff in the "Alonrepresented Managers and Legis]ative Operating Employee Group." No such meet and confer conferences were reported. In the case of professional legislarive staff, the policy is especially obscure and provides no indication with whom these staff should meet and confer. Notably, these policies have little impor[ for the City given the small number of nomepresented professional employees and organizational location. 1999 Sairtt Paul Ciry Council Research 48 Performartce Audit ofthe City of Saint Paul's I.s6or Relatious Activities Mediation 99 g�¢ � Mediation introduces into the negotiation process a third party whose mle is to act as an intermediary and assist in the development of a negotiated agmemenY or grievance settlement Any settiement reached would require the acceptance of both sides. 7'he Minnesota Bureau of Mediation Services (BMS) assigns mediators when requested. Mediation was recently used in the AFSCME Clerical and T�luucal agreem�ts and is being used for the AFSCME-Lega! agreement. The mediaYion policies in the following box address how the BMS is to be contacted for mediation assistance and attendance at mediation sessions. Mediation Policies A petition [for mediation] by an employer shall be signed by the emptoyer or an authorized officer or agent. A petition [for mediation] by an e�cclusive representative shall be signed by its authorized officer. All petirions shall be delivered to the commissioner in person or sent by certified mail. The petirion shall state briefly the nature of the disagreement of the parties. .�&,rnesota srare S[a[ute 779�t: PubTrc Employees Labor Rela[ims Rct 179A.15 Mediation. All parties shail respond to the s�mmmons of the commissioner for [mediarion] conferences and shall continue in [mediation] conference until excused by the ComID15SlOne1'. M'anne.sota Stnte Stnhde 179A: Pvblic Employees Labor Relations Ad 179A.15 Mediation. Finding There were no re�wrted problems with the me@iation policies. Arbitration Arbihation (also referred to as butding azbitration or interest arbitration), like mediation, introduces a third party into the negotiating process whose mle is to act as an intermediary and assist in the development of a negotiated agreement or grievance settlement. However, in the case of azbi0ration, the parties agree bePonyhand to abide by the terms of the arbihated settlement. EmpIoyee groups classified as "essentiai" have the right to arbitration for their negotiated agreements. However, these groups are not allowed to strike. "Essential" bargaining units in the City are the following: a Attorneys (AFSCId&Legal) � Saint Paul Supervisocs OrganiTation e Manual aad Maintevance Supervisozs o Classified Confidential Employee Association a Firz Fightets I.oeal #21 e F've Supervisory Assceiation o Police Federation `2�Ionessential" employee groups have the right to request arbitration, but the City, as a public employer, mnsY agree to it. `2�TOnessential" employee groups have the right to strike. These groups include all of the bazgaining units not listed above. There has been only one City arbitration in receni history, and it was with the Fire Supervisory Associafion in 1996. The City prepared for lwo others, one with the Police 1999 Saint Paul City Couttci/Rcvearch PerFormance Audit of the City of Saint Paul's Labor Relations Activiries 44 �l_D (U Federation (1994 - 96 contract) and one with the Manua] and Maintenance Supeivisors (1995-96 contract). However, those settled prior to arbitration. There have been no cases of arbitzation with a`honessential" employee group. Arbitrafion Policies Public employers, their agents and representatives aze prohibited from refusing to comply with a valid decision of a binding azbitration panel or arbitrator. ,�,ne4om StmeStmrde779A:PublicEmployeesLaborRelationsAct179A.13Unfa"v7aborprac7ices. Svbd2. Employers. Employee organizations, theu agents or representatives, and public employees are prohibited from refusing to wmply with a valid decision of an arbitratian panel or 3Tt71V3TOi. .N'mnesota Stme Stande 779A: Public Employees Iabor RelationsAct 179A.13 Unfoir labor pmctices. Subd 3. Emp7oyees. Nonessential employees [The party requesting interest azbitration must provide a] written notice of the request to the other party and the commissioner. The written request for azbitration must specify the items to be submitted to azbitration and whether conventional, final-offer total-package, or final-offer item-by-item 2Lb1Y[3tlOri iS CORtCIRp13YC(� b}� YI10 LCGllCSY. A1'mnesota Stme Stande 179A: Public Employees IabarRelalionsActI79A.167nteresearbitralion. Subdiviciorsl.. Nonessential emp7oyees. If an agreement to azbitrate is reached, it must be reduced to writing and a copy of the agreement filed with the commissioner. Afirxesota State Stat+de 779A: Pubtic Emplayees Labor Retm'wnsAct 179A.1 b Intere.st arbitration. Subdivision J. Essential employees. An exclusive representative or employer of a unit of essential employees may petition for binding interest azbitration by filing a written request with the othet pazty and the commissioner. 'T'he written request must specify the items which that party wishes to submit to binding azbitration. Nt�:o Sfote StahUe 179A: Public Employees Labor Relmions Act 179A.167nterest mbitration. Subd. 2. Procedure. Within 15 days from the time the commissioner has certified a matter to be ready for binding arbitratian because of an agreement under subdivision 1 or in accordance with subdivision 2, both parties shall submit their final positions on Y.�LC1tCIRSliI(I15plltC. dSnnesataStateStutate179A:PvblicEmployeesLaborRe7ationsAct199A.16 Interestm�bkration. Subd.3. Selection of arbitrator or panel of arbitrators. The parties shall alternately strike names from the list of ubitrators until only a single azbitrator remains, unless the parties request and mutually agree to utilize a panel of tl�ree arbitrators. ar�„e.sofa State Stahue 179A: Public Employees Lobor Ifeladons Act 179A.167ntaest mbib�ion. Subd. 4. [Any] hearing must be held in the county where the principal administrative offices of the employer aze located, unless another location is selected by agreement of the parties. In case of refusal to obey a subpoena issued under this section, the district court of the state for the county where the proceeding is pending or where the person who refuses to obey is found, or resides, or t�ansacts business, on application of the azbitcator or panel, has jurisdiction to issue an order requiring the person to appear before the panel, to produce evidence, or to give testimony. Fai]ure to obey the order may be punished by the court as a contempt. Posthearing briefs, if any, must be received by the azhitrator within 14 a3}'SOfY�1C�1C'dTing. M'innesotaState5latiae179A:Pub7icEmployeesLa6orRetationrAct179A.16 Interest arbtirmion. Subd. 6. Powers of the �bitrator orpanel. 7999 Saint PauT Ciry Councrl Research 50 PaForm�ce Audit ofthe ciry of Sa P I�bar Rel a criv i4 e s Arbitration PoHcies, Continued �� l0 � Database; fees; charges, and per diems. For each arbitration decision rendered by an arbitrator, ttte arbitrator shali submit a copy of the awazd and a description of all fees, charges, and per diems assessed to the parties to the commissioner. Data &om this database must be available to the public. All costs of the panet must be shared equally by the parties to the dispute. �e�oro srme swnue i �9A: rLbu� s,,,p�oy� LabarRelationsAct179A.167nterestmbitration. Svbd.8. Findings 1) There were no probiems reported in complying with decisions reached tIuough azbihaYion. However, there were several comments on the timeliness of City implementation of decisions. 2) With respect to the "procedure" policy specifying that final positions be submitted within I S days: the City has a practice of requesting a 15-day extension to allow the Council time to consider the City's position, 3) Both the City and the bazgaining units appeaz to be in wmpliance with all azbitration policies. Strike Although strike is an option available to `honessential" employee groups, there has not been a strike of any City employees since the mid-1970s. Strike Policies Public employe�, their agents and representatives are prohibitsd from grartting or offering to grant the status of permanent replacement employee to a person for performing bazgaining unit work for the employer d»�ng a lockout of employees in an employee organization or during a strike authorized by au employee organization that is an exclusive representative. Minnesora Srme Srarure 179A: ru6lic Employees Labor Relations Act 779A.13 Unfair labor practices. Svbd. 2. Employers. Employee organizations, their agents or representatives, and public employees aze prolubited from committing any act designed to damage ar actually damaging physical property or endangering the safety of persons wlule engaging in a strike. �nnesota State Statute 179.4: Public Employees Labor Relariou Rct 179A.13 Unfair labor practices. Subd.3. Employees. Employee organizations, their agents or representarives, and pubiic employees ate prolubited from engaging in an unlawful strike. Minnesora Smre Srarure 179A: Public Emplayees Labor Relations Act 179A.13 Urfair labor praMices. Subd 3. Employees. Employee organizations, their agents or representarives, and public employees aze prohibited from picketing which unreasonably interferes with the ingress and egress to facilifies of the public employer. Minnesora Srare Srar,ue [79�t: Public Employees Labor Relations Act 179A.13 Unfair labor pracrices. Subd. 3. Employees. 7994 Smnt Paul CYry Councd Research Performance Audit of the City of Saint Paul's Cabor Relalions Activities Strike Policies, Confinued Employee organizations, their agents or representatives, and public employees are prohibited &om seizing or occupying or destroying property of the employer. �nnesota State Stah�te 179A: Public Employees Zabor Relatfons Act 179A.13 Unfair labo> practices. Subd 3. Employeu. Finding 51�� dl„ � ��Ud As there has been no strike of City employees in recent history, there were no reported problems with any of the strike policies. However, there was an informational picket held by the Police Federation which was conducted in accordance with the above policies. RATIFICATION OF CONTRACTS Contracts are prepazed by the City following the contract negotiation process and are reviewed with the bazgaining unit for completeness. � Rafification of the contract by the Ciry requires Council approval. It is assumed that the Mayor supports the contract, as the Administrative Code specifies that contracts aze to be negotiated by the Mayor or his/her designee. Contracts aze approved by the collective bazgaining units t6rough votes held in accordance with the'v bylaws. Ratification Policies Uniform senlement form. A public employer...shall complete a uniform collective bazgaining agreement settlement document for each collective bazgaining agteement or azbitration awazd. Minnesota Srare Stnrare 179A: Public Emptoyees Labor Relaaons Act 179A.07 Rights and obtigations oJemptoyers. Subd. 7. Uniform settlement form. The gublic employer shall present the settlement document to the governing body at the time it ratifies a collective bargaining agre6ment or aTbiVation awazd. Minnesora Srare Srature 179A: Public Employees Labor Relations Act 174A.07 Righrs and obligafions oJemployers. Subd. 7. Implementarion. Upon execution of the contract, the employer shall implement it in the form of an ordinance or resolution. If implementation of the contract requires adoption of a law, ordinance, or charter amendment, the employer shall make every reasonable effort to propose and secure the enactment of this law, oidinance, resolufion, or charter amendment. Minnesota Sr�rre Sranrre 779A: Public Employees Labor Relations Act 179A.20 Contracts. Subd. 5. Findings 1) The State requires the City prepare a uniform settlement form for all collective bargaining agreements and azbitration awazds. The City has a spotty tustory of completing this form, and it completely stopped for a period of about two years. When the City began completing the �� The Administrative Code policy ouUining the City's responsibility to dra$ agreements appears earlier ia this chapter in the section: Contract Negotiation Preparation--Seheduling and Planning. 1999 SnirrtPaul City Coemcil Research FYa Perfotmance Audit ofthe City of Saini Paui's Labot Relaiions Aclivities uniform seitlement again, past versions were completed and filed with the BMS. The Office of Labor Relations reports three reasons for problems in completing the uniform settlement form. First, low staff levels were cited. Alsq they indicated the form developed by the State of Minnesota is very cumbersome and of limited value, as it was originally developed for use by school districts. Finally, there was concem the informarion required in the uniform settlement form is not consistent with information used in other analyses developed for use at tha negotiation table, or later when totai package costs are estimated. Therefore, it was believed that the informarion presented in ffie uniform settlement would produce greater confusion. 2) The City of Saint Paul bas made available uniform settlement forms when requested. However, there have been occasional delays because the forms needed to be prepared before they could be distributed. Recommendation #34: The uniform settlement form provides for the development of a statewide base of fnfnrmarion on all public employer negotialed agreements and arbilralion settlements for the State of �nnesota. As such, it is an important activiry for the state to undertake, and has the potential to create a comparative databare for use by all public employers and employees. Notably, the state has yet to develop such an informaKon saurce. However, the City of Saint Paul has not consistently complied with this statutory requirement The City should corrsistently complete the uniform senlement form in aceordance with State laov. CONTRACT IMPLEMENTATION Conhact implementation activities involve changing wage rates, altering payroll deduc[ions as a result of benefit adjustments, adjusting sick teave and vacation to reflect negoriated changes, and administering any oLher changes resulting from a new contract. The process involves a number of City depaztments and offices. The following chaz[ illustrates the rote each plays in implementing the contract. The collective bazgaining units are involved to a limited eztent in contract implementation. Union leadership and membership may monitor to ensure that any new contract changes are implemented by the City. Contract Implementation in the Office of Labor Relations The Office of Labor Relations is responsible for ensuring contracts are implemented and administered correctly. This responsibility is shared wiffi other departments, such as Risk Management and the Department of Financial Services. Coutract Implementafion Policies for the Office of Labor Rela6ons Work with Finance Department to streamline contract unplementation process. Offrce ojLaboiRelatfons Orsgob1g Budget Program Objecrives and 1998 Budget ProjeaObjectives Refine development of data bank relating to the many parallel sections of the 25 collective bazgaining agreements and comtnunicate to affected gersons. O�ice of Labor Relations Orsgoing Bvdget Prograrrs Objectives and 1998 Bvdget Psoject Objectives 1999 Somt Paul Ctiy Coimcil Rueorch Pecfotmance wudit of ibe City of Saint PaW's Laboc Relafions Activibes Contract Policies for the Office of Labor Relations, Continued Executive Responsibility (The) office of the mayot shall: Administrate collective bargaining agreements in accordance with their terms and provisions as approved by the City CoutlCil. St. Paul AdminCode, C7w1i.23: ColTective Bm�gaining Process, Sec. 23.03 CONTRACT IMPLEMENTATION PROCESS PARTICIPANTS Office of the Mayor Oversees contract implementation Office of Labor Relations Prepares & distri6utes conhact, oversees Findings Office of the City Atturney Provides conhact & legal for City Risk Management Services Division of Technology and Management 5ervices Dept Administers changes in benefits Office of Financial 5ervices Makes wage and benefits deductians or additions Other Departments Responsible for complying with contract �q�$�� 1) The Office of Labor Relations has worked with Financial Services to streamline the contract implementation process. Tentative agreements aze given to the Offics of Financial Services to determine the length of time iY will take to implement the contract. Financial Services then brings any questions to the Office of Labor Relations and to Risk Management for clarification. Responses to questions aze in writing. Payroll has stated it is sometimes difficult to obtain coherent answers to questions, as there is a reluctance by the Office of Labor Relations to write down speeific answers. 2) The OLR has done some work on the collective bazgaining agreements databank, though it has not been completed and the work has not been kept up. The information in the data bank has not been communicated to affected individuals or departments. 1999 Sarm Pau1 City Codncil Research � ofSairtt Paul's iabotRelations Activities y y Recommendatian #35: The Offzce of Labor Relations, Risk Management, and the Office of Financial Services should increase efforls to sireamline contract implementation. �411 three offices should clarify communication systems to improve the administrative process. Recommendation #36: The O�ce of Labor Relationr should complete the data bank relating to parallel secrions of the collective bmgaining agreements. The existence and use of the data bank should be communicated tn all aj j'ected parties, and the data bank should be used to identify arear for negotiation. Contract Implementation in Risk Management Risk Management is responsible For administering the benefit packages of City employees. They implement and monitor programs such as workets' compensation and health insurance. They also work closely with other departments such as the Office of Financial Services to monitor the e�cpenditures associated with such progcams. Contract Imolementation Policies for Risk Administer the health and welfaze benefit programs for the City and Water Utility to insure that employees/retirees receive proper benefits and all bazgaining unit Cont['dCts �nd laws aze 3dhefed to. Risk and Employee Management Division 1998 Orsgaing Bardget Progrmn Objectives Assist the Budget Office in determining and monitoring the unfvnded liability and cost alIocation in self-insuted progrems (these programs include workers' compensation, tort liability, and retiree health insurance) in order to establish a budget reserve in accordance with risk management industry standards. xiskmwt Employee Management Services 6ivision: 1998 Ongoing Bvdget Progrmn Objectives Finding Risk Management has followed through with its budget objectives. They are requited to monitor unfunded ]iability to meet general Govemmental Accounting Standazds Board requirements. They also monitor the contracts to ensure proper administration of benefits. RecanAtendation #37.• Risk Management and the O�ce of Financial Services should develop performance indicators to ensure Nmely implementation of contract changes. These ittdicators should be developed in the context of a systematic form of communication between all imolved City o�j?ces. Risk Management currently attempts to implement contracts in one month, but a formal benchmark to measure against would assist in tracking implementarion time. Contract Implementadon in Fivancial Services Financial Services is responsible for processing contract changes and ensuring that all changes are reflected in the payrotl records and consequently the payroll checks the employees receive. 1999 Soint PouJ Ciry Cormcil Reseorch Perfoimance Audit of ihe CiTy of Saim Paul's Iabox Relations Activities 55 �� Contract Implementallon Policies for Financial Services �� Rights and obligations of emptoyees The employer shall deduct the [fair shaze] fee from the eamings of the employee and hansmit the fee to the exclusive representative 30 days after the written notice was provided. ,�.rinnesora Srare S�ature 179A: Public Emplayees Labor Relafions Act 779A. D6 Dues check of}' Public employees have the right to request and be allowed dues check off for the exclusive representative. Minnesora Srare Sran.re 1 �9A: Pubttc Employees Labor Relatiom Act 179A.06 Rights and obligations of employees. Subd 6. Finding We found no probleaus with the Financial Services policies. The Office of Financial Services does provide written notice to the collective bazgaining units of any fair shaze fees, and also provides dues check offs. Contract Implementation in Collecrive Bargaining Units Contract Implementation Policies for Collective Bargaining Units Fairsharefee The elcclusive representative shall provide advance written notice of the amount of the fair shaze fee to the employer and to unit employees who will be assessed the fee. The employer shall provide the �clusive representative with a IiSt of all Uriit employCeS. Minnesota State Statute 179A: Public Employees Labor Relations Act 179A.06 Rights and obligallons of employees. Subd. 3. �'tritli�tg No serious problems were identified with this policy. Most of the collective bazgaining units provide advance written natice of the fair shaze fee, and the Office of Labor Relations provides the collective bargaining units with a list of all of the unit employees on a monthly basis. 7999 Saurt PauJ Ciry ComecU Research 56 PerFormance Audit of the City of Saini Paul's Labo Rel A ct iv i d es QUALITY ASSESSMENT FOR 9 � - �� CONTRACT NEGOTIATION PLANNtNG Summary Rating �`r� Planning is a method for achieving a goal. Planning should include knowledge and inclusion of key participants, systematic processes, the release of a well-circulated document or planning product and an effective implementation strategy. Goal-oriented organizations that pursue excellence require a broad-based vision directed towazd the future with a wiilingness to embrace long-term commitments. Planning should strive to anticipate many types of changes including those that may affect customers' expectarion of services, technoiogical developments, evolving requirements and community expectations. Planning strategies that lead to effective allocation of resowces need to reflect these commitments against the back-drop of a dynamic environmenY. Setting Strategic Direction Parkicipants in the conhact negotiaYion and implementation planning process for the City and the collective bazgaining units do not engage in formalized planning activities. The Labor Relations Director, with direcrion &om the Mayor, ouflines pre-negoriation stntegies that are shazed verbally with key members of her staff. For the most part, department heads and the City Council are not included in these informal pre-negotiazion strategy sessions. Historically, there were three groups convened by the Labor Relations Director to develop negotiation agendas and strategies. These groups have been relatively short-lived and experienced varying levels of success. They did not include direct-service department or City Council representation. ❑ 1994 - 95: Executive Bargaining Team: Md every other week and during negoriations on an as-needed basis. Ii included representatives from Risk Management, fhe Budget Office, Human Resources, the City Attorney's Office and all Office of Labor Relations professional staff. ❑ 1996-97: Executive Bargaining Team Revised Structure: Met as needed. It inciuded representatives &om the Budget Office, the City Attomey's Office, the Department of Finance and Technology, the Mayor's Office and all Office of Labor Relarions professional staff. ❑ 1998: Labor Advisory Group (LAG): Met rarely. It included representarives from Risk Management, the Budget Office, the City Attorney's Office, Human Resources and all Office of Labor Relations professional staff. Some, but not all, union negotiators are involved in the preparation of formalized structured planning for pending contract negotiations. 'Tl�ose not involved develop "as-needed" negoriation strategies. Implementatiott acrivities are planned on a contract-by-contract basis, and there do not appeaz to be overall stratagic measures. KEY PLANNING CONCEPTS: o Set Strategic Direction � Develop Action Plans � Align Work With Plans 1999 Saint Pau1 Ciry Covncil Resemch PerFo�m�ce Audit of the �ty of Saint Paul's Labor Relatioas Activities 57 �71 V Developing Action Plans �� In spite of their good intentions the p]anning efforts made by the collective bazgaining units and the City do not produce long-or short-teim plans that meet broadly accepted requirements for useful planning. However, some pre-negotiation activities do occur: ❑ Staff from the Office of Labor Relations report� the Labor Relations Directot has engaged in talks with some City department heads, prior to negotiations, in an attempt to gather information about what they want included in a contract settlement, i.e. working conditions, overtime hours, job classification etc.; ❑ City attomeys have attended meetings where short-term plans were reported to have been made; ❑ The Office of Labor Relations sent questionnaires to the Public Works Department asking for any potential changes in the contract. ❑ Several collective bargaining urtits reported they make short-term plans before contract negotiations. They make pre�negotiation plans at committee meetings and survey the membership to obtain a sense of their wishes prior to negotiation. Often, these plans are listed goals that union negotiators use during contiact negotiation. Unfortunately, these as-needed negotiation strategies do not contain the breadth and scope of a well-developed, resource-specific, integrated plan that reflects the vision and values of organization members. Some collective bargaining units reported they were involved with the City in pre- negotiation planning meetings. Still, no formal document or plan was produced. The pre- negotiafion vetbal agreements attempted at these meetings do not rise to the level of a strategic fomialized planning process. The results from these encounters do not anticipate changes in the negotiation environment and therefore limit the opportunity of acquiring improvements that could reduce the time it takes to complete a negotiation. A$er an agreement is reached and before the actual contract is ratified, a copy is given to Financial Services to allow them to develop strategies to implement the changes in the contract. However, only short-term conttact implementation plans are made at this point with the relevant departments and the Office of Financial Services Office. Consulting key departments on the compleacity of contract implementation is relatively new and not yet fully developed Staff in various depaRments report there appeazs to be no meaningful incorpotation of wntract implementation concems into the negotiation process. As with pre- negotiation, 'vnplementation strategies aze task-speci£ic and do not include an initial assessment of the resources required nor do the plans considet future changes that may arise. Aligning Work With Plans While we may fault the City and the unions for their lack of a formalized planning process, both sides stress the importance of informal short-term planning which allows them to engage in successful contract negotiations. Also, pazticipants in the conkact negotiation process have expressed their safisfaction or dissafisfaction by informally reviewing the outcomes of a completed negoriation. This may take the form of conversations over dinner, a pat on the back when leaving a negotiation or a post-negotiation union meeting where the rank-and-file express to the leadership how they feel about the results from the previous round of negotiations. These meetings might also include an informal comparison of results 1999 Soint Pavl Ciry CounCil Ruemch 58 PerFocro.ance Audit of ibe City of Saint Paul's Labor Relations Activi4es with other jurisdic[ions. They have noi mutinely evaluated information to enhance the process in the fimue. The same siYuation eacists for contract implementation. The short ]ength of time between agreement on the contract and implementarion does not ailow for much evaivation during the implementation process. The departments involved in implementation do not do any formal evaluations of implementation strategies, though each par[y understands their mle in the process, and follows practices that have been in place for some time. Recommendatian #38: The Office of Labor Relations should include deparhnenl heads and the City Council in a planning process prior to contract negotiations. Planning should include aspects of timeliness, cusiomer expectations, process improvements, information exchanges and a determination of who should be at the table. Short- and long-term plans shouJd adso include consideration of fulure changes in codleclive bargaining units, internal staf�'ing, Compete Saint Paul and other factors that arise. Recommendation #39: The O�ce of Labor Relarions and union leaders should develop a formalized planning process that occurs prior to contract negotiations. Among other things this process should cover issues of communication, timeliness, standards of behavior and exchanges in sta,�ng information. Such a process would irrclude items iraditionally discussed in establuhing "ground rules"for a negoriation, as we[I as items relating to the longer-term relatioruhip between the City and bargaining unit. Recommendation #40: Union leaders should survey their membership and use this survey as an instrument to deve[op short- and long-term pians to more accurately assess the needs and wants of the membership. This plan should reflect a vision for future negotiations, be written and disseminated to all members. LEADERSHtP Surnmary Rating: �� KEY LEADERSHIP CONCEPTS: o Mission o Vision o Values o Communicarion The process of contract negotiation requires leadership from a diverse group of senior leaders represenring a variery of mterests. The City's Labor RelaYions Duector along with the union presidents and business agents for more than twenty bazgaining units shaze leadership responsibility. While these senior leaders may have individual differences with respect to values and visions for the future, they al] have a responsibilit7 to create and express a clear set of values for the process and a clear vision for the future of conlract negotiations with the City of Saint Paul. Leaders in the conhact implementation stage include staff in Financial Services, the OfBce of Labor Relations and Risk Management. Vision No ciear vision has been developed for how the contract negotiation or implementafion processes are to be conducted in the future. Senior leaders do not articulate a vision for the future that is more fhan expecting to repeat what has been done in the past. An exceprion is that the Labor Relations Director and a few union leaders believe there may be a role for interest-based bazgaining in future contract negotiations. They have conducted some 1999 Saint P¢ul Ciry Cwmcil Researah Perfo�mmce Audit of the City of Saint Paul's Iabor Relalions Activities $ �� experimental interest-based bargaining sessions and see ttus approach as having application - 1 `� in cer[ain situations. There is not, however, a clear vision of how this technique, or any other, is to be used in the fuhue to improve the contract negotiation process. The timeliness of the wntract negotiation process is universally acknowledged to be a serious problem but senior leaders have not provided an altemative vision that will address this failing. Contract negotiations are seldom completed prior to expiration and they sometimes run as much as one to two years behind schedule. It is the responsibility of senior leaders to develop and articulate a vision for the future that will end this frustrating and expensive practice. Values Senior leaders must articulate and model the values they believe should guide the contract negotiation process. While senior leaders seem to agree that trust, respect, honesty and fauness should be primary values, these values aze seldom articulated and sometimes ignored. There aze often retold stories of disrespect, dishonesty, mistrust and unfaimess in contract negotiations. The instances of reported disrespect ranges from accounts of unions officials using a stick to beat an effigy of a City official during breaks in the contract negotiations process to accounts of a City officia] bringing a dog to a negotiating session. There are also reports from both sides of instances where negotiators did not tell the truth or failed to cazry through on promises. It has also been suggested that faimess is not always applied when dealing with "lower-status" or femal�dominated bazgaining units. We found no clear evidence of this, although there is a widely held belief that this is the case. Communicarion In a well-managed process communications aze open, rapid and effective. In order for each partner in the process to be able to make conect judgements and optimal decisions, everyone must have all the information they need to make the best decisions. Communications within the City's part of the wntract negotiations process are cleazly lacking. Secrecy and exclusion characterize the City style. Only a handful of City officials are informed about the contract negatiation process. Even most staff in the Office of Labor Relations are il]-informed. Likewise, City department directors and the City Council are provided with little or no meaningfiil information. The head of key contract administration activities such as� Risk Management and the City Attorney aze lazgely in the dark. In sum, the City's communications systems with respect to contract negotiations have the nalure of a closed process known only to a very small, select group of City officials. It may be suggested that secrecy is necessary for an inherently adversarial process but such �treme secrecy is not maintained by the bazgaining units nor by many other public and private entities when they engage in contract negotiarions. The unions, in contrast to the Ciry, maintain open communications about conhact negotiations. All union members aze invited to participate in meetings where contract negotiations processes and objectives aze initially discussed. They invite members to serve on the union eacecutive boazd that reviews the progess of contract negotiarions and ptovides advice and direction to union negoflators. Also, many union members have the opportunity to serve as members of the union contract negotiating team. The unions provide support and recognition to members who participate in the contract negotiations process through formal recognitions and awazds to members who contribute to the contract negotiation process. 7999 Sqin! Paul Ciry Council Researth �o ��;o�A�riti� Union leaders also meet with their membership after contract negotiations are�comp�eted to explain the contract, though Risk Management reports it still r�eives calls from union membecs asking for clarification of terms in the contract. Many factois may contribute to these inquiries such as confusion resulting from the information presented to the membership by the collective bazgaining units. Altematively, the employees could be "shopping azound" for an answer they like. Perhaps it is a practice that remains from years ago when union members expected Risk Management to interpret the contract for them. Communications between the City and bazgaining units regarding contract negotiations are not paRicuiarly productive, Bargaining units complain about City staffnot retuming their telephone calls and being very slow to respond to written communications. Also, the City dces not always notify bargaining units of statYchanges that may ai�'ect the process. While City leaders claim they maintain good communications with the bargaining units, there aze allegations that this is not so. Communication is also key to implementing any resulting contract changes. Financiai Services has a system established to communicaYe changes to payroll contacts, though communication between the Office of Labor Relarions and Financial Services regarding contract changes is not always productive. Financial Services stated they sometimes find it difficult to obtain necessary informarion &om Labor Retations. However, both depar[ment reported collaborating to address this ptoblem. Recommendation #41: The Labor Relations Director should take the initiative to irrvite bmgaining unit leaders to join in a professionally facilitated process that will lead to the creation of a vision for the future of cantract negotiatio�rs in the City of Saint Paul. This facilitaied process should review past successes and f4ilures with an eye to developing o common vision of how the process will proceed more effectively and e�ciently in the future. This visioning process should occur at least once ench year to ensure they continually refine and adjust it to deal with changes in circumstances attd changes in leadership. Recommendation �t42: Senior leaders from both fhe City and the bargaining units should define !he values thar will govern the contracl negotiation process and commil themselves to ensuring these values are regularly articulated cmd followed without zxception. A mechanism for identifying and correcting arry faiZures to adhere to these values should be established and enforced. Recommendation #43: The City wouid be better served if it were to be much more open and inclusive in developing and communicating with other City officials cmd union representatives about contract negotiariotts. Certainly such key players as Risk Management med the City Attorney should be kept fully informed mrd imited to participate in the development and pursuit of City contract negotiation objectives. The City should cease treating contract rregotiations as the exclusive purview of a small cabal of City offzcials and seek the active prnticipation of a wide spectrum of Ciry managers and elected oJJicials. We believe whatwer tacacal advantages may be lost by reducing secrecy and �.rclusivity will he more than offset by the benefits to be derived by urvolving a wide spectrum of City o,f�J'icials in the contract negotiation process. 1 A99 Saint Paul City Co�mcit Resemch Perfurmance Audit of ihe City of Saint Pau('s Labor Relatioas Acrivifies 61 /� n f141' U TRAINING $� DEVELOPMENT Summary Rating: �� Employees in successfu] organizations aze provided '�.� --- -- the tools they need to produce quality work. These same employees aze given encouragement and resources to develap a set of skills that allows them to contribute effedively to organizational undertakings. For example, if an organization identifies continuing education for its employees as a key strategic value, it will provide workers the opportunity and resources needed for them to attend classes, seminars or in-house training. If an organization values promoting from within, it will have well-defined advancement systems that aze attainable tivough hazd work and adherence to organizational priorities. Successfu] organizations also ]ink the training and development of their employees to the organization's goals and priorities. This linkage occuts through the development and release of a long-term strategic plan that identifies organization strategies that aze widely known and tied to basic organizational values. Education & Training Tnining and development does not appeaz to be a high priority for either the City or most union negotiators. On the City side, the Labor Relations Director is the only staffperson in the Office of Labor Relations that negotiates for the City." Organizationally, this is not a healthy situation. This situation is exacerbated by the Director's history of not sharing information and customer expectations with her staff. While Labor Relations staff have expressed interest in becoming negotiators, there is currently no formal training program for them to accomplish this goal within the City. Union negotiators make use of some training offered through their union affiliations. Unfortunately, all unions do not have the resources nor the infrashucture necessary to train and develop future negotiators. In many instances individuals on the negotiation teams aze untrained volunteers with no discernable negotiation experience. Job Design The Office of Labor Relatians recently hired a Labor Relations Manager with a requirement that he or she have five years of contract negotiation experience. This will improve the situation of inexperienced city negotiators. The Labor Relations Director has informally pass�l on some negofiarion strategies to her staff. Similazly, some staffhave attended MPELRA conferences where limited training did occur. City staff, based on their particular position and role in contract implementarion, have some opportunities to contribute to the process. Labor Relations staff al] have specific roles related to implementation and contribute through their respective roles; however, the primary 1 � In 1994, 1995, 1998 and 1999 the City hired Labot Relations consultanu. In 1994 and 1995 the consuitants worked with the Health Insurance Labot Management Committee and in 1998 and 1999 the consultants assisted in contract negotiations. KEY TRAINING 8. DEVELOPMENT CONCEPTS: � 3ob Design � Recognition o Fducation & Training n Employee Well-Being 7999 Sain! Pau! City Council Reseorch 62 Perfmmance Audit of the decisions are made by the director. Risk Management and Financial Serv� 9 �tr�b�e greatly to the process, and implement the wntract changes as required. However, this is somewhat problemaric, as some contract changes that are agceed to may in reality be very difficult to implement. Employee Well-Being & Recoguition Participants in the contract negotiation process reported significant leveis of disriust. Apparently, this distrust is not only between the City and the collective bazgaining units but also between participants within their respective goups. Within the City, participants in the process hold different views on negotiation sirategies and disagree about the leveI of service thaz should be provided to their competing customers. It was reported the actions of some department heads run contrary to the vision of contract negotiation expressed by the Administration. Labor Relations staff expressed concern that some department heads are making decisions contrary to the policies of the Office of Labor Relations. In contraSt, some department heads and other key staff believe they are left out of the negoriation process and feel e�ccluded by the Director. City staff involved in contract implementation expressed some frustration with the difficulty in obtaining the necessary information regazding contract changes. These employees also work undet stressful conditions when implementing contract changes, as the time frame between contract ratification and implementation is often very limited. Some union participants reported they do not always feel respected by their leaders. Smaller collective bar�aiuing units reported the negotiation process te.nded to be a positive experience for them, while some participants &om larger unions feIt worn down by the length of Ume it takes to reach an agreement. They believe extending the time it takes to reach an agreement is a negotiation strategy employed by the Ciry to better its outcomes. Recommendation #44: The O�ce of Labor Relations should make contract negotiakon training for eligible staff a priority. This should occur either in-house or through continuing education at an ofj-site facility. Recom�nendation #45: AIl unions should offer training in contract negotiation to members of the negotiation team. Recommendation # 46: The Oj�ce of Labor Rel4tions, Financial Services, ared Risk Management should develop a formal communication system to communicate cmd implement contract changes. See also Recommendation #56, page 69 on maintaining at least two negotiators an staff in the OLR. 1999 Saint Paul CityCoarxil Resemck Perfo�nce Audit of the City of Saint Pau1's Labor Relarions Activities �^(� $�� , !�{�-� INFORMATION AND ANALYSIS Summary Rating: �s�r�r Information and analysis aze vital for managing and improving processes. Performance improvement KEY lNFORMATION & ANALYSiS CONCEPTS: o Collec[ion of Data � Use of Data � Analysis of Data o Comparison with Others information includes customer, employee-related and cost information. Collecting data serves little purpose if it is not analyzed and used to make improvements. Extracting lazger meaning from data to support evaluation and decision maldng for the contract negotiation process is very important. Analysis should include trends, projections and comparisons. Using data and analysis systematically in setting priorities is important in properly setting goals, developing plans and allocating resources. Information should be available to all parties to the process and used to evaluate the process and assess progress. Information is essential in monitoring performance against measutable goals and it should play a key role in the decision-making process. Collection, Analysis, and Use of Data Both the City and the unions aze good at collecting and using data related to contract negotiation. While the City's systems for collecting and analyzing data have historically been weak, they aze now better and continuing to improve. Past City problems have been primatily related to inadequate wmputer hazdware, unstable softwaze and weak technical support. Improvement is due to better technical systems and sugport and the higher priority placed on the maintenance of quality data by the Labor Relations Director. The City continues to maintain two computer-based systems intended to do "total package costing." T'his appazent duplication is not only inefficient but, they tell us, often produces different cost projections. This duplication and instability suggest that more work needs to be done to improve the situation. Other City departments also collect varying amounts of information related to negotiation and implementation. The Payroll Office in Financial Services keeps copies of letters sent to employees describing pay changes, though ffiey do not keep any other formal files of changes. Benefits collects data on sick leave use and other benefits. Collective bazgaining units also use data and computer analysis to evaluate proposals and compare agreements with other jurisdictions. The use of this type of data and analysis varies among the bazgaining units with some being more sophisticated in their use of computerized data analysis than others. Most, if not all, bargaining units use data and analysis at least to some e�ctent to evaluate the products of the contract n�egotiarion processes. Comparison with Others The collective hazgaining units collect and shaze a fair bit of information on comparable contracts. They generally obtain this information from other locals or from na6onal labor organizations. This compazative data is used extensively by unions to study trends and to assess the equity of settlement proposals offered by the City. While City staff attend and participate in meetings with the labor relations directors of other govemmental units in the metro azea, the information gathered in this forum is thought to be 1999 Samt Paul Ciry Counci! Rueamh � Perfwmmce A�edit of the City of Saint PaW's Labor Relations Activities of limited value. This is because shazed information often lacks sufFcient debi] to accurately assess the total agreement and the desire of participants to make the settlements they have achieved look as gaod as possible to their peers. This group is sometimes, jokingly, called the "liazs club:' Nevertheless, the collection of this type of comparative information is important and helps the City understand the broader collective bazgaining environment. Regazding the outcomes of the contract negotiation process, some data is collected and analyzed by both parties, however, little data is collected by either party about the process itself. There is no systematic information gathered regazding ihe costs of the current process in either time or money. Lacking such information there is little incentive or basis for seeking to make process improvements. Recommendation #47: The City should continue to seek to improve its data collection and attalysis capa8ilities and should implement the total package costing program. Likewise, unions need ro continue to improve their systems and find additional supporl for thase units that do not currently have quality systems. Recommendation #48: The City and unions should continue to work to improve their data collection attd analysis systems for negotiation outcomes. The parties should also mutually define process cost measures and jointly collect arrd share data on these indicaiors. These data should then be used fo analyze the efficiency of the process with an eye to making improvements. This information can be used for a comparative evaluation of alternative negotiation methods. Alternatives should be used erperimentally until proven and then adopted for all conCract ttegotiations. The process would be well-served ifpresent leaders were 10 make a concerzed effort to break free of their long-starrding beliefs about how to conduct contract negotiation and seriously consider alternative dispute resolution processes. Some of these alternatives, may, prove to be superior to current processes which are, unfortunately, performing poorly in many cases. PROCESSES FOR IMPROVEMENT Summary Rating: �`r�`r KEY PROCESSES FOR IMPROVEMENT CONCEPTS: � Improving services o Improving Suppoft Services o Improving Supplier Services This section reviews the design, management and improvement of the conhact negofiation and implementation processes. Impmvement practices should be an integral part of any process. Both parties should be seeking to eliminate problems at their sowce and be driven by oppofiuiities to improve. Improvements may be directed towazd responsiveness, timeliness and efficiency in the use of resources. Improvement must contain cycles of planning, implementation and evaluation that require information and methods for assessing progress. It is critical tiiey continuously evaluate all processes to identify problems and successes. The coniract negotiation process reflects little management of the process by either party. All recognize their inability to complete contract negotiations on a rimely basis but little, if anything, is being done to remedy this most serious pmcess failure. Despite the higlt cost of this conYinuing failure in both frustration and direct expense, the parties have done nothing 1999 SaiM Paul Ctty CowrcAReseamh Performanw Audit of the CiTy of Saint Paul's Labor Relazions Activities effective to ameliornte this problem. While trends aze not entirely clear, in part because no one bothers to collect data on timeliness and hack �ends, this situation continues. 65 a � ��n Although it is commonly believed by the parties that the current "zero-sum" type of bazgaining is ineffective and needlessly expensive, there have been few attempu to improve the process by adopting altemarive models. Some have tried to use "interest-based bazgaining" with parts of a few contracts, but they have not attempted to pursue new and possibly better methods of resolving differences between the parties. Leaders on both sides seem to be deep]y invested in long-standing contract negotiation processes and either cannot see, or do not want to see, that there may be better ways of reaching mutually acceptable collective bazgaining agreements. One reason there may be so little impetus to improve the contract negotiation process is no systematic evaluation of current processes is ever done. No one collects or analyzes quantitative data about the methods in use. Without systematic evaluation, there is no way to imow how current processes are worldng and to identify the areas in need of improvement. Recommendation # 49: Parties irtvolved in contract implementation should corrduct surveys to identify tevets of supplier performance and search for areas and ideas for improvement. Suppliers might include those agencies and individuals who provide necessury informatian for the negotiation process. See Recommendations #47 and #48, page 64 on information analysis in contract negotiations. CUSTOMER FOCUS Summary Rating: ��`r Attention to customer needs is crucial if an organizaGon is 1 striving toward e�ccellence. Organizations that excel in customer satisfaction have obtained information by creating and managing relationslups with their customers that give the organization key service requirements, neaz and long-term expectaiions and degrees of customer satisfaction. The successful use of customer satisfaction information is linked to an organization's ability to gather and analyze data conceming customer requirements. Knowing the requirements of its customers enables an organization to develop service standards. In order for these standards to be efFective they must be distributed Uiroughout the organization and understood by KEY CUSTOMER FOCUS CONCEPTS: o Customer ldentification o Customer Knowledge � Customer Relations everyone. Castomer ldentification When it comes to contract negoriation both the City and the unions have a pretty clear idea of who their customers aze. The collective bazgaining units have identified the rank and file membership and the citizens of Saint Paul as their primary customers. Those individuals who aze involved in the negotiation process for the city have identified the Mayor, Ciry Council, department heads, the rank and file and citizens as their primary customers. 1999 Saint Paul Ciry Councr7 Research � Perfomoance Audit ofihe Interestin 1 eno 9' 9` ��a g y ugh, even though the City Council was identified as a customer, no actions during the negotiation process back this statement, The Council is not kept up-to-date on contract negotiations, collected information is not forvvazded to them, informarion on staff changes is fonvazded slowly and presentations before the Council by the Labor Relations Director are not regulazly scheduled. Customer Knowledge The participanu in the contract negotiarion process have a ciear understanding of who theu customers aze. They also believe they have a clear understanding of their customer's needs and expectarions. However, in spite of this belief, the participants do not have formal processes to assess customer needs, expectations and satisfaction. The Office of Labor Relations identified multiple customers but the only customer who is involved in any kind of process to determine customer needs, expectations and satisfaction level is the Mayor. The Labor Relarions Director held frequent meetings with the Mayor where the Mayor shared his vision for the future wnceming the d'uection in which contract negoHarions should proceed, This information was then used by the Office of Labor Relations in subsequent negoriarions. Unfortunately, very little was done to capture informaYion on the needs and expectations of other customers idenrified by the Office of Labor Relations. The OLR Director indicated that on at least one occasion a survey of department and office directors was conducted. Similazly, there were very few regularly scheduled meetings with the City Council Yo assess their needs and e�cpectaYions. According to some collective bazgaining units, informal conveisations and occasional surveys were used by union leaders to monitor the eacpectations and needs of the rank-and- file. They held infocmal conversations with union membeis after negotiations to determine their satisfaction with a settlement. The information shared at these meetings tended to revolve azound financial and bene5t matters; no information conceming impmved practices and meeting behavior was usually given. Furthecmore, these practices have not been formalized or practiced over time in order to compare customet sarisfaction results with other jurisdictions or with past performances. Negotiato� do not fol[ow any formal customer service standards or guidelines when it comes to such issues as communication between offices, information analysis, meeting time lines and negoriation behavior. Customer service standards, if shared with all key negotiators and their staff, would provide a frunework for a[I pazficipants in tfie negotiation process to understand the vision, goals and eacpectations of key customers prior to and during negotiations. Cnsfomer Relations High quality organizarions stress relationship enhancement as an important part of an averall "listening and leaming strategy." Some members of lazger collective bazgaining units did report communication problems between themselves and the leadership. For tite most part however, union negotiators did provide information conceming the negotiation prceess to iu membership on a regulaz basis. Unfortunately, no formal consistent process to determine customer satisfaction e�sts between the leadership and iu members. Therefore, important customer feedback may not to make it to union negotiators in a timely manner. Without an effective method to assess the needs and expectations of key customers the effecriveness of the negotiation process is limited. 1999 SairetPmrlCrry Counci! Research PeA'onnance Audit of the City of Saint Paul's Labor Reietions Activities 67 Reconen:endation #S0: The unions should create a formal process to measure the r� �� expectations mrd satisfaction IeveLs its members have concerning the contract negotiation process. The usues identified in this process shauld not be limited to financial arrd benefzt outcomes but should also stress communication between the leadership and its members, informatian d"usemination, sruff changes, timeliness, processes for improveirsen[ and general leadership concerns. Recommendation #SI: Both the City and the unions should use the informatinn it receives from surveying its customers to establuh customer service standards and guidelines whzch in turn would be used during tiee contract negotiation process. Recommendalion #52: The Office of Labor Relations needs to ezainine the role of the City Anorney's O�ce, the O�ce of Financial Services and Risk Management to determine if greater p�tnering accompanied by information sharing would be a more effecrive approach to negotiation than presently eruts. All of these departments should consider surveying their respective customers to determine their level ofsatisfaction with negotiation and implementation. See also Recommendations #17 and #19, pages 24 and 26 respectively, an Ciry Cauncil and other customer communication and information gathering. RESULTS Summary Rating: �r� Successful organizations know how well they aze doing. By using results they can caiculaie their KEY RESULTS CONCEPTS: o Customer Satisfaction � Financial Outcomes � Suppler Performance � Organization Outcomes efficiency and effectiveness. For example, if the goal of the organization is to pmvide a high level of customer satisfaction with a product, the organization would collect and analyze data indicative of customer expectations, work practices to meet these eacpectations and the resulting levels of customer satisfaction. Once they establish outcomes, the organization can track its perfomtance over time and compare its results with those of other organizations. These comparisons with other similaz organizations can represent benchmarks against which to compare outcomes, efficiency and effectiveness. Participants in the contract negoriation and implementation processes do not have formal methods to measure their outcomes. They do not track performance over time and any comparisons to similaz organizarions are limited in scope and not part of any annual assessment. Customer Saiisfaction We diswvered customer satisfaction with the results of the negotiation process is not systematically measured by either the City or the unions. Only a few unions survey membership periodically. Because no accurate customer satisfaction results aze gathered, no current customer satisfaction comparisons to similaz organizations can occur. There is no formal evaluation of the process used for negotiation and implementation of contracts for either the City or unions. Overall, the communication systems between the 1999 Saint Povl Ciry Council Resemch Paul's Labor Relazions Activifies depaztments are goor, and even informal evaluations do not seem to be preseni " In�emally, no feedback mechanisms eacist for each department to evaluate the services it receives &om the othecs on a holistic or individual level. Therefore, it is even more difficult to aclueve efficiencies in the negotiation process for the upcoming negotiation cycle. Organizatiouat Bc Ftinancial Outcomes It is natural far both sides in the contract negotiation process to be concemed about the outcomes of that ptocess. However, the City aud the unions have goals that are too narrowly defined as "mazginat financial outcomes." Because their goals are limited in scope the �mions and the City believe they achieve most of their desired goals. Union and City negotiators occasionally measure the outcomes of a negotiation session by having informal conversations after a round of negotiations. While we tecogniae concentrating on fivancial results is a natural reaction to conffact negotiations, we must point out that lugh quality organizations have identified other measurement criteria that determine whether they aze achieving their goals. Such criteria deal with issues of communication between participants, information shareng, rimeliness, standards of behavior and negotiating environment. Little attendon has been given to other aspects of the negotiation process to see if possible efficiencies can be ide�tified and impmved upon before the ne�ct round of negotiations. The Office of Labor Relations dces compaze its financial results Yo other municipalities. They also compare current financial results to resuhs from other years. Some collective bargaining units infoanally compare their financial and benefit results to similaz organizations and national pazent organizations. Organizational and financial outcomes related to contract implementation are not tracked or evaluated by the City. The Payroll unit states that it measures results by whether paychecks aze correct. If they are not, the Payroll unit states it will heaz of the problem, and would then consider its results unsatisfactory. Risk ManagemenY has a one-month plan to incorporate any benefit changes, and measures its res�ilts according to this pian. While individual depattments may claim to evaluate their work through these methods, there is no evaluation of Yhe whole process. Ttris lack of evaluation is pervasive and a hue lvndrance to any improvement practices that may be taldng place on either side, Employee PerFormance & Well Being Multiple staff changes in the Office of Labor Relations ovet the past few years have resulted in a situation wheie only the Labor Relations Direc;tor has the ability and lmowledge to negotiate a contract. Historicaliy, the Office has had two, and occasionally three, professional staff capable of negotiating contracts. However, for almost one ye� the Office has had only the Director and hired consultanu able to negotiate contracts. This situation is fuRher exacerbated by an office that does not vatue additional training and development for its staff. Continuous staff tumover in the Office of Labor Relations has made it difficult for the unions to establish a normal working relationslrip with the office over time. Intemal office assignments shift from person to person without long-term adminishative projects being completed. 7999 San1t Pau(City Cmmci! Research Performance Audit ofthe City of Saint Paul's Labar RelaROns ActiviRes 69 � Supplier Performance �V�� In 1998 the Office of Labor Relations contracted with a consultant to help with contract negotiations. The Labor Relations Director reports to have formally evaluated the consultant for his value and effectiveness; however, no documentation of this has been produced. Recommendation #53: Both the Office of Labor Retations and the unions should develop formal processes to measure and track goal-oriented outcomes. These outcomes should inciude more than just,financial and benefit information. Participants in the contract negotiation process should establish criteria that would also measure aspects of the negotiation process associated with communication between participants, information sharing, timeliness, standards of behavior and the negotiating emironment. Recommendation #54: The Office ofLabor Relations, Risk Management, Financial Services ar+d the uniotts should measure customer satisfaction arrd compare those results with similar jurisdictions. Survey instruments should be developed and sent out bi-annualdy fo all ident�ed customers. Recnmmendatfon #55: The Office of Labor Relations in conjunction with the Office of Human Resources should conduct an employee retention study to assist the new director in recruiting and maitttaining staff with the goal of reducing employee attrition. Recommendation #56: The Ojfzce of Labor Retations should reinstitute the practice of hcrving at least rivo staff inembers capable of negotiaring a collective bargaining agreement at a11 times. This would rake pressure o, f,�'the primary negotiator and allow the of�ce to deal with administrative arrd management tasks more efficiently. Recommendtttion #57: All contract employees should be evaluated for performance. This data should be used for planning and process improvement. 1999 Soint PauT Ciry CounciT Reseorch 7 0 Pe r F mm�ce Audit of the C ity o Saint pan!'s Iabo Re�tioos Activities ■ • •- i GRIEVANCE PROCESS POLICY ALIGNMENT Grievances may arise ouY of three different sources: 1) interpretation of the conhact agreement; 2) disciplinary action; and 3) Civil Service Rules. If an employee or union feels the temis of the contract have been violated a grievance may be filed. An individual employee may also file a grievance if they feel a disciplinary action taken against them was unjustified. Finally, a grievance can be filed if there is an alleged violation of tke Civil Service Rules. Civil Service grievances are handled by the Office of Human Resources and the CiTy Attomey's Office. Contract and disciplinary grievances that advance to Step III (e�cplained below) and beyond are managed by the Office of Labor Relations, with some assistance &om the City Attomey's Office, Tfus performance audit examines only the grievances handled by the Office of Labor Relations. Grievances generally follow a four-step process, outlined in each collective bazgaining uniYs contract. Time limiu on each of the steps e�cist to assist in moving the grievance forward in a timely manner, though time limits can be waived by mutual agreement. Step I of the grievance pracess unvolves onty the employee and his/her supervisor. They meet informally to resolve the issue. If they are unable to reach a mutually acceptable decision, the grievance moves to Step II, and the union stewazd meets with the department head or another higher- level management representative. If the gievance cannot be resolved at the two lowest levels, it advances to Step IlI, at which point the Office of Labor Relations assumes responsibility fat the grievance, and meets with the union's business manager. If still � settlement is reached, the grievance may go to arbit�ation, and the Minnesota Bureau of Mediation Services (BMS) will hear the grievance and make a ruling to wluch the City and the collective bargaining units must comply. The ruling of an azbitrator may be appealed to district court only under very limited circumstances such as: 0 Evidence of bias on the part of the arbitrator, ❑ The azbitrator �ceeded his or her powers--he or she did something contruy to law; ❑ The arbitrator refused to postpone the hearing when requestec}—according to law it is unfair for one side to be unprepared; ❑ If the subject being appealed is ruled non-arbitrable; or ❑ If the decisions is procured by unfair means (such as bribery). According to the OLR, appeals razely occur. 7999 Sai�e7Pttu! CrryConmil Rereolch PerEo�mazice Audit of the City of Saint Paul's Labor RelaRUns Activi4es 71 �� / teps and Participants in the Grievance Process' 5tep I: Informal meeting -� Grievant, Supervisor (oral) Step II: Formal meeting (orai) Step III: Office of Latwr Relations becomes formally involved (written) Step IV: Arbitration (written) � Union Steward, Department Manager � Union Business Manager (or President if collective bazgaining unit does not have a business manager), Office of Labor Relations � Bureau of Mediation Services, Union Business Manager, Office of Labor Relations An optional mediation step is also available to collective bargaining units and the City between Step III and N of the grievance process. Upon request of both parties, the Minnesota Bureau of Mediation Services will assign a mediator to the case. The pmcess is informal, and both sides have an opporiunity to present their evidence. This can be done in a joint session or in sepazate caucuses. At the request of both pazties, the mediator may issue an oral recommendation for settlement. Either party may request an assessment from a mediator as to how an arbitrator might rule in the case. If the grievance is resolved through mediation, the grievant will sign a statement accepting the outcome. If the grievance is not settled, it moves to azbitration, Step N of the grievance process. In addition to handling contract grievances, the Office of Labor Relations may also represent the City in disciplinary grievances following the process outlined in the collective bazgaining agreement. If the employee selects review by the Civil Service Commission, the Office of Human Resources would be involved. However, the City Attorney hand]es most disciplinary grievances, and works with the department to draft a letter of discipline and iFthere is a dischazge or suspension. The Office of the City Attomey also administers grievances resulting fram Civil Service Rules interpretation. The following diagrams illustrate the general grievance processes for both non-disciplinary and disciplinary grievances. '� The City Attomey's Office may also participate in any step of the process by providing legal and contract interpcetations. The Office of Human Resou�ces will provide additional resowces at any step of the process. I999 Sarxt Pau! Ciry CouxcilResearch 72 PerForm�re Audit of the Ciri of Sa"mt Paul's Iabor Relations AcYivities • I J I r NON-DISCIPLINARY GRIEVANCE PROCESS Step I: Informal ►� Step II: Formal Step III: OLR becomes ,�,� formally invoived Employer responds to union, union refers grievance to business manager, who meets with Office of Labor Relations Meeting Employee and supervisormeet iefomially to resohie iswe Meeting Emptoyer supervisor or Fugher IevN manageme� �r�s with union steward Step IV: Arbitration Appeai to District Court onty under very limited circumstances A Vlfdhin 7 days, union reqests arbitration B. Union and employer strike names from list of arbitrators sent from BMS C. Arbilrator has 30 days to wbmit final and binding decision *A non-disciplinary grievance is an alleged violarion of the terms and conditions of the collective bazgaining agreement. l999 SamtPauJCityCawxilResenreh Perfo+mance Audit of the �ry of Saint Paul's Iabor Itelatioas Activilies DISCIPLINARY GRIEVANCE PROCESS Notice of discipiinary action sentte employee and uniort within 72 hours of aation being taken; employee may file a grievance If disciplinary action is a discharge, reduction, or suspension, employee may choose review by the Civil Service Commission (CSC) or use grievance procedure contained in collective bargaining agreement If employee requests review by CSC, must make request within 5 days of notice of the action Foilow collective bargaining agreem¢nt procedure and initiate Step 1 of nondisciplinary grievance process Grievance reviewed by CSC Disciplinary actions indude oral and written reprimands, suspensions, reductio� in classification and discharges. My discipfinary adion that is not a reduction, suspension, w discharge can be grieved only through the co�lective bargaining agreemenYs grievance procedure. '��,$�D 1999 Soint Paul Ciry Cormci) Research 74 Pecfo�m�ce Audit of the City of Sain[ Pau Labor Relazioos Activities General Grievance Process Policies g 9- $�� Many of the grievance process policies apply to both parties in a grievance. These policies aze listed and discussed below. General Grievance Pmcess PoGcies Expression of views. [The Minnesota Pubilc Employees Labor Relations Act] dces nM affect the right of any public employee or the employee's representative to e�cpress or communicate a view, gievance, complaint, or opinion on azty matter related to Yhe condirions or compensation of public employment or their bettennent, so long as tlus is not designed to and does not interfere with the fiill faithful and proper performance of the duties of empioyment or circumvent the rights of the exclusive representative. Sections 179A.01 to 179A.25 do not require any public employee to perform labor or serveces against the employee's Will. Minnesata Stme Statute 179i1: Public Employees Labor Relations �ict 179.4.06 Rights and obligations of employees. Svbdivision l. Unfair la6or practices A copy of any complaint alleging an imfair lahor practice must be filed with the commissioner at the time it is brought in disirict court. �meesota State Stalute 179A; PuLlic Employees Labor Relations Act 779A.13 SUbdivision l. Actions. Unfair labor pracrices The party bringing an unfair labor practice action in district court shall also transmit to the commissioner any ordeis or judgmenu of the court wiUvn ten days of the order or judgment Min,resora Srare Stan.te t �9A: Fal,lic Emplayees I,abor Relations.4ct 179A.13 Subdivision l. Actions. Grievance arbitralion If the parties to a contract cannot agree upon an arbihaYOr or panel of arbitrators as provided by the contract grievance procedures or the procedures established by the commissioner, the parties sfiall altemately strike names &om a list of arbitrators selected by the commissioner until only one name remains. Minnesota State Statute 179A: Pu61ic Employees Labor Relatinns Act 179A.21 Subd 2. Setection. Grievance arbitralion The parties shall share equally the costs and fees of the et�itretOi. �ru�esota State Stalute 179A: Public Employees Labor Rela[ians Act 179A.21 Subd. l. Selection. Independent review. IL is the public policy of the state of Minnesota that every public employee should be provided with the right of independent review, by a disinterested person or agency, of any grievance azising out of the inteipretation of or adherence to terms and conditions of employment. Minnesora srare Srarure 179A: Poblic Employees Labor Relations Act 779A.25 Findings 1} It was repoded that upon occasion, a union member may circumvent the exclusive representative and communicate directly with a supervisor or manager regazding the terms and conditions of employment, but we found no obvious violations of the "Expression of Views" statute. Union members may sometimes feel as though they have not gotten a desired transfer or other changes as a result of expressing a view or filing a grievance, but none of the allegations have been substantiated. 1999 Saint Pau! Ciry Cowcd Research Perfom�ance Audit of ffie Ciry of Saiat Paui's Labor Relations Activities 2) When unfair labor practice complaints have been filed, both parties have complied with Minnesota Stahrtes. 3) Both parties in arbitrations have complied with the state statutes regazding selection of arbihators and the sharing of the costs and fees of the arbitrator. 4) The right to independent review is believed to be covered by Step N of the grievance process, which is azbitration. The City is in compliance with this policy. Grievance Processing in the Office of Labor Relations n ��_�� As discussed previously, the Office of Labor Relations carries primary responsibility for administering grievances, with the exception of Civil Service grievances. The policies below aze those that specifically address the responsibilities of the Office of Labor RelaYions. Grievance Pmcessing Policies for the Office of Labor Relations Develop a training program to train managers on workplace issues and contract 2dminiStCdtlon. O� j'/'ice of Labor ReTations Ongoing Budget Program Objecfives and 1998 Budget Project Objectives Develop joint initiatives which can fixrther both the City's interest and the unionized employee's interest while serving 5t. Pau] citizens, o�'ice oftabor Relallons Ongoing Budget Program Objectives ond 1998 Budget Project Objectives. Preambles to the Collective Bazgaining Agreements (See Example in Appendix E) Findings 1) The Office of Labor ltelations does not provide any training for managers on workplace issues and contract administration. 2) Few serious joint initiafives have been developed between the Office of Labor Rela6ons and the collective bargaining units. The health insurance labor-management committee was intended to be a joint initiative, but it has not met in over rivo years. The Violence in the Workplace Committee was also mentioned as a joint initiative, though it is run by the Mayor's Office, not through the Office of Labor Relations. Interest based bazgaining (IBB) has also been mentioned as a joint initiative, but has been used only on an extremely limited basis and was not used for such important items as salaries and benefits. The OLR claims a few other activities as joint labor-management agreements and initiarives as listed below, though the OLR is not directly involved in many of them: ❑ Labor-management committees at the department and division level to resolve issues related to seniority with the Tri-Council; ❑ Information Services centralization; ❑ Labor-management committee in the Fire Department; ❑ People Soft payroll project; I999 Saint Paul City Council Researoh 76 P er F wmance Audit of the City o Paul's Ia R e l abons Acfiv ❑ Ongoing meetings with AFSCME Clerical and Technical to discuss potential merger activity in the City; and the p n_ �� / 7 ❑ City/County Health Department merger. 3) Preambles to the agreements aze mutual statements made by the employer and the collecYive bargaining units outlining theit mutual interest and responsibilities. They are inciuded here as general policy statements. Neither the collective bazgaining units nor the city e�cpmssed any problems with adhering to the language in the preambles. Recommendation #58: The City of Saint Paul should provide training for supervisors and managers after each contract is ratifzed or a major arbitration award is handed down. These training sessions would give mnnagers and supervisors needed information on contract changes. If no sign�cant changes arose, a memo could simply be sent out to all relevant supervisors and managers. The Offzce ofLabor Relations should also hold an annual training session for managers 4nd supervisors on general contract policies such as: � the defittirion of "just cause" � differentiating between complainrs and o disciplinary actions (oral and wrinen grievances reprimands and suspensions) o sexual harassment prevention � work assignments o reasonable accommodation � overtime o workplace violence � adherence to City & depm7mental policy � grievance process. Such training sessiotts could potentially reduce the number of grievances resulting from uninformed contract inferpretatioru. Recommendation #59: The City of Saint Paul and the collective bargaining units should provide funding and time to arryone iuvolved in negotiations or conbact admittistration to anend the training sessions ofjered by the Bureau of Mediation Services. Topics include Conflict Resolution, Interest-Based Bmgaining, labor-management committees, mediation, basic labor relatiorrs, negotiation, and 1he �nnesota Public Employment Labor Relatioru Act. Recommendation #60: If the City has the goal of improving the relationship between management and Jhe collective bargaining unils, it should be pursuing more initialives of joint interest. A number ofuniorrs e.xpressed interest in mterest-based bargaining (IBB) during our interviews. We suggest training on a broader basis and expansion of the use of IBB. Employer Role in Grievance Processing The policies described in this section apply to the City of Saint Paul as the employer, and are applicable to all departments and offices. 13 Training topics taken from: Smythe, Cyrus. "The Importance of Supervisor Training.^ Minnesota Cities. 44. Sept. 1998. 7999 SaintPav! Ciry Coancil Resemch Peifom�ance Audit of ihe Ciry of Saint Paul's Labor Relations Activities Grievanee Process Po6cies for the Employer " �D aq-$ Promotion of an effective and timely dispute and grievance resolution process. Htrman Rumvices Division: Cn�e Consulting Services Orsgoing Bvdget Program Objectives tmd 1998 Budget Project Objectives Executive Responsibility [The] office of the mayor shall: Process grievances under collective bargaining agreements in coordination with the office of the city 3t[Oit1C}'. Saira Paul Adminisbative Code, Chapter 23: Collective Bargaining Process, Sec. 23.03 Unfair labar practices Public employers, their agents and representatives are prohibited from interfering, restraining, or coercing employees in the exercise of the rights guar�nteed in sections 179A.01 to 1�9A.25 (Minnesota Public Employees Labor Relations Act). Minnesota Srare Stature 179A: Public Emptoyees labor Relations Act 779A.13 Subd 2. Employers Unfair labor practices Public employers, their agents and representatives aze prohibited from dominating or interfering with the formation, e�stence, or administration of any employee organization or contributing other suppoR to it. Minnesota State Stahtte 179A: Public Employees Labor Relations Act 179A.13. Subd 2. Employers. Unfair Inbor practices Public employers, their agents and representatives aze prohibited from discriminating in regazd to hire or tenure to encoura$e or discourage memhership in an employee organization. Minnesota Srare Stature 179A: Public Emptoyees Labor Relations Act 179A.13 Subd. 2. Emplayers. Unfair labor practices Public employers, their agents and representatives are prohibited from dischazging or otherwise discriminating against an employee because the employee has signed or filed an affidavit, petition, or complaint or given information or testimony under sections 179A.01 to 179A.25 (Minnesota Public Employees Labor Relations Act). Minnesoro Stare Starure 1 �9a: Pubtic Emptoyees Labor Relations Act 179A13 Subd. 2. Employers. Unfair labor practices Public employers, their agents and representatives aze prohibited from refusing to comply with grievance procedures contained in an agteelTlent. Minnesota State Stahrte 179A: Public Employees labor Relations Act 179A.13. Subd. 2. Employers. Unfair labor practices Public employers, theu agents and representatives aze prolubited from distributing or circulating a blacklist of individuals �ercising a legal right or of inembers of a labor organization for the purpose of preventing blacklisted individuals from obtaining or retaining employment. Min,resora Srare Statute 179A: Pu87ic Employees Labor Relations Act 179A.13 Subd 2. Employers. Findings 1) The Office of Human Resources has taken four main steps to promote and effective and timely grievance resolution process: ❑ Placed the Civil Service Rules on ffie Intemet for easy access; ❑ Made improvements in scheduling for Civil Service grievances to speed up the process; I999 Sainf Poul City Council Research �s Paformance Audit of the City of Saiot Paul's I.abor Relations Activifies ❑ Created a handout for those interested in appealing decisions to the Civil Service Commission; and gC�_ 8�� ❑ Worked with the Office of Labor Relarions to clarify etnployees' rights to a Civil Service hearing. 2) The Office of Labor Relations dces work on a limited basis with the Office of the City Attomey, though the Attomey's Office serves primarily as a consultant on grievances. 3) We found no instances of City interference with the unions, discrimination because of union membership or achion or blacklisting. Collective Bargaining Unit Role in Grievance Processing The collecrive bazgaining units must follow certain laws and restrictions in relation to their practices. These policies aze listed in the following table. Grievauce Process PoGcies for Emplovees and Collecdve Bareainin¢ Units Responsibility of labor representntives and employees (3) Present grievances conceming terms and conditions of employment only in accordance with procedures outlined in the coIIective bazgaining agreements or by other grievance procedure established by administrative ordinance of ttus council. Sainr Pavt Administrative Code, Chapter 23: Collec[ive Bargainittg Frocess, Section 23.04. Unfair labor practices Employee organi�ations, their agents or representatives, and public employees are prohibited from restraining or coercing emgloyees in the exercise of rights provided in sections 179AA1 to 179A.25 (the Minnesota Public EmPloyees I.aboi Re13tiOnS ACt�. M:nnesota SYate Statute 179A: Public Employees Labor Relations Act 179A. ]3 Subd. 3. Emplayees. Unfair labor practices Employee organizarions, their agents or representatives, and public employees are pmhibited &om coercing or restraining any person with the effect to foree or require any public employer to cease dealing or doing business with any other person. Mi.�rsesora srnre Sr�ure I�va: aualto smpioyees tabo. Relalians Act 179A.13. Subd, 3. Employees. Unfair labor practices Employee organizations, their agents or representatives, and public employees aze prolubited &om coercing or restraining any peison with the effect to refuse to handle goods or perForm services. Minnesora Srare Starure I79A: PublicEmpToyeesLaborRelationsAct179A13. Subd.3. Employees. Unfair labor practices Employee organizations, their a$ents or representarives, and public employees aze prohibited &om coercing or restraining any person with the effect to prevenring an employee from providing services to the employer. M'�nnesota Smte Stande 179A: Public Employees Labor Redatin»s Act 179A.13. Subd. 3, Employeex 1999 Saint Paul Ciry Cormdl2esemch Performance Audit of the Ciry of Saint Paul's Labor Relalions Activities 79 Grievance Process Policies for Employees and Collective Continued Unfair labor practices Employee organizations, their agents or representatives, and public employees aze prohibited from causing or attempting to cause a public employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services which aze not performed or not to be perfottiled. Minnesota State StahUe 179A: Pvblic Employees Labor Relations Act 179A.13 Subd.3. Employees. Unfair labor practices Employee organizations, their agents or representatives, and public employees are prohibited from picketing which has an unlawful purpose such as secondary boycott. Etinnesora Stare Srarure t79A: Pubiic Employees Labor Relations Act 779A13. Subd. 3. Employees. Finding We found no compliance problems with these policies. GRIEVANCE ADMINISTRATION QUALITY AS5E55MENT PLANNING Summary Rating � Planuing is an exercise integral to the development - of an orgazaization or function. It integrates values and eJCpectations with practices. Planning requires an assessment of resources, influences, challenges, and requireinents that affect future opportunities and direction. As related to grievance administration, planning could include developing activities to prevent future grievances or development of plans to resolve grievances in a timely and efficient manner. Setting Strategic D'uection The parties involved in grievance administration devote very little time or resources to planning or setting strategic direction. The lack of planning in the City departments is reflective of an overall culture in the City that does not value plauning. It is also extremely difficult to develop meaningful short- and long-term plans without a strategic direction. Devetoping Actiun Plans The collective bargaiuing units primarily involve only the union steward and the union leadership in the planning process on a grievance-specific basis. As discussed in the previous quality sections, most collective bazgaining units focus their planning efforts on contract negotiation. KEY PLANNING CONICEPTS: � Set Strategic Direcdon o Develop Action Plans o Align Work With Plans . �1 1999 Saint Paul Ciry CouncARu¢arch 80 Perfocmance pudit of tfie of Saint Paul's I.abor Relazions Acbvities While planning is not an integral practice of any participant in the grievance admmistration process, it is unfair to say that no planning occurs. Both the City and the collective bazgaining units do make some short-term plans to administer grievances, although the plans do not incorpoiate a strategic direction or a philosophy reflective of a future orientation. One City staff petson mentioned there aze no plans for grievance prevention, only specific plans for each grievance. Therefore, while some plans are made, the focus is too narrow to be considered comparable to planning used by high quality organizations. Aligning Work with Plans The process of planning also involves the dissemination and use of plans, and the alignment of work assignments with the overall direction of the plan. This could be considered the acUOn phase of planning. Because the few plans that aze developed are limited in swpe to specific grievances, they aze not widely disseminated or useful to a broad array of people, and do not enhance the overall contract administration process. The final phase of planning is evaluation of the planning process and evaluation of the plans themselves. Because few plans exist, there can be little evaluation of the contract administration planning process or the actual plans of the participants. Without evaivation, new plans cannot be developed to complement and build on the strengths or correct faults in previous plans. Recommendatioa #61: The Human Resources Division, the Office of the City Attorney and the Office ofLabor Relations should develop short-term plans to deal with grievances, in particular addressing communication processes between the departments arul each department's respective role in the process. This will address misunderstandings between the departments regarding respective roles, contract interpretation, and lack of communication. Recommendation #62: The Offzce of Labor Relations, in concert with Risk Management and Of,�ice of Financial Services, should develop procedures to implement changes to the contract resulting from a grievance settlement. The changes should be tracked and analyzed by the O�ce ofLabor Relations for use and cottsideration during the next negotiating cycle. LEADERSHIP Summary Rating: �r� KEY LEADERSHIP CONCEPT3: � Mission � Vision � Values o Communication � --_---_---�.--r----s_ _--_ The leadership caYegory is an examination of how senior leaders in the grievance administration process guide the process and set direction, while seeking out firture opportunities. Strong leaders relate cleaz values and high performance expectations. Communication is a key element of effective leadership. Communication is broader than simply verbal communication, and includes a demonstration that stated values, directions and expectations are indeed the basis for the organization's key decisions and actions. 1999 Soint Poul Ciry Coaznri7 Research PerFo'mance Audit of t6e City of Saint PaW's I,abor Relations Activiries M13SI00 $1 �� F� An underlying mission of the Office of Labor Relations's grievance process is to make grievance outcomes uniform and therefore fair. However, because of a lack of communication between the OLR and depamnents, supervisors and manageis do not have a broad concept of what interQretation of the conhact means for the City. The resulting misinterpretations may lead to repetitive and unnecessary grievances. The Office of Labor Relations is trying to address the problems arising from azbitrary grievance resolutions by centralizing grievances in the Office of Labor Relations and advising departments to advance to Step III of the grievance process when the grievance is complicated or if it could have widespread implicarions. Vision Through interviews, we found very little evidence of a clear vision by any of the leaders in the grievance administration process. This lack of vision is partially a result of unclear values and expectations of leaders in the process. Neither the City nor the collective bazgaining units have a coherent or explicit vision fm the future. This lack of vision sometimes results in azbitrary interpretations of the conhacts by departments. Values Part of leadership involves maintaining and communicating a cleaz set of values. While no formal communication of values occurs within the City departments or the collective bazgaining units, some underlying values are reflected in the actions of the participants. Many pazticipants acl�owledged an occasional to frequent occurrence of informal recognition of grievance administration participants. The participants also found no evidence of discrimination in the grievance process, and felt the system is struchued in such a way to be fair to all participants. Communication Previously mentioned as an important aspect of effective leadership, couununication is an azea in dire need of improvement by all parties in the grievance process. The Office of Labor Relations shazes some grievance information with other City departments through the department and office director meetings and through memos, though this is a relarively new practice begun within the last yeaz. Other than these meetings, very little grievance information is shazed among Human Resources, the Office of the City Attomey and the Office of Labor Relations. This is a glaring problem considering each department is heavily involved in some aspect of gcievance admuristration. The primary vehicle for communication regarding grievance administration Uetween the collective bazgaining units and the City is the contract. Beyond the contract, little information is shazed. One exception may be communication between the Police and Fire Departments and the bazgaining units. They appeaz to have good levels of communication between the unions and their respective departmems related to grievances and other aspects of the contract. Recommendation #63: Leaders in the grievance administration process should develop a set of principles to guide decisions made about grievance processing. 1999 Saint Paul Ciry Council Research �z Perfocmance Recommendation #64: Collective bargaining units and depm�tment Pwl's Labor RelaROns Ac4vifies continue communication practices where currently efJ'ective, and other departments should begin the same panern of on-going communicarion between the parties to discuss issues of mutual interest. TRAINlNG & DEVELOPMENT Summary Rating: � KEY TRAINING & DEVELOPMENT CONCEPTS: � Job Design o Recognition gi i y, ough emp oyee s development shonld not be limiYed to one specific area, but should involve the variety of activities the organizaYion is involved in or the process requires. Work assignments and training and development should allow the employ� to contribute as effectively as possible to the or nj� tion, meet performance objecrives, and allow the employee to adapt to changes in the organization. Training and development is central to creating a high perfonnance workplace. Work assignments should be ali ed cvith ab'lit th 1 Idll Job Design Though the grievance process is fairly rigid, members of collective bargaining units do have oppor[unities to contribute to the processes used through direct contact with union leaderslup, surveys, or voting to cazry forkh a grievance. As the grievance moves through the steps it becomes more removed from the grievant and supervisor, and they receive less and less information until eventually all they hear is the final decision, though they most likely do not hear the reasons for the decision. Recognition Few parties in the contract administrarion process cited formal examples of recognition, though most made mention of informal recognition, Union stewazds are informally recognized at meetings as gievances are reviewed. Office of Labor Relations leadership expresses appreciation to staff for their work. Education and Training A lack of training is a City-wide problem that pervades many departments, including those involved in contract admuustration. No meaningfiil grievance training eacists for City staff, particulazly for si�pervisors or managers who oversee unionized employees. One department head comxnented that "you need to lmow the system to get what you need." This matter was discussed more fully in the contract administraiion policy section of the report. The Office of Labor Relarions staff do not provide grievance administration training for other city staff. OLR staff have attended some training themselves, though it has been rather limited. The Office claims a lack of staff rime and budgetary conshaints as reasons for not attending or providing training. The collective bazgaining units do provide some haining for union stewazds related to contract administrarion, though it is very limited. /999 Saint Paul City Council Reseorch Performance Audit of the City of Saint Paul's I.abor Relations Activities Employee Well-Being 83 �� A positive aspect of training and development found through interviews was a relativety good level of participant well-being and satisfaction. Many union members stated they Feet the grievance process is well structured and fair to all participants. However, ihey also feel the process takes too long and the City purposely delays responses. Recommendation #65: Make training a prioriry for Labor Relations sfaff involved in administering co�tracts and handling grievances. One way to emphasize training may be to make it part of annual review process. The OLR should not use Zack of time and staff as an excuse, as a lack of training makes staffeven Iess productive as they fail to develop their skills. It may well be worth the time to provide training if it improves the process and functions of the Office. Recommendalion #66.� The �ce of La6or Relations should develop contract administration training programs for department heads and supervisors. Such an effort may reduce the number ofgrievances and enhance understanding ofthe contracts. A component of this plan should specifzcally address the prevention of grievances. See also Recommendation #67, page 84 on grievance information collection and analysis. INFORMATION AND ANALYSIS Summary Rating: �s� Collection of Data KEY INFORMATION 8. ANALYSIS CONCEPTS: � Collection of Data � Use of Data � Malysis of Data o Comparison with Others The City departments most closely involved in gievance administration actively collect some data to assist them in their operations. The Office of Labor Relations has developed a grievance tracking system that allows them to enter the grievanYs name, deparhnent, date, subject, status, and the manner in which the grievance was resolved. The Office of Labor Relations �pects the data to assist them in determining length oFrime for grievance resolution and tracking grievance outcomes. However, while the data is being collected, it is not yet being utilized for in-depth or extensive evaluation of the process. The collective bazgaining units maintain varying amounts of grievance information, usually depending on the number of inember grievances and the size of the organization. However, all collective bazgaining units collect more information for negotiations than for grievance administration. Use of Data While it is certainly important to collect data, it is even more vital to accurately analyze and disseminate the information. The data that is collected by the City is available only to a small group of people in City. Others throughout the City may theoretically have access to I999 S¢inf Paul Ciry Council Researck 84 PerFormance Audit of the C ity of Saint PaW's Ia bor Rel Activit it, but are not aware of it. In general, the data is used for specific grievances, but not necessarity for ptanning and improvement of the grievance process, Consequendy, the data is not being used to evaluate the process, though the Office of Labor Relations is taking the first steps to do so. Cj Cj_ 8' ( � Analysis of Data Another vital aspect of data collection and analysis is the information systems used for tabulation and analysis. The City's informarion systems are adequate and have improved in recent years, but very few people understand the systems and how to use them. Rapid changes in the softwaze used have caused confusion for staff. In addition, the departmenu' information systems ate not integrated. It is difficult for one deparunent to obtain information from another departmenYs system. The current reliance by City departments on an antiquated system that only a select group of people understand is dangerous. If problems arise and the few people with the la�owledge are not available, Yhe City may find itself unable to perform necessary functions. Most collective bazgaining units use information systems on a very limited basis for grievance administration. Comparison with Others The City compazes arbitration information with other jurisdictions through the Bureau of Mediation Services, tfie Minnesota Police and Peace Officecs Association, and through negotiators' mundtables. The collective bazgaining units do similaz comparisons. Information on grievances that do not advance to azbitration is generally not compared. Recommendation #67: The O,/fice of Labor Relations har taken a great step toward improving the grievance process by tracking grievances. The Oj�ce ofLabor Relatiorrs should now determine ifgrievances me taking longer than they should through comp�isons and corrversations with other jurisdictioru. The Office should also look for industry standards and develop perf'ormance indicators accordingly. They should also further incorporate interpretation and evaluation into the data collection process. Recommendation #68: The City should continue to erplore infor�nntion systems upgrades and reduce reliance on institutional knowledge. Recognize danger of central "uing knowledge in one or two people, and have more widespread training on systems. PROCESSES FOR (MPROVEMENT Summary Rating: �s�s KEY PROCESSES FOR IMPROVEMENT CONCEPTS � Impmving Services � Improving Support Services � Improving Supplier Services Processes for improvement encompass methods for efficiency and effectiveness such as process design, a prevention orientarion, a linkage to suppliers and partners, cycle rime, and evaluation and continuous improvement. Impmvement practices e�mines how processes are designed, managed, and improved. 1999 Snint Pau! C+ry Counci[ Research Performance Audit of tLe City of Saint Paut's Iabor RelaSons Activities Improving Services 85�� The Office of Labor Relazions is taking a pro-active role towazd improving its contract admuristration process through development of the grievance tracking system. The Office has also begun to work with departments to resolve grievances before Step III, when City policy mandates they become involved See figure on page 71. If the grievance is complicated or has widespread implications, the OLR may work with departments to resolve the grievance at Step III to ensure consistent and fair outcomes. Some confusion regazding ttus practice was expressed by departments. Some felt the Office of Labor Relations was escalating the grievances to Step III simply because the Office was not interested in resolving the grievances at Step I or Step II and would rather control the grievance rather than allowing the individual departments to resolve them. However, the OLR is not informed of grievances until they aze at Step III unless they aze requested to assist the department. Therefore, these concems appeaz to be, for the most part, unfounded. Improving Support Services Evaluation of the grievance adminisuation process is a key component of improvement practices that is missing &om the activities of most City offices involved in the process, as well as the collective bazgaining units. Work assignments are rarely reviewed as roles aze fairly well defined and iarely change. Some admuustrative practices are reviewed, such as the grievance tracking system within the Office of Labor Relarions. Some collecrive bazgaining units have examined their method for disseminating information regarding grievances, and others have revised their grievance forms. However, overall administrative practices are rarely reviewed. Improving Supplier Services Participants in the process rarely receive formal perFormance reviews of their work related to grievance administration. Collective bazgaining units rarely review the performance of union stewazds or othecs involved in a grievance. For City staff, if their work is reviewed, it is a small component of an overall review. One interviewee suggested evaluating how management and supervisors handle their contract administration duties. Recommendation #69: Conduct more evaluations ofgrievance administration participants, even if they are informal evaluations, to identify areas for improvement and development. Recommendation #70: The grievance tracking system developed by the Office of Labor Relations is very useful and should continue to be refined and evaluated. Human Resources should also consider using a similar system, and share the information with the Office of the City Attorney, Office of Financial Services, and Risk Management. /999 Saixt Paal City Counci! Research 86 Pecfoim�ce Audit ofihe City of Saint PauPs Labor Relalions Activities CUSTOMER FOCUS q Summary Rating: ��`r Customer ldentification and Knowledge KEY CUSTOMER FOCUS CONCEPTS: � Customer ldenrification � Customer Knowledge � Customer Relations As in the contract negotiation process discussion, different parties in the grievance process idendfied different customers. Some parties cited depaRment heads as the primary customer, others cited union members, while still others identified cirizens as the primary customer. With all of these different customers, it is difficuk to meet the needs of everyone, and competing interests may impede the grievance administiation process. It is also conceivable that the lack of a uniform definition of the customer by the CiTy could be related to the timeliness issue, discussed in previous sections. While there are many competing customer plulosophies, there is no evaluation of customer needs or satisfaction on the part of the City. The collective bazgaining units have a faz better undeistanding of their customer, the union members. While they have an easily idenrifiable customer, they do very little formal evaluarion of their customers' sarisfaction or needs related to contract administration. Customer RelaHons The majority of customer service standards for all the parties appear to be behavioial and informal as menrioned in the conUact negotiation section. An example is the informal ptofessional ethic the Office of Labor Relarions follows. The majority of collective bazgaining units also have informal guidelines, with the eacception of Police and Fire, which both appear to have more defined guidelines. C�stomer relations appear to be at an acceptable level, although they could be improved through the establishment of some formal guidelines to educate and guide process participants. See Recommendation #16, page 24 on Office of Labor Relations Customer Service Guidelines. See Recommendation #72, page 87 on survey use arrd customer satisfaction. RESULTS Summary Rating: � Customer Sathsfaction KEY RESULTS CONCEPTS: � Customer Sarisfaction � Financiai Outcomes � Supplier Performance � Organization Outcomes The Office of Office of Labor Relations, Risk Management, and the Office of Financial Services do not do any formal evaluations of customer sa6sfaction related to grievance administration. Overall, the communication systems between the departments are poor, and even informal evaluations do not seem to be present. Intemally, no feedback mechanism 1999 Sairrt Pau1 Ciry Council Resrmch Perfomi�ce Audit of the City of Saint Paul's Iabor Relations Activities g7 �� y� � l� eacists for each department to evaluate the services it receives from the others on a holistic or individual level. The collective bazgaining units also fail to measure the level of customer satisfaction with the results of the grievance process, though informally they may receive feedback from particulaz grievants or other participants in a grievance process. N�nancial Outcomes Measurement of financial results is a larger part of the contract negotiation process than it is in the grievance admuustration process. Settlements involving lazge amounts of money would most likely be decided at Step N of the grievance process, at which point both sides must comply with the decision of the azbitrator, regazdless of the amount of money, unless the decision is appealed to court. Both the City and the wllective bazgaining units will compaze the azbitration outcome with other jurisdictions and unions through the Bureau of Mediation Setvices. Employee Performance and Well-Being Employee performance and well-being is evaluated for some ttuough formal annual reviews. However, there are employee participants who do not receive annual reviews and, therefore, their performance related to grievance administration is not reviewed. The collective bazgaining units may informally review the perFormance of grievance participants, but again no formal feedback is provided. Organizational Outcomes City departments use varying methods to measure their organizational and process outcomes. The Office of Labor Relations has begun to measure the results of the grievance process through the grievance tracking system, though staff seem uncleaz of the result they aze trying to obtain, and what they are trying to measure. One person has cited reducing the length of time of the grievance as a goal, while another stated the goal is to avoid azbitaation. While individual departments may claim to evaluate their work through these methods, there is no overall evaluation of the whole process. This lack of evaluation is pervasive and a true hindrance to any improvement practices that may be taking place on either side. Recommendation #71: Each department irrvolved in the grievance administration process and the collective bargaining units should establish benchmarkr related to their goals and vision, and use the benchmarks to measure results. Recommendation #72: The collective bargaining units, the Office of Labor Relations, and the Office of Human Resources should survey those who have participated in the grievance process to determine the level of satisfaction with the process and to solicit ideas for improvements. 1999 Saint PauT Ciry Council Resemch 88 PerFormance Audit of the City of Saint Paul's Labo Relarions Acb'vifia 9'9-8�a PERFORMANCE INDICATORS Performance indicators, also referred to as performance measures, provide an organi7ation with a means to gauge how well it is aclueving its goals. In the case of government argani�arions, they give information to both the organization—so it can improve itself; and to elected officials and citizens—so they can imderstand how to best invest public monies. Developing performance indicators begins with identifying what pieces of information indicate the organization's effectiveness, efficiency and quality. Some guidelines for the development of ineaningfiil performance indicators aze provided below: Performance Indicators Shou[d Be: ❑ Quantifiable, readily available, easy to calculate, "trackable" over time and show the direction of pmgress ❑ Sh�ongly connected to the mission of the organization ❑ Intrinsically meaningful and understood throughout the organization ❑ Focused on outcomes and products, rather than processes when possible Eramples of Performance Measu�es: ❑ Customer and employee satisfaction ❑ Volume of outputs as work units or products ❑ Productivity and efficiency: time and cost per unit of product ❑ Errois, mistakes, complaints, waste, retum rates or polludon O Quality ❑ Timeliness ❑ Impact: changes resulting from activity The following discussion provides suggested perfomiance indicators related to the three azeas addressed in this report: the Office of Labor Relations, the contract negotiation process and the grievance administration process. In some cases the performance indicators address problem azeas wluch have been identified, such as timeliness. In other cases, they are intended to be broad measures of success. Notably, what follows is not intended be an eichaustive list, but rather provides what we believe wauld be good measures for some aspects of the work. Some of the data needed for these measures is already collected, and in a few cases, measures are akeady being made. However, it is important to note that even though there aze some current measures, it is very difT"icult to draw conclusions because there is no basis for comparison. Comparisons aze best when they are made using similaz data from similar organizations, or if they compaze the same organization over time—Yhus the notion of tracking informarion over time. Comparing the City of Saint Paul's performance in these azeas over time is likely to yield somewhat more meaningfiil results because of the idiosyncraxic nature of these processes. Therefore, it is recommended that the following measures be tracked at periodic intervals for comparisons. 1999 Saint Paul Ciry Cwurcil Reseorch Perfocmance Audit of the Ciry of Saint Pwl's Iabor Relations AcGviUes 89 �� Performance Indicators for the Office of Labor Relations �� 1) Measure the timeliness of the Office of Labor Relations in the contrnct negotiation process tluough the number of weeks from when initial notice to negotiate is submitted to the Office of Labor Relations and the inirial meering of the City and collective bazgaining unit. 2) Measure on a biannual basis whether Office of Labor Relations employees find their work environment positive and compaze these responses over time. Quesrions to staff could address issues such as intra-office communication, leader's responsiveness to the needs of employees and the general work environment. Performance Indicators for the Contract Negotiation Process 1) Measure the timeliness of the contract negoriation process through a) percent of contracts completed prior to expiration; and b) number of weeks between expiration and approval of new contract for each bazgaining unit. 2) Both bazgaining units and the City should measure the estimated total cost for contract negotiation activities. These should be calculated by contract, and also by employee or bazgaining unit member. Bargaining units would then have an indication of negotiation cost per member, and the City would have negotiation cost by employee and negotiation cost by employee and bazgaining unit. 3) Measure the percent of contracts settled without intervenrion of inediator or azbitrator. 4) Deternvne the number of rimes each yeaz key participants in the contract negotiation process update the City Council on the status of contract negoHations. 5) Determine the number of times each year that the values of trust, respect, honesty and fairness aze violated by each party through the use of an annual survey of contract negotiation process participants. 6) The Office of Financial Services and Risk Management should measure the number of days between contract ratification by the bazgaining unit and Council and the actual date of conhact implementation. Performance Indicators for the Grievance Process 1) Both the Office of Labor Relations and the collective bazgaining units wuld measure the percentage of grievances resolved at Step III. This performance indicator should delineate between collective bazgaining units and type of grievance. Use data to determine if a particulaz type of grievance takes longer to resolve, and what factors may contribute to the longer length of time for resolution. 2) Measure the number of weeks it takes to resolve grievances at each step. 3) Determine the level of grievanu' and department staff' satisfaction with the process and assistance they received through survey distributed following grievance resolution. 7999 Saint Paul Ciry Council Resemch 90 Pedormance Audit of the Ciry of Sairt Paul's Labor Retazions ActiviUes I � � , i CONCLUSION The City's labor relations' adivities aze important far beyond the number of staff involved or the money directly spent on these activities. Labor relations activiries affect the City's relationship with more than 3,000 City employees. The terms and condi6ons negotiated in contracts fundamentally affect the work lives of the City's employees who serve the residents and businesses in the Ciry of Saint Paul. It is, therefore, imperative that the City and its bazgaining units follow the best practices and operate with the highest integrity. Council Research staff were impressed by ihe competency and high eihical standards of the staff and bazgaining unit representatives interviewed. Almost all collective bazgaining pazticipants believe that they get what they need and, sometimes, what they want through the process. The negotiarion process participants felt overwhelmingly that rules and policies were adhered to the vast majority of the rime. Similaz views were held by those responsible for unplementing contracts and processing grievances. However, some critical deficiencies were noted in the process of conducting tlus performance audit. In addressing these deficiencies, both the City and its collective bargaining units will develop a stronger relationship and better negotiated agreements and grievance resolutions. Timeliness The lack of timeliness of negoriations and grievance settlement was a theme repeated throughout the performance audit process. There was a slrong feeling expressed among the bargaining units that both processes took an inordinately long time. It is currenUy almost impossible to assess if either the grievance process or the negotiation process take longer than they should because there are currenUy no standards against which Saint Paul's perFormance can be compared. It should be emphasized that it is not known if Saint Paul's "timeliness" in these azeas is better or worse than should be expected. However, the fact that many participants aze dismayed by the length of time involved indicates improvements should be made. Tfie City has only recently begun tracking grievances in a database that allows the relevant information to be analyzed. This system will in the futwe help the City to determine and measure its perfocmance in resolving grievances efficienUy and effectively. Professional literature and the experience of other cities offers little guidance in this azea, so improving performance by comparing past to present performance offers the most hope. Contract negotiation has not, and should not, be measured only by the time it takes to conclude contracts. However, lmowing ihe time and effort �pended on individual negotiation and cont�act unplementation activities will assist both the City and bazgaining �ini in planning future negotiations. Moreover, it is lmown that concluding negotiations in a timely manner allows for the more efficient implementation of contract for ttte City's payroll and benefits activities. Finally, timely negoriations gives employees more immediate use of theu money and the interest it can accrue. Sta�ng The slowness of grievance resolution and contract negoriarion was often discussed in terms of the inadequate staffing of the Office of Labor Relafions. The OLR has experienced a high l999SaintPaul CfryCounciJResearch PerFocmance Audit of the CiTy of Stint Paul's Labor Relations Activities 9� �'7� Q U �q- t� level of staff tumover in recent years, and has roufinely operated with at least one vacancy in its five-person staff. Therefore, it is very difficult to assess whether the current level of staff in the OLR is sufficient. This being said, the office's staffing has resulted in two cleaz situations. First, OLR staff report they operate in a very high stress environment, largely due to under-staffing. Second, the office has depended on the use of outside consultants to conduct negotiations with a number of collective bazgaining units. Training and professional development opportunities have been very limited for all City staff involved in labor relations activities. The problem is most acute in the Office of Labor Relations where such opportunities will likely improve the efficiency and skill level of staff, thus mitigating the under-staffing issue. Intemal training of supervisors on the grievance process has been noticeably missing for a number of years, although it continues to be listed as a budget prioriry. This type of training of front line supervisors may well provide an immediate return for the Office of Labor Relations and the City Attomey in terms of decreased time involved in correcting inadvertent mistakes. Informallon, Analysis and Evaluallon Both the bargaining units and the CiTy should be given credit for comparing the results of their collecting bargaining agreements with others. Unions which are affiliated on a state, national or international level routinely shaze information. Unions which aze not affiliated also seek out information on comparable bazgaining units. The City periodically compazes its results to other similaz jurisdictions. These information tracking and comparison activities aze especially laudable given the poor information systems historically used by the City and bazgaining units. All of these activities help to ensure the best quality negotiated agreements. Despite these admirable efforts, at this time no one knows how much it costs the City or bazgaining units in money and time to conduct negotiations, implement wntracts or resolve grievances. It is not lmown whether the City and its bazgaining units perform these functions well or poorly in comparison to others. It is Imown that there is significant variance in these measures across bazgaining units--or in the case of grievances, across individual cases. Despite these differences, insights could be gained by gathering and examining information more cazefully. Given the importance of the negotiation and gievance resolution processes, as well as the time, energy and hopes invested in them, performance indicators must be developed forthese areas. Communicallon There is a very high level of understanding of labor relations policy among the individual participants in the contract negotiation and grievance processes. However, this has not trartslated into a high level of communication among City staff responsible for negotiaring and administering collective bargaining agreements. Two critical communication City staff "disconnects were identified in the performance audit process. First, there is inadequate planning preparatory to negotiations. What pluming dces take place, does not involve a sufficiently broad array of stakeholders. Advice, insight and identification of key issues for upwming negotiations can be gained by implementing a more participatory planning process. Second, there is inadequate communication during and after negoriations with affected stakeholders. For example, periodic updates of the City Council on these activities has been lazgely absent. 1999 Saira Paul Ciry CouncU Research 92 Paut's La6or Relanons Activilies The Office of Labor Relations has made strides towazd systematizing many of�the City's labor relations activities in recent years. However, the City of Saint Paul government is made up of departments which have tradirionally been semi-autonomous. The City's Code and state statutes aze cleaz that responsibility for negoriating contracts and settling gievances aze vested in the City's designated representative, the Office of Labor Relations. To maintain a coherent and fair approach to these critical areas, this office must continue to take the lead in planning and communication. However, a balance of central organization of the City's labor relations function and its departments' independence must be struck, so that input is gathered and information shared. T'he labor relations activities of the City of Saint Paul will likely gow in importance in coming years. The City will continue to have a significant unfunded liability for future retiree health insurance. At the same time, the City and its collective bazgaining units will face a low regional unemployment rate and competition for qualified employees. And, as elsewhere in the counhy, there will be a demand for greater wages and also increased costs for health caze benefits. It is essential that the City make its labor relations activities, and their improvement, a priority. 1999 Saint Pau! City Covncil Research Perfoim�ce Audit of t6e City of Saint Paul's [abor RelaGOUS Activities 93 � APPENDIX A: �� List of Interviews Conducted Mos[ City interview subjects were selected because they have a specific integral role in the contract negotiaYion and administration process. Representarives from all of the City's labor unions were invited to pazricipate. Please note that names of interview participanu were not consistently collected, and therefore listings aze incomplete. Council Research is very grateful ta the fo[lowing individuals and organi7/�tions who shared their time and coruiderable expertise in this perfnrmance audit process It shauld be noted that participation in inlerviews fnr this performaeue audit does not mean an endarsement oJthe statemertts contained in this report Citv Interview Subiects Office of Labor RelaHous Mary Keazney, Director Jason Schmidt Steve Sonnabend Julie Kraus Office of Financial Services Joe Reid, Director Terry Haltiner Teddi Hayes OfSce of Human Resources John Hamiltoq D'uector Risk Mauagement Miriam Monasch Ron Guilfoile Office af CYty Attorney John McCormick Pub6c Works Departmeut Tom Eggum, Director Bob Hoaisberger Library Services Carole Williams, Director Fran Galt Linda Wilcox Police Department William Fiuney, Chief Fire and Safety Services Department Tim Fulier, Chief Collective Barqaininq Unit Interview Subiects Trades Group Lazry Bennet - Operative Plasterers and Cement Masons Local 633 Bemie Carey - Elevators Consuuctors, Loca19 Robert Swhwartzbauer, United Association Plumbeis and Gas Fitters Local No. 34 Jim Wagney Electrical Workers, Local ll0 Dick Vitelli, Electrical Workers, Loca( 110 Jim Kelzenberg, Spcinkler Fitters, Locat 417 Jerry Bazaes, Pipefitters I.ocal 455 Cazpenters and Pipefitters PoGce Federation Brad Jacobsen Butch Swintek American Federafion of State, County and Muoicipal Employees District #14 Local 2508 (Clerical) aod Loca11842 (Technical) Mary Schillinger Michael Windey Necia Holerud Bob Steiner Patrick Ryan L.ouise Langberg Linda Cobb Vicki Skupas A. John Klemanski Bazb Beuson Dave Nelmazk Cluis Rider Corrine Glassing Robin Madsea W iltiam Flansen Jecry Serfling Professioual Employees Associallon aud Steve Roy Mike Wilde Classified Confideufial Employee Associarion Eric Willems Saint Paul Supervisory Organization Roger Mohror Manual aud Maintenance Supemsors Associatiou Ron Rollins /999 Saint Paul City CouncJ Research 94 PerFomi�ce Audit of the City of Saint PaW's Labor Relations Activities APPENDIX B: g g � ° � Malcolm Baidridge Quality Assessment Questions OFFICE OF LABOR RELATIONS Strategic P[anning ]. How often dces the Labor Relations Office make short-teim (1-2 years) plaos? 2. Aow often aze short-term plans updated? 3. How often does the Labor Relations Office make long-term (3 years or more) plans7 4. How oRen are long-term plans updated? 5. Aow many stakeholders aze pazticipants in Labor Relations �ce planning processes? 6. How often are plans implemented? 7. Who monitors the implementation of plans? 8. Aow often is the Labor Relations �ce evaluated? 9. How many participants in the process are aware of the resulu of these evaluarions? 10. How oRea are plans changed based on the results of the evaluatioes? Leadership 11. How often dces the Labor Relatious Director convey a cleaz vision for ihe fut�e of the Labor Relations Office? 12. How oRen does the Mayor's Office convey a clear vision for [he fuhue of the Labor Retations Office? vision for tae fui�e of the Labor Retations OEfice? 14. How often does the Labor Relations Director recognize staffcontributions? I5. Does the Labor Relations Director mainiain a work eavironment fl�at is supportive of employees regatQless of race, color, class, geader, age, Qarional origin, seaval orientation or physical abilit}f? 16. Does The Labor Relations Director support participation in professional organizaaons? Training and Develapment 17. Is there an oppommity for staff to contribuce to the decisions made abou[ the opentions and procedures in the Labor Relations Office? 18. Dces the Labor Relations Office create opportunities for employees to conaibute meaningfully to the or° ^izations goals? 19. How often does the Labor Relations Office make use of education and training to improve pedormance? 20. Is the Labor Relations Office work environment conducive to the well-being and growth of all stafP? lnformation andArtalysis 21. For how many of the Labor Relations Office activities is data collected? 22. How often is the collected data used to assist in Labor Retations Office activities? 23. How often is the collected data used for evaluaiion of Labor Relatiovs Office activities? 24. How ofren aze employees of the Labor Relaiions Office evaluated? 25. Do computerized information systems meet the needs of the Labor Relations Office? /mp�ovement Practices 26. How often are work practices changed to improve perFoimance? 27. How oRen aze methods for evaluatieg employees reviewed for improvement? 28. How often aze methods for dete:mining work assignmeats reviewed for improvement? 29. How often are administrative practices (such as fo:ms and reporting procedures) reviewed for impmvement? 30. How ofien is the neribrmance of venAOrs (,orovideis of goods and contrected services) evaluated for improvement? 31. How oRen aze methods for the evaluation of the Labor Relations Office impmved? Custarae' Focus 32. Wluch of the following do you consider to be your customeis? 33. Does the Labor Relations Office have customer service standards or guidelines goveming their contract administration? (i.e.: Code of e@ucs; communication standards; behavior at negotiation table; public informaaon standazds.) 34. How oftea do staff follow established customer service standards or guidelines? 35. How often do staff moaitor for chaages in cusTOmer needs? 36. How often do staff monitor for changes in customer satisfaction? /999 Soint ParJ Ciry CowcARuearch PerFo'mance Audit of the CiTy of Saint Paul's Iabor Relations Activities 37. How responsive is the Labor Relations Office to changes in customers' needs? 38. How well does Labor Relarions Office respond to changes in customer SatisfaCtion? Resu(a (Outcomes) 39. How often dces the L,abor Relations Office measure results? CONTRACT NEGOTIATION Strategrc Plannirsg 1. How often aze short term plans made to impmve the contract negotiation pmcess? 2. How often are short term plans updated? 3. How oRen are long teim plans made to improve the contract negotiation process? 4. Aow often aze long tecm plaas updated? 5. How many participants in the contract negotiation process aze involved in planning? 6. How often are plans implemented? 7. Who monitors the implementation of ptans? 8. How often is the conhact negotiation process evaluated? 9. How many participants in the process aze awaze of the resuits of these evaluations? 10. I-Iow often aze plans changed based on ffie results of the evaluations? Leadership !n the category of leadership, "leaders" or "leadership" is understood as: (1) Oj}?ce of Lnbor Relalions personnel; (2) Elected Represerstatives of the vnions or collective bargaining units; (3) Business Agents of the collective bargaining units. 11. How often do leaders in the conhact negotiation process convey a cleaz vision for the future? 12. How often do leaders in the comract negotia6on process recognize contributions of participants in the process? 13. How often does the race, color, class, gender, age, narional origin, sexual orientatioq or physical ability of the participants affect the contract negotiarion process? 14. How often is information about the contract negotiation process conveyed to all participanu? 9 40. How often does the Iabor Relations Office compaze its resulu to those of similaz organiiations? 47. How often dces the Labor Relations Office measure its customecs' satisfaction? 42. How often does the Labor Relations Office compare its customer satisfaction results to those of similaz or ,� ni�ati 43. How often dces the Labor Relations Office achieve its desired goals? a�� 15. How oRen aze participants in [he contract negotiation process informed of staff changes? Trainirtg and Development 16. How often do participants in the coutract negotiation process have opportunities [o contribute to the decisions made about the procedures to be used during the contract negotiation process? 17. How many par[icipants ia the contract negotiation process 6ave oppor[unities to contribute meaningfvlly to the pmcess? 18. For 6ow many of the pazticipants is the contract negofiation process a positive experieuce? 19. How oftea do participants in the contract negotiation process make use of contiuuing education and training [o improve their skills? 20. How often do pazticipants in the comract negotiation process update their skills though participazion in professional organizations? Injormation andAna/ysis 21. For how many of the contract negotiation activities is data collec[ed? 22. How ofteu is the collected data used to usist in the contract negotiation process? 23. How ofteu is the collected data used for evatuation of the coatract negoriatinn process? 24. How many participanu in the conuact negotiation process have access to the collected data? 25. Do computerized iuforma[iou systems meet the needs of the participants in the contract negotiation process? Improvement PraMrces 26. How often do contract negotiation pazticipants change their practices to improve performance during the process? 2Z How often aze methods for determining work 1999 Saint Paul City Council Research � PerFo�mance Audit of ihe City of Saint Paul's I.abor Relarions Activities assignments diaing the process reviewed for improvement? 28. How often aze administrative practices (such as fotms, reporting and commimication procedures) reviewed for improvement? 29. How often is Le gerfqrm�n�Q �f.�anf�;�a�r� ;� rhr contract aegotiation prceess evaluated? 30. How often are methods for evaluation reviewed and npdated? Customer Focus 31. Which of the following do you consider to be your customers? razdc and file union; membeis; mayor, ciTy council; deparlment heads; citizens; other. 32. How well do participants in the process mderstand customers' needs and e�ectations? 33. How often do pacticipants in the process monitor customer needs for cLanges? 34. How responsive is the contract negotiation process to changes in customers' needs? 35. Do pazticipanis in the process have customer service standazds or guidelines goveming their contract negotiation? (i.e.: Code of eUrics; commimication standazds; behavior at negotiation table; public information standards.) CONTRACT ADMINISTRATION S6ategic Planning I. How often are short ierm glans m,ade to ionpro�e thQ contrac[ administrarion process? 2. How often are short texm plans npdated? 3. How often aze long texm plaos made to improve the contract administration process? 4. How often are long term pkans updated? 5. How many participants in the contract adminishation process are involved in planning? 6. How often are plaos implemented? 7. Who monitors the implementation of plans? 8. How often is the contract administration process evaluated? 9. How many participants in the process aze aware of the results of these evaluations? 10. How often are plans changed based on the resulu of the evalualions? � v-�3�v 36. How often do participants in ffie cont[ac[ neg process follow established customer service standards or guidelines? 37. Aow well do participants in the contract negotiation process respond to changes in customer satisfaction? ResuUs (Outcomes) 38. How often do participants in the conhact negotiation process measure results? 39. How often do the participants in the contract negotiation processes compare their results to those involved in similaz activiries? 4D. How often do the participants in the process measure their customers' satisfacaon? 41. How often do the pazticipanu in the process compare their customer satisfac[ion results to those involved in similar processes? 42. Aow oflen do participants in the contract negoliation process achieve their des'ued goals? Leadeiship `- °" - --� °--- -.'°=°°' ,- ,., , .. ... . . . � ----- -- -------' .:.:. ��... J • ..............�. •..:�:..:.... ... .:.'�:.�..::::�. is understood as: (IJ High Ieve7 management, (2J O,Qice oJLabor Relarions persormel; (3) Ciry Attorney; (4) President ojthe respective urrion or collective bmgairsing tatiY (5) Elected Representatives of the collective bargaining anit, (6) Bvsiness Agents ojthe edlective bargaining unit. I 1. How often do leadeis in the contract administration process coavey a cleaz vision for the fu[ure? 12. How often do leadeis in the process recognize contributions of participanu in the process? 13. How often does the nce, co(or, class, gender, age, national origin, sexual orieatalioa, or physical ability of the participants afFect the contract administration process? 14. Aow often is informarion about the contract administration processes conveyed to all participants? 15. How often aze participants in the process informed of staffchanges? 1999 Sairst Paul Ciry CouncJ Research Performance Audit of iLe Ciry of Saint Paul's Labor Relations Acfivities 97 �, y� � �; Training and Develapment Customer Focus 16. How often do participanu in the contract administration process have opportunities to contribute to the decisions made about the procedures to be used duriag ihe con�act administration process? 17. How many participants in the coatract a[lminishation process have oppommities to contribute meaningfully to the resolution of a grievance? 18. For how many of the participants is the contract administration process a posirive eaperience? 19. How often do participants in the contract administration process make use of continuing education and training to improve their skills? 20. How often do participanu in the contraa administration process update their skills though participation in professional or° ";zations? Information and Analysis 31. Which of the following do you consider to be your customexs? rank and file imion members; mayor; city council; depaztment heads; citizens; other. 32. How well do participanis in the process understand customers' needs and e�cpectations? 33. How often do participants in the process monitor customer needs for changes? 34. How responsive is the contract administrarion process to changes in customers' needs? 35. Do participants in the process have customer service s[andazds or guidelines goveming their contract administra[ion? (i.e.: Code of ethics; covununication standazds; behavior at negotiation table; public infoimation standards.) 36. How often do participants in the process follow established customer service standazds or guidelines? 37. How well do participants in the process respond to changes in customer satisfaction? 21. For how many of the contract administration activities is data co(lected? 22. How oftea is the collected data used to assist in the contract administration pmcess? 23. How often is the colleaed data used for evaluauon of the contract administration process? 24. How many participants in the contract administration process have access to the colleaed data? 25. Do computerized infocmation systems meet the needs of the participanu in the contract admiuistratiou process? Improvement PraMices 26. Aow often do contract administration participants change their practices to improve performauce during ffie process? 27. How ofteu are methods for determining work assignments during the process reviewed for improvement? 28. How oftea aze administrative practices (such as forms, reporting and commuuicatiou procedures) � reviewed for improvement? 29. How often is the performance of participants in the contract administration pmcess evaluated? 30. How ofteu aze methods for evaluation of the coatract administration process reviewed and updated? Resula (Outcomes) 38. How often do pazticipants in the contract adwinistration process measure results? 39. How often do the participants in the process compaze iheir resulu to ffiose involved in similaz activities? 40. How often do the participants in the process measure their customers' satisfaction? 41. How often do the participants in the process compare their customer satisfac[ion results to those involved in similaz processes? 42. How often do participants ia the contract administration process achieve their desired goals? 1999 Saint PauT Crry Cowcil Research 9S Performance Audit of ihe CLLy of Samt Pmil's Iabor Rela6ons Activi6a APPENDIX C: �� Ten-Year History of Collective Bargaining Agreement Conclusion Collective Bargaiuing Units Contracf Duration Resolution" Lag'IYme"' Time Period # Yesrs Ratifying Con. (Months) T�f�cl.-Iati�as,�.bca1132;=_-= q�36l84-= ° -`�� - --TI24l86:_= �- _ _ - - 3 - _-, ._ - - �_-` - = _ - � - - _— - .- - � &OperatmgEug�neers,LocaF47 �fk/$4 413U/9�_ �- - _� . -- =6(fM89-_ J _.. = .,.fy4 - _ - � ��. __� .._ _ �. = •- -- - "--- - - 6EC�er atDnve's, - :t,ocal-� � = _ . � . �- � _ }Fl10/92 =-._ -_ - - 6 " -- " —: -- - -,_— � _ �= . �-= � z_ -_ _--- — -�-:= .. s�sxi.--x��nm�z— _. �- =�_'�ic.x.o -= ' -_`: c8 �-'-.. _;:` Operating Engineers, I.ocal 70 1988 - 1959 1990 -1992 1993 - 1994 7/1/94 - 6/30/96 1997 -1998 t999 _ 2fNN1 2 6/16/88 5 %: 3 9/27/90 9 2 11/9/93 10 2 6/28/95 12 2 10/7/98 9 2 4/14/99 3 %: �-= _--<=,?`6t11/87.`r=<- - _ . - .6-... � -_ 8i3/4� __ =��- -_`-'- � -_ �7145-. �` i&Yz -'_ _�:- %- . . =: €'smim ` - ` u + .c -- _ ' Fire Fighteis, I,oca121 Rv�fwaai�mal Fmnlnvwna .�i&4�.(fiu6.� iII�. �..c rw. uuycsrmus = ---.—_ f�F�8II171ttOE . _ _' - - ' Saint Paul Manual and Maintenance Supecvisms Assn. 1987 - 1989 1990 - 1991 1994 - 1996 1997 799R - 1999 3 2 3 1 4/28/88 7/24/90 Z/28/96 7/9/97 16 6 Yz 26 6 =- 3(#j9� . -_ _ — _uoen ,- _ , 2�f- . - IOAA _ IOAU � OM9/AA A�/. i/i19fi-itisii�ii i'/z 7i31i96 7 1992 - 1993 2 6/30/92 6� 1994 - 1996 3 5/21J96 28 Yz 1997 - 1998 2 10/15/97 9 Y: 1999 - 2000 2 6/2/99 6 � °1988 2984`=. _`_=g _- -=-_ffiFI/8$-. -. -_-- - _'f=`--_ ---_ t942 1443 z 8/4192 7 "I494 I996. = c --3 -. SfIll96 2&'h -` -iR1T 1948-. --=F ' ?IISl98 T�54--- - =' -„ . _- -, _.- - =rcort �mn - T � _ -_ - a _ ` . � dre�m � _ c r� == .- 1988 - 1989 1990 - 1992 1993 - 1994 1995 - 1996 1997 - 1998 2 M29/88 4 3 5/8/90 5 2 3/23/93 2 %: 2 6/10/96 5 2 8/1/97 7 7999 SabRPaul Ciry Co�mcil Research Performance Audit of the City of Saint Paul's Labor Rela4oas Aclivities Collective Bargaining Units Contract' Duration Resotution" T'�me Period # Years Ratifying Con. `Ssi� Paal FueSupetvisoiy = ��-`=- = -=- - - 198T - �1959 " "-` '-- >-:- 3 � _ - - 4/1?l88 tlssociation - - - - .' - - � � 1990 -1991 -- 2 7/19/90 AFSCME Clerical, Local 2508 I1CeI, LOCBF� Saint Paul Classified Confidential Employee Assn. Intemational Alliance of Theatrical Stage Employees Boilermakeis, Loca1647 - _- .-_ 199L -�--" I =- - .- . ;_ -1992 - F993 _ '� Z �- = - ` _ 3l23/93 -`._�_1994-�996 -° ;3 � -� ?��=- - . ., 1998 -1999 �- 2 .--� - - - `6/16/99 1988 - 1989 2 3/29/88 1990 - 1991 2 3/14/90 1992 - 1993 2 2/25/92 1994 I 1/25/95 1995 - 1996 2 9/13/95 1997 - 1998 2 7/9/97 7009 _ 200(1 2 6/2/99 � 1988 - 1989 1990 - 1991 ]992 1993 1994 - 1996 1997 - 1998 1990 - 1992 ! 993 -1995 1996 - 1998 i o00 _ rr ii>o - wav�awi 1986 - 1989 7/I/89 - 6/30/92 7/1/92 - 6/30/95 7/1/94 - 9/31/96 10/1/96 - 9/31/98 �aq $� Lag Time"' (Mo nths) _� ¢. 6 Y 1334 - 14 �4 . - ".7-�.;. _� _- =17Y � - 3 2 %: 2 13 8'/: 6 2'=_ ..: :='_ 3/29/88 3 ;_ ; _ =_s;,;. 2 - — 5129190 _ _ S_ , -_ 2, - 225l92 2 � _ "Il25l95 I3�'. � ;° .`4i13/95 -. $`h 2 `;. 7!4/97 d ; ��,'�" _ � : 6/2/gy � g'-; _�_� 2 11/22/SS 10 %: 2 6/14/90 5 y: I 8/4/92 7 1 1/26/94 13 3 9/25/96 33 2 3/18/98 14 %: 3 SltU/89 4: ,> _ x. 2 A/22/4� 3`�'!: � _ - ' =fftTl96 =- 3�4 ° - - : 1 � � _- =10(8f9Z - 4 2 .;- s 6+ 3 8/2/90 7 3 3/9/94 14 3 12/4/96 11 3- - =-: `., 6t12l9Q _ -.._ T3 Yz � _ ` _ .4f20193 -.;� _ 11-� `_' t __ `5/9/9't `� � �4- - 3 - -" "ooen � �- � - �IS+� - 3 10/23/86 9 %: 3 6/12/90 11 Y: 3 4/27/93 10 2'/. 11/22/95 16 Y: 2 7/9/9'7 11 fatpenters; M2IStatewide _ -: _� - -- � � --1986 - T988 ' -'_,.-°>-- 3� -_ � - -. _ . 7/17/86' -'- � � - - -- 5/1B9 - 4/30192 -- 3 5/31/90 - - - - . - - _ - c�vm_ennroc - -- - - a � inniroa 6 iS - 13 � 1999 Saint Paul Ciry Cwmci[ Research ioo Collective Bargsining Units Opetative Plastereis and Cemen[ Masons-Loca1633 Elevator Construdois, Lceal 9 Paintera, Loca161 Plumbecs, I,acal 34 Contract' Duradoo 1�me Period # Yesrs 6/1/89 - 5/30/92 6/1l42 - 5l3�/95 5/1/96 - 4/30/98 S/1 /9R _ 3 3 2 1988 1 6/1/89 - 5/31/90 2 6/1/90 - 5/31/91 1 ---_ _...- - -- - - - � - - ..... __ . O/i/YG-3/91/YS Z 6/1/94 - 5/31/97 3 n io� _ uani�nnn : 5/1/86 - 4/30/89 5/1/89 - 4/30/92 5/]/92 - 4/30/95 5/1/95 - M30/98 5/1 /9R _ 3 3 3 3 5/1/87 - 4/30/89 5/I/89 - 4/30/90 5/1/90 - 4/30/91 5/1/91 - 4/30/94 � 5/I/94 - 4/30/97 5/I/97 - 4/30/99 2 1 1 3 3 2 Paui's La6or Relafions ActiviCes Ratifyiug Con. Lag Time" (Months) 6/12/90 4l27/93 7/8/97 10/6/88 5/IS/90 R/21 /9f1 4/73/Y3 2/7/96 7/31/86 5/31/90 5/11/93 10/11/95 10/8/87 6/12/90 9/13/90 10/1/91 12/I/95 10/1/97 sn�c Mera� worke.�, �a� io 5/1/87 - 4/30/89 5/1/89 - 12/31/90 1/1/91 - 4/30/94 5/1/94 - 4/30/97 5/1l97 - 4/30/99 2 1 �/s 3'h 3 2 1/6/87 I/30/90 1/20/92 t/19/96 �P� 12 11 14 5+ 9 l l %: 2'/-_ i� 20 3 13 12 Y� 5 %z IS + 5 13 %z 4 Y: 5 19 5 -4 9 12 %z 20'/: 27 + ' Amendmenu to Contracts are noi included in tlris table, although in some limited cases the amendments may have acted to emend the contract. It was considered that this eactension was not equivalent to settling a contract for the time period in question, `� When resolutions were not in the Office of I,abor Relations files, the date the contract was signed is used ��` The "lag time" represents the time—in montUs—wLich elapsed between the e�cpirarion of the old coniract and the ratificarion of the new contracK. A"+" (plus sign) indicates that the contract applying to the date of the publication of this report is not yet settled. A"-" (minus sign) indicates the contract was completed prior to the previous contracts expiration. 1999 Saim Paul Ciry Coimcil Reseaich PerFolmance Audit of the CiTy of Saint Paul's Labor Relafions Activifies 101 � nQ.$� APPENDIX D: Summary of Interest Based Bargaining Interest based bazgaining (IBB) provides for a greater recognition of the interests of the opposite side, and the needs and values of the organization. IBB comes in many forms with different names, such as win-win bazgaining, mu4�a1 v inc principles, interest-based negotiation, best practices or integrative bazgaining, and interest-based problem solving. Wtrile each of these methods varies slighdy, the fimdamental goal is to reach an agreement that recognizes and satisfies the needs of each side. The process begins by identifying issues to be resolved and discussing the interests and concems behind the issue, and jointly generating a number of options to resoive the matter. 'I'his process often leads to the recognirion of mutual interests and goals, though the desired method of achieving the goal and resolving the issue may be different for each side. Two questions can be asked during the IBB process to enhance the level of undeistanding: •What aze ihe reasons for thai particulaz position? •What concem is addressed by that issue? Interest based baz inin is an attempt to reduce the conflict that occurs during the negotiation process, and quite often can enhance the working relationship between management and labor. Lines of communication may open up, and joint problem solving may become more common and more effective. According to the Federal Mediation and Conciliation Service, a few principles must be followed in order for the IBB process to be effective: > Sharing relevant information is criticat for effective solutions. > Focus on issues, not personalities. > Focus on the present and future, not the past. > Focus on the i�erests underlying the issues, not only on positions. > Focus on mutual interests, and help satisfy the other party's interests as well as your own. > Brainstorming can generate options to satisfy mutual and separate interests. > Options to satisfy interests should be evaluated by objective and agreed-upon criteria, rather than power or leverage. Certainly, IBB is not perfect for every negotiation process. The IBB method is likely to fail without a number of necessary components, lisYed below: > evidence of labor-management cooperarion during the past conhact term; > sufficient time remaining prior to conhact ea.piration to complete the sequence of decision-maldng about IBB, training and applicarion of the process; > willingness of both parties to fully share relevant bazgaining informarion; > willingness to forgo power as the sole method of "winning"; > understanding and accepting the process by all participanis and their constituents. IBB may not eatirely replace the ixaditional method of negoriation. The negotiating parties must determine for themselves when IBB would be appropriate, and must be willing to invest a significant amount of time and energy into the new process to make it hvly effective. 1999 Sobu Pau! City Council Reseorch im Performance Audit of iLe City of Saint Paul's Iabor Relazions ActiviRes APPENDIX E: 99� $�° � Coltective Bargaining Agreement Preamble Sample The preambles of the collective bazgaining agreements between the City of Saint Paul and the bazgaining units generally contain preamble language stating the purpose of the agreements, which is in most cases to create a harmonious relationship between labor and management, and introducing the general azeas of agreement contained in the contract such as wages, hours of work and other conditions of employment. A few contracts do not have preambles, but rather have purpose statements which aze similar to the contrrcts. Listed below aze three sample preambles: May 1, 1997- April 30, 1999 Labor Agreement between the Ciry of Saint Pau1 and the International Brotherhood of Electrical Workers, Local 110. Preamble to fhe Contract: This AGREEMENT is entered into between the city of Saint Paul, hereinafter referred to as the EMPLOYER and the Intemational Brotherhood of Electrical Workers, Local 110 hereinafter referred to as the iJNION. The -------- --_-_ __=�_ -- - __----- - -- - - - --- ---- -- _ - -- . _... - - ----......- - - _ ' —__ — —_ _ _'_'_' '_"__ "� �._.. . _�._.....�.._�._.�. r .........� _�> .: �w._�.. .. Ycv'"'c.�v� c:a u:a responsibilities of the City of Saint Paul for the benefit of the general public through effective labor- management cooperation. The EMPLOYER and the LTDIION both realize that ttus goal depends not only on the words in the AGREEMENT but rather primarily on attitudes between people at all levels of responsibility. Constructive attitudes of the EMPLOYER, the iJTiION and the individual employees will best serve ihe needs of the geneial public. Preamble to the 1997-1998 Agreement beiween the City of Saint Paul and City of Saint Paul Classified Confidential Employees Association: This agreement, hereinafter referred to as the Employer, and the City of Saint Paul Classified Confidential Employees Association, hereinafter referred to as the Association, has as its pucpose the promotion of harmonious relations between the Employer and the Association, the establishment of an equitable and peaceful procedure for the resolution of differences, the establishment of rates of pay, hours of work, and other conditions of employment. 1997-1998 Collective Bargaining Agreement beriveen The Ciry of Saint Paul and AFSCME Loca1375�- <.esisi. iiuJ H�:[cGmCIIi Ci1CCICQ IDi0 DCLK'ECIl ID8 C;1LV OI �alIIl L'�. hQr��ai�er rrfPrrM tn ��th� the "Employer" or the "City," and the A.F.S.C.M.E. Loca13757-Legal hereinafter referred to as the Union, for the purpose of fostering and promoting hazmonious relations between the City and the Union in order that a high level of public service can be provided to the citizens of the City. Tfus Agreement attempts to accomplish this purpose by pmviding a fuller and more complete undecstanding on the part of both the City and the Union of their respecrive rights and responsibilities. The provisions of ttus Agreement shall not abrogate the rights and/or duties of the Employer, the Union, or the employees as established under the provision of the Public Employee Labor Relations Act of 1984, as amended. In addition to the three agreements above, we reviewed the following collective bazgaining agreements: � May 1, 1998- Apri130, 2001 Maintenance Labor Agreement between the City of Saint Paul and Bricklayers & Allied Craftsmen Local Union No. 1 of Minnesota � October 1, 1996 through September 30, 1998 Maintenance Labor Agreement between the City of Saint Paul and Internarional Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and Helpers, Lodge 647 o May 1, 1996 thru Apri130, 1998 Maintenance Labor Agreement between the City of Saint Paul and Operative Plasterers and Cement Masons Intemational Association, Local 633 o Preamble to the May, 1998 through April, 2001 Labor Agreement between The City of Saint Paul and Lakes and Plains Regional Council of Cazpenters and Joiners 1999 Saint Pau! Ciry CaurscilResearch Performauce Audit of the Ciry of Saint Paui's Labor Relations Acfivities ] 03 �y'� �v o July 1, 1997-June 30, 2000 Maintenance Labor Agreement between The City of Saint Paul and �� Intemational Union of Elevator Constructors, Local 9 � 1998-1999 Agreement between The City of Saint Paul and The Intemational Association of Fire Fighters AFL-CIO I.oca121 0 1997 AgreemenT between The City of Saint Paul and The Saint Paul Fire Svpervisory Association � July I, I997 through June 30, I999 Labor Agreement between the City of Saint Paul and District Lodge No. 77 Intemational AssociaYion of Machinists and Aerospace Workecs AFL-CIO � 1997-1498 Labor Agreement Between the City of Saint Paul and the Saint Paul Manual & Maintenance Supervisors Associazion 0 1999-2000 Labor Agreement between the City of Saint Paul and Intemationa] Union of Operating Engineers Local 70 � 1995-1998 Maintenance Labor Ageement between the City of Saint Paul and Intemational Brotherhood of Painters and Allied Trades Local 61 � May l, 1997 through April 30, 1999 Maintenance Labor Agreement Between the City of Saint Paul and United Association Pipefitters Local Union No. 455 � May 1, 1997 thru Apri130, 1999 Maintenance Labor Agreement Between the City of Saint Paul and the United Association Plumbers Local 34 and Sprinkler Fitters Local Union No. 417 0 1997-1994 Collective Bargaining Agreement between the City of Saint Paul and The Saint Paul Police Federation 0 1997-1998 Collective Bazgaining Agreement between the City of Saint Paui and the City of Saint Paul Professional Employees Association, Inc. 0 1997-1998 Colleccive Bargaining Agreement between the City of Saint Pau1 and Saint Paul Supervisors' Organization o May 1, 1997 thne Apri13Q 1999 Maintenance labor Agreement between the City of Saint Paul and Sheet Metal Workers Intemational Associarion Local 10 � February 1, 1996 through January 31, 1998 Collective Bazgaining Agreement between the City of Saint Paul and Internarional Alliance of Theatrical Stage Employees, Local No. 20 � May 1997 through April 2000 Coliective Bazgaining Ageement between the City of Saint Paul and the Tri-Council Local 120- Loca149 - and LOCAL 132 � 1997-1998 Agreement between the City of Saint Paul and Local Union 1842, District Council 14, oF the American Federation of State, counry and Municipal Employees, AFL-CIO. 0 1997-1998 Agreement between the City of Saint Paul and Local Union 2508 District Council 14 of the American Federation of State, County and Municipal Employees, AFL-CIO. 1999 Spint Pavl Cry Council ResearcA 104 Perfocmance Audit of the City of Sairt Paul's Labor Relations Activities APPENDIX F: � �I S�� Selected Bibliography Bohlander, George W., PH.D. (1992). Public Sector Grievance Arbitration: Structure and Administration, Jownal of Collective Neeotiations in the Public Sector, Vol. 21(4) 271 - 286. Bulach, Clete (1991). The Collective Bargaining Potpourri: Is There A Right Way??, Joumal of Collective Neeotiations in the Public Sector. Vol. 20(4) 281 - 292. Bureau of National Affairs, Inc., Collecttve Bargaining Negotiations attd Contracts; Preparing for Bargaining, 1996. Buteau of National Affaics, Inc., Collective Bargaining NegotiaKons arul Contracts; Traditional Bargaining, 1996. • -- -- . . „�,.._.._��__--- ° ------ ureau o ation airs, c., o ectrve arQacnino Noo�r:___ �__. ___—_____ - �,..,= vu, .ne i.._. --- - _�-------- --- --�� _--- - - --- __... -------_., _��. — -- Chandler, Timothy David (1988). I.abor Management Relations in Local Government, Municipal Year Book : 85 - 96. Chandler, Timothy David (1493). CoZZective Bargaining wirh Pdice Uniorts: Characferistics of Negnriators and Bargaining Strategies, Municinal Yeaz Book: 34 - 43. Elkouri and Elkouri, eds., Aow Arbitration Works Fifth Ed. Kearney, Richard C. Labor Relations in the Public Sector: Chapter 2; Legal Environment of Public Sector Labor Relations, Chapter 3; The Bazgaining Process, Chapter 8; Living With the Contract. New York, Basel, Hong Kang: Mazcel Dekkeer, Inc., 1989. Reynolds Jr, Osbome M. Handbook of G��P**_±*��t T- �--_ *:__ ��;; - ��,—;�. �t. raui, Iv1N: West ruoiisning C:o., 1982. v � Smythe, Cyrus (1998). The Importance of Supervisor Training, Minnesota Cities, Sept. p. 44. Urban Institute in cooperation with The National League of Cities and the National Association of Counties. Performance Measures: A Guide for Local Elected Officials. Washington D.C.: The Urban Institute Press, 1980. Walters, Jonathan. MeasurinQ Un: Goveruine's Guide to Performance Measurements for Geniuses and Other Public Manaeers. Washington D.C.: Governing Books, 1998. 1999 Saint Pav7Ciry Council Research Council File # q �G C� s Presented Referred To RESOLUTION CITY OF SAINT PAUL, MINNESOTA Green Sheet # I Do y5 e'L at Committee Date RESOLUTION ACCEPTING THE REPORT BNTITLED PERFORMANCE AUDIT OF THE CITY OF SAINT PAUL'S LABOR RELATIONS ACTIVITIES 1 WF�REAS, the Saint Paul City Council established a performance audit program for City departments and 2 offices and the City Council directed the Council Investigation and Research Center to conduct the audits; and 3 WFiEREAS, City Councii selected the City's Office of Labor Relations and the City's labor relations activities 4 for a performance audit and that the Council Investigation and Research Center has completed the audit; now 5 therefore, be it 6 RESOLVED, that the Saint Paul City Council accepts the report PerformarzceAudit of the City ofSaiHtPaul's 7 Labor Relations Activities. Requested by Department of: Adoprion Certified by Council Secietary B � a, _ I�s Appi � � Form Approved by City Attomey � Approved by Mayor fox Submission to Council � � � � �� Adopted by Council: Date �� ` `_t�°� council GREEN SHEET q1- 8Go ��r� No � �,� ;; �:. � 2 ,�a sv m4� u�� u��- � �� ..,� m„«� ��,wc o�aee ❑ wwcw�mMw,o.�. wuxn.�,on.,cc.o ❑MIdtWR4tflii111ff) ❑ TOTAL S OE SIGNATURE PAGES (CUP ALL IOCATIONS FOR SlGNATURE) Accept the report entitled Performance Audit of the City of Saint Paul's Labor Relations Activities PLANNING CAMMISSION CIB COMMRTEE CML SERVICE COMMISSION il��. i4•iaA TRANSACTIONf SOURCE (t7wWM F�e mie p�so�rum ewrxakea �mer e camaa ror+nis ckre�reM7 V6s MO Fles tlire Pc+aJfirm aer been a cdY empbyee7 YES NO DaestlNe pe�aqMum D�sa SIdN not ndme%yp� bY �Y aarent citY �WoY�� VE3 NO Is tltia persnUfem a ta/peted vendoR YES 1� COST/REVENUEBUDOETED�pRCLEONq Ip11i71+�`PCld�.7 YES NO �`� —��O & � � � � ; £ � x € � Y § ,� �:� _� °Y � �� a �'_ ,.,,� _ � � � : � � , x �� :;�, � �„ a � „ �. � °_ � � ' ; � �'o � � �� .o �- o � s « p o � = � ° s ��^,.: T O F � a a U 3 u � ■ ■ ■ � a s �� V� �� V� �R - �� b � s.. N �-+ � N �..) +'L' U L � Q) � � � �i � � � . .� �n . ;n � 7 � U � O U F � d s � g 9 i � s s 4 5 ff S 3 � E � � � E `x s` e � ff i F 5 � � n � ��- g�� M n � .r � v U � � � v � � ^ts � � O . aY � . � ? C U � 7 Q � �, ,c�`" t� � ��. � � �,^� ;�e � .:� o � � .��*..�„:: eo� e R S � � � F 4 9 B B s a � � s d g d E £ i F � eY4 F� m �r v u'r�� &'�4��G'y:' O `n i y � 1 �,. � i °Ii�V �,� r J '6 a �iY�Y',� j ' �''�I�`@4 j i g C�, a�Mr ,�' �eyl' �.,�u�� ur:. � p i�, .. i i ��rl+' � = w g t I o k ,� �,�� I,�t S z � > r ,� ` i i,�'�,:-':O '� `s �eYt pq V 5 �f�l i � N X 3 � � ` �� W Z L*a � � ri,� fs I"k1 �r ' ■ ■ ■ ■ �„?jc= ' � N�;;�� - s C � ; � rr � � :, c�q -�� ..i .5�. � 1..� U S.. � v � � � � � � � .� � . � � � U � � O � � € � 8 R'�I 4 ¢ �.9.- N �C e� , � , q i ,�,�.,,o V R ,: �'�r�� U v� C1 �' °s �' � i +1 , ' ■ Y 5 z i 8 Z $ i 5 0 @ E 5 3 E i B ff 5 i 5 a' ° s E � � � � � fa �,�-s�° � E � ,-+ � � � .L U {.., R � � � �. 'L3 � ftT � .� .� � .� � 7 � U � O � � � f a s a � a s � e t m a a � . i z s a � g �� = w � � � N o �n -�, �,, . �' k� °� 5 $ � � : v s i � i i € e Ea 8 3 d § � � � � � �i� -�Gd � �. � .� c � U � V R v � � � '� � � C �kC s. �a�p�'"�-" ' „^' � �'6� C.��F s � ee -^�� R . �* U� :;�"'� � � +-+ v1 � ��`�,��,�� N �I�. �, .. ..; _ F .� r . -` �, � . u.> � �� cC N :!: � :/: .Sr - V �Y a `''�- / � C � O � � � � � OFF[CE OF LABOR RELATTONS Terry Xaltiner, Martager CTTY OF SAINT PAUL Norm Coleman, Mayor LABOR RELATTONS 400 City Hal! Annex 25 West FourlTr Street SaintP¢ut, Mim+esota 53702-1631 TelepSone: 651266-8897 Facsimile. 657 292-7656 �� i g6 � 9/8/1999 TO: Council President Bostrom Council Member Benanav Council Member Blakey Council Member Coleman Council Member Hams Council Member Lanhy Council Member Reiter FROM: Terry Haltiner, Labor Relations Manager � �� RE: Addressing the Recommendations specified by the Council Reseazch Audit of the Labor Relations Department Labor Relations staff have reviewed the "Performance Audit of the City of Saint Paul's Labor Relations Activities" and the 72 recommendations contained therein. Of these, there are 22 recommendations that we aze currently working on. These are listed below. The remaining recommendations will be discussed by staff when a new Labor Relations Director has been hired. Whi]e it is doubtful that all the recommendations will be implemented, I assure you they will be given thoughtful consideration. The following are specific recommendations that the Department of Labor Relafions is currently addressing: Recommendation #5: The OLR d'uector should improve intemal communication and take steps to keep staff well-informed. Maintaining a veil of secrecy to shield staff from the important and sensi6ve lssues wili only continue the impression that staff aze not husted. There may be instances when communicarion is not appropriate, for instance if the information communicated is of a highly sensitive nature and is not relevant to the duties of staff. However, our interviews suggest communications have been witUheld when this was not the case. This perception bas created a situation in which staff do not feel empowered to do their jobs. Weekly sraff ineetings are scheduled. Information is communicated to siaff at these rimes. Recommendation #6: D'uector should provide a forum and time by which staff can conhibute to decisions made about the organization, such as specific times set aside in staff meeting, suggestion box, etc. Input from staff is sought at staff meetings. RecommendaUon #7: The OLR D'uector should provide fmancial support for participarion in training and development acrivities. The director should also cieazly inform staff about the Office's membership in several professional organi�ations and urge staff to take full advantage of these memberships. In addition, i¢cenrives to participate in uaining and development activiries, such as posirive mazks on performance evaluations or formal recognition should be used. The budget for training has been increased in the 2000 Mayor's Proposed Budget. Rewmmendation #8: OLR should cukivate relationships with other organizarions that may have the expertise to assist the organizarion in its work. To this end, the OLR should create a City-wide labor relations work teazn wluch would be composed of representarives from the City Attorney's Office, Risk Management Division, the Financial Services Office, the Office of Human Resources and others. Such a task force would coordinate the City activities in the Labor Relations process and re-established relationships which have been neglected. The Labor Advisory Group will be recomened It is comprised of representatives of the above mentianed offices. Recommendation #1Q: The OLR director should immediately request that OLR professional staff receive access to HIJMMERS system. The Office of Human Resources should act posthaste to see this is done. The OLR director should also enswe that professional staff receive necessary training to operate the HUMIvIERS system and are capable of creating customized reports. Staff now have access. Recommendation #11: The OLR should conduct and integrate more complex analyses of labor relations data into its labor relations activities. Because the OLR's success is often determined by the use and analysis of data, this activity is of pazaznount importance. Moreover, the tremendous amount of data that resulu from the City's labor relations acrivities provides for a rich opportuniry for analysis. The OLR d'uector should provide additional training to staff; if necessary, to accomplish this recommendation. Staff are currently working on improving the data base. Recommendation #25: The Qffice of Labor Relations and the Budget Office should complete work on the development of costing models which meet all of the City's needs for contract cost information. Integrated costing models are being developed Recummendation #29: Given the reported staff shortage in the Office of Labor Relations, increasing the participation of the City Attomey in contract drafting and prepazation is warranted. Such an increased role should be explored thoroughly by the next Labor Relations D'uector. Sfaff have been working more closely with the Cify Atiorney's O�ce. Recommendation #32: The City should cease the practice of segregating some positions in the category of "promotional." The practice does not seem to be consistent with state law, it limiu the ability of ouuide qualified candidates to compete, and potentially promotes systemic inequalifies in the make-up of the CiTy's world'orce. Work has begun, with Human Resources, to explore this issue. Recommendation #33: The City should review posifions currently categorized as supervisory to determine if the job duties meet the BMS definirion of supervisor. Work has begun, with Human Resources, to explore this issue. Recommendation #34: The uniform settlement form provides for the development of a scatewide base of information on all public employer negotiated ageemenu and azbitration settlements for the State of Minnesota. As such, it is an important activity for the BMS to undertake, and had the potenrial to create a compararive database for use by all public employers and employees. Notable, the BMS has yet to develop such an informarion source. However, the City of Saint Paul has not consistently complied with this statutory requirement. The City should consistently complete the uniform settiement form in accordance with State law. An elecbonic version ofthis form has been developecl Sta�fare working to complete these forms for recent contracts. Recommendation #35: The Office of Labor Relations, Risk Management, and the Office of Financial Services should increase efforts to sh�eaznline contract implementation. All three offices should clarify communication systems to improve the administration process. This is an ongoing process. Staff will continue this effort. Recommendation #36: T1�e Office of Labor Relations should complete the data bank relating to parallel sections of the collective bargaining agreements. The existence and use of the data bank should he communicated to a11 effected parties, and the data bank should be used to identify azeas for negotiation. Work is continuing on thrs project. Recommendation #44: The OLR should make contract negotiarion training for eligible staff a priority. This should occur either in-house or through continuing educaflon at an off-site facility. The budget for training has been increased in the 2000 Mayor's Proposed Budget. Recommendation #46: The Office of Labor Relations, Financiai Services, Risk Management sbould develop a formal communication system to communicate and implement contract changes. This system is in pZace. Recommendation #47: The City should continue to seek to improve its data collection and analysis capabilities and should implement the total package costing progam. Likewise, unions need to continue to unprove their systems and fmd additional support for those units that do not curtentiy have quality systems. Staff continue to work on this. Recommendation #S2: The OLR needs to examine the role of the Ciry Attomey's Office, the Financial Services Deparhnent and Risk Management co determine if greaser pazmering accompanied by information sharing would be a more effective approach to negotiarion than presently exists. All of these departments should consider surveying their respective customers to determine the'u level of saflsfaction with negofiation and 'unplementation. The Labor Advisory Group shat! be reconvened. Recommendarion #56: The Office of Labor Relations should reinstitute the pmctice of having at least two staff members capable of negoriarion a collective bazgainutg agreemenc at all times. This would take pressure off the primary negoriator and allow the office to deal with administrative and management tasks more efficiently. The City recently fiZZed the Labor ReZations Manager position and is interviewing candidates for Director. Recommendarion #57: All contract employees should be evaluated for performance. This data should be used for planning and process improvement. This will occ�a ifarry are hired. Recommendafion #59: The City of Saint Paul and the collective bargaining units should pmvide funding and rime to anyone iavolved in negotiarions or coniract adminis�ation tn attend the training sessions offered by the Bureau of Mediation Services. Topics include Conflict Resolution, Interest-Based Bazgaining, labor-management committees, mediation, basic labor relations, negotiation, and the Minnesota Public Employment Labor Relations Act. We will consider a11 training optiorrs. Recommendation #65: Make training a priority for Labor Relations staff involved in administering contracts and handling grievances. One way to emphasize uaining may be to make it part of annual review process. T1�e OLR should not use ]ack of time and staff as an excuse, as a lack of uaining makes staff even less productive as they fail to develop their skills. It may well be worth the time to provide training if it improves the process and funcrions of the office. The budget for baining has been increased in the 2000 Mayor's Proposed Budget. Recommendation #68: The City should continue to explore information systems upgrades and reduce reliance on institufional knowledge. Recognize danger of centralizing knowledge in one or two people, and have more widespread rraining on systems. Staff will continue to work on Yhis. If you have any questions regazding this information please contact me at 266-8897. CC: Gerry Strathman, Director of Council Reseazch Performance Audit of The City of Saint PauPs Labor Relations Activities Sair�t Paul City Council Council Research Report August1999 ��'�� Tlus performance audit is, in essence, three different performance audits of tha City's labor relations activities. It exaaunes the contract negoriaYion and grievaace administration processes aad the Office of Labor Retations. Labor relations activities aze very important to both the City's govemment and its employees. There are 24 bazgainiug units which represent 98% of the Cify 3,332 employees. Supervisors and professional staff are represented in Saint Paul City government, bu4 in many parts of the country they are not. Finally, wages and fringe benefits make up 41% of the City's budget—representing the City's lazgeat expense category. PURPOSE OF THE CITY COUNCIL'S PERFORMANCE AUDIT PROGRAM The Saint Paul City Council established the PerFormance Audit Program to help fulfill two major legislative oversight responsibilities: ■" Ensure City practices aze consistent with applicable state and local laws and policies; and ■ Assess the degee af efficiency and effectiveness with which City policies aze being cazried out: EFFICIENCY AND EFFECTIVENESS The report examines whether the City's labor relarions activities are operating at an oprimal level of quality and, if not, what can be done to remedy any deficiencies. Information needed to ***�t –• Criteria fully developed and pracliced. **�* –� Criteria well developed and practiced. ** –i Criteria present and practiced to some extent. review the activities was obtained by document review and interviews. The seven criteria used to assess organizational development and to idenrify quality organizations are: planning, leadership, training and development, inforination and analysis, processes for improvement, customer focus, and results. The summary ratings are described in the box above. OFFICE OF LABOR RELATIONS KEY FIND(NGS & RECOMMENDAT/ONS ■ The Office has done a good job developing and maintaining records, in spite of spotty or poor information support systems available to them. Specifically, good past and current comparative information for negotiations has been developed, as well as a grievance database. ■ Eigh staff tumover and vacancies are an ongoing problem—there are currenUy two vaarncies in a staff of five: the Director and the Clerk IV. Low levels of stafftraining and development are problematic in light of SUMMARY RATINGS * Planning * Leadership * Training and Development ** Information and Analysis ** Processes for Improvement * C�stomer Focus *�t Results high stress levels, vacancies and tumover in the office. A commitment of fimds, time and incentives for ongoing training and development is necessary. ■ The Office has a poor level of communication with its paztners in the conkact negotiarion and grievance processes. ■ The Office nceds to gather, maintain and updaYe better information on customer needs and satisfactio�using a customer base beyond the Mayor. Very little work has been done in flus azea historically. ■ The Office would be very well served by developing and updating short- and long-tetm workplans. The development of these plans should involve ali Office sta� as well as input &om representatives of key customer groups and other City Offices involved in contract negotiation and grievance processes. Also key to tlus planning process is the development and clear communication of a vision for the future of the Office and functions it performs. CONTRACT NEGOTIATION PROCESS KEY FINDINGS & RECOMMENDATIONS ■ The Offioe of Labor Relations should be credited with having done a very good job of gathering and analyzing both lustoric and comparative informarion for the negoriation process. However, information on the negotiation process itself is not collecEed. Such information will assist in determining the costs of the negofiation and improve communication and problem-solving prior to future negotiation_cycles. SUMMARY RATINGS ** Planning ** Leadership ■ Collective bazgaining units shou[d also be credited with collecting good comparative information foi the negotiation process. • In the last 11 yeazs 130 collective bazgaining agreements with the City have been ratified. On average, these _ agreements aze concluded 10 months after the previous agreement expires. In only one case in 1987 was a coIlective bargaining agreement completed prior to expiration of the previous contract. As it is in the interest of both the City and its collective bargaining units, they should work together to make. contract negotiations more timely. ■ The Administration should bring to the City Council for consideration a five-yeaz negotiations timetable—as is outlined in the Administrative Cod�wluch decreases the amount of time between contract expiration and new contract ratificadon. The Administrarion also needs to communicate more regularly with the City Council on the status and progress of collective bazgaiising, as is specified is in the Administrative Code. ■ The City should develop a policy to be vsed by all departments—addressing employee time-off for : participarion in negotiations. ■ The Adminisiration needs to ensure outside labor relations consultants reoeive City Counail approval prior to engagiug in any-negotiations, or providing other services, on the City's behalf, as is outlined in the Adminishative Code. ■ Both the City and collective bargaining units should pursue more agreements that run for 3 years, as opposed to the standard 2 yeara. It would be in the interest of both parties to pursue 3-year agreements until the lag . time between old contract eacpirarion and new contract ratification decteases substantially. ■ Coliective bazgaining units need to ensure that ttieir communicarion with the City, on terms and conditions of employment, occurs with City's designated representative, rather than other City officials. GRIEVANCE ADMINISTRATION PROCESS KEY FIND/NGS & RECOMMENDATIONS ■ The Office of Labor Relarions should be given much credit for the development of the "grievance tracking system." The neact step is to begin using tlus information to prevent grievances in the future. ■ The City provides no contract, grievance resolution or SUMMARY RATINGS. * ri� ** Leadership * Training and Development ** Information and Analysis ** Processes for Improvement ** Customer Focus * Results gnevance adm�mstrahon traming for snpervisors, wanagers or department heads. Such a training progrdm is necessary to ensure that grievances are treated according to conhact provisions and fairly across departments. FOR QUESTIONS, COMMENTS OR A CQPY OF THE REPORT PLEASE CONTACT: Gerry Strathman, Counal Research Director Maraa Mcermond, Policy Analyst (651) 266-8575 or qem.strathmanC�ci.stpaul.mn.us (651) 266-8570 or marcia.moermondk�ci.stoaul.mn.us �iq ^�b CITY COUNCIL RESEARCH REPORT Performance Audit of The City of Saint Paul's � Labor Relations Activities .,�� 8 1 f. :L $ � :�. _, Ig54 °� ,� � M� � � �: � :. , ., . Saint Paul City Council Council Investigation and Research Center Saint Paul, Minnesota �q �� Saint Paul City Council City Council Investigation 8� Research Center Saint Paul, Minnesota 55102 Performance Audit of The City of Saint Paul's Labor Relations Activities 651.266.8560 http://www.stpaul.gov/counciUcirc.html August 1999 Director Gerry Strathman Policy Analysts Jennifer Dunn David Godfrey Marcia Moermond Kenneth Smith Questions? If you have questions regarding this report please contact Gerry Strathman at 651.266.8575 or gerrv.strath manCc�ci. stpaul. mn. u s City Council Research Report ��'`�� Performance Audit of The Ciry of Saint Paul's Labor Relations Activities TABLE OF CONTENTS INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 1 Research Methods . . . . . . . . . . . . . . . . . . . . . . 2 Scope of Performance Audit . . . . . . . . . . . . . . 2 Policy Compliance . . . . . . . . . . . . . . . . . . . . . . 4 Organizational & Pmcess Quality Assessment ............................6 Efficiency and Effectiveness . . . . . . . . . . . . . 6 Quality Categories . . . . . . . . . . . . . . . . . . . . 7 Research Methods for Quality Assessment .......................... 9 Criteria Ratings . . . . . . . . . . . . . . . . . . . . . 10 Performance Indicators . . . . . . . . . . . . . . . . . 10 OFFICE OF LABOR RELATIONS . . . . . . . . . 11 Planning .............................. 12 Leadership ............................ 14 Training & Development . . . . . . . . . . . . . . . . . 16 Information and Analysis . . . . . . . . . . . . . . . . . 18 Processes for Improvement . . . . . . . . . . . . . . . . 20 Customer Focus . . . . . . . . . . . . . . . . . . . . . . . 22 Resuks ..............................24 CONTRACT NEGOTIATION PROCESS . . . . 27 Contract NegoHaHon Policy Alignment ........................... 27 Representation ........................ 27 City Representation . . . . . . . . . . . . . . . . . . . 28 Collective Bazgaining Units . . . . . . . . . . . . 30 NegotiationsProcess ...................35 Research/Strategy Planning . . . . . . . . . . . . 35 SchedulingfPlanning ....... . ..... . .... 38 Items for Negotiations . . . . . . . . . . . . . . . . 39 Interest Based Bazgaining . . . . . . . . . . . . . . 44 Communication . . . . . . . . . . . . . . . . . . . . . . 44 Management Rights . . . . . . . . . . . . . . . . . . 46 Meet and Confer . . . . . . . . . . . . . . . . . . . . . 47 Mediation .......................... 48 Arbihation . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Strike .............................50 Ratification of Contracts . . . . . . . . . . . . . . . . 51 Contract Implementation . . . . . . . . . . . . . . . . 52 Office of Labor Relations . . . . . . . . . . . . 52 Risk Management .................. 54 Financial Services . . . . . . . . . . . . . . . . . 54 Collective Bazgaining Units . . . . . . . . . . 55 Quality Assessment for Contract Negatiation . . . . . . . . . . . . . . . . Plaoning ........................ I ,eadership . . . . . . . . . . . . . . . . . . . . . . . Training & Development . . . . . . . . . . . . Informarion and Analysis . . . . . . . . . . . Processes for Improvement . . . . . . . . . . CustomerFocus .................. Results ......................... GRIEVANCE ADMINISTRATION PROCESS ........................... Grievance Process PoGcy Alignment . . . Non-Disciplinary Grievances . . . . . . Disciplinary Grievance Process . . . . General Grievance Process . . . . . . . . Grievance Processing in the Office of Labor Relations . . . . . . . . . . . . Employer Role in Grievance Processing . . . . . . . . . . . . . . . . . . Collective Bazgaining Unit Role in Grievance Processing . . . . . . . . . Grievance Administration Quality Assessment . . . . . . . . . . . . . . . . . Planning ........................ Leadership . . . . . . . . . . . . . . . . . . . . . . . Training & Development . . . . . . . . . . . Information and Analysis . . . . . . . . . . . Processes for Improvement . . . . . . . . . . Customer Focus . . . . . . . . . . . . . . . . . . Results ......................... 56 56 58 61 63 64 65 67 70 70 72 73 74 75 76 FF:? 79 79 80 82 83 84 86 86 PERFORMANCE INDICATORS , . . . . . . . 88 CONCLUSION ............... ........ 90 APPENDIX A: List of Interviews . . . . . . . . . . APPENDIX B: Malcolm Baldridge Quality Assessment Questions . . . . . . . . . . . . . . . . APPENDIX C: Ten-Yeaz History of Collective Bazgaining Agreement Conclusion . . . . . . . . APPENDIX D: Summary of Interest Based Bazgaining ........................ APPENDIX E: Collecrive Bazgaining Agreement Preamble Sample . . . . . . . . . . APPENDIX E: Selected Bibliography . . . . . 93 94 98 1Q1 i02 104 Perform�ceAuditoftheCityof SaintPaui'slaborRelationsActivities 1 aa�� INTR4DUCTION Collective bazgaining and the adminisirarion of labor contracts are of vital importance to the City of Saint Paul's financial stability and operation. Although employces of Minnesota municipalities have been able to bazgain collectively since 1971, the City of Saint Paul is unique among most cities in the state because of its high-]evel of imionization. Twenty-four bazgaining units represent 98 percent of the City's permanent workforce. The only employees not represented aze department heads, non-represented managemenUprofessionals, and some provisional and temporary employees.' The contracts the City signs with its collective bazgaining units set the tertns and conditions of employment which specify employee wages, benefits, hours worked and the type of work to be performed. Labor relations activities, therefore, have the potential to significantly affect the nature and qualiTy of services received by the City's residents. In addition, contracts represent a major commitment of financial resources by the City. Salaries and fringe benefits will account for $199,000,000 of City spending in 1999. This is the lazgest expense category for City government and represents almost 41 percent of its total budgc�t. Because of the substanrial impact of collective bazgaining and conhact administration, the Saint Paul City Council commissioned a perFormance audit of the CiTy's labor relations activities. The City Council, as the goveming body of the City of Saint Paul, is responsible for establishing City policies and ensuring that City practices aze consistent with these policies. As the body responsible for approving the City Budget, the CiTy Council must also assess the efficiency and effectiveness of City operarions. lfierefore, the City Council established a Performance Audit Program in the fall of 1996 to help it fulfill these legislative oversight and budgetary responsibilities and directed Council Research to conduct performance audits of City operations. Performance audits analyze the consistency of departmental practices with City policies and provide insight into how policy directives aze implemented. The performance audit also examines whether an organization's practices aze efficient and reflective of those used by high-performing organizations. This is not a financial audit oFthe outcomes ofthe collective bazgaining process or a study of fiscal implications of Saint Paul's labor relarions environment. While such a project may be interesting and useful, it dces not fall within the guidelines of the performance audit progrnm. Moreover, a basic principle of collective bazgaining assumes labor and management have voluntarily entered 'mto an ageement which is mutually beneficial; if it was not, agreement would not have been reached. With this perspecrive, Council Research believes it is not worthwhile in this performance audit to make jixdgements about particular contracts or their fiscal impacts. � It should be noted here that the authors of this teport are not represented by a coliective bazgai�ing mi[ and are classified as non-represen[ed management professionals. 1999 Saint Pau1 City Council Research �q.�� 2 peffo�mznce Audit ofthe City of Saint Pwl's Labor Relafions AcGviSes RESEARCH METHODS To make certain this performance audit is comprehensive and that all aspects of the Office of Labor Relations, the contract negotiation and the grievance administration processes were reviewed, we used a number of inethods to gather information from a wide variety of sotuces. Review of Documents Numerous City documents e�st pertaining to labor relations activities and we have sought to eacamine them all. Among the many documents we reviewed, the most important have been the City's 1998 budget documents, the City's Administrative Code, and the Minnesota Public Employee Labor Relations Act (Minn. Stat § 179A.03 —179A.25 (1998)]. We also seazched the City Charter, e�sting and previous labor contracts, and located several relevant policies. Analysis of Labor Relations Data A gre�at deal of data results fram the labor relarions activities of the City. We aitempted to review as much of tlus data as possible, including grievance resolution data, the duration of contract negotiations and a review of decisions and rulings made by the State of Minnesota's Bureau of Mediation SErvices pertaining to the Cit�'s conttact negotiarions and coattact administration processes. Interviews Interviews with people who participate in the labor relations processes is the best way to obtain accurate information about the policies and practices of those involved in the City's labor relarions activiries. We conducted numerous structured interviews with a bmad cross- s�tion of labor relations participants. We interviewed the entire Office of Labor Relations statFand all other City officials involved in the labor relarions processes. In addition, we interviewed representaUves of over 18 collective bargaining units, In total, we conducted 40 structured interviews typically involving from one to ten individuals lasting &om one to eight hours each. These structured interviews served to not only obtain answers to prepared questions but also as an oppofiuuty for respondents to eicplain the reasons for their answers and to suggest additional issues about which they thought we should be aware. SCOPE OF PERFORMANCE AUDIT This performance audit is essentially three distinct performance audits of the labor relations activiries of Saint Paul City govemment combined into one document. This was done to idenrify and discuss fhoroughiy, yet separately, the intemal operarions of the Office of Labor Relations and the interaction between the City and the collective bazgaining units that represent its employees. This performance audit should be considered a"snapshot in rime," Z See Appendix A for a list of interview subjects, Appendix B for [he interview questionnaire and Appendix F for the list of and citations of documenu reviewed 1999 Soint PauJ Ciry CormcU Research Perfolm�ce Audit of ihe Ciry of Saint Paul's I.abor Relations Activities 3 �� rather than a history of the City of Saint Paul's labor relations activities. Our intention is to t� provide a cuaent and accurate picture of the City's labor relaYions activiries, to identify problems and to make recommendations to remedy these problems. The scope of the three distinct subjects and the functions and parties associated with each aze discussed below. Office of Labor Relatioos T'he first secrion of the performance audit will exaznine the intemal operations of the Office of I.abor Relations (OLR). Intemal operations include such functions as work and staff assignments, staff training and development, leadership within the OLR, intemal planning, daTa collection and analysis activities. The OLR section will examine, through an organizational quality assessment, the extent to which the intemal operations of the office aze efficient and effective. Interviews with OLR staff and intemal office documents served as the two informational resources for this section of the audit. The stafF of the Office of Labor Relations consist of the Labor Relations D'uector, a Human Resowces Specialist, a Research Analyst, a Clerk Typist, and a Labor RelaLions Specialisi position which, for part of 1998 and up to the present, has remained vacant. This position was recently filled at the higher classification of Labor Relations Manager. Other participanu in the labor relations process, whether representing the City or collective bazgaining units, were not interviewed for this section. Because of the intemal focus of this section, we believe OLR staff are the only appropriate source for information regarding their internal operations. The OLR is responsible for numerous policies. To provide a comprehensive picture of the grievance administration and negotiation processes, the question of whether the OLR practices are consistent with policies will be discussed in the contract negotiation process and contract admivistration policy compliance sections. Contract 1�Iegotiation Process This section of the performance audit will review every aspect of the negotiation process and all parties involved, such as the Office of Labor Relations, the Risk Management Office, the City Attorney's Office, Financial Services, bargaining units and others. The contract negotiation process will be assessed holistically. The process is evaluated as a distinct entity but recommendaYions are made for specific parties involved in the City's labor relation activities. We have also included a discussion of contract implementation. These recommendaYions, we believe, will lead to improvement in the operation of the entire process. This section will include quality assessment and policy compliance discussions. Grievance Administration Process The grievance administration process secrion of the performance audit will address grievance activiUes and the parties involved such as the Office of Labor Relatians, Risk Management, the City Attomey's Office, Financial Services, the bazgaining units and others. The grievance process will be assessed in the same manner as the contract negotiaflon process. This section will indude quality assessment, policy compliance and perFormance measure discussions. 1999 Saint Pavl City Couxci! Research �/,'�� 4 1/' Perfo�mance Audit ofthe City of Saint Paul's Labor Relazions Activi[ies POLICY COMPLIANCE The contract negotiation and grievance adminishation chapters will include policy compliance sections which present the policies under which the City and the collective bazgaining uniu aze expected to operate. The section will then discuss the degree to which current piactices aze consistent with those policies. The policies Council Research considered aze from a number of sources including the City's Administrative Code, the City's 1998 budget, the City's labor contracts and Minnesota Statutes. Over 130 policies were identified and reviewed with the assistance of staff from the Office of Labor Relations, other City staff and representatives from collective bazgaining units. For each process section, the intent of the policies are reviewed, and Council Reseazch findings and recommendations presented It was not Council Research's intent to make specific findings on every individual policy statement. Rather, we tried to focus on groups of policies peRaining to specific topics, and draw conclusions about these topical areas. It is our belief this approach is more useful to both policy makers and the participants involved in the City's labor relations activities. Minnesota State Statutes Public labor relations of Minnesota municipalities aze govemed primarily by the Public Employee Labor Relations Act (PELRA) [Minn. Stat. § 179A.03 —179A25 (1998)]. The Act, passed in 1971, allows for the formation of public emptoyee unions and establishes the legal framework for all aspects of contract negotiation and grievance administration activities. Policies taken from PELRA make up the vast majority of policies reviewed in this audit. Where discrepancies are found between the practices observed in labor relations activities and PELRA, the reason offered for these differences will be provided along with recouunendations to bring policies and practices into alignment. These recommendarions may suggest changes in participants' prackices in order for them to maintain compliance with state law. City Policies The City Coimcil establishes policies that govem the operations of al] City activities including the City's labor relations functions. While there aze many general City policies wluch affect alI City activities, this report addresses only spec:ific policies which apply to the Office of Labor Relations, the contract negotiation and grievance administration processes. City Charter, Ordinances and Council Resolations We searched the CiTy Charter, the Legislative and Administrative Codes, and City Council Resolutions for policies pertaining directly to the CiYy's labor relations activities. A number of relevant policies were found in the Administrative Code and the Charter, although we found tittte in the Legislative Code or Council Resolutions relevant to either ihe contract negotiation or grievance administration processes. The City's Adminisuative Code is the compilation of City Ordinances which pertain to City govemment structure and operations. The City Code is usually explicit and leaves little l999 Saint Paul Ciry Cow+crl Reseamh Perfoimance Audit of @�e City of Saint Pwl's Lalwr Relatons Activities 5 � room for administrative discretion conceming the execution of ordinances. The City Charter - Y � establishes the powers of the City and the form of iu govemment. It is equivalent to a constitution for the City. The Council would view failure to comply with the Charter or the City Code to be a serious matter. The policy compliance sections of this report will identify any differences between ordinances and the charter, and existing practices. In addition, this report will provide expianations of these differences and offer recommendations to resolve these inconsistencies. Budget Performauce Plan Each year, as part of the City budgeting process, the Office of Labor Relations and several other City departments and agencies (i.e. Office of Financial Services Office, Risk Management, and the City Attomey's Office) include in their Activity Performance Plans objectives for labor relations activities. These plans are included in the budget when it is presented to the City Council for approval. The plans identify both the ongoing and annual objectives of each budget activity. The City CounciPs allocation of funds is directly related to these perFormance plans and, as such, these objectives represent City policies. City departments and agencies aze subject to the legislative oversight of the City Council and as part of this legislative oversight function, the City Council has fundamental interest in whether the policies of city agencies and departments aze consistent with their practices. Therefore, these budget performance plans are appropriate for review in a performance audit. While the Council understands that objectives set as part of the budget process may be ambifious and are sometimes thwarted by unforseen developments, the City budget is an official City policy document and city departments and agencies are responsible for operating in conformance with these adopted policy statements. Budget policy directives for 1998, rather than ] 999, are used in order to examine policies that should have been fully 'vnplemented prior to the performance audit. The policy comgliance sections of this report will focus on budget perFormance plans to identify differences between policies and practices and provide the division's explanations of these differences. Recommendations will also be offered to minimize such differences in the future. Collective Bargaining Contracts Labor contracts were also examined for potential policies. These contracts are legally binding agreements which must be approved by Ciry Council resolution. As stated eazlier, this audit does not attempt to evaluate the fiscal impact of the City's labor relations activities. Therefore, we have not examined the fiscal details of any of the City's 24 collective bazgaining contracts. However, almost all collective bazgaining agreements include language in their preambles which express the wish of both parties to pursue a hannonious and mutually beneficial relationship which they hope to maintain over the duration of the contract. We believe this sentiment is central to the quality and productivity of the labor relations processes. Therefore, we included the contract preambles in the group of policies examined for this audit. 1999 Saint Paul City Courscil Resemch 6 Perfocmance Audit of the �Ty of Saint Paul's La6or Relations Activities ORGANIZATIONAL 8� PROCESS QUALITY 9Q �� ASSESSMENT The efficiency and effectiveness of each of the subject azeas of this report (i.e. Office of Labor Relations, contract negotiation process and the grievance adminishaLion process) are evaluated using an Organizational Qaality Assessment. While there are several methods to evaluate whether the participants involved in labor relations activities aze effective and efficient, our appmach is based on work done by fhe organizers of the Malcolm Baldridge National Quality Award. Efficiency and Effectiveness The City Council is very interested in the value received by citizens for money expended. Ta�cpayers rightly expect money provided for the operations of the Office of Labor Relations will be spent to achieve the best result with the least expenditure of public funds. In addition, taacpayers have a fundamental interest in the fiscal outcomes that result from the contract negotiations and grievance administration processes. The efficiency and effectiveness of govemment operations and processes can be assessed in many ways. One common approach is for auditors to examine an organization at a micro-level to detemiine if the organization is following sound procurement piactitices, properly protecting iu resources, and complying with the requirements of laws and regulations. Tlvs micro-level appmach to auditing is closely related to financial auditing and is often conducted by accountants who spend a great deal of time and effort examining fhe inner worldngs of the organization. While we accept there are situations where this type of micro-level audiring is appropriate, such as when fraud is suspected, we believe a lugher level audit is most appropriate here. The City Council is less concemed with the minutia of daily operations and more concemed with lmowing if the Office of Labor Relations is a top-quality organization and if labor relations activities of the City of Saint Pau1 are efficient and effective. If not, they want to Imow what can be done to remedy any deficiencies preventing the Office of Labor Relaiions and ail other parties participating in the City's conhact negotiation and gievance adminisharion pmcesses from achieving a high tevel of excellence. Fortunately, there is a vast body of knowledge and experience delineating the characteristics of lugh-performing organizarions. While this lmowledge and e�cperience e�ctends back many decades, it has been crystalized by the Malcolm Baldrige National Quality Awazd. Public Law 100-107 (1987) established the Awazd and gave the responsibility for its development and administration to tfie Secretary of Commerce and the Nationai Institute of Standards and Technology. Pursvant to this charge, criteria for this award were establishad at the national level defining the characteristics of top-perfomung organizations. Assessment methods designed to �amine these characteristics have been developed and refined over the past ten years. In addition, State Councils for Quality aze now established throughout the nation with the Minnesota Council for Quality in the forefront of this movement. The Minnesota Council for Quality has gone beyond the national model by expanding the model into the public and not-for-profit sectors. For example, Councii Reseazch was a participant in fhe 1996 Minnesota Qualiry Award process as were the Eden Prairie School District and the Minnesota Division of the American Cancer Society. Many leading businesses in the nation (i.e., Motorola, Westinghouse, Federal Express, AT&T.) and in Minnesota (i.e., Allina, Dayton's, Ecolab, Honeywell, IBM, 3M) aze using 7999 Saint Pau! City Cormcil Research Perfolmance Audit of the City of Saint Pau1's Labor Relations Activities 7 � these assessment criteria to evaluate their progress. In fact, three Minnesota businesses �� /� (IBM-Rochester, Custom Research and 3M-Dental Division) have won the national Malcolm Baldrige awazd in recent yeazs. In Saint Paul City govemment, the Minnesota Council for Quality used these csiteria to assess Council Research in 1996 and we used similaz criteria in performance audits of Fire Operarions (1997) and Recreation Centers (1998}. Some terminology used in this report aze adaptations of the national and state criteria These adaptations are necessary because some language popular in the private sector is not commonly used in the public sector. For example, we have subsrituted the public sector terms of "developmenY' and "integration" for the less familiar private sector terms of "approach" and "deployment " We believe these adaptations improve the understanding of our public sector audience while retaining the essence of ideas involved. Quality Categories The study of high-performing organizations has identified seven characteristics believed to be essential for an organization to achieve excellence. We apply these criteria to the OfFice of Labor Relations and the labor relations processes. These criteria have been idenfified from studies over many years and are widely accepted as indicators of organizational excellence. The types of criteria used by the Malcolm Baldrige National Quality Awazd and the Minnesota Quality Awazd to assess organizational development and to identify quality organizations aze snmmarized in the table below. Detailed explanations of the criteria foilow. Assessment ❑ Planning ❑ Leadership ❑ Training and Development ❑ Information and Analvsis ❑ Processes for Improvement ❑ Ctiastomer Focus ❑ Results Planning The pursuit of excellence requires a strong futwe orientation and a willingness to make long- term commitments. Planning must anticipate many types of changes including those that may affect customers' expectation of services, technological developments, changing demogaphics, evolving requirements and community expeclations. Plans, strategies and resowce allocations need to reflect these commitments and changes. Quality organizations make both long-term plans extending three yeats or more years and short-term plans covering one to two years. These plans should not only be developed, but they also need to be carried out and updated frequently. Leadership Senior leaders (Labor Relations Director, Collective Bazgaining UniC Presidents and Business Agents) need to set direction, create customer orientation, establish cleaz values and have high expectations. Reinforcing values and expectations requires personal commitment and involvement. The leaders need to take part in the creation of strategies, systems and methods for achieving excellence. These systems and methods need to guide al] activities and ! 999 Sairc( Paul Ciry Cowuil Research 8 Perfo�ce Audit ofihe G5ty of Saint Paul's Labor Relafions Aaivities decisions of organirations involved in the labor relations processes. Seniot leaders need to commit to Yhe development, participation and creativity of their entire staf� membership or �oi,�t�-�. 99-�6 a Training and Development Employces in successful organizations are provided the tools they need to produce quality services. These same employces are given encouragemenY and the resources to develop a set of skills that allow them to contribute effectively to the organization. Successful organizations also liuk the haming and development of their employees to the organiTarion's goais and priori6es. Tlus linkage occurs through the development and implementation of a long-term strategic plan tied to basic organizational values. Information and Analysis Infocmation and analysis are a vital pazt of any organization. Awazeness of how one is performing at all times is important Performance improvement information includes customer, service performance, operation, supplier, employee-related, and financial data. Organizarions should coacentrate on collecting and using data that relate to their goals and plans. Collecting data serves fittle purpose if the information is not analyzed and used to make improvements. Analyses shouid eacamine hends, projections, compazisons, and cause-and- effect relationships. Using data and analysis systematically to set ptiorities is important in ereating goals, developing plans and allocating priorities. Information should be deployed throughout the organizarion and used to evaluate the organization �d assess progress, Information is essential in monitoring performance against measurabie goals and it should play a key role in tfie decision-malong process. Processes for Improvement This category reviews the desigo, management and improvement of intemal organizational prceesses. Improvement processes should be part of the daily work within the organization. They should seek to eliminate problems at their source and be driven by opportunities to improve. improvements may be of several types: (1) enhancing value through new and improved services; (2) improving responsiveness; and (3) improving ef�ciency in the use of all resources. Improvement processes must contain cycles of plaaning, implementation and evaluation wluch requine infom�ation and methods for assessing progress. Sucfi information and methods shou[d provide direct links between performance goals and intemal operations. It is critical that all processes be continuously evaluated to identify problems and successes. It is also important to bave vendor requiremenu in place as vendors provic3e needed goods and services to Yhe organization. In addition to specific vendor requirements, organizations should have indicators used to assess vendor performance, a pmcedure for determining whether vendors are meeting those requirements, and a system for giving them feedback. Customer Focus Attention to customer needs is crucial if an otganization strives for excellence. Organizarions that excel in customer satisfaction have obtained information by crearing and managing (999 Sabu Pad City CounciJ Reseorch Perfoimance Audit of the City of Saint Pw('s T.abor Relations Activities y � relationships with their customers. The organization gathers information from its customers ``' � on service requirements, near and long-term expectations and degrees of customer satisfaction. The successful use of cusiomer satisfaction information is integrally linked to an organization's ability to gather and analyze data conceming customer requirements. Knowing the requiremeNS of its customers enables an organization to develop service standards designed to enhance customer satisfactian. In order for these standards to be effecrive they must be understood by everyone. Results Successfixl organizations know how well they perform. By using results they can calculate their efficiency and effectiveness. A common way for an organization to evaluate its performance is to measure its results. For example, if the goal of the organization is to provide customer satisfaction, then the organization would collect and analyze data indicative of customer expectations, work practices to meet these expectations and the resulting ]evels of customer satisfaction. In addition to customer service results, high-quality organizarions also track human resources, financial and organizational results. The organization can track its performance over time and compaze its results with those of other organizations. These comparisons with other similaz organizations can represent benchmarks against which to compaze outcomes, efficiency and effectiveness. Research Methods for Quality Assessment Both the Malcolm Baldrige National Quality Awazd and the Minnesota Quality Award use a system in which applicant organizations prepaze a self-assessment used as a basis for an evaluation by outside examiners. Outside examiners study the self-assessment report and wnduct a site visit to seek clarifications and verify claims with respect to the qualiry criteria. Awazds aze based on the findings and evaluaiions of the outside e�caminers. Since we aze seeking to assess the efficiency and effectiveness of the Office of Labor Relations and the City's labor relations processes on behalf of the Ciry Council, we used a modified process for this study. We believe the best way to assess the level of an organization's development is to ask those most lmowledgeable about the organization or a process--the people who work in the organization or participate in the process. We believe the people who participate in the City of Saint PauPs labor relations activities lmow the strengths and wealrnesses of their organizations and will, when asked, candidly report their opinions. Therefore, we have gone directly to the participants to ask them about quality. To this end we conducted 40 structured intetviews with key participants involved in labor relations activities. The organizational assessment reports in this section are based on these employee interviews. In the employee and participant interviews, we asked questions designed to elicit evaluative information regarding each of the seven organizational quality criteria. Two analysts conducted each interview and independently recorded responses. The analysts then compazed their recorded notes and resolved any differences with clarification from the participants. There was a very high degree of consistency between the assessments recorded by the analysts during the interviews. 1999 Sa "vu P¢ul Ciry Council Research io PerFormance Audit of Ne Ciry of Saint Paul's Labor RelaROns Ac4vities Criteria Ratings ■ ' • ' We have gathered a wealth of information about the ]abor relations adivities of the City of Saint Paul while conducting this perfoxmance audit. Although caphuing all of this inforniation in any raring system is impossible, we believe a rating system will help decision- makers grasp the essence of the information. We have developed a simple summary rating system that conveys the essence of our findings. This system reflects what interview subjects have told us about the Office of Labor Relations and labor relations processes. While organizafions and processes consist of individuals, we intend these ratings to reftect current organizational practices and should not be interpreted as judgements about individuals. The ratings used in this section aze built upon our assessments regazding development and inYegration of the seven qualiTy criteria. Summary ratings aze intended to portray both the level of development and the level of integration of each quality criteria. The sumuiary ratings used in these sections aze: ��{'r�i Criteria fully developed and practiced. �}�}�}-.� Criteria well developed and pracriced. ��}-� Criteria present and practiced to some eactent. �} ..� Criteria sometimes present, occasionally practiced. Development, in this performance audit, means the extent to which high-valued chazacteristics aze in evidence. High-value characterisrics are ones in which the criteria being examined is systematic, manifest, pro-active, fact-based, and evaluated. Integration tefers to the extent criteria is pncriced in the Office of Labor Relations and in the labor relarions processes. It is possible, indeed likely, for criteria to be pncticed in some parts of the organization, but not in others. In this performance audit vety few of the criteria were fully practiced in either the Office of Labor Relations or in the labor relalions processes. Therefore, integration is discussed only when the development of the critetia has reached a stage when a notable level of integration of the criteria has occurred. PERFORMANCE INDICATORS The Performance Indicator chapter identifies measures which can be used to evaluate the quality of the activities of the labor relation processes. Perfortnance measurement in this perfrnmance audit means the regular collection of specific information about the effectiveness, quality, and efficiency of services and programs 3 The suggested indicators will enable organizations to evaluate whether the labor and financial resources expended oa an activity aze used efficiently, Performattce measures should also be used to determine whether services or programs have the intended effect and result in a quality outcome. Indicatots can be based on information obtained from written records, observations by specially trained staff or surveys from customers. This performance audit will suggest performance indicators for participants and particulaz functions in the processes. However, the audit will not perform the actuai measurements. Tkte Urban Institute (1980). Performance Measurement: A Guidefor Cocal Elected Officia[s. Waslilngtoa D.C.: The Urban Institute, p. 1. 7999 Soint Pnu/ Ciry Covncil Re.search Performance Audit ofthe City of Saint Yau1's Labor Relariosvs Activities ti qq,$�D OFFICE OF LABOR RELATIONS This section of the performance audit will examine the intemal operations of the Office of Labor Relations (OLR). Intemal operations include such functions as OLR work, staff assignments, training and development of OLR staff, leadership within the OLR, intemal planning, and data collection and analysis activities. The OLR section will examine, through an organizarional quality assessment, the eaRent to which the intemal operarions of the office aze efficient and effective. Where OLR operations are found to be inefficient or ineffective, recommendations will be made to correct these deficiencies. The Offtce of Labor Relations is the City of Saint PauPs designated representative for all labor relations activities. As the City's representative, the OLR negotiates the terms and conditions of employment with unions that represent the City's employees. It also represents the City in many of the grievance hearings grieved through procedures estab]ished by collective bazgaining contracts The Office of Labor Relations was created in the City Code as a special office of the administration. The OLR consists, at the moment, of five positions. Their titles and duties aze listed below. Director of the Office of Labor Relarions — The director serves as the City's exclusive representative in all labor relations activiUes, manages the labor relations work for the City, serves as a spokesperson in the collective bargaining process and oversees the administration of the Office of Labor Relations. Human Resources Specialist — This employee investigates and develops cases relating to union contract grievances, provides grievance case ana]ysis and recommendations, and represents the City in grievance meetings with union and management representatives. Researeh Analyst — This employee collects and analyzes labor relations data, information and policies, and makes recommendations regazding the City's labor relations aetivities for the OLR. Clerk IV — This employee performs skilled clerical support services which include scheduling and organizing the work of the OLR and produces documents for the OLR. A fifth posirion exists which has remained vacant since October 15, 1998. This position was classified as a Labor Relations Specialist but has now been upgraded to the level of Labor Relafions Manager. This position was, and will continue to be at its new level, responsible for negoriating some contracts. It should also be noted the Office of Labor Relations Director, who was in place during this audit, resigned on May I I, 1999. As of the publication date of this report, no interim or permanent replacement has been appointed. 4 The City Attomey's Office represents the City in all disciplinary grievances grieved through the contract. The Office of Human Resources represents the City in gievances filed through the Civil Service system. 1999 Saint Poul City Counci! Research �z Perfotmance Audit ofihe City of Saint Paul's Labor R A ct i v iti es LABOR RELATIONS ORGANIZATIONAL CHART 99 �/�� Relations Clerk N Mayor Relations Resources Research Analys! 1 PLANNING Summary Rating � KEY PLANNING CONCEPTS; � Set Strategic Direction o Develop Action Pians o tv� work w�cn ri� The development and implementation of plans which anticipate changes in an organization's environment aze crucial for a quality organization to develop a strong future orientation and an ability to fulfill long-term commifinents and goals. Set Strategic Direction Witttin the last frve yeazs one long-temi plan has been developed. A written, strategic plan was developed in 1994 by the Mayor's Chief of Staff, the City's Budget Director, the City Attomey and the Office of Labor Relations Director. The plan included the AdminisVation's goais for the City's external labor relations functions and the internal operations of the Office of Labor Relations. In 1996, this plan was updated by the OLR director. Neither department and agency heads nor the OLR staff, with the exception of one senior OLR pmfessional employee, were involved in the development or revision of the office's intemal operations segment of the long-term planning effort. One explanation provided by the OLR Director as to why OLR staff were not involved in long-term pianning was staff 7999 Saint Paul Ciry Cowcil Research PerEormance Audit of the City of Sa'urt Paut's iabor Reialions Ac[ivities 73 tumover and inexperience. Only one member of the OLR staff reported knowing of the �f �, � G/ � e�stence of the long-tecm plans. � There is a prevalent belief among staff that long-term planning is not possible in the dynamic environment in which the Office of Labor Relations operates. In addition, it was suggested long-tecm planning was limited by the lack of Imowledge about the size of the City's budget for the long-term. These explanations, however, do not appear to be reasonable given that planning should anticipate a diverse array of changes in the organization's environment. The fact that an organization's environment is dynamic and its fuhue resources ue unknown does not excuse the need for ]ona term planning. Moreover, organizations for which much of the future is unknown would particulazly benefit from planning activities. Action Plans The Office of Labor Relations regularly makes unwritten short-term plans. Most of these plans aze created in a circumstantial and reactive manner. The short-temi plans aze made in response to the Mayor's labor relations goals, the budget process and upcoming contract negotiations. In addition, both written and unwritten planning calenders aze created for specific negotiations. Staff inembers, however, report the OLR Director does not frequently engage staff in planning efforts. Most plans aze developed by the OLR Director, the City's Financial Services Director and the Mayor's Office. Furthermore, these plans aze not regulazly updated or revised. The OLR staff repor[ed they are often unawaze of the content of specific plans. Short-term plans known to staff aze reported to be implemented frequently. Plans regazding attempts to reduce the future liability of re6ree health care insurance costs and plans for upcoming negotiations were reported to have been successful. Many of the Office of Labor Relations short-teim planning efforts aze not consistent with the characteristics of a quality organization. Short-term plans aze reactive and aze, at most, a year in duration. T'here is no evidence that plans aze made to anticipate changes in the environment; i.e. changing demographics, evolving requirements, and shifting customer and community expectations. Rather, plans appeaz to be made as a result of such changes. Align Work with Alans The Office of Labor Relations Director is the primary person responsible for monitoring both long-term and shor[-term plans. The Duector of Financial Services and the Mayor's Chief of Staff also monitor the implementa6on of plans. The OLR staff, with one exceQtion, stated they are never involved in overseeing plans. This is not surprising considering the OLR staff are unawaze of the existence of plans and do not participate in their development. The Director believes the disconnect between planning activities and staff is the result of their lack of experience and tenure. For the purpose of this gerformance audit, formal evaluation is defined as a systematic, data- based inquiry which pmvides leaders with information to assist them in the decision-making process. Evaluation is important in the planning process because it enables leaders to determine whether existing plans have their intended effect. In addition, evaluation results provide data which inform fuhue planning efforts. No formal evaluation occurs in the QLR regarding the internal operations of the office, customer satisfaction or whether the OLR is achieving its desired goals. 1999 Sarnt Paul Ciry Cour+cil Reseorch ia of Sain[ Paui's i�bor Relalions Acfivities 99-g/� � Reeom�nendation #1: T7re OLR should create regular, wrinen long- and short-term plcros. Plans shoutd rrot only focus on the contract negotiation and grievance adminisbation pracess but also on how to make the internal operatiorrs of the OLR as e�cient and effective as possible. Planning e�'nrts should include the entire sinfj° Serious and continuing e,[j`orts must be made to ensure employees fully understand all plans and are regularly remiruled of how they can contribute to !he achievement of these plans. The OLR director should require stafj,' with the exception of interns and other terr�pormy employees, to monitor the implementation of all plans. �21 no time should plarrs be kept secret from staff because they are deemed to be too "sensirive" or "important. " Recommendation #2: The OLR occasionally implements new work processes or systems to improve its inteneal operation cmd the City s labor relatiorrs activities. The OLR should systematically evaluate new work processes or systems in order to determine whether plans have been successful. Information from evaluafiotts should be used to direct future planning efJ'orts. LEADERSHIP Summary Rating: � KEY LEADERSH(P CONCEPTS: � Mission 4 Vision � Values o Communication In high-quality organizations, senior leaders set direction, create cvstomer orientation, establish clear values and have high expectations. Leaders must detnonstrate a lugh-level of personal commitrnent and involvement in creating strategies, systems and methods which guide all activities and decisions of the organizarion. Communication is an important aspect of efT�ective leadership, Effective communication must include the ongoing demonsUation that values, direckions and eacpectations are the basis for the organization's key directions and actions. In addition, senior leaders need to commit to the development, pazticipation and creativity of their entire staff. OLR staff state the D'uector only rarely or occasionally provides a cleaz ard comprehensive vision of the fubue for the organization. The OLR director aclmowledged that a vision which reflects �ganizational values and goals has not baen articulated regulazly. Occasionally staff are informed at weekly staff meetings about certain objectives. ParCicularly conceming is that some staff members questioned whether it was even possible, given the dynamic and sometimes chaotic nature of labor relations activities, to provide a clear organi7ational vision for the OLR. Whi1e it is important for leaders in any organization to provide a clear vision, it is patkiculazly important to fiunish a clear vision for new staff who lack experience, as is the case in tiie OLR The OLR Director has made a more concentrated efforf to provide city department heads with updates regazding her vision for the OLR Updates take place at the Directors and Office Directors meerings. However, similaz discussions are not conducted with OLR staff. The Mayor is idenrified by both the staff and the OLR Director as the prunary source for a future vision of the OLR. The Dircctor believes the creation of a vision is the responsibility of the Mayor and it is her job to implement the vision. The OLR Director meets with the Mayor once every two to three weeks to discuss labor relations activities. This deferential appmach is not sufficient if the OLR is to become a high-quality organization. While the 1999 SairttPaul Cny Coumcil Res�earc)� Pafo+mance Audit oflfie CSIy of Stint PaW's Iabor Itelations Activities 15 �` Mayor is clearly invested in the work of the OLR, the OLR Direc.�tor oversees the daily a"{'� U operations of the office and, therefore, must convey the Mayor's vision to the staft: The Dinector should also communicate her own vision which cleady outlines how she expec.�ts the Mayor's ideas to be implemented. Aowever, when staff were asked, they staYed they were imaware of the specifics of the Mayor's vision for the Office_ Tfiere is a significant lack of commimication regazding the intemal operations of the Of�ce of Labor Relations. Staff report it is difficult to get fcedback from the OLR Dir�tor at times other than regulaz staff meetings. In a short-lived and hapha�ardly imptemented effort to provide a regulaz forum for communication, the Director set aside a block of one or two hours daily for staff questions. This umovation lasted for several months unril it was discontinued once a new mund of negotiations began. In addition, staff are not toid about the content of most of the OLR's plans, nor are they told about ttte Mayor's goals and objectives for the Office. One staff member was of the opinion there were some issues which were inappropriaYe for OLR stafF to know about conceming the direc.-tion of the OLR It is hard to imagine such a situation eacisring if the OLR Direetor had tcvst and confidence in the sfaff. One explanation given by the Director for the dearth of communication within the OLR is the stal�s relative ineacperience. However, staff inexperience is not sufficient justification for keeping them ill-informed For the organization to meet its goals, staff must beinformed aboutthe Director'sthe values and expectations. Becognizing staff contribtrtions is another mechanism for communicating organizational values and expectations. Staff contributions in the OLR aze recognized through informal mechanisms such as verbal recognition at staff meetings and through the annual individual performance evaluations. Staff reported an excellent environment was maintained in the Office of Labor Relations for women and other protected classes of employees. No discemable evidence of discrimination was reported. The OLR director, staff noted, is very committed to creaYing a fair organization for everyone and strongly values diversity in the workplace. Recommendation #3: The director should develop as+d articulate a clear vision of the future and enlist OLR staff to make this vision a reality. The director needs to create opportuniHes to express this vision to staff on a regular basis. Likewise, the director must develop an ongoing process for errsuring employees fully understand how they can individually or collectively participate in making this vision a reality. A part of this i�rvolves greater personal recognition of the contributions of staff who are advancing the vision, including formal acknowledgments. Recominendation #4: The impanance the OLR director places on the Mayor's goals and objectives for the City's tabor relatiorts activities demands they be fully communicated ro OLR staff on a regular basis. These goals cmd objectives should be explicitly incorporated into the Office's short- arrd long-term plarrs. Recommendatinn #S: The OLR director should improve internal communication and take steps to keep staff well-informed. Maintaining a veil ofsecrecy to shield stafjfrnm the important arrd sensitive issues will only continue the impression that staff are not trustecl. There may 8e irrstances when communication is not appropriate, for i»stance if the information communicated is of a highly sensitive nature and is not relevant to the duties of staff. However, our interviews suggest communications have been withheld when this was not the case. This perception has created a situation in which staff do not feel empowered to do their jobs. 1999 Soint Pou1 City CouncilRerearch 16 petformance Audit oFthe Ciry of Saint Pau]'s LaborRe�lions AcKivifies TRAINING � DEVELOPMENT Summary Rating: � KEY TRAINING 8� DEVELOPMENT CONCEPTS: � Job Design 99 8�8 o Recognition � Education & Training Employee Well-Being Employees in successful organizations are provided the tools they need to produce quality services. These same employees aze given encouragement and the resources to develop skills that allow them to contribute effectively to the organization. Successful orgaztizations also tink training and development to the organization's goals and priorities. There aze several key organizational factors that should make training and development functions of particulaz importance to the Office of Labor Relations. The cuaent staff, with the exception of the Director, has had a brief tenure with the OLR. Cunently, the longest serving staff inember is the Clerk Typist IV, who has been with the Office for less than three years. One professional employee has been with the organization for a year and half and the other for less than eight months. In addition, the two professional staff members do not have prior professional eacperience working with public sector labor relations. Inexperience creates acute problems in labor relations enduonment because, as the OLR Direc:tor reports, capabte labor relations professionats mainly leam their cratt through on-the-job experience. The Director reports it is a profession-wide norm for labor relations professionals to have at least seven yeats of expetience prior to becotIIillg cluef negotiators. Moreover, as noted in ihe intraduction, this is a very small staf� with a total of fow employees, that must operate in a compleac and sttessful work environment. The challenges faced by an orgaoization tlus size have been magnified by a professional staff vacancy that has remained unfilled for the last nine mornhs. The Office has also experienced a significant level of staff tumover which has lead to the loss of institutional Imowledge and experience. Job Design There is agreement between the OLR Director and staff that opportunities aze created for only some employees to contribute to decisions made about the operations and procedures used in the Office. T1te clerical staff member reported she has contributed to decisions made about procedutes used for the contract implementation process and other administrative prceesses. Professional staff have had less chance to contribute to decisions made about the Office's labor relations functiona No specific process exists for staff to contribute to important decisions. The OLR director will request their input, on occasion, in staff meetings. However, professional staff report the D'uector does not regulazly engage them in flus type of activiTy and it is often very difficult to bring forvvud ideas and suggestions. One staff member believed they were not consulted on a regulaz basis about action pians or strategies because the Director didn't consider them to be peers. The Director more or ]ess confirmed tlus view by explaining that pzofessional staff were not consulted on certain issues because they lacked necessary experience. Not surprisingly, one of the pmfessional employees felt little opportunity eacisted to contribute meaningfiilly to the organization's goals. Office of Labor Relations employees aze evaluated formally once a year during their annual performance review. The Dir�tor conducts more frequent perFormance reviews of new employees. Staff report no formal, systematic review of specific work products. However, informal feedback through coaching is given on a regulaz basis. One area for concetn is that 1999 Samt Pau! Ciry Counci! Research PerFormance Audit ofihe Giy of Saint Paul's Labor Itelstions Acfivities 17 evaluation methods are frequently changed with no explanation to staff. Staff report being �� v� confusecl and nervous about the criteria an wtrich they are to be judged. Despite the lugh demands of the wark load and the identified inexperience of the OLR statF, there appears to be only limited uTilization of other staff in the City govemment that may be able to ameliorate some of the work load problems facing the OLR The OLR imder the current Administration has made less use of professional staff from the City Attomey's Office and the Risk Management Division than in the past. These offices, in recent yeazs, have lost staff with significant labor relazions experience. However, little attempt has been made to cultivate relationslups with current staff who might be able to assist with the City's labor relaYions activities. Employee Well-Being Since maintaining a positive work environment that is conducive to the well-being and gowth of all employces is seen as the foundation for improved work perFormance, this issue was investigated in our interviews. OLR staff reported that a fair or poor work environment was mainGVned. Interestingly, staff members in general reported a more positive view of the environment than the Director, who reported the work environment to be a poor one. All OLR interviewees reported being overworked and that the environment is stressful and hectia The Director identified the overwhelming work load and the staff's inexperience as the primary reasons for her negative assessment of the office environment. Education and Training The OLR does not make significant use of t�aining opportunities for staff. Staff state they are encouraged by the Director to take advantage of such opportunities but these have been limited by time and budgetary consuaints. Professional staff reported attending the Minnesota Public Employee Labor Relations Association annual conference. Both employees e�cpressed iY was an excellent experience and wished for similaz oppor[unities in the furiue. Qne professional employee also reported attending a seminaz about work-place wnduct invesrigation at the University of Minnesota. The OLR Director identified computer training as an area that needed specific attention. However, staff reported no participation i� any computer haining. Given the Office of I.abor Relations Director's concems about staff inexperience and the impact this has on their ability m particigate fully in Yhe work of the organization, one would expect strong support for training and development activities. The Director cites budget constraints as the primary reasan for not making greater use of these opportunities. Staff members stated the I?irector would support more training if the OLR had greater resources. One employee also stated that low utilization of training and development activiries was not the fault of the Director but was endemic to City govemment. The OLR Director supports participarion in professional organizations for staff through office memberships in the Minnesota Public Employers AssociaYion and the National Public Employers Association. The Office is unable to support individual memberships in r�ent years because of budget cuts. The majority of staff were unaware of the office's membership in these organizatians and indicated the subject of individual memberships has never been discussed. I999 SairAPaut City Cotmcil Resem'ch 18 Performance Audit of ihe City of Saint Paul's Labor Relations Acfivities Recommendation #6: The OLR Director should provide a forum and time by which sta,�j"can contribute to decisions made about the organization, such as specific times set aside in stafj" meeting, suggestion box, etc. 99-�'�D Recom�nendation #7: The OLR Director should provide fina»cial support for participation in training and development activities. The director should also clearly inform staff about the �ce's membership in several professional organizations and urge staff to take full advantage of these memberships. In addition, incentives to participate in training and development activities, such as positive marks on performance evaluations ar formal recognition should be used. Recommendation #8: The OLR should cultivate relationshiPs with other organizatians that may have the expertise to assut the organuation in its worl� To lhis end, the OLR should create a City-wide labor relations work team which would be composed of representatives from the City Attorney s Office, the Risk Management Division, the Financial Services O,�Sce, 1he O, ffice of Human Resources and others. Such a task force would coordinate the City acrivities in the Labor fte[atiotts process and re-establish relationships which have been neglected. Recommendation #9: The OLR Director should promptly alert staff when methods for perf'ormance evaluation are changed. The new methods should be ezplained clemly and well in advance of the employee's annual performance review. INFORMATION AND ANALYSIS Summary Rating: �r� KEY INFORMATION & ANALYSIS CONCEPTS: o Collection of Data � Use of Data o Analysis of Data Information gathering and analysis are vital fimctions for I a Comparison with Others � any organization. Quality organizations should collect _ _ _ _ _ _ _ _ _ _ _ _ data on customers, service performance, operations, suppliers, emptoyees and costs. Organizations should concenRate on coltecting and using data that relate to their goals and plans. Data collected should be analyzed and used to make improvements. Information is essential in monitoring performance against measurable goals and it should play a key role in the decision-making process. Collection of Data The Office of Labor Relations oollects a sizable aznount of data from the contract negotiation and grievance adtninistration processes. Indeed, labor relaiions is a field in which data plays a vitai roie. The data available often determine whether negoriation items or gtievances aze won. The OLR Director should be credited with making data wllection a high prioriry. 1n the past, this has not been an azea in which the Office performed adequately. Data cotlected in the contract negoriation process includes information about comparable wages and benefits in other jurisdictions, calculations of future wages and benefit cosu, histories of pay-rate increases, rates of sick Ieave use, and specific contract language which is identified as obsolete, aznong other items. Data is collected in anticipation of upcoming 1999 Saint Paul City Comrcil R¢snvrclt Perfoimance Audit of the City of Saint Pwl's Labor Relations Activities 19 ��{� � V contracts and during negotiations. Staff state they will attempt to obiain any daYa that can be� measured for an issue which they know is or will be contested. This information is usua]ly used only for the duration of the contract cycle. Some daTa is collected on issues that are ongoing concems such as retiree health care benefiu. Data collection for grievance administration is even more well-developed. Over the last year and a half the OLR has implemented a computerized grievance database. The database stores information regazding the number of grievances outstanding, the types of grievances submitted, how the grievances aze resolved, the level in the process at which resolution takes place, the numher of grievances by department and bazgaining unit, and the amount of time taken to resolve the gcievance. If the gtievance has gone to arbitration, the OLR collects information about the results and arbitrator information, such as previous decisions and biases. The Office of Labor Relations has �perienced difficulties integtating and accessing data from other information services (IS) systems in the City. Over the last year professional staff have sought, but have not gained, access to the Office of Human Resowces's HUMMERS database. HUMMERS contains daca and pre-arranged reports containing employee information which would great]y assist the OLR in pteparing for negoria6ons and grievance hearings. In addition, staff have sought training on how to customize reports from the HUMMERS system but this has not been forthcoming. Staff also report IS support services have traditionally been weak but have recently improved. Anatysis and Use of Data As noted above, data is collected and used on a regulaz basis for the OLR's activiries. Analysis, although it occurs, is done less frequently. Analyses of grievance activity is often done and pzesented to department heads and managers. Basic analyses of contract negotiation outcomes are done through comparisons with other jurisdictions. More, however, could be done in both areas. Comprehensive analysis of grievance data for grievance prevention putposes would be very useful. Analysis of data also appears to be lilndered by the IS system integration difficulties the OLR has experienced. For instance, full implementation of the costing model would allow for a more comprehensive budgetary analysis of newly negotiated contracts. Comparison with Others The OLR regularly compares results data from the contract negotiation and administration process with similaz govemmental units. For a further discussion of these comparisons please see the Results section of tiris chapter. No data comparisons are made by the OLR regazding human resources, customer service or intemal budget and operations. The OLR has developed a solid foundation fot future efforts to collect and analyze data. Fur[her efforts need to be taken to analyze data and to ensure IS systems aze accessible to OLR staff for the Information and Analysis eriteria to be fully integrated within the organizarion. 5 HC7MMERS is a concocted expressiou which stands for Human Resources. 1999 Saint Pou! Ciry Councr! Research 20 Pertoimance Audit oftbe City of Saint Paul's Labor Relations Asliviries Recommendalion #10: The OLR Director should immediately request that OLR �q g�0� professional stg�°receive complele access So HpM�Lf�RS system. The O�ce of Human Resources should act posthaste to see this is done. The OLR Director should also ensure that professional staff receive necessary training to operate the HUMMERS system attd are capable of creating customized reports. Recommendation #11: The OLR should conduct and integrate more complex analyses of labor relations data inlo its labor relations activities. Because the OLR's success is of}en determine by the use and analysis of data, this activity is of paramount importance. Moreover, the tremendous amount of data that results from the Ciry's labor relations activiries provides for a rich opportuniry for analysis. The OLR director should provide additional training to sta}j, if necessrny, to accomplish this recommendation. See also Recommendation #25, page 37 on contracl costing. PROCESSES FOR IMPROVEMENT Summary Rating: �� KEY PROCESSES FOR IMPROVEMENT CONCEPTS o Improving Services o Impmving Support Services � Impmving Supplier Services Processes for improvement includes the design, management and improvement of intemal organizational prceesses. Improvement pmcesses shoutd be part of the daily wotk within tfie arganization. They should seek to eliminate problems at theu source aud be driven by opportunities to improve. Improving Services In general, the Office of Labor Relations employs reactionary methods for improving practices. While the Office should be given credit for making improvements in particulaz problem areas, most efforts undeRaken have been circumstantial and ad hoc. The OLR I3irector approaches making improvements from a coping mode rather than a pro-active, managing mode. Staff reported that practices fi�equendy changed reactively when they or the Director realize current practices are not working. Acc;ording to sta� this type of activiry occurs hvo ot three times a yeat. The OLR Director states work assignments are reviewed for improvement at three to s'vc month intervals. Sta� however, state work assigunents are rarely, if ever, reviewed and there is no formal mechanism by which this activity can occur. When the subject is brought up, it occurs at staff meetings and the discussion is usuaily regazding specific projects, not about ongoing'or peimanent adjustments in work assig�uneczts. One statF member said changing work assignments was very difficult because the positions in the OLR are very distinct� Tlvs difference in perception is very conceming. Improving Supplier Services Vendors and oontractocs are rarely reviewed Labor telations consultants are the primary form of contractor employed by the OLR. A consultant was most recexrtly contracted for the period of hme 1, 1998 to January 1, 1999 to negoriate contracts. Another consultant was 1999 S¢iwt Pau'City Coaxil Resemich P�frnmaece Audit oflhe Criy of Saint Pwl's Iabar Relztions Activities 21 � hited in 19941995 to work on the merger of the City and County public health agencies. ��'" � The OLR Director is solely responsible for evaluating consultants. Tiaditionally, tUis has been done on a regulaz, yet informal, basis. Staff reported the most recent consultant received a gmat deal of feedback from the Director regacding his performance. Over the coutse of the consultanYs contract period the OLR Director iniriated a formal evatuation process ofhis work. Other vendors the OLR uses, such as copier and office supply companies, are shared with and contrac[ed by the Office of Human Resources. While these vendo� appear to meet the nceds of the OLR, the Office provides little or no feedback to Human Resoutces about the perfannance of these vendots. Past Efforts to Improve Practices The Office of Labor Relations and its director should be credited with undertaking a number of efforts to improve practices which have been problemaric in the past. ❑ The OLR has reviewed and restructured the intemal system for processing grievances. This endeavor was the result of problems experienced with the City not processing grievances in a timely manner. ❑ The OLR has attempted to begin to coilect data abouY grievancES in a grievance-tracking database. The analysis detived from the data assists the Office in identifying problem areas that could be impmved ❑ The OLR is working with the Financial Services Office to streamline the contract implementation process by creating a consistent process by which a contract is implemented. ❑ The OLR also created a data base to identify what they described as "old or obsolete" contract language and has worked with the Financiat Services Office to create a conuact costing model which could be used by both offices. 0 The OLR developed a staff manual for adjusting on building trade union wage rates and benefits. ❑ The OLR augmented the record system to ensure appropriate historic information would be available for future negotiations. While si�ificant attemgts have been made to nnprove organizational practices, improvements have been idendfied tUrough informal means. In addition, follow-tluough and the initial completion of these projects is a substanrial problem. The e�cistence and import of the �ievanc�tracldng system has not been communicated to the OLR's stakeholders; despite the fact the OLR has an explicit budget objeetive calling for this. Also, the contract language data base and costing models have not been developed to the point where they aze useful to staff. While undeRaking improvements is admirable, impmvements must be implemented and integrated into the organiaation for them to be effective. Recnmmendation #IZ: The OLR shauld create processes by which improvements can be made and reviewed. These processes should be used regulardy to examine work assignmenrs, evaluate vendors and identify other areas of the OLR internal operations which may be improved. Regutar stafjmeetings would be an excellent forum for this activity. Moreover, 7499 S¢int Paul Ciry Cavncil Re.searcfi � Pafotm�ce Audit ofthe Ciry of Saint Paul's Iabor [telations Aclivities stq�'should be empawered to take a leadership role in overseeing mcmy of these � d � � improvement processes, p Reeommendation #13: The OLR should work with the Human Resources Division to provide feedback on mutual ve�rdors. Recommendatio» #14: The OLR should make a greater effort to follow-through with improvement practices undertaken and communicate these improvements to appropriate sYakeholders who would benefit from such information. A City-wide labor relaiions committee would be excellent vem�e for communicating these activities. CUSTOMER FOCUS Summary Rating: � Attention to customer needs is crucial for otgaztizations to �� achieve excellence. Thmugh the creation attd managecnent of relatianships with their customers, organi�ations which excel in customer satisfaction obtain information on customer service requirements, eas�ectatipns and satisfaction. Knowing the requirements of its customets enables an otganization to develop standards which aze designed to enhance customer satisfaction. For these standards to be effective, they must be undersYood by everyone in the organization. KEY CUSTOMER FOCUS CONCEPTS: � �stomer ldenrification � cuscomer Know�edge � Customer Relations Castomer ldentificadon In order to design standards which enhance customer satisfaction, an organi�ation must clearly identify its customers. Once customets are identified, the organization must determine their needs and satisfaction. Unfo�ately, consensus does not exist in the Office of I.abor Relations about who their customers are. When asked to identify their customers, staff were consistent in identifying the Mayor, City Council and department heads. There was not consensus on whether citizens, union representatives or ciry employees were aiso customers. One staffmember stated during his tenute there has neva been a discussion of who were the OLR's customers, This is problematic, since cleatly identifying customers is a necessary steg� for determining customer needs and satisfaction. If an organiration has multiple definitions of their customer group, it is difficult to consistently meet all customer needs. From the interview responses it is cleaz the OLR Director and staff recognize the Mayor as tlteir primary customet As noted above, the Mayor is perceived by OLR stat£ as setting the vision and strategy for the organization. In addition, given the effect labor relations activities have on goods and services delivered by the City and the import of these ac[ivities on the budgetary process, it is not surprising that OLR staff would idenUfy the Mayor as the primary customer. What is remazkable, however, is the magnitude by which the Mayor's needs and eacpectations are held in much higher esteem by OLR when compared to the needs and expectations of other customers, such as the City Council or department heads. This is obvious when examining the extent to which ihe Mayor's needs and saYisfaction are monitored compared to the other customers. 7999 Sairrt PouJ Ciry Cmmci! ResemcPr Perfolmance Audit of the City of Saint Paul's Labor Relations Activibes Customer Knowledge � q°'�� With the exceprion of the Mayor, the OLR makes no systematic attempt to monitor the needs and e�cpec.�tations of its customers. The OLR IIirector meeu with the Mayor once every hvo- three weeks. At these meetings, the IJirector provides the Mayor with updates on the labor relations activities and the Mayor provides fcedback to the Direc[or about the OLR's work. The OLR Duector does not communicate this fcedback to staff. Despite not being fiilly awaze of the Mayor's customer requirements, the Office of Labor Relations staff report a high-level of responsiveness to the Mayor's needs and expectations. Out research indicates, despite this inconsistency, the OLR has maintained a well-developed level of customer focus in its relationslup with the Mayor. Monitoring the needs and expectaYions of depar[ment heads, management-level staff and the City Council is less developed. The Office of Labor Relations will meet with these parties if specific problems occur or if they request meerings. With the exception of a reported periodic survey of department and office directors, the OLR does not systematically seek out these parties for fcedback on services provided by the organization. Nor does the OLR director provide regulaz updates to these parties on labor relations activities. This situation indicates a disconnect between the customers identified and the customers monitored. The OLR Director is the organization's only staff person to monitor customer needs and expectations. Staff are not given the opportunity to monitor customer needs and e�cpectations. It is not surprising they demonstrate little resgonsibility or ownership of the organization's customer focus functions. This situation is emblematic of a more general pmblem, identified throughout this report, of staff not being involved in decisions or activities which are of vital importance in creating a quality organization Customer Relations Formal standatds assist organizations in communicating the values and expectations of organizations. No written or formal customer service standards exist within the OLR. Staff report success in meeting its customers' significant needs; i.e. negotiating contraets beneficial to the City. However, they are less succ�ssful meeting less significant customer needs; i.e. retuming phone calls in a timely manner. Having customer service guidelines for some of these low-level tasks may assist the OLR in meeting these needs. However, stafF do abide by unwritten professional standards or ethics. These standards typically have to do with treating customers, City employees and representatives from bazgaining units with respect and fauness. Staff also identified the OLR has problems managing customers expectations. Very often customers put pressure on the Office to produce results that aze unreasonable or, even, illegal. OLR staff believe these unrealisric elcpectations elcist because of a lack of understanding on the part of the Mayor's Office, department heads and managers about what can be achieved through the negoriaYion and grievance processes. This lack of understanding by key customers may also result from the lack of communication between eustomers and the OLR. The OLR has idenrified this as a problem azea, especially in the contract administration process, and intends to create a teaining program for managers. With the exception of monitoring the Mayor's needs and expectations, there is very little evidence this function has been integrated throughout the entire organization. The Mayor's customer requirements, while monitored, are not regulazly communicated to OLR staff. Therefore, we cannot say these requirements have been fully integrated into the organization. 1999 SoiM Paul Ciry CouncAResemch Z PerFotmmce Audit of ihe City oFSaiM Paul's labpr Relations Activifies Recnmmendation #1 S: In order for customers to have a realistic understanding of the services that are provided by the OLR, rhe OfJ"zce should undertake a broad effort 10 educate its customer-base about all aspects of public Iabor relations, especially grievance processing. CiCI - �� Zj Recommendation #16: The OLR should create customer service guidelines for activiNes in which its sta,/J'have contact with customers. 77rese guidelines should include expectations such as the number of hours in which a phone call should be reherned and protocols regca�ding how to handle frequently asked questions or requests. Recommendatiox #1 �• The OLR should collect and analyze customer informarion on other custnmers it identifies beyond the Mayor. .4 system should be created by which all OLR customers can be monitored on a regular baris. In order for staff to have a good understanding of customer information, this efjort should encourage all s1a,�'to monitor cusiomer expectations attd needs. If customer information is gathered and monitored by the director, there should be a clear communication to sta,�"of key non-confulential fzndings. RESULTS Summary Rating: ��r Successful organizations lmow how well they perform. The measurement of results is a common KEY RESUtTS CONGEPTS: o Customer Satisfaction o Financial Outcomes ° SupPlier Performance � Organization Oufcomes way for an organization to evaluate its perFormance, efficiency and effectiveness. Organizations should track their performance over rime and compaze their results with other organizations. Finauciat Outcomes Labor relations activity is, by its very nature, results-oriented work. Par[ies involved in labor relations processes continuously focus on ihe outcomes of negotiations and grievances. Unions and management, alike, have an inclination to compare resvlts with the past and with similaz organi7ations. The Office of Labor Relations is no different in having this resuhs-focus predisposition. However, the OLR's focus on results is almost entirely on the outcomes from the comract negotiation and grievance administration process, :ather than its own intemal operarions. The OLR &equently coilects results regatding outcomes of specific contract negotiations. The results exan�ined include the percentage increase in pay and benefits &om the previous contract, the totai financial cost of the contract, changes in sick leave and vacation hours provided, specific language changes in contracts and arbiUation settlements. Comparisons of these results are made wiffi previous contracts or with comparable govemmecttat units. The OLR has a set of five governments in the state of Minnesota with which it compates the conhac;ts of the City's non-pubiic safety woricforce. The group consists of the State of Minnesota, the City of Minneapolis, Hennepin County, Ramsey County and the Metropolitan Council. These govemmental uaits were selected because they have similaz work forces and aze, along with the City of Saint Paul, among the lazgest 1999 Saint PaulCity Cowrcil Research Perfmmance Audit ofthe City af S�nt Paui's Labor Aelazions AcHvides 25 � govemmental units in the Minneapolis-Saint Paul metcopolitan uea The OLR also uses the"t� � something cailed the Vemon Model for comparisons. This model, developed by a professor of the same name from the University of Wisconsin, compares the contract resuits of Saint Paul's workforce to the 15 ciries which aze ranked'unmediately above Saint Paul in population and the 15 cities ranked immediately below Saint Paul. The data for the City's puhlic safety workforce is compazed to Cities in the Northem United States. T'his was done because of the lack of a comparable public safety worl�orce aznong all but one of the governmental units used for comparisons for the non-pubiic safety workforce. Percent of pay increase, total cost of the contract, sick leave, vacation hours and the comparison of pay scales for specific job classifications aze the primary measurements compazed with other governmental units. It should be noted that the data for results compazed are not hacked over time and the reliability and validiry of the indicators used are not reviewed on a regulaz basis. The OLR also collects a significant amount of information about results associated with the gievance process. They include information regazding how each grievance is resolved and at what leve] in the process, the number of grievances by department and bazgaining unit, and the amount of time taken to resolve the grievance. If the grievance has gone to arbitration, the OLR collects infotmation about the results and tracks who was the azbitrator. Results aze not collected for the contract implementation process. Customer SatisFartion Despite this orientation to collect results, the OLR makes no similaz effort to collect information about the outcomes of its internal operations. Collecting data on customet sa6sfaction results, such as surveying department heads about contract administration services provided, would be valuabie information for the organization. Collecting customer satisfact3on results would also assist the OLR staff in evaluating how to best serve their customers and provide it with information on its performance. Organizational Outcomes The OLR does not collect human resources results, such as measuting employee satisfaction or absenteeism. Collecting such results may help explain the high-level of tumover the OLR has experienced and may provide some helpfiil information on how to address the "unacceptable levels of stress" reported by OLR staff. The OLR Director and staff report the organizarion has achieved most of its desired goals. While the organization appears, upon casual observation, to perform many of its basic functions well with limited resowces, it is difficult to state conclusively that desired goals aze aclueved efficienfly without systematically measuring the resuks of the OLR's intemal operations. The OLR has done a good job integrating results from the contract negotiation process, and to a lesser extent those from the grievance administrarion process, into the regulaz work of the organization. However, there may be other performance indicatars the OLR is not using to evaluate these processes, such as measuring the timeliness of the negotiaUon process and emgloyee sarisfaction. These aze discussed in greater detail in the Performance Indicators Chapter of this audit. As noted above, the OLR has not developed measures for its intemal operations. Therefore, no integra6on of this aspect of the category can be said to have taken place. 7999 Saint Paul Ciry CovncrT Research � Perfocmance Audk ofthe Citv ofSaint Paul's Lalwr Reiaeons Activities Recommendation #18: The OLR should develop comparisonr for contract administration re,sults and attempt to form partnerships with other jurudictionr to 6enchmark these results. The OLR should utilize relarionships it has developed with other public employers to create these partnerships. l�C�_ g� Q Recommendation #19: The OLR should develop measurements for i�rternal organizational resalts. Customer needs and satisfaction shou2d be surveyed on a regular basis. The OLR Director should survey stajj'to identify areas for improvement in the OLR's work errvironmenr. The OLR d'uector shouid also measure outcomes that may serve as a good indicator of human resources and workload results. Recommendation #20: The OLR should review the relrability and validiry af the indicators used for the comparison of results. This will ensure indicators are memaingjul mrd consistent with what other jurisdictions are nsing. Comparisons should also be tracked over time for a more informed and complete analysis of whether the OLR's long-term goals are being accomplished. t 999 Saint Paul Ciry Council Rcsea.ch Perfamance Audit of We City o. Saint Pavl's Iabor Re�tions ActiviHes 2�� /�� CONTRACT NEGOTIATION PROCESS The Conhact Negotiation Process chapter of this report is divided 'urto two seations. The fust discusses relevant policies and the City's and bazgaining units' alignment with those policies. The second section provides a quality assessment of the contract negotiafion process. CONTRACT NEGOTIATION POLICY ALIGNMENT Contract Negotiation Policy Alignment will address the many state and local policies which pertain to the contract negotiation or collective bargaining process. The discussion is organized more or less chronologically as the collective bazgaining process occurs. First to be&scussed is representation of the interested par[ies in the process. Then the actual negotiation procedures are presented, including: greparation, the items negoriated and methods for conducting negotiations are presented. Finally, conhact preparation, ratificaYion and implementation aze discussed. Each section will present the relevant laws, ordinances, policies, Council Research findings and recommendations. REPRESENTATION There aze essentially two key parties involved in municipal govemrnent contract negotiation: the city and the bazgaining unit. The City is represented in negotiations by its Office of Lalwr Relations. The employees aze represented by their respective bargaining units, 27 in all. However, before this discussion begins, it should be noted that public sector collective bacgaining is recflgnized as having significandy more "interested parties" than the traditional private sector negotiation process. Most important is the role of local politics. Bazgaining units are reco�ized as lobbying orgazuzations and tndirionally play an active role in local elections. The contract ratification process for the City also introduces the City Council as an indirect partieipant. The citizenry and the media should be recognized as currently inactive, but potential participants in the process. The role of public perception can be very strong, not oniy in the negoriation process itself, but in the long-term relationship between the City workforce as a whole, and the citizenry it works for. Finally, although local govemment does engage the issue of financial solvency, its influence is not generally understood to be as powerful as the private sector's "bottom line." The roles of these less directly involved par[ies will be discussed throughout the section. 1999 Soint Paul Ciry Council Researcfi 28 Perfo+mance Audit of ihe Criy of Saint AaW's Labor Relalions Activilizs City Representation �/9-�/v0 City representation in the bazgaining process is perFormed mainIy by the Office of Lalwr Relations, However, there are a number of other key City departments and offices which should be mentioned. These participants are ouYlined below: ❑ Office of Labor Reladons is chiefly responsible for conducting negotiations for the CiTy. ❑ City Attorney's Office plays a key role in the provision of legal advice in negotiations, as well as in reviewing contracts prior to their submission Yo the City Counci] for ratification. ❑ Payroll function within Office of Financial Services implements wage changes from contracts and therefore should be consulted in contract negotiation. O Risk Management within the Technology and Management Services Department implemenu benefit changes &om contracfs and therefore shouid be consulted in contract negotiation. ❑ Budget Office within the Office of Financial Services partners wiYh the Office of Labor Relations in the preparation of contract cost projections. ❑ Mayor's Office pmvides political and poticy direction to the Office of I.abor Relations. ❑ City Counci! rarifies contracts and indirectly provides political and policy direcrion. 4 Departments provide advice to the Office of Labor ReIations prepazatory to negodations. Effective communication and understanding among these parties is essential to a coherent City negotiation strategy. Additionally, the roles of the various participants must not be blurred because the City's "management position" must be presented with clatity. Policies relating to each of these puticipants will be discussed throughout the Con4ract Negoriation Policy Alignment Chapter. Office of Labor Relations Office of Labor RelaRons Neeotiation Reoresentation Policies Ezecutive Respvrrsibility ['The] office of the tnayor shall: Make periodic teports to the city counci] on the status and progress of the colledive bargaining process. Saint Paul Administrative Code, Chapter 23: Collective Bargaining Process, Sec. 23.03. Unfair labor practices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees aze prohibited from restraining or coercing a public employer in the e[ection of representatives to be employed to meet and negohate or to adjust grievances. Minnesota Srare Srarure l79A: Public Employees Labor Relalions Act 179A.13. 1999 Saint Paul Ciry Cormcil Research Saint Paul's Labor Relatioas Acfivifies r1/11�1�gS � �� 1) The Office of the Mayor, through its delegate for collective bazgaining, the Office of Labor Relations, has provided some perialic reports to the City Council on the status and progress of the collective bazgaining process. However, these updates have tended to take the form of annual briefings of individual Counci]membets. The Council rarely holds closed sessions to discuss specific negotiations or grievances. Generally, the Council as-a-whole is rarely updated on collective bugaining. 2) There is no evidence to suggest collective bazgaining units have tried to influence the selection of the City's representative to meet and negotiate or adjust grievancss. Recommendation #ll: The Office ofLabor Relarions should undertake measures to consistently inform the City Council of the status and progress of the collective bargaining process. This report should include among other things the number of settlements, staff changes, time lines and settlement statistics. This could be in the form of a quarterZy report thai would be sent to customers and presented to the City Council by the Labor Relations Director at designated council meerings. Consultants The City, from time to time, lures consultants to assist in the contract negotiation process. The policies goveming these consultants tend to more closely mirror those relating to the hire of outside counsel than those pertaining to other types of consultants. This is likely because labor relations constiltants aze empoweted to negotiate agreements on behalf of the City, as is the case with outside counsel. Cousultants Policies Legislative Responsibility (2) Approve and ratify by resolution the selection of labor consultants to aid and assist in labor relations aetivities as determined by the executive branch of government. Sninr Pmd Adminisaa[ive Code, Chaprer 23: Coltective Bargaining Process, Sea 23.02 Executive Responsibiliry [The] office of the mayor shall: Select with the approval of the city council labor relations consultants to assist in the colSective bazgaining process when deemed necessary by the mayor to carry out the city's responsibili- ties in an efficient and competent manner. Saint Paut Admin,s�arive Code, Chaprer 23: CollectiveBargainingProcess, Sea 23.03. Supervision of consultants Labor relations consultants selected in accordance with section 23.03(1} herein and approved by the city council shall take direc:tion and be under the supervision of the office of the mayor. The specific duties and responsibilities of consultants shall be set forth in an agreement to be approved by teSOlUhOn Of thC city cAUncil. Saint Paul Administrative Code, Chapter 23: Collec[ive Bargaining Process, Sec. 23.05. Findings 1) Two labor relations consultants have been hired by the City in recent years. In both cases, there is no evidence the City Council was consulted prior to ihe wnsultants assuming 1999SamtPaul CdyCouncdResearch 30 PerFom�ance Audit of H�e negotiaiion responsibilities. However, in both cases, the Council ratified the �pfioin�inents prior to payment for services being made. Councii Reseazch believes this pattern is not consistent with the City's Administtative Code provisions. Given the weight accorded to the appointment of labor relations consultants, we view this to be a very problema6c situation. 2) The supervision of labor relafions consuitants has been conducted by the Office of Labor Relations on behalf of the Office of the Mayor. Recammendation #22: The Office ofLabor Relations and O�ce of the Mcryor should henceforth ensure that labor relations consultant appointments are approved by the City Council prior to their urrdertaking negotiation responsibilities. Risk Management Office Risk Managemeat Office Negotiarion Representation Policies Provide management and negotiating assistance in the bazgaining unit contcact piOCeSS. Risk and Employee Management Services Division: I998 Ongoing Budget Program Objectives Finding Risk Management provides a limited amount of ne$otiating assistance to the Office of Labor Relations. Assistance typically involves cost estimates for ftinge benefits, suggested contract ianguage changes for clarity and possible attematives to current proposals. According to interview comments on this policy, signi&cantty more assistance has been provided in the past. Collective Bargaining Units There aze 24 active colledive bargaining units in Saint Paul City govemment. Despite maay similarities, there aze distinct govemance struchires within each of these bazgaining units. All collective bargaining units elect officers, such as the president and vice president of the unit The eleded officers of the bargaining unit are often refernd to as the e-boazd (executive board). Some bargaining units have business agents/managers who provide advice or act on their behalf in negotiations and grievance settlement. There are several bargaining units with large enough membership bases to have stewazds disseminate and gather information. Finally, most bazgaining units have conhact negotiating teams wlrich are separate from their e-boazd, although there may be some duplication in their composition. One consultant referred to is Dennis Goldberg whose contract was approved by the City Counci] on August 12, 1998. This contrnct was back-dated to provide a June 1, 1998 start. However, billing records shared with Council Research staff indicated the first work billed was for August 12. This is aot consisteni wiih the spirit of the City Code indicating the Council approve ffie selection and responsibilities of labor relations consultants. The second such consultant was Craig Ayers, whose contract was approved by tfie City Comcil on May 26, 1999, whose duties also began well prior to Council approval of the conhact. This situakon is a clear violarion of the City Code relating to Labor Reladons Consultants. IA99 Saint PorJ Ciry CormciPRuearch Perfo:mmce Audit of the Ciry of Saint Paul's [ abor Relarions Aaivifies 31 �� Collective bargaining units represent the vast majority of the City's 3,332 employees. I3on-'"�� represecrted employees include some mayoral staff, legislative aides to Councilmembers, Council Research professional staff, department and office heads, plus a handfut of other department management staff. Also included as non-represented employees are RivecCentre employees and special employees, such as stage hands, house custodians, lifeguards and intems. Finally, City Attomeys are listed as appointed in the City's financial records, aithough they are represented by AFSCME-Legal. Therefore, in practice, the City's permanenf worl�orce has approximately 2% unrepresented. City of Saint Paul 1998 Employment by Full Time Equivalent (FPE) Represented Employees Appointed : Ciry Attomeys 3,101 F'I'E's 44 FT'E's 3,332 FT'E's The City of Saint Paul is somewhat unique in that its supervisory and wnfidential employees aze represented by their own collective bazgaining units. In many settings, these types of posirions have been classified as "managerial" and thereFore were not represented. However, Saint Paul has tradirionally defined management very narrowly. Formafion & Jurisdictioa The majority of the City's collective bazgaining units have been in place since the early and mid-1970s. Therefore, most of the jurisdictional and exclusive representation selection activities occurred at that time. Aowever, from time to time some groups of employees are switched from one cnllective bargaining unit to another, either by their own petition to the Bureau of Meditation Services (BMS) or the City's. This has been the case with some employees moving between Classified Confidential Employees Associarion (CCEA) and Professional Employees Association (PEA). Additionally, on rare occasion, groups of employees who were not previously represented may form a collective bazgaining unit, as occurred with AFSCME-Legal, Finally, a group of employees may break away from a collective bazgaining unit which has previously represented them to form the'u own unit, which was the course of action taken by the Fire Supetvisory Association. The majority of the following discussion will focus on these types of situations. Collective Bareainina Units Formation & Surisdiction Policies Legulative Resporrsibility (1) Recognize by resolution exclusive representatives of employee organizarions in accordance with state law. Sainr Paul Administ,ari,�e Code, Chapter 23: Coltective Bargaining Process, Sec. 23.02 1999 Saint Paul Ciry Council Auearch I�Ion-Represented Employees (breakdown below) 231 FTE's 32 PerFormance A¢dit of the City of Saint Paut's Labor RelaROrts Activiries Collective Bargaining Units Formatian & Jurisdiction Policies, ConHnued 99 Public employees have the right to form and join labor or employee organizations, and have the right not to form and join such organizations. Minnesota Srare Srarure 179A: Pvblic Employees Labor Relations Act 179A.06 Rights and obligations of employees. An employer shall eaRend exclusive recognirion to a representative of or an organization of supervisory or confidential employ�s...for the purpose of negotiating terms or conditions of employment, in accordance with sections 174A.01 to 179A.25, applicable to essential employees. Minnesara Srare Srarwe 1 �vA: Public Employees l,abor Relatio+cr Act 179.4.06 Rights and obligations of employees. Empioyee organizations, their agents or representafives, and public employees are prohibited from calling, instituting, maintaining, or conducting a strike or boycott against any public employer on accoant of any jurisdicrional controversy. �nnesara State Statute 179A.• Public Employees Iabor Relatiorxs,4ct 179.4.13 Unfair labor pracrices. Subd. 3. Emp[oyees. Employee organizations, their agents or representatives, and public employees aze prohibited from coercing or restraining any person with the effect to force or require a public employer to recognize for representation purposes an employee organization not certified by the commissioner. Mnnesora Srare srarure t79A: Publ;c Employees Labor Relatians Rct 179A.13 Unfair labor pracfices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees are prohibited &om forcing or requiring any employer to assign pazkiculaz work to employees in a particulaz empioyee organization or in a particulaz trade, craft, or class rather than to empioyees in anather employee organization or in another trade, C73ft, Ot C1355. Minnesota State S[atute 179A; PvLlic Employees Labor Relations Act 179A.13 Unfair labor practices. Subd 3. E»1j1jOyBeS. Nonteachers. [If] on the eacpiraYion date of an e�sting contract a representation proceeding is before the commissioner, section 179A.18, subdivision 1, clause (1), shali apply. In those cases, however, the employer and the exclusive representative of the employees shall execute a written contract or memorandum of contract no later than 45 days after a certification by the commissioner of a new or different exclusive representative or the resoludon by the commissioner of a I'0p70SeRt2tlOn pI'OCeCding. Minnesota State Statute 179A: Public Employees Labor Relationt Act 779A,77 New exc[usive representatives. Subd. 2. Findings 1) The City recognizes, by resolution, e�cclusive representatives of employee organi�ations. 2) The vast majoriTy, 98%, of the CiTy's permanent workforce is represented by collective bazgaining units. Therefore, there is ample evidence to infer that employees' right to organize has not been infringed upon. However, there do appeaz to be differing interpretations of the term "exclusive representative" and whether it refers to an organization, or an individual representing an organization. This issue has caused some difficulty in AFSCME-Legal where it was reported that the business agent was not allowed to attend at least some negotiation and grievance resolution sessions. It shou[d be noted that the Minnesota Bureau of Mediation Services certifies exclusive representatives, and the AFSCME-Legal business agent is so certified. 7999 Saint Paul Ciry Counci! Ruearch Perfolmmance Audit of the Gty of Saint Paul's Labor Relarions Activiries 33 �jy (j U 3) Supervisory and confidential employees of the Ciry aze represented by collective `� bazgaining units, including Saint Paul Supervisors Organization (SPSO), Manual and Maintenance Supervisors (M&Ms), Fire Supervisors Association, and the Classified Confidential Employees Association (CCEA). 4) There have been no strikes of any unions in the City workforce over the last two decades, and therefore, there have been no shikes due to jurisdictional controversies. 5) There has been no instance of the City being forced to recognize, for representation purposes, any collective bazgaining unit not recognized by the BMS. 6) Although there was a low-level problem reported in the assignment of particulaz work to a particular bazgaining unit reported in the trades area, there have been no complaints filed. Therefore, it agpeats there have been no violations of this policy. 7) When initiating their own bazgaining units, both the Fire Supervisors Association and AFSCME-Legal went tluough the memorandum of understanding and BMS certification processes articulated in statute with apparently no problems. The only situation which could be problematic would be if one of the bargaining units did not wish the change, in which case there wotild be a hearing at the BMS. This too has occurred with some City collective bazgaining units according to the ptocess spelled out in state statute. Recommendation #23: Measures should be tnken by AFSCME-Legal and the Ciry to ensure that a consistent understandings of the term "exclusive representative, " is developed and applied--crs the City has an obligation to meet with the exc[usive representative of employee groups. Elections There have been relatively few significant changes in the representation of City employees in the collective bargaining process, as discussed previously. However, collective bargaining nni do elect officers periodically according to their bylaws. City designation of a chief staff negotiator is based on Mayoral selection and Council approval. Collective Bareainin¢ Units Election Polices Public employees in an appropriate unit have the right by secret ballot to designate an exclusive representative to negotiate grievance procedures and the terms and conditions of employment with their employer. �,mesora Sr�e Sraru:e 1 �9A: Public Employees Labor Relations Act 179A.06 Rights and obligations ojemployees. � Public employers, their agents and representatives are prohibited from violating rules established by the commissioner regulating ihe conduct of representation eleCtions. Mirsnesota State Statute 179A: Public Employees Labor Relations Act 179A.13 Unjair laborproctices. Subd.2. Employers. Employee organizations, their agents or representatives, and public employees aze prohibited from violating rules established by the commissioner regulating the COIIdUCt Of YCpiC5Ci1t3ti0Il CiCCtIOIlS. Minnesota State Stahete 779A: Public Employees Labor Relations Act 179A.13 Unfair labor practices. Subd. 3. Emplayees. I999 SaintPaul Ciry Council8esearch 34 Performance Audit of the City of Saim Paul's Iabor Relafions Activities Findings �ff�_ g�� 1} No pmblems were identified with the election/designation of exclusive representative to negotiate by secret ballot. 2) No instances of City interference in the selection of bargaining anit representarive were reported. Sunilazly, there were no reported instances of bazgaining unit interference in the selection of City negoUators. Rights and Responsibility of Representatives The majority of the CiTy's supervisory and confidential employees are represented by collective batgauvng units. Yet it is recognized their pazticipation in the negotiation of wntracts for other employee groups represents a potential for conflicts of interest. Therefore, their participation is limited by state law. Public employers, for their part, must provide reasonable time off for employees to participate in negotiating their contracts. This time off is recogrrized as time spent on behalY of the bazgaining unit. It stands in contrast to the time bargaining unit representatives spend in the grievance resolution pra;ess which is considered to be time spent on behalf of the City. and Responsibility of Representatives Policies Supervisory or confidential employee organizations shall not participaze in any capacity in any negotiations wluch involve units of employees other than supervisory or confidential employees. Min,resora State Srarure 179�: Public Employees Lnbor Relations dct 179A.06 Rights and obligations of employees. A public employer must afford reasonable time off to elected officers or appointed representatives of the exclvsive representative to conduct the duties of the exclusive representative and must, upon request, provide for leaves of absence to elected or appointed of�iciais of the exclusive representative.... Minnesora Srare Siatvte 179A: Pub(ic Employees Labor Relations Act 179A.07 Rights and obligatinns aJ employers. Subd, 6. Time off. Findings 1) Supervisory and confidential employees of the City of Saint Paul do not par[icipate in the negotiation of contracts other than their own. These employees do occasionally support the negodation process with information and analysis they prepaze as a part of their overall job duties. Notably, City officials must patrol this boundary carefully, because even the perception of a conflict of interest can damage the negotiation process. 2) Reasonable time off has been afforded by the Ciry to employees involved in the collective bargaining process.� However, there are significant differences beiween deparhnents in how time off is handled. Some departments allow for schedule modifications, so employees will � Eiected baz aznin unit re resentatives aze ovided time oPf to work on B� g p pr gievance situations. ]999 Saint Paul Ciry CoumciJResearch Performance Audit of the City of Saint Paul's Labor Relations Acdvipes 35 not be required to take vacation or other leave time. Other deparhnents have tacit agteements that time off for negotiazing will be paid_ Finally, some departments simply enswe time off is pzovided, buL the employee is required to take leave. Notably, many negotiazion sessions take place in the evenings, after standard work hours to accommodate employee work schedules. Reco�nmendation #24: There should be greater equity across City departments in the poZicies for provision of time to participate in the negotiation process. A City-wide policy addressing this usue should be developed by the Administration for Council review and adoption. This policy should then be clearly communicated to the City's management and supervisory stajf. NEGOTIATIONS PROCESS The negotiation process section of this chapter breaks down the contract negotiation process into several major pieces. First to be discussed is the planning and scheduling required of both parties before entering into negotiation. Ne�ct to be discussed aze the actual items that are required to be in collective bazgaining agreements. Following this, negotiation methods and procedures will be �amined. Included in this discussion are those policies relating to impasses in negotiation and methods for resolving those differences. A diagram portraying the wntract negotiation process appears on the following page. Research and Strategic Planning Research and strategic planning are necessary elements in preparing to undertake any negotiation. This is required of all parties involved to justify the detnands they bring to the table. The policies wluch follow provide legal guidance about prepararion prior to negotiation. Note the quality assessment of the contract negotiation process includes a discussion on planning. Research and Strategjc Planning Policies With the Budget Office, develop computer costing model which is usable both for negotiations and general budgetary considerations. O�ce ofLabor Relations Ongoing Budget Program Objectives and 1998 Budget Project Objectives. Make recommendarions to Mayor regarding improved methods for handling vita] economic issues in bazgaining. Of�'ice ofLabor Relations Ongoing Budget Program Objectives and 1498 Budget Project Objectives. Develop azbitration strategy w]uch will fiuther City interest in keeping wage and benefit increases at a level St. Paul can afFord. O�ce of Labor Relations Ongoing Budget Program Objectives and 1998 Budger Project Objectives. Reduce City's unfimded liability on retiree health inswance, via negotiations. Office of Labor Relatiorrs Ongoing Budget Program Objectives and 1998 Budget Project Objectives. �(�D 1999 Saixi Pau! Ciry Caursci! Ruenrch 36 PerFormance Avdit of ffie City of Saint Paul's Iabor Relations Activilies CONTRACT NEGOTIATTON PROCESS 99�8'�Od Notification for Negotiation Exclusive representative and employer meet and negotiate No �� Mediation at BMS No BMS declares Impasse I�erest Arbitrationbegins either. • Upon request of either party for esse�iai emptoyees; or �lpon request of both pafies for non essential empioyees BM5 catifies issues for arbitration Pa�ties agt� ro a couhact Contract submitted to City Council for Approval by resoluGon CoMract ser� to Financial Services w►�hin 10 days of �pprovaf by Counc PaAres agree to a coNract Non�esse�ial choose to shike PaAies agree to a conhad Final Co�ract �ilf�BfOf ISSU25 award decision, binding on both pafies (In City of Sai� Paui, City's finat position must be approved by the City Council� May be appealed m Dishict cou�t Co�ract su6mitted to C�y Council for Approval by resolution Co�ract sent to Financial Services within 10 days of approval by Council 1999 Soint Pau! City CouncU Research Performance Audit of ihe City of Saint Paul's Iabor RelaCOns Acdvipes Research and Strategic Planning Policies, Continued Public employers, their agents and representatives are prohibited &om refusing to provide, upon the request of the exclusive representative, all informarion pertaining to the pubtic employets 6udget both present and proposed, revenues, and other finanoing informarion provided that in the executive branch of state govemment this clause may not be considered contrary to ihe budgetary requirements of (Minnesota 5tatuYes] sections 16A.10 and 16A.11. Minnesota State Statute 179A: Public Emptoyees Iabor Relations Act 179A.13 Unfair tabor practices. Subd. 2. Employers. Findings 37�� I _� �)� 1) The City cunently assesses wllective bazgaining agreements for financial unplicazions four times. First, the Office of Labor Relations applies "total package cosY' formulas widely used in the field of labor relations for calculating the cost of a contract that takes into account the old costs versus the costs of the new contract. Second, the Budget Office assesses the agreements for impact on the City budget for the term of the contract. Third, Risk Management determines if there are any changes in fringe benefits costs. Their calculations are forwazded to the Office of Labor Relations and the Budget Office as appropriate. Fourth, the City prepazes a uniform settlement form to be sent to the state. The Office of Labor Relations, in cooperation with the Budget Offic�, is developing a computer costing model which is usable for negotiations, general budgetary considerations and preparation of the uniform settlement form. This system is intended to ptovide sound information on the impacts of various negotiation proposals, as well as a financial assessment of the final negotiated agreement for the City. 2) Staff in the Office of Labor Relations report they proactively provide reaommendations to the Mayor on improved methods for handling vital economic issues in bazgaining. 3) Strategy development for azbitrations which furthers the City's interest in keeping wage and benefits at a level the City can affotd is not yet fuily developed. Notably, City staff prepaze for azbitrations on a case-by-case basis. There has been one azbitration in recent years, and "staff preparations° for three others. Staff report data aze being collected and analyzed wlvch wou]d assist in a broader planning effort. However, only one person interviewed articulated an azbitration strategy or described its implementation. 4) The Office of Labor Relations, in conjunction with Risk ManagemeM and the Budget Office, have successfully negotiated substantial decreases in the City's unfimded liability on retiree health insutance. These negotiated_decreases were lazgely accomplished in negotiations occurring three to four yeazs ago. 5) The City has provided all financial, budget and revenue information requested by bazgaining units. Although the City has provided this information, there were some reported delays and misunderstandicigs in the provision of such informarion, but none of these have translated into unfau practices complaints. Recommendation #25: 77te Of�'ice of Labor Relatiorrs and the Budget O�ce should complete work on the development of costing models which meet all of the City s needs for contract cost information. J999 Saint Paul Ciry Councit Ruearch 38 PerFocmance Audit of ihe City af Saint Pau L ab o r R ela t io n s Activilies Recnmmendatinn #26: The Of)5ce af Labor Relatiorzs, in concert wiJh other imolved City agencies should arsess the appropriateness of the following budget objective language: `Develop mbitration strate� which wi11 further City interest in keeping wage and benefit increases at a level Saint Paul can a�'ord. " Given the very small number of mbitrations, it would likely be better ro refer to individual arbitration situations. C1 CI_,�� Recommendation #27.• The Office ofLabor Relations change its budget proposal references to decreasing the City's unfunded liability for retiree health insurance until such time as it intends to again actively pursue these issues in negotiations. The budget references should clearly indicate this is a long-term goal, rather than orre that will rrecessarily be applied in all contract negotiations for all cycles. This would honor negotiation "etiquette" which maintains you should not seek concessions on the same issue for two consecutive negotiations. Recommendation #28: All Ciry agencies in a position to provide budget, revenue and finance informarion should work with bargaining units in a way that leads to clearer expectations as to the availability of such data and the time required to assemble it. Similarly, bargaining units should be ezplicit in all requests for these types of data. Scheduling and Planning Negotiation Sessions The contract negotiation process requires meetings and meeting rooms be scheduled, drafts of proposals circulated and agreements dratted. The following policies from the City's Administrative Code and state statutes specify responsibilities for these activities. and Plannin¢ Policies [The] office of the mayor shall: Carry on the day-to-day collective bugaining process, including, but not limited to, the planning, scheduling and conducting of negotiation sessions; the drafting and prepazation of necessary documents and agreements in coordination with the office of the city attorney. Sainr Pau[ Adminrsbative Code, Chapter 13: Collecfive Bnrgeining Process, Sec. 23.03 Ezecukve Respnnsibility Responsibility of labor representatives and employees (2) Submit written demands conceming desired changes in the terms and conditions of employment in accordance with a timetable to be established by the mayor and approved by the city couticil. Sairst Paul Administrative Code, Chapter 23: Col[ective B�vgaining Process, Sectian 23.04. Initiation of negotiation. When a party to a contract desires to meet and negotiate an agreement subsequent to the initial agreement, the party shall give written notice to the other party and to the commissioner at least 60 days before the termination date of the e�sting contract. Minnesota Srate Srarure 179A: Public Employee� Labor RelaBons AM 179A.14 NegoNation procedures. Subd I. Public meetings. All negotiafions, mediazion sessions, and hearings between public employers and public employees or their respective representatives are public meetings except when otherwise provided by the commissioner. titinnesora State Statute 179A: Public Employees Labor Re[ations Act 179A.14 Negadntion pracedures. Subd. 3. 1999 Sainr Paul Ciry Cormcil Rerearch Perfotmance Audit of tlm City of Saint Paul's I.alwr Relations Activities 39 � � I Findings �Q � 1) The Office of Labor Relations does plan, schedule and conduct negotiatian sessions. For the past fow years, the City Attorney has maintained a muumal role in the drafting and prepazation of negotiated agrcements. The Office of Labor Relations reports the City Attomey is consulted from time-to-time on specific points of law. The City Attomey does not actively participaYe in negoriations ot the drafting of collecrive bazgaining agreements. 2) Collec[ive bazgaining units are required to submit written demands conceming desired changes in their terms and conditions of employment. However, the City's Administrative Code speci6es these submissions aze to occur in accordance with a tirnetable established by the Mayor and approved by the Council. No such timetable has been developed in at least the last five years. 3) There aze two instances of reported problems associated with the initiation of negotiation via written notice, once with openting engineets and once with the Fire Supervisors Association. In neither case did the City pursue penalties against the bazgaining units. 4) Although state statute requires negotiations be[ween public employers and public employees be public meetings, there are no examples in recent history of parties, other than those negotiating, being present at a session. Notably, tlus openness is wntrary to traditional negotiation practice in the private sector, where negoriations are closed. However, many states and localities have opened the negotiation process in view of the fact that the services provided by govemments are public by their very nature. Recommendation #29: Given the reported staff shortage in the Off'ice of Labor Relations, increasing the participation of the Ciry Attorney in contract drafting and preparation is warranted. Such an increased role shautd be explored thoroughty by the next Labor Re[ations Director. See also Recammendation #31, page 43 on the development of a, fiveyem timetable for negotiations. Items for Negotiations There are three key items which must be included in any pubiic employee collective bargaining agreement in the State of Minnesota, in addition to the fact that collective bargaining agreements must not be contraty to state or local laws. The three elements which are in these contracts aze: ❑ Terms and conditions of employment; ❑ Grievance procedures; and ❑ Contract duration provisions. Terms & Conditions Terms and conditions broadly describes both performance expectarions for employees and compensarion from the employer in the form of wages and fringe 6enefits. Although there aze no policies covered here which directly relate to these, there are several which provide some parameters. 1999 Saint Pav7 Ciry Council Research M1 Perfoimance Audit of tLe City of Saint Pa�il's Labor Relations Activities Terms & CondiHons Policies 7 9 Meet and negotiate. Public employees, through their certified exclusive representaYive, have the right and obligation to meet and negotiate in good faith with their employer regarding the tern�s and conditions of employment. Minrsesora State Statute 179A: Public Employees Labm Relations Act 179A.06 Rights and obligations of emp[oyees. Subd. 5. Meet and negotiate. A public employer has aa obligation to meet and negotiate in good faith with the exclusive representative of public employees in an appropriate unit regarding grievance pmcedures and the tenns and condirions of employment... Minnesotn State SJatute 179A: Pub7ic Empinyees Labw Relntions Act 179A.07 Rights and obligations ofemployers. Subd. 2. Former employee benef:ts. A contract may not obIigate an employer to fund all or part of the cost of health care benefits for a former employee beyond the duration of the contract, subject to section 179A.20, subdivision 6. Minnesora Srnee Srature 779A: Public Employees Labor Relatians Ad 779A.20 Corttracts. Subd. 2a. Former employee benefits. A pecsonnel policy may not obiigate an empioyer to fund all or part of health caze benefits for a former employee beyond the duration of the policy. �nnesota State Stande 179A: Pvblic Employees Labor Relations Act ]79A.20 Co�et>nMS. Subd.la Former employee benefits. A policy may not erctend beyond the teanination of the contract of longest duration covering other employees of the employer or, if none, the temiination of the budgetary cycle during which the policy is adapted. Minreesota State Stahite 179A: Public Employees Labor Relations AM 179A.20 Contracts. Subd. 2a. Findings 1) There were no reported cases of collective bazgaining units or the City not meeting and negotiating in good faith. 2) City contracts are all in accordance with state and other laws with respect to former employee benefits. Notably, the City included provisions on former employee benefits prior to statutory prohibition of tlus practice. Therefore, the practice is continued and legai in the City's negoriated agreements. Grievance Procedure Grievance Procedure Policies Meet and negotiate. Public employees, through their certified exclusive representarive, have the right and obligation to meet and negotiate in good faith with their employer regarding grievance procedures. �nnesora Srare Srarute t7va: Public Employees Labor Relationr Act 179A.06 Rights and obligations of e�nployees. Subd. S. 1999 Saint Paul CUy Cormcil Resemch Performance Audit of the Ciry of Saint Paul's Labor Relazions Activi5es Grievance Procedure PoHcies, Continued 41� � �� (\ �ll Meet and negotiate. Public employees, through their certified exclusive representative, have the right and obligation to meet and negotiate in good faith with their employer regazding grievance procedures. Mtmlesma 5:me Stanue 1�9A: Public Employees Labar Relations Act 779A.06 Rights and obligations of employees. Subd. S. Grievance procedure. (a) All contracts must include a grievance procedure provlding for compulsory bmding arbitrarion of grievances including all written diSCiplinary actions. Mimrerota Stme Stmute 179A: Public Employeu Labor Relations Act 179A.20 Contiacts. Subd. 4. Grievance procedure. Notwithstanding any home rule charter to the contrary, after the probationary period of employment, any disciplinary action is subject to the grievance procedure and compulsory binding arbitration. Mtnneso:a Srate Sraru:e 179A: Public Employees Labor Relations Act 779A10 Contracts. Subd 4. Findings 1) There were no reported cases of either the City or collective bargaining units not meeting and negotiating in good faith on grievance procedures. 2) All contracts were reviewed and found to have grievance procedures with compulsory binding azbitration provisions. Contract Prohibitions Contract Prohibition Policies No contract provisiorrs contrary to law. No provision of a contract shall be in conflict with the laws of Minnesota. Minnesora Srme Siatute 179A: Pubtic Emptoyees Labor Relations Act 179A.2Q Contracts. Subd. 2. No contract provisiorts conirary to law. No provision of a contract shall be in wnflict with rules gromulgated under law, or municipal charters, ordinances, or resolutions, provided that ffie rules, charters, ordinances, and resolutions aze consistent with this chapter. Minnesora srare Sraruse 17va: Puvt�a Emptoyees Labor Relations Act 779A10 Contracts,Subd. 2. Finding There aze currently no reported contradictions between state or local law and the provisions in the City's collective bazgaining agreements. One case was reported of a sick leave provision that required updating in a contract to be consistent with state provisions that sick leave may be used for the care of a sick child. These updates typically occur as a result of staff review of professional literature and state and local laws. Both collective bazgaining units and the City aze alerted to such changes. 1999 Saint Pau! Ciry Counci! Resemch 42 PaCom�e Audit ofthe CSLY of Samt Paul's I abo r Relatims e4tivrties Contract Duration I/ V .,/ Contract Duration Policies ��-- ��— = Duration. The duration of the contract is negotiable but shaii not e�cceed three �' � = - yC'drs. Af'tnnesota Stmte Statute 179A: Public Er�loyees I.abor Relatiom�.1M 179A.20 '__ ° Comracts. Svbd, 3. _ - --- —�°_��--�`,--�_ ° . --�� Finding Almost all City conhacfs with collective bargaining units aze negotiated for a dimation of two years. Occasionally, canuacts are negotiated for a duration of three yeazs. 17us has usually occ�rred when contract negotiations are concluded approximately one year after the expiration of tfie previous agreement. Thus, the agreemeut still reaches out only two yeazs into the firture. The main reason providad for tlus durnrion of ageemeut is the increasing level of unceRainty for both parties fiuther into the future. Recommendarion #30: The City cmd cdleclive bargaining units should pursue more negotiated agreements that run for three years. Such a strategy, although iniroducing in some slight increase in uncertpinty offuture revcmues, Dras the potential to significantly decTease the costs of negoiiating agreements for both pm7ies. Such casts could be calculated in terms of time imolved in negotintion and contract implementation adminisirarion overhead. Negotiation Practices Negotiation practices are govemed by state policies wluch outline e�cpected negotiation behavior. These policies state, in essence, that both pmties aze to meet and negoriate in good faith and comply with decisions of the Bureau of Mediation Services. Prac4ces Policies Public employers, the'u agents aad representatives are prolubited from refusing W mee[ and negotiaYe in goad faith with the exclusive cepresenAative of its employees in an apprapriate unit M'urnesota State SYahrte 179.4: Public Employees LaLor Relations Aet 179A.13Unfairlaborpractices. Subd.2. Employers. Public employers, their agerns and representatives are prohibiled from riolating or refusing to comply with any lawfui order or decision issued by tfie commissioner. �rmesnta Stote Stahue 179A: Public Employees Zabor Relations Act 179A.13 Unfair labrn practices. Subd 2. Employers. Employee organizations, their agents or xepresentatives, and public employees are prohibitad &om refusing to meet and negotiaze in good faith with a public employer, if the employee organization is the exclusive representative of employees in an appropriate unit Afzrrreesota State Statute 179A: Public Employees Labor Relations Act 179A.13 Unjair labor practices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees are prohibited from violating or refusing to compiy with any lawfiil order or decision issued by the commissioner. Minnesota State Starute 179A: Public Employees Labor Relations Acr 179A.13 Unfair labor practices. Subd. 3. Employees. 1999 SauuPavl Ciry Coancil ResearcA rsr«�a�a s�me�w•s�x�v�an�.�a Findings a 1) There were no teported cases of either the City or a collective bazgaining unit refusing to comply with a decision of the BMS. 2) There were no reports of either collective bazgaining �mits or the City refusing outright to meet and negotiate in good faith. However, there were some serious concerns iaised about the rimeliness of the negotiation process. Typically, these concems centered on the City's propensity to slow negoriations through delays, rescheduling and lack of preparation. The primary reason given for these delays was lack of City slaff dedicated to the negotiarion process. Another reason for "Ciry-eaused" delays is the City's effort to decrease the City's unfunded liability for retiree health insurance. "Union-caused" delays were reported to be related to intemal union politics, union delays pending outcomes of local elecrions and the AFSCME lawsuit relating to the City's plan to reduce retiree health care benefits. The vagueness of the term "good faith" complicates this situation. It is certainly a possibility that such delays could be a negotiation tactic, although it is very difficult to substantiate. Appendix C provides data on contract ratifications over the last ten years. From it we can see a definite pattem of contracts being concluded long after the previous contract has expired Specific increases in tardiness can also be connected to the content of the negotiated agreements, such as decreases in the City's unfunded liability for retiree health insurance in 1994 and 1995. That being said, it is also apparent that the average lateness of 130 contiact conclusions over the last 10 years is 10 months. The chronic state of lateness of contract conclusions is especialiy troubling if it is used as a negotiation tadic. The following table briefly eacamines some of the costs and benefits of delaying contracts. Although all of the possible advantages and disadvantages can not be listed, when they are looked at more closely, we see that the City has some advantage over the bargaining units in delaying. Brief Cost Benefit Analysis for Contract Conclusion Delays Benefits Costs C�j� • Retum on investment of • Adminishative costs of rehoactively implementing money not paid to contract (m;o;n,;�Pa by fact that e�cisting staff used) employees during • Additional reso�ces required for negotiating (often negoriation minimi7zd by fact that e�cis[ing staff used) + Increased negotiation � Budget pxocess becomes more compleac and imcettain leverage ■ Potendally bad public relations Ci0112Ct1Y@ • Increased leverage • Lost use of increased wages iesulting from contract Bargaining ' Mayassistpoliticalgoals • Potentiallybadpublicrelations UI11tS of uaion leadership for ■ Increased unpaid time spent in negotiarions local or union elections Xecommenda6on #31: The City should develop a fiveyear workplan with spec� timetables--ns required in the Administrative Code--which provides for the conclusion of most of its callective bargaining agreements prior to their expiration. This is especially irrrponant in tight of the many parties interview who indicated the negotiation process was untimely. 1999Sa�tPaa1 CiryCounc�l Research 44 Perfocmance Audit of the City of Saint Paul's Labor Rela4ons Activities Interest Based Bargaining �9�g�� Traditional (also known as adversarial) bargaining is most often viewed as an adversarial process which leads to an agreement that offers the most of what is desired by the negotiating parties at the least cost to each. It is, almost by definirion, a secretive process where not ali irue goals aze shared at the negotiating table. In recent yeazs an altemative to this style of bargaining has increased in popularity: interest based bazgaining. Interest based bazgaining provides for a more open sharing of true negotiation goals aad joint problem solving. Appendix D provides a summary of the interest based bargaining process. The City has also endeavored to use this process, as is reflected by the following City budget policy statement. Notably, interest based bazgaining should not be seen as a panacea for problems associated with traditional bazgaining methods. It is also inappropriate to use interest based bazgaining in some negotiaYing situations, such as when there are very low levels of trust between the parties. Interest Based With at least one compatible union, conduct bazgaining using interest-based b2ig3tI11IIg. O�ce of Labor Relatiotts Ongoing Budget Program Objecb'ves and 7998 Bvdget Project Objectives Findings 1) Interest based bargaining was used with the Police Federarion in 1997 and 1998 for 21 issues addressed in the contract. Notably, it was not used for wage-related negotiation items. The City also used a modified version of the interest based bazgaining process with Tri- Council in the same contract cycle. Z) Severai coilective bazgaining units indicated that although they had expressed interest in using interest based bazgaining, the City chose not to use this altemative negotiation method with them. Communication Complex communications is a hallmazk of the public collective bargaining process. This is in lazge measure due to the many "stakeholders" involved, including not only supervisors and employees, but also potentially, department heads, professional staff in the Office of Labor Relations, City Attorney's Office, Human Resources, Risk Management and occasionally elected officials. In Saint Patil's case, the situation may be complicated fixrther by the decentralized nature of City govemment with its semi-autonomous departments. Also, the number of collective bargaining units with which the City negotiates agreements inevitably complicates communicarion. Communicaflon about tertns and condirions of employment between pubiic employers and public employees is clearly govemed by state statute. These laws specify that public employers and employees may talk about the terms and conditions of empioyment only with designated representatives. The statutory language is intended to protect both pazties from unofficially negotiated, but potentially Iegally binding, contract changes. 1999 SointPaul Ciry Cowxi7Research PerFolmance Audit of iLe City of Saint Ywl's Labor Relations Activities Communication Policies Responsibiliry of Zabor representatives and employees (1) Conduct discussions and negotiations conceming tem�s and conditions of employment only with the designazed representative of the city. Saini Paul Adminisnarive coae, Chapter z3: Collective Bargaining Process, Sec[ion 23.04. Other communication. If an exclusive representative has been certified for an appropriate unit, the employer shall not meet and negotiaie or meet and confer with any employee or group of etnployees who are in that unit except through the exclusive representative. Minnesota State Sratute 174A: Public Employees Labor Relaiions Act 179A.07 Rights and obligations ojemployers. Subd. 4. Findings 45 �Q-$�' 1) Communication between the City and labor representatives and employees does not consistenUy occur with the City's e2cclusive representative. Rather, other City representatives, without the aid and advice of the Iabor Relations Office, purposefiilly or unintentionally discuss and make decisions on matters relating to the tetms and conditions of employment. This type of situation was reported to occur in a variety of ways and is discussed in the following findings. 2) The lowest level of this problem seems to occur when an employee or labor representative makes an inquiry of City staff, be it about fringe benefits, titles and classifications or other matters. City staff then proceed to answer the question to the best of their Imowledge. However, there aze a number of circumstacices where the answet requires an interpretation of the collective bargaining agreement. The individual City stafF member's interpretation may or may not be consistent with other interpretations that have been given by other City representatives at other times. This creates a situation where sophisticated employee representatives could, and reportedly do, shop for the best answer. 3) The grievance process involves a number of steps, the first two of which do not require the involvement of the Office of Labor Relafions unless over $7,500 is involved. This lowest level of problem resolution is believed to be the best because it involves fewer people and less time and frustration. Grievance resolution, by definition, involves interpretation of the contract and probably discuss"son of the tetms and conditions of employment. Therefore, it is very easy to develop situations where grievance settlements are not consistent within employee groups or across departments. Thus the set[lement may seem fair and appropriaYe for an individual however, it may create inequities in the way other employees are treated, or have been treated. Several such instances were reported. 4) There were also reported instances of other professional City staff acring to settle a grievance without the full knowledge and participation of the Office of Labor Rela6ons. These situations seem to atise when there is the involvement of mukiple City representatives, such as the depaRment head, the Office of the City Attomey, Human Resources or others, in addirion to the Office of Labor Relations. $ A policy statement in ffie Collec[ive Bazgaining Units Fonnation and 7urisdiction section of this report, from the Minnesota Statz Statutes Ci�apter 179A.06, covers [lus situation as well. 1949 S¢int P¢ul City Council ReseurcA � Perfmm�ce Audit oFihe City of S�nt Paul's [abor Rela4ons Aclivities 5) There were no reported instances of the City and employees or employee groups meeting and negotiating terats and conditions of employment, other than through the bazgaining units' exclusive representative. () (�_ (y / !� 7 f� (O U Management Rights Management dghts, also known as management pr�erogatives, clarify those responsibilities wltich management traditionally does not allow to be negotiated. They are considered to be automarically within the purview of management. An example of the e�ccercise of management rights is the requirement that some employees, such as police of6cers, weat uniforms. The terms and conditions nelated to the requirement wluch would likely be negotiated is who pays for the uniforms. There is one state law reviewed in this audit which addresses this ana. PoGcies Inherent Managerial Policy A public employer is not required to meet and negotiaYe on matters of inherent managerial policy. Matters of inherent managerial poticy include, but are not limited to, such areas of discretion or poticy as the fimctions and pmgrams of the employer, its oveiall budget, ukilization of technology, the organizationai structiue, selection of personnel, and direction and number of personnel. No public employer shall sign an agreement which limits its right to select petsons to serve as supervisory employees or state managers under section 43A.18, subdivision 3(Managerial Plan, 1989� or requires the use of seniority in their selection. Minnesora State Sraute 779A: Public Emptoyees Labor Relations Acf 779A.07 Rights mtd obligations of employas, Subd. I. Finding The concept of pmmotional positions is embodied in most of the City's collective bazgaining agreements, as the "Maintenance and Standards" clauses often, by reference, include the City's Civtl Service mles in the signed conhack The City does make "promorional positions" available only to current City employees and flvs is allowed according to the City's Civil Service Rules. However, if any of these positions have supervisory responsibilities the City's actions are likely inconsistent with state law. Some of the promotional positions aze snpervisory. Therefore, by definition, the City wluch is a public employer, has limited supeivisor selection to only cutrent employees. This situation may be further complicated by the fact that the BMS has a list of criteria wiuch determine whether positions are supervisory. The application of these criteria would ]ikely produce a different list of supervisors than the City currenfly uses in practice. Recommendation 32: The City should cease the practice of segregating some positions in the category of "promotional. " T7re praclice does not seem to be consistent with state law, it limits the ability of outside qualified candidates Co compete, arul potentially promotes systemic inequalities in the make-up of the City's workforce. 9 The concept of inherent manageriai rigfits is also covered in Minnesota Statutes under Employer Rights and Obligations, Minnesota Statute 179A.067. I999Sain[ Pav1 LYty Councif Rerearch PerFotmance Audit of ihe CiTy of Saint Paul's Labox Relatio� Activities 47 (, G �� Recommendation 33: The City should review positions currently categorized ar supervisory to determine if t&e job duties meet the BMS definirion of supervisar. Meet and Confer Meet and confer policies aze designed to provide a forum for the discussion of workplace issues which aze not terms and condirions of emgloyment T'hey aze intended to address the needs of nonrepresented professional employees, but in practice, all employees may meet and confer with the City. A hypothetical meet and confer conference could discuss computer usage in an office or government policies. Meet and Confer Policies Professional employees have the right to meet and confer under section 179A.08 with public employers regazding policies and matters other than terms and CAn(Iltions of CTI1p1oyIltCrit. �nnesota State Srature 1 �9A: Pubtic Employees Labor Relationr Act 779A.06 Rights and obligatians ojemployees. Subd. 4. Meet and confer. A public employer has the obligation to meet and confer, under section 179A.08, with professional employees to discuss policies and other matters relating to their employment which are not terms and condirions of employment. Minnesora Srare Stahtte 179A: Pvblic Employees Labor Relations Act 179A. D7 Rights and obligations of employers. Subd. 3. Meet and co»jer. The professional employees shall select a representative to meet and confer with a representative or committee of the public employer on matters not specified under section 179A.03, subdivision 19, relating to the services being provided to the pUb11C. �nnesota State Stahtte 179A: Public Employees Labor Relalions Act 779A.0 Rights and obligations oJemployers. Subd. 2. Meet and confer. The public employer shall provide the facilities and set the time for [meet and confer] confBiCrices to t31Ce p12Ce. Minrresota Sraie Stariere 179A: Public Employees Labor Relations Act 179A.08 Policy consultants. The par[ies shall [attend meet and confer conferences] at least once every fow IDonths. Minnesota State Statute 179A: Public Employees Labor Relations Act 779A.08 Policy cnnsultants. Finding In practice, meet and confer policies apply to all employees. However, they were written with the intent of providing a discussion forum for unrepresented professional staff. In the City's case, that means the non-managerial staff in the "Alonrepresented Managers and Legis]ative Operating Employee Group." No such meet and confer conferences were reported. In the case of professional legislarive staff, the policy is especially obscure and provides no indication with whom these staff should meet and confer. Notably, these policies have little impor[ for the City given the small number of nomepresented professional employees and organizational location. 1999 Sairtt Paul Ciry Council Research 48 Performartce Audit ofthe City of Saint Paul's I.s6or Relatious Activities Mediation 99 g�¢ � Mediation introduces into the negotiation process a third party whose mle is to act as an intermediary and assist in the development of a negotiated agmemenY or grievance settlement Any settiement reached would require the acceptance of both sides. 7'he Minnesota Bureau of Mediation Services (BMS) assigns mediators when requested. Mediation was recently used in the AFSCME Clerical and T�luucal agreem�ts and is being used for the AFSCME-Lega! agreement. The mediaYion policies in the following box address how the BMS is to be contacted for mediation assistance and attendance at mediation sessions. Mediation Policies A petition [for mediation] by an employer shall be signed by the emptoyer or an authorized officer or agent. A petition [for mediation] by an e�cclusive representative shall be signed by its authorized officer. All petirions shall be delivered to the commissioner in person or sent by certified mail. The petirion shall state briefly the nature of the disagreement of the parties. .�&,rnesota srare S[a[ute 779�t: PubTrc Employees Labor Rela[ims Rct 179A.15 Mediation. All parties shail respond to the s�mmmons of the commissioner for [mediarion] conferences and shall continue in [mediation] conference until excused by the ComID15SlOne1'. M'anne.sota Stnte Stnhde 179A: Pvblic Employees Labor Relations Ad 179A.15 Mediation. Finding There were no re�wrted problems with the me@iation policies. Arbitration Arbihation (also referred to as butding azbitration or interest arbitration), like mediation, introduces a third party into the negotiating process whose mle is to act as an intermediary and assist in the development of a negotiated agreement or grievance settlement. However, in the case of azbi0ration, the parties agree bePonyhand to abide by the terms of the arbihated settlement. EmpIoyee groups classified as "essentiai" have the right to arbitration for their negotiated agreements. However, these groups are not allowed to strike. "Essential" bargaining units in the City are the following: a Attorneys (AFSCId&Legal) � Saint Paul Supervisocs OrganiTation e Manual aad Maintevance Supervisozs o Classified Confidential Employee Association a Firz Fightets I.oeal #21 e F've Supervisory Assceiation o Police Federation `2�Ionessential" employee groups have the right to request arbitration, but the City, as a public employer, mnsY agree to it. `2�TOnessential" employee groups have the right to strike. These groups include all of the bazgaining units not listed above. There has been only one City arbitration in receni history, and it was with the Fire Supervisory Associafion in 1996. The City prepared for lwo others, one with the Police 1999 Saint Paul City Couttci/Rcvearch PerFormance Audit of the City of Saint Paul's Labor Relations Activiries 44 �l_D (U Federation (1994 - 96 contract) and one with the Manua] and Maintenance Supeivisors (1995-96 contract). However, those settled prior to arbitration. There have been no cases of arbitzation with a`honessential" employee group. Arbitrafion Policies Public employers, their agents and representatives aze prohibited from refusing to comply with a valid decision of a binding azbitration panel or arbitrator. ,�,ne4om StmeStmrde779A:PublicEmployeesLaborRelationsAct179A.13Unfa"v7aborprac7ices. Svbd2. Employers. Employee organizations, theu agents or representatives, and public employees are prohibited from refusing to wmply with a valid decision of an arbitratian panel or 3Tt71V3TOi. .N'mnesota Stme Stande 779A: Public Employees Iabor RelationsAct 179A.13 Unfoir labor pmctices. Subd 3. Emp7oyees. Nonessential employees [The party requesting interest azbitration must provide a] written notice of the request to the other party and the commissioner. The written request for azbitration must specify the items to be submitted to azbitration and whether conventional, final-offer total-package, or final-offer item-by-item 2Lb1Y[3tlOri iS CORtCIRp13YC(� b}� YI10 LCGllCSY. A1'mnesota Stme Stande 179A: Public Employees IabarRelalionsActI79A.167nteresearbitralion. Subdiviciorsl.. Nonessential emp7oyees. If an agreement to azbitrate is reached, it must be reduced to writing and a copy of the agreement filed with the commissioner. Afirxesota State Stat+de 779A: Pubtic Emplayees Labor Retm'wnsAct 179A.1 b Intere.st arbitration. Subdivision J. Essential employees. An exclusive representative or employer of a unit of essential employees may petition for binding interest azbitration by filing a written request with the othet pazty and the commissioner. 'T'he written request must specify the items which that party wishes to submit to binding azbitration. Nt�:o Sfote StahUe 179A: Public Employees Labor Relmions Act 179A.167nterest mbitration. Subd. 2. Procedure. Within 15 days from the time the commissioner has certified a matter to be ready for binding arbitratian because of an agreement under subdivision 1 or in accordance with subdivision 2, both parties shall submit their final positions on Y.�LC1tCIRSliI(I15plltC. dSnnesataStateStutate179A:PvblicEmployeesLaborRe7ationsAct199A.16 Interestm�bkration. Subd.3. Selection of arbitrator or panel of arbitrators. The parties shall alternately strike names from the list of ubitrators until only a single azbitrator remains, unless the parties request and mutually agree to utilize a panel of tl�ree arbitrators. ar�„e.sofa State Stahue 179A: Public Employees Lobor Ifeladons Act 179A.167ntaest mbib�ion. Subd. 4. [Any] hearing must be held in the county where the principal administrative offices of the employer aze located, unless another location is selected by agreement of the parties. In case of refusal to obey a subpoena issued under this section, the district court of the state for the county where the proceeding is pending or where the person who refuses to obey is found, or resides, or t�ansacts business, on application of the azbitcator or panel, has jurisdiction to issue an order requiring the person to appear before the panel, to produce evidence, or to give testimony. Fai]ure to obey the order may be punished by the court as a contempt. Posthearing briefs, if any, must be received by the azhitrator within 14 a3}'SOfY�1C�1C'dTing. M'innesotaState5latiae179A:Pub7icEmployeesLa6orRetationrAct179A.16 Interest arbtirmion. Subd. 6. Powers of the �bitrator orpanel. 7999 Saint PauT Ciry Councrl Research 50 PaForm�ce Audit ofthe ciry of Sa P I�bar Rel a criv i4 e s Arbitration PoHcies, Continued �� l0 � Database; fees; charges, and per diems. For each arbitration decision rendered by an arbitrator, ttte arbitrator shali submit a copy of the awazd and a description of all fees, charges, and per diems assessed to the parties to the commissioner. Data &om this database must be available to the public. All costs of the panet must be shared equally by the parties to the dispute. �e�oro srme swnue i �9A: rLbu� s,,,p�oy� LabarRelationsAct179A.167nterestmbitration. Svbd.8. Findings 1) There were no probiems reported in complying with decisions reached tIuough azbihaYion. However, there were several comments on the timeliness of City implementation of decisions. 2) With respect to the "procedure" policy specifying that final positions be submitted within I S days: the City has a practice of requesting a 15-day extension to allow the Council time to consider the City's position, 3) Both the City and the bazgaining units appeaz to be in wmpliance with all azbitration policies. Strike Although strike is an option available to `honessential" employee groups, there has not been a strike of any City employees since the mid-1970s. Strike Policies Public employe�, their agents and representatives are prohibitsd from grartting or offering to grant the status of permanent replacement employee to a person for performing bazgaining unit work for the employer d»�ng a lockout of employees in an employee organization or during a strike authorized by au employee organization that is an exclusive representative. Minnesora Srme Srarure 179A: ru6lic Employees Labor Relations Act 779A.13 Unfair labor practices. Svbd. 2. Employers. Employee organizations, their agents or representatives, and public employees aze prolubited from committing any act designed to damage ar actually damaging physical property or endangering the safety of persons wlule engaging in a strike. �nnesota State Statute 179.4: Public Employees Labor Relariou Rct 179A.13 Unfair labor practices. Subd.3. Employees. Employee organizations, their agents or representarives, and pubiic employees ate prolubited from engaging in an unlawful strike. Minnesora Smre Srarure 179A: Public Emplayees Labor Relations Act 179A.13 Urfair labor praMices. Subd 3. Employees. Employee organizations, their agents or representarives, and public employees aze prohibited from picketing which unreasonably interferes with the ingress and egress to facilifies of the public employer. Minnesora Srare Srar,ue [79�t: Public Employees Labor Relations Act 179A.13 Unfair labor pracrices. Subd. 3. Employees. 7994 Smnt Paul CYry Councd Research Performance Audit of the City of Saint Paul's Cabor Relalions Activities Strike Policies, Confinued Employee organizations, their agents or representatives, and public employees are prohibited &om seizing or occupying or destroying property of the employer. �nnesota State Stah�te 179A: Public Employees Zabor Relatfons Act 179A.13 Unfair labo> practices. Subd 3. Employeu. Finding 51�� dl„ � ��Ud As there has been no strike of City employees in recent history, there were no reported problems with any of the strike policies. However, there was an informational picket held by the Police Federation which was conducted in accordance with the above policies. RATIFICATION OF CONTRACTS Contracts are prepazed by the City following the contract negotiation process and are reviewed with the bazgaining unit for completeness. � Rafification of the contract by the Ciry requires Council approval. It is assumed that the Mayor supports the contract, as the Administrative Code specifies that contracts aze to be negotiated by the Mayor or his/her designee. Contracts aze approved by the collective bazgaining units t6rough votes held in accordance with the'v bylaws. Ratification Policies Uniform senlement form. A public employer...shall complete a uniform collective bazgaining agreement settlement document for each collective bazgaining agteement or azbitration awazd. Minnesota Srare Stnrare 179A: Public Emptoyees Labor Relaaons Act 179A.07 Rights and obtigations oJemptoyers. Subd. 7. Uniform settlement form. The gublic employer shall present the settlement document to the governing body at the time it ratifies a collective bargaining agre6ment or aTbiVation awazd. Minnesora Srare Srature 179A: Public Employees Labor Relations Act 174A.07 Righrs and obligafions oJemployers. Subd. 7. Implementarion. Upon execution of the contract, the employer shall implement it in the form of an ordinance or resolution. If implementation of the contract requires adoption of a law, ordinance, or charter amendment, the employer shall make every reasonable effort to propose and secure the enactment of this law, oidinance, resolufion, or charter amendment. Minnesota Sr�rre Sranrre 779A: Public Employees Labor Relations Act 179A.20 Contracts. Subd. 5. Findings 1) The State requires the City prepare a uniform settlement form for all collective bargaining agreements and azbitration awazds. The City has a spotty tustory of completing this form, and it completely stopped for a period of about two years. When the City began completing the �� The Administrative Code policy ouUining the City's responsibility to dra$ agreements appears earlier ia this chapter in the section: Contract Negotiation Preparation--Seheduling and Planning. 1999 SnirrtPaul City Coemcil Research FYa Perfotmance Audit ofthe City of Saini Paui's Labot Relaiions Aclivities uniform seitlement again, past versions were completed and filed with the BMS. The Office of Labor Relations reports three reasons for problems in completing the uniform settlement form. First, low staff levels were cited. Alsq they indicated the form developed by the State of Minnesota is very cumbersome and of limited value, as it was originally developed for use by school districts. Finally, there was concem the informarion required in the uniform settlement form is not consistent with information used in other analyses developed for use at tha negotiation table, or later when totai package costs are estimated. Therefore, it was believed that the informarion presented in ffie uniform settlement would produce greater confusion. 2) The City of Saint Paul bas made available uniform settlement forms when requested. However, there have been occasional delays because the forms needed to be prepared before they could be distributed. Recommendation #34: The uniform settlement form provides for the development of a statewide base of fnfnrmarion on all public employer negotialed agreements and arbilralion settlements for the State of �nnesota. As such, it is an important activiry for the state to undertake, and has the potential to create a comparative databare for use by all public employers and employees. Notably, the state has yet to develop such an informaKon saurce. However, the City of Saint Paul has not consistently complied with this statutory requirement The City should corrsistently complete the uniform senlement form in aceordance with State laov. CONTRACT IMPLEMENTATION Conhact implementation activities involve changing wage rates, altering payroll deduc[ions as a result of benefit adjustments, adjusting sick teave and vacation to reflect negoriated changes, and administering any oLher changes resulting from a new contract. The process involves a number of City depaztments and offices. The following chaz[ illustrates the rote each plays in implementing the contract. The collective bazgaining units are involved to a limited eztent in contract implementation. Union leadership and membership may monitor to ensure that any new contract changes are implemented by the City. Contract Implementation in the Office of Labor Relations The Office of Labor Relations is responsible for ensuring contracts are implemented and administered correctly. This responsibility is shared wiffi other departments, such as Risk Management and the Department of Financial Services. Coutract Implementafion Policies for the Office of Labor Rela6ons Work with Finance Department to streamline contract unplementation process. Offrce ojLaboiRelatfons Orsgob1g Budget Program Objecrives and 1998 Budget ProjeaObjectives Refine development of data bank relating to the many parallel sections of the 25 collective bazgaining agreements and comtnunicate to affected gersons. O�ice of Labor Relations Orsgoing Bvdget Prograrrs Objectives and 1998 Bvdget Psoject Objectives 1999 Somt Paul Ctiy Coimcil Rueorch Pecfotmance wudit of ibe City of Saint PaW's Laboc Relafions Activibes Contract Policies for the Office of Labor Relations, Continued Executive Responsibility (The) office of the mayot shall: Administrate collective bargaining agreements in accordance with their terms and provisions as approved by the City CoutlCil. St. Paul AdminCode, C7w1i.23: ColTective Bm�gaining Process, Sec. 23.03 CONTRACT IMPLEMENTATION PROCESS PARTICIPANTS Office of the Mayor Oversees contract implementation Office of Labor Relations Prepares & distri6utes conhact, oversees Findings Office of the City Atturney Provides conhact & legal for City Risk Management Services Division of Technology and Management 5ervices Dept Administers changes in benefits Office of Financial 5ervices Makes wage and benefits deductians or additions Other Departments Responsible for complying with contract �q�$�� 1) The Office of Labor Relations has worked with Financial Services to streamline the contract implementation process. Tentative agreements aze given to the Offics of Financial Services to determine the length of time iY will take to implement the contract. Financial Services then brings any questions to the Office of Labor Relations and to Risk Management for clarification. Responses to questions aze in writing. Payroll has stated it is sometimes difficult to obtain coherent answers to questions, as there is a reluctance by the Office of Labor Relations to write down speeific answers. 2) The OLR has done some work on the collective bazgaining agreements databank, though it has not been completed and the work has not been kept up. The information in the data bank has not been communicated to affected individuals or departments. 1999 Sarm Pau1 City Codncil Research � ofSairtt Paul's iabotRelations Activities y y Recommendatian #35: The Offzce of Labor Relations, Risk Management, and the Office of Financial Services should increase efforls to sireamline contract implementation. �411 three offices should clarify communication systems to improve the administrative process. Recommendation #36: The O�ce of Labor Relationr should complete the data bank relating to parallel secrions of the collective bmgaining agreements. The existence and use of the data bank should be communicated tn all aj j'ected parties, and the data bank should be used to identify arear for negotiation. Contract Implementation in Risk Management Risk Management is responsible For administering the benefit packages of City employees. They implement and monitor programs such as workets' compensation and health insurance. They also work closely with other departments such as the Office of Financial Services to monitor the e�cpenditures associated with such progcams. Contract Imolementation Policies for Risk Administer the health and welfaze benefit programs for the City and Water Utility to insure that employees/retirees receive proper benefits and all bazgaining unit Cont['dCts �nd laws aze 3dhefed to. Risk and Employee Management Division 1998 Orsgaing Bardget Progrmn Objectives Assist the Budget Office in determining and monitoring the unfvnded liability and cost alIocation in self-insuted progrems (these programs include workers' compensation, tort liability, and retiree health insurance) in order to establish a budget reserve in accordance with risk management industry standards. xiskmwt Employee Management Services 6ivision: 1998 Ongoing Bvdget Progrmn Objectives Finding Risk Management has followed through with its budget objectives. They are requited to monitor unfunded ]iability to meet general Govemmental Accounting Standazds Board requirements. They also monitor the contracts to ensure proper administration of benefits. RecanAtendation #37.• Risk Management and the O�ce of Financial Services should develop performance indicators to ensure Nmely implementation of contract changes. These ittdicators should be developed in the context of a systematic form of communication between all imolved City o�j?ces. Risk Management currently attempts to implement contracts in one month, but a formal benchmark to measure against would assist in tracking implementarion time. Contract Implementadon in Fivancial Services Financial Services is responsible for processing contract changes and ensuring that all changes are reflected in the payrotl records and consequently the payroll checks the employees receive. 1999 Soint PouJ Ciry Cormcil Reseorch Perfoimance Audit of ihe CiTy of Saim Paul's Iabox Relations Activities 55 �� Contract Implementallon Policies for Financial Services �� Rights and obligations of emptoyees The employer shall deduct the [fair shaze] fee from the eamings of the employee and hansmit the fee to the exclusive representative 30 days after the written notice was provided. ,�.rinnesora Srare S�ature 179A: Public Emplayees Labor Relafions Act 779A. D6 Dues check of}' Public employees have the right to request and be allowed dues check off for the exclusive representative. Minnesora Srare Sran.re 1 �9A: Pubttc Employees Labor Relatiom Act 179A.06 Rights and obligations of employees. Subd 6. Finding We found no probleaus with the Financial Services policies. The Office of Financial Services does provide written notice to the collective bazgaining units of any fair shaze fees, and also provides dues check offs. Contract Implementation in Collecrive Bargaining Units Contract Implementation Policies for Collective Bargaining Units Fairsharefee The elcclusive representative shall provide advance written notice of the amount of the fair shaze fee to the employer and to unit employees who will be assessed the fee. The employer shall provide the �clusive representative with a IiSt of all Uriit employCeS. Minnesota State Statute 179A: Public Employees Labor Relations Act 179A.06 Rights and obligallons of employees. Subd. 3. �'tritli�tg No serious problems were identified with this policy. Most of the collective bazgaining units provide advance written natice of the fair shaze fee, and the Office of Labor Relations provides the collective bargaining units with a list of all of the unit employees on a monthly basis. 7999 Saurt PauJ Ciry ComecU Research 56 PerFormance Audit of the City of Saini Paul's Labo Rel A ct iv i d es QUALITY ASSESSMENT FOR 9 � - �� CONTRACT NEGOTIATION PLANNtNG Summary Rating �`r� Planning is a method for achieving a goal. Planning should include knowledge and inclusion of key participants, systematic processes, the release of a well-circulated document or planning product and an effective implementation strategy. Goal-oriented organizations that pursue excellence require a broad-based vision directed towazd the future with a wiilingness to embrace long-term commitments. Planning should strive to anticipate many types of changes including those that may affect customers' expectarion of services, technoiogical developments, evolving requirements and community expectations. Planning strategies that lead to effective allocation of resowces need to reflect these commitments against the back-drop of a dynamic environmenY. Setting Strategic Direction Parkicipants in the conhact negotiaYion and implementation planning process for the City and the collective bazgaining units do not engage in formalized planning activities. The Labor Relations Director, with direcrion &om the Mayor, ouflines pre-negoriation stntegies that are shazed verbally with key members of her staff. For the most part, department heads and the City Council are not included in these informal pre-negotiazion strategy sessions. Historically, there were three groups convened by the Labor Relations Director to develop negotiation agendas and strategies. These groups have been relatively short-lived and experienced varying levels of success. They did not include direct-service department or City Council representation. ❑ 1994 - 95: Executive Bargaining Team: Md every other week and during negoriations on an as-needed basis. Ii included representatives from Risk Management, fhe Budget Office, Human Resources, the City Attorney's Office and all Office of Labor Relations professional staff. ❑ 1996-97: Executive Bargaining Team Revised Structure: Met as needed. It inciuded representatives &om the Budget Office, the City Attomey's Office, the Department of Finance and Technology, the Mayor's Office and all Office of Labor Relarions professional staff. ❑ 1998: Labor Advisory Group (LAG): Met rarely. It included representarives from Risk Management, the Budget Office, the City Attorney's Office, Human Resources and all Office of Labor Relations professional staff. Some, but not all, union negotiators are involved in the preparation of formalized structured planning for pending contract negotiations. 'Tl�ose not involved develop "as-needed" negoriation strategies. Implementatiott acrivities are planned on a contract-by-contract basis, and there do not appeaz to be overall stratagic measures. KEY PLANNING CONCEPTS: o Set Strategic Direction � Develop Action Plans � Align Work With Plans 1999 Saint Pau1 Ciry Covncil Resemch PerFo�m�ce Audit of the �ty of Saint Paul's Labor Relatioas Activities 57 �71 V Developing Action Plans �� In spite of their good intentions the p]anning efforts made by the collective bazgaining units and the City do not produce long-or short-teim plans that meet broadly accepted requirements for useful planning. However, some pre-negotiation activities do occur: ❑ Staff from the Office of Labor Relations report� the Labor Relations Directot has engaged in talks with some City department heads, prior to negotiations, in an attempt to gather information about what they want included in a contract settlement, i.e. working conditions, overtime hours, job classification etc.; ❑ City attomeys have attended meetings where short-term plans were reported to have been made; ❑ The Office of Labor Relations sent questionnaires to the Public Works Department asking for any potential changes in the contract. ❑ Several collective bargaining urtits reported they make short-term plans before contract negotiations. They make pre�negotiation plans at committee meetings and survey the membership to obtain a sense of their wishes prior to negotiation. Often, these plans are listed goals that union negotiators use during contiact negotiation. Unfortunately, these as-needed negotiation strategies do not contain the breadth and scope of a well-developed, resource-specific, integrated plan that reflects the vision and values of organization members. Some collective bargaining units reported they were involved with the City in pre- negotiation planning meetings. Still, no formal document or plan was produced. The pre- negotiafion vetbal agreements attempted at these meetings do not rise to the level of a strategic fomialized planning process. The results from these encounters do not anticipate changes in the negotiation environment and therefore limit the opportunity of acquiring improvements that could reduce the time it takes to complete a negotiation. A$er an agreement is reached and before the actual contract is ratified, a copy is given to Financial Services to allow them to develop strategies to implement the changes in the contract. However, only short-term conttact implementation plans are made at this point with the relevant departments and the Office of Financial Services Office. Consulting key departments on the compleacity of contract implementation is relatively new and not yet fully developed Staff in various depaRments report there appeazs to be no meaningful incorpotation of wntract implementation concems into the negotiation process. As with pre- negotiation, 'vnplementation strategies aze task-speci£ic and do not include an initial assessment of the resources required nor do the plans considet future changes that may arise. Aligning Work With Plans While we may fault the City and the unions for their lack of a formalized planning process, both sides stress the importance of informal short-term planning which allows them to engage in successful contract negotiations. Also, pazticipants in the conkact negotiation process have expressed their safisfaction or dissafisfaction by informally reviewing the outcomes of a completed negoriation. This may take the form of conversations over dinner, a pat on the back when leaving a negotiation or a post-negotiation union meeting where the rank-and-file express to the leadership how they feel about the results from the previous round of negotiations. These meetings might also include an informal comparison of results 1999 Soint Pavl Ciry CounCil Ruemch 58 PerFocro.ance Audit of ibe City of Saint Paul's Labor Relations Activi4es with other jurisdic[ions. They have noi mutinely evaluated information to enhance the process in the fimue. The same siYuation eacists for contract implementation. The short ]ength of time between agreement on the contract and implementarion does not ailow for much evaivation during the implementation process. The departments involved in implementation do not do any formal evaluations of implementation strategies, though each par[y understands their mle in the process, and follows practices that have been in place for some time. Recommendatian #38: The Office of Labor Relations should include deparhnenl heads and the City Council in a planning process prior to contract negotiations. Planning should include aspects of timeliness, cusiomer expectations, process improvements, information exchanges and a determination of who should be at the table. Short- and long-term plans shouJd adso include consideration of fulure changes in codleclive bargaining units, internal staf�'ing, Compete Saint Paul and other factors that arise. Recommendation #39: The O�ce of Labor Relarions and union leaders should develop a formalized planning process that occurs prior to contract negotiations. Among other things this process should cover issues of communication, timeliness, standards of behavior and exchanges in sta,�ng information. Such a process would irrclude items iraditionally discussed in establuhing "ground rules"for a negoriation, as we[I as items relating to the longer-term relatioruhip between the City and bargaining unit. Recommendation #40: Union leaders should survey their membership and use this survey as an instrument to deve[op short- and long-term pians to more accurately assess the needs and wants of the membership. This plan should reflect a vision for future negotiations, be written and disseminated to all members. LEADERSHtP Surnmary Rating: �� KEY LEADERSHIP CONCEPTS: o Mission o Vision o Values o Communicarion The process of contract negotiation requires leadership from a diverse group of senior leaders represenring a variery of mterests. The City's Labor RelaYions Duector along with the union presidents and business agents for more than twenty bazgaining units shaze leadership responsibility. While these senior leaders may have individual differences with respect to values and visions for the future, they al] have a responsibilit7 to create and express a clear set of values for the process and a clear vision for the future of conlract negotiations with the City of Saint Paul. Leaders in the conhact implementation stage include staff in Financial Services, the OfBce of Labor Relations and Risk Management. Vision No ciear vision has been developed for how the contract negotiation or implementafion processes are to be conducted in the future. Senior leaders do not articulate a vision for the future that is more fhan expecting to repeat what has been done in the past. An exceprion is that the Labor Relations Director and a few union leaders believe there may be a role for interest-based bazgaining in future contract negotiations. They have conducted some 1999 Saint P¢ul Ciry Cwmcil Researah Perfo�mmce Audit of the City of Saint Paul's Iabor Relalions Activities $ �� experimental interest-based bargaining sessions and see ttus approach as having application - 1 `� in cer[ain situations. There is not, however, a clear vision of how this technique, or any other, is to be used in the fuhue to improve the contract negotiation process. The timeliness of the wntract negotiation process is universally acknowledged to be a serious problem but senior leaders have not provided an altemative vision that will address this failing. Contract negotiations are seldom completed prior to expiration and they sometimes run as much as one to two years behind schedule. It is the responsibility of senior leaders to develop and articulate a vision for the future that will end this frustrating and expensive practice. Values Senior leaders must articulate and model the values they believe should guide the contract negotiation process. While senior leaders seem to agree that trust, respect, honesty and fauness should be primary values, these values aze seldom articulated and sometimes ignored. There aze often retold stories of disrespect, dishonesty, mistrust and unfaimess in contract negotiations. The instances of reported disrespect ranges from accounts of unions officials using a stick to beat an effigy of a City official during breaks in the contract negotiations process to accounts of a City officia] bringing a dog to a negotiating session. There are also reports from both sides of instances where negotiators did not tell the truth or failed to cazry through on promises. It has also been suggested that faimess is not always applied when dealing with "lower-status" or femal�dominated bazgaining units. We found no clear evidence of this, although there is a widely held belief that this is the case. Communicarion In a well-managed process communications aze open, rapid and effective. In order for each partner in the process to be able to make conect judgements and optimal decisions, everyone must have all the information they need to make the best decisions. Communications within the City's part of the wntract negotiations process are cleazly lacking. Secrecy and exclusion characterize the City style. Only a handful of City officials are informed about the contract negatiation process. Even most staff in the Office of Labor Relations are il]-informed. Likewise, City department directors and the City Council are provided with little or no meaningfiil information. The head of key contract administration activities such as� Risk Management and the City Attorney aze lazgely in the dark. In sum, the City's communications systems with respect to contract negotiations have the nalure of a closed process known only to a very small, select group of City officials. It may be suggested that secrecy is necessary for an inherently adversarial process but such �treme secrecy is not maintained by the bazgaining units nor by many other public and private entities when they engage in contract negotiarions. The unions, in contrast to the Ciry, maintain open communications about conhact negotiations. All union members aze invited to participate in meetings where contract negotiations processes and objectives aze initially discussed. They invite members to serve on the union eacecutive boazd that reviews the progess of contract negotiarions and ptovides advice and direction to union negoflators. Also, many union members have the opportunity to serve as members of the union contract negotiating team. The unions provide support and recognition to members who participate in the contract negotiations process through formal recognitions and awazds to members who contribute to the contract negotiation process. 7999 Sqin! Paul Ciry Council Researth �o ��;o�A�riti� Union leaders also meet with their membership after contract negotiations are�comp�eted to explain the contract, though Risk Management reports it still r�eives calls from union membecs asking for clarification of terms in the contract. Many factois may contribute to these inquiries such as confusion resulting from the information presented to the membership by the collective bazgaining units. Altematively, the employees could be "shopping azound" for an answer they like. Perhaps it is a practice that remains from years ago when union members expected Risk Management to interpret the contract for them. Communications between the City and bazgaining units regarding contract negotiations are not paRicuiarly productive, Bargaining units complain about City staffnot retuming their telephone calls and being very slow to respond to written communications. Also, the City dces not always notify bargaining units of statYchanges that may ai�'ect the process. While City leaders claim they maintain good communications with the bargaining units, there aze allegations that this is not so. Communication is also key to implementing any resulting contract changes. Financiai Services has a system established to communicaYe changes to payroll contacts, though communication between the Office of Labor Relarions and Financial Services regarding contract changes is not always productive. Financial Services stated they sometimes find it difficult to obtain necessary informarion &om Labor Retations. However, both depar[ment reported collaborating to address this ptoblem. Recommendation #41: The Labor Relations Director should take the initiative to irrvite bmgaining unit leaders to join in a professionally facilitated process that will lead to the creation of a vision for the future of cantract negotiatio�rs in the City of Saint Paul. This facilitaied process should review past successes and f4ilures with an eye to developing o common vision of how the process will proceed more effectively and e�ciently in the future. This visioning process should occur at least once ench year to ensure they continually refine and adjust it to deal with changes in circumstances attd changes in leadership. Recommendation �t42: Senior leaders from both fhe City and the bargaining units should define !he values thar will govern the contracl negotiation process and commil themselves to ensuring these values are regularly articulated cmd followed without zxception. A mechanism for identifying and correcting arry faiZures to adhere to these values should be established and enforced. Recommendation #43: The City wouid be better served if it were to be much more open and inclusive in developing and communicating with other City officials cmd union representatives about contract negotiariotts. Certainly such key players as Risk Management med the City Attorney should be kept fully informed mrd imited to participate in the development and pursuit of City contract negotiation objectives. The City should cease treating contract rregotiations as the exclusive purview of a small cabal of City offzcials and seek the active prnticipation of a wide spectrum of Ciry managers and elected oJJicials. We believe whatwer tacacal advantages may be lost by reducing secrecy and �.rclusivity will he more than offset by the benefits to be derived by urvolving a wide spectrum of City o,f�J'icials in the contract negotiation process. 1 A99 Saint Paul City Co�mcit Resemch Perfurmance Audit of ihe City of Saint Pau('s Labor Relatioas Acrivifies 61 /� n f141' U TRAINING $� DEVELOPMENT Summary Rating: �� Employees in successfu] organizations aze provided '�.� --- -- the tools they need to produce quality work. These same employees aze given encouragement and resources to develap a set of skills that allows them to contribute effedively to organizational undertakings. For example, if an organization identifies continuing education for its employees as a key strategic value, it will provide workers the opportunity and resources needed for them to attend classes, seminars or in-house training. If an organization values promoting from within, it will have well-defined advancement systems that aze attainable tivough hazd work and adherence to organizational priorities. Successfu] organizations also ]ink the training and development of their employees to the organization's goals and priorities. This linkage occuts through the development and release of a long-term strategic plan that identifies organization strategies that aze widely known and tied to basic organizational values. Education & Training Tnining and development does not appeaz to be a high priority for either the City or most union negotiators. On the City side, the Labor Relations Director is the only staffperson in the Office of Labor Relations that negotiates for the City." Organizationally, this is not a healthy situation. This situation is exacerbated by the Director's history of not sharing information and customer expectations with her staff. While Labor Relations staff have expressed interest in becoming negotiators, there is currently no formal training program for them to accomplish this goal within the City. Union negotiators make use of some training offered through their union affiliations. Unfortunately, all unions do not have the resources nor the infrashucture necessary to train and develop future negotiators. In many instances individuals on the negotiation teams aze untrained volunteers with no discernable negotiation experience. Job Design The Office of Labor Relatians recently hired a Labor Relations Manager with a requirement that he or she have five years of contract negotiation experience. This will improve the situation of inexperienced city negotiators. The Labor Relations Director has informally pass�l on some negofiarion strategies to her staff. Similazly, some staffhave attended MPELRA conferences where limited training did occur. City staff, based on their particular position and role in contract implementarion, have some opportunities to contribute to the process. Labor Relations staff al] have specific roles related to implementation and contribute through their respective roles; however, the primary 1 � In 1994, 1995, 1998 and 1999 the City hired Labot Relations consultanu. In 1994 and 1995 the consuitants worked with the Health Insurance Labot Management Committee and in 1998 and 1999 the consultants assisted in contract negotiations. KEY TRAINING 8. DEVELOPMENT CONCEPTS: � 3ob Design � Recognition o Fducation & Training n Employee Well-Being 7999 Sain! Pau! City Council Reseorch 62 Perfmmance Audit of the decisions are made by the director. Risk Management and Financial Serv� 9 �tr�b�e greatly to the process, and implement the wntract changes as required. However, this is somewhat problemaric, as some contract changes that are agceed to may in reality be very difficult to implement. Employee Well-Being & Recoguition Participants in the contract negotiation process reported significant leveis of disriust. Apparently, this distrust is not only between the City and the collective bazgaining units but also between participants within their respective goups. Within the City, participants in the process hold different views on negotiation sirategies and disagree about the leveI of service thaz should be provided to their competing customers. It was reported the actions of some department heads run contrary to the vision of contract negotiation expressed by the Administration. Labor Relations staff expressed concern that some department heads are making decisions contrary to the policies of the Office of Labor Relations. In contraSt, some department heads and other key staff believe they are left out of the negoriation process and feel e�ccluded by the Director. City staff involved in contract implementation expressed some frustration with the difficulty in obtaining the necessary information regazding contract changes. These employees also work undet stressful conditions when implementing contract changes, as the time frame between contract ratification and implementation is often very limited. Some union participants reported they do not always feel respected by their leaders. Smaller collective bar�aiuing units reported the negotiation process te.nded to be a positive experience for them, while some participants &om larger unions feIt worn down by the length of Ume it takes to reach an agreement. They believe extending the time it takes to reach an agreement is a negotiation strategy employed by the Ciry to better its outcomes. Recommendation #44: The O�ce of Labor Relations should make contract negotiakon training for eligible staff a priority. This should occur either in-house or through continuing education at an ofj-site facility. Recom�nendation #45: AIl unions should offer training in contract negotiation to members of the negotiation team. Recommendation # 46: The Oj�ce of Labor Rel4tions, Financial Services, ared Risk Management should develop a formal communication system to communicate cmd implement contract changes. See also Recommendation #56, page 69 on maintaining at least two negotiators an staff in the OLR. 1999 Saint Paul CityCoarxil Resemck Perfo�nce Audit of the City of Saint Pau1's Labor Relarions Activities �^(� $�� , !�{�-� INFORMATION AND ANALYSIS Summary Rating: �s�r�r Information and analysis aze vital for managing and improving processes. Performance improvement KEY lNFORMATION & ANALYSiS CONCEPTS: o Collec[ion of Data � Use of Data � Analysis of Data o Comparison with Others information includes customer, employee-related and cost information. Collecting data serves little purpose if it is not analyzed and used to make improvements. Extracting lazger meaning from data to support evaluation and decision maldng for the contract negotiation process is very important. Analysis should include trends, projections and comparisons. Using data and analysis systematically in setting priorities is important in properly setting goals, developing plans and allocating resources. Information should be available to all parties to the process and used to evaluate the process and assess progress. Information is essential in monitoring performance against measutable goals and it should play a key role in the decision-making process. Collection, Analysis, and Use of Data Both the City and the unions aze good at collecting and using data related to contract negotiation. While the City's systems for collecting and analyzing data have historically been weak, they aze now better and continuing to improve. Past City problems have been primatily related to inadequate wmputer hazdware, unstable softwaze and weak technical support. Improvement is due to better technical systems and sugport and the higher priority placed on the maintenance of quality data by the Labor Relations Director. The City continues to maintain two computer-based systems intended to do "total package costing." T'his appazent duplication is not only inefficient but, they tell us, often produces different cost projections. This duplication and instability suggest that more work needs to be done to improve the situation. Other City departments also collect varying amounts of information related to negotiation and implementation. The Payroll Office in Financial Services keeps copies of letters sent to employees describing pay changes, though ffiey do not keep any other formal files of changes. Benefits collects data on sick leave use and other benefits. Collective bazgaining units also use data and computer analysis to evaluate proposals and compare agreements with other jurisdictions. The use of this type of data and analysis varies among the bazgaining units with some being more sophisticated in their use of computerized data analysis than others. Most, if not all, bargaining units use data and analysis at least to some e�ctent to evaluate the products of the contract n�egotiarion processes. Comparison with Others The collective hazgaining units collect and shaze a fair bit of information on comparable contracts. They generally obtain this information from other locals or from na6onal labor organizations. This compazative data is used extensively by unions to study trends and to assess the equity of settlement proposals offered by the City. While City staff attend and participate in meetings with the labor relations directors of other govemmental units in the metro azea, the information gathered in this forum is thought to be 1999 Samt Paul Ciry Counci! Rueamh � Perfwmmce A�edit of the City of Saint PaW's Labor Relations Activities of limited value. This is because shazed information often lacks sufFcient debi] to accurately assess the total agreement and the desire of participants to make the settlements they have achieved look as gaod as possible to their peers. This group is sometimes, jokingly, called the "liazs club:' Nevertheless, the collection of this type of comparative information is important and helps the City understand the broader collective bazgaining environment. Regazding the outcomes of the contract negotiation process, some data is collected and analyzed by both parties, however, little data is collected by either party about the process itself. There is no systematic information gathered regazding ihe costs of the current process in either time or money. Lacking such information there is little incentive or basis for seeking to make process improvements. Recommendation #47: The City should continue to seek to improve its data collection and attalysis capa8ilities and should implement the total package costing program. Likewise, unions need ro continue to improve their systems and find additional supporl for thase units that do not currently have quality systems. Recommendation #48: The City and unions should continue to work to improve their data collection attd analysis systems for negotiation outcomes. The parties should also mutually define process cost measures and jointly collect arrd share data on these indicaiors. These data should then be used fo analyze the efficiency of the process with an eye to making improvements. This information can be used for a comparative evaluation of alternative negotiation methods. Alternatives should be used erperimentally until proven and then adopted for all conCract ttegotiations. The process would be well-served ifpresent leaders were 10 make a concerzed effort to break free of their long-starrding beliefs about how to conduct contract negotiation and seriously consider alternative dispute resolution processes. Some of these alternatives, may, prove to be superior to current processes which are, unfortunately, performing poorly in many cases. PROCESSES FOR IMPROVEMENT Summary Rating: �`r�`r KEY PROCESSES FOR IMPROVEMENT CONCEPTS: � Improving services o Improving Suppoft Services o Improving Supplier Services This section reviews the design, management and improvement of the conhact negofiation and implementation processes. Impmvement practices should be an integral part of any process. Both parties should be seeking to eliminate problems at their sowce and be driven by oppofiuiities to improve. Improvements may be directed towazd responsiveness, timeliness and efficiency in the use of resources. Improvement must contain cycles of planning, implementation and evaluation that require information and methods for assessing progress. It is critical tiiey continuously evaluate all processes to identify problems and successes. The coniract negotiation process reflects little management of the process by either party. All recognize their inability to complete contract negotiations on a rimely basis but little, if anything, is being done to remedy this most serious pmcess failure. Despite the higlt cost of this conYinuing failure in both frustration and direct expense, the parties have done nothing 1999 SaiM Paul Ctty CowrcAReseamh Performanw Audit of the CiTy of Saint Paul's Labor Relazions Activities effective to ameliornte this problem. While trends aze not entirely clear, in part because no one bothers to collect data on timeliness and hack �ends, this situation continues. 65 a � ��n Although it is commonly believed by the parties that the current "zero-sum" type of bazgaining is ineffective and needlessly expensive, there have been few attempu to improve the process by adopting altemarive models. Some have tried to use "interest-based bazgaining" with parts of a few contracts, but they have not attempted to pursue new and possibly better methods of resolving differences between the parties. Leaders on both sides seem to be deep]y invested in long-standing contract negotiation processes and either cannot see, or do not want to see, that there may be better ways of reaching mutually acceptable collective bazgaining agreements. One reason there may be so little impetus to improve the contract negotiation process is no systematic evaluation of current processes is ever done. No one collects or analyzes quantitative data about the methods in use. Without systematic evaluation, there is no way to imow how current processes are worldng and to identify the areas in need of improvement. Recommendation # 49: Parties irtvolved in contract implementation should corrduct surveys to identify tevets of supplier performance and search for areas and ideas for improvement. Suppliers might include those agencies and individuals who provide necessury informatian for the negotiation process. See Recommendations #47 and #48, page 64 on information analysis in contract negotiations. CUSTOMER FOCUS Summary Rating: ��`r Attention to customer needs is crucial if an organizaGon is 1 striving toward e�ccellence. Organizations that excel in customer satisfaction have obtained information by creating and managing relationslups with their customers that give the organization key service requirements, neaz and long-term expectaiions and degrees of customer satisfaction. The successful use of customer satisfaction information is linked to an organization's ability to gather and analyze data conceming customer requirements. Knowing the requirements of its customers enables an organization to develop service standards. In order for these standards to be efFective they must be distributed Uiroughout the organization and understood by KEY CUSTOMER FOCUS CONCEPTS: o Customer ldentification o Customer Knowledge � Customer Relations everyone. Castomer ldentification When it comes to contract negoriation both the City and the unions have a pretty clear idea of who their customers aze. The collective bazgaining units have identified the rank and file membership and the citizens of Saint Paul as their primary customers. Those individuals who aze involved in the negotiation process for the city have identified the Mayor, Ciry Council, department heads, the rank and file and citizens as their primary customers. 1999 Saint Paul Ciry Councr7 Research � Perfomoance Audit ofihe Interestin 1 eno 9' 9` ��a g y ugh, even though the City Council was identified as a customer, no actions during the negotiation process back this statement, The Council is not kept up-to-date on contract negotiations, collected information is not forvvazded to them, informarion on staff changes is fonvazded slowly and presentations before the Council by the Labor Relations Director are not regulazly scheduled. Customer Knowledge The participanu in the contract negotiarion process have a ciear understanding of who theu customers aze. They also believe they have a clear understanding of their customer's needs and expectarions. However, in spite of this belief, the participants do not have formal processes to assess customer needs, expectations and satisfaction. The Office of Labor Relations identified multiple customers but the only customer who is involved in any kind of process to determine customer needs, expectations and satisfaction level is the Mayor. The Labor Relarions Director held frequent meetings with the Mayor where the Mayor shared his vision for the future wnceming the d'uection in which contract negoHarions should proceed, This information was then used by the Office of Labor Relations in subsequent negoriarions. Unfortunately, very little was done to capture informaYion on the needs and expectations of other customers idenrified by the Office of Labor Relations. The OLR Director indicated that on at least one occasion a survey of department and office directors was conducted. Similazly, there were very few regularly scheduled meetings with the City Council Yo assess their needs and e�cpectaYions. According to some collective bazgaining units, informal conveisations and occasional surveys were used by union leaders to monitor the eacpectations and needs of the rank-and- file. They held infocmal conversations with union membeis after negotiations to determine their satisfaction with a settlement. The information shared at these meetings tended to revolve azound financial and bene5t matters; no information conceming impmved practices and meeting behavior was usually given. Furthecmore, these practices have not been formalized or practiced over time in order to compare customet sarisfaction results with other jurisdictions or with past performances. Negotiato� do not fol[ow any formal customer service standards or guidelines when it comes to such issues as communication between offices, information analysis, meeting time lines and negoriation behavior. Customer service standards, if shared with all key negotiators and their staff, would provide a frunework for a[I pazficipants in tfie negotiation process to understand the vision, goals and eacpectations of key customers prior to and during negotiations. Cnsfomer Relations High quality organizarions stress relationship enhancement as an important part of an averall "listening and leaming strategy." Some members of lazger collective bazgaining units did report communication problems between themselves and the leadership. For tite most part however, union negotiators did provide information conceming the negotiation prceess to iu membership on a regulaz basis. Unfortunately, no formal consistent process to determine customer satisfaction e�sts between the leadership and iu members. Therefore, important customer feedback may not to make it to union negotiators in a timely manner. Without an effective method to assess the needs and expectations of key customers the effecriveness of the negotiation process is limited. 1999 SairetPmrlCrry Counci! Research PeA'onnance Audit of the City of Saint Paul's Labor Reietions Activities 67 Reconen:endation #S0: The unions should create a formal process to measure the r� �� expectations mrd satisfaction IeveLs its members have concerning the contract negotiation process. The usues identified in this process shauld not be limited to financial arrd benefzt outcomes but should also stress communication between the leadership and its members, informatian d"usemination, sruff changes, timeliness, processes for improveirsen[ and general leadership concerns. Recommendation #SI: Both the City and the unions should use the informatinn it receives from surveying its customers to establuh customer service standards and guidelines whzch in turn would be used during tiee contract negotiation process. Recommendalion #52: The Office of Labor Relations needs to ezainine the role of the City Anorney's O�ce, the O�ce of Financial Services and Risk Management to determine if greater p�tnering accompanied by information sharing would be a more effecrive approach to negotiation than presently eruts. All of these departments should consider surveying their respective customers to determine their level ofsatisfaction with negotiation and implementation. See also Recommendations #17 and #19, pages 24 and 26 respectively, an Ciry Cauncil and other customer communication and information gathering. RESULTS Summary Rating: �r� Successful organizations know how well they aze doing. By using results they can caiculaie their KEY RESULTS CONCEPTS: o Customer Satisfaction � Financial Outcomes � Suppler Performance � Organization Outcomes efficiency and effectiveness. For example, if the goal of the organization is to pmvide a high level of customer satisfaction with a product, the organization would collect and analyze data indicative of customer expectations, work practices to meet these eacpectations and the resulting levels of customer satisfaction. Once they establish outcomes, the organization can track its perfomtance over time and compare its results with those of other organizations. These comparisons with other similaz organizations can represent benchmarks against which to compare outcomes, efficiency and effectiveness. Participants in the contract negoriation and implementation processes do not have formal methods to measure their outcomes. They do not track performance over time and any comparisons to similaz organizarions are limited in scope and not part of any annual assessment. Customer Saiisfaction We diswvered customer satisfaction with the results of the negotiation process is not systematically measured by either the City or the unions. Only a few unions survey membership periodically. Because no accurate customer satisfaction results aze gathered, no current customer satisfaction comparisons to similaz organizations can occur. There is no formal evaluation of the process used for negotiation and implementation of contracts for either the City or unions. Overall, the communication systems between the 1999 Saint Povl Ciry Council Resemch Paul's Labor Relazions Activifies depaztments are goor, and even informal evaluations do not seem to be preseni " In�emally, no feedback mechanisms eacist for each department to evaluate the services it receives &om the othecs on a holistic or individual level. Therefore, it is even more difficult to aclueve efficiencies in the negotiation process for the upcoming negotiation cycle. Organizatiouat Bc Ftinancial Outcomes It is natural far both sides in the contract negotiation process to be concemed about the outcomes of that ptocess. However, the City aud the unions have goals that are too narrowly defined as "mazginat financial outcomes." Because their goals are limited in scope the �mions and the City believe they achieve most of their desired goals. Union and City negotiators occasionally measure the outcomes of a negotiation session by having informal conversations after a round of negotiations. While we tecogniae concentrating on fivancial results is a natural reaction to conffact negotiations, we must point out that lugh quality organizations have identified other measurement criteria that determine whether they aze achieving their goals. Such criteria deal with issues of communication between participants, information shareng, rimeliness, standards of behavior and negotiating environment. Little attendon has been given to other aspects of the negotiation process to see if possible efficiencies can be ide�tified and impmved upon before the ne�ct round of negotiations. The Office of Labor Relations dces compaze its financial results Yo other municipalities. They also compare current financial results to resuhs from other years. Some collective bargaining units infoanally compare their financial and benefit results to similaz organizations and national pazent organizations. Organizational and financial outcomes related to contract implementation are not tracked or evaluated by the City. The Payroll unit states that it measures results by whether paychecks aze correct. If they are not, the Payroll unit states it will heaz of the problem, and would then consider its results unsatisfactory. Risk ManagemenY has a one-month plan to incorporate any benefit changes, and measures its res�ilts according to this pian. While individual depattments may claim to evaluate their work through these methods, there is no evaluation of Yhe whole process. Ttris lack of evaluation is pervasive and a hue lvndrance to any improvement practices that may be taldng place on either side, Employee PerFormance & Well Being Multiple staff changes in the Office of Labor Relations ovet the past few years have resulted in a situation wheie only the Labor Relations Direc;tor has the ability and lmowledge to negotiate a contract. Historicaliy, the Office has had two, and occasionally three, professional staff capable of negotiating contracts. However, for almost one ye� the Office has had only the Director and hired consultanu able to negotiate contracts. This situation is fuRher exacerbated by an office that does not vatue additional training and development for its staff. Continuous staff tumover in the Office of Labor Relations has made it difficult for the unions to establish a normal working relationslrip with the office over time. Intemal office assignments shift from person to person without long-term adminishative projects being completed. 7999 San1t Pau(City Cmmci! Research Performance Audit ofthe City of Saint Paul's Labar RelaROns ActiviRes 69 � Supplier Performance �V�� In 1998 the Office of Labor Relations contracted with a consultant to help with contract negotiations. The Labor Relations Director reports to have formally evaluated the consultant for his value and effectiveness; however, no documentation of this has been produced. Recommendation #53: Both the Office of Labor Retations and the unions should develop formal processes to measure and track goal-oriented outcomes. These outcomes should inciude more than just,financial and benefit information. Participants in the contract negotiation process should establish criteria that would also measure aspects of the negotiation process associated with communication between participants, information sharing, timeliness, standards of behavior and the negotiating emironment. Recommendation #54: The Office ofLabor Relations, Risk Management, Financial Services ar+d the uniotts should measure customer satisfaction arrd compare those results with similar jurisdictions. Survey instruments should be developed and sent out bi-annualdy fo all ident�ed customers. Recnmmendatfon #55: The Office of Labor Relations in conjunction with the Office of Human Resources should conduct an employee retention study to assist the new director in recruiting and maitttaining staff with the goal of reducing employee attrition. Recommendation #56: The Ojfzce of Labor Retations should reinstitute the practice of hcrving at least rivo staff inembers capable of negotiaring a collective bargaining agreement at a11 times. This would rake pressure o, f,�'the primary negotiator and allow the of�ce to deal with administrative arrd management tasks more efficiently. Recommendtttion #57: All contract employees should be evaluated for performance. This data should be used for planning and process improvement. 1999 Soint PauT Ciry CounciT Reseorch 7 0 Pe r F mm�ce Audit of the C ity o Saint pan!'s Iabo Re�tioos Activities ■ • •- i GRIEVANCE PROCESS POLICY ALIGNMENT Grievances may arise ouY of three different sources: 1) interpretation of the conhact agreement; 2) disciplinary action; and 3) Civil Service Rules. If an employee or union feels the temis of the contract have been violated a grievance may be filed. An individual employee may also file a grievance if they feel a disciplinary action taken against them was unjustified. Finally, a grievance can be filed if there is an alleged violation of tke Civil Service Rules. Civil Service grievances are handled by the Office of Human Resources and the CiTy Attomey's Office. Contract and disciplinary grievances that advance to Step III (e�cplained below) and beyond are managed by the Office of Labor Relations, with some assistance &om the City Attomey's Office, Tfus performance audit examines only the grievances handled by the Office of Labor Relations. Grievances generally follow a four-step process, outlined in each collective bazgaining uniYs contract. Time limiu on each of the steps e�cist to assist in moving the grievance forward in a timely manner, though time limits can be waived by mutual agreement. Step I of the grievance pracess unvolves onty the employee and his/her supervisor. They meet informally to resolve the issue. If they are unable to reach a mutually acceptable decision, the grievance moves to Step II, and the union stewazd meets with the department head or another higher- level management representative. If the gievance cannot be resolved at the two lowest levels, it advances to Step IlI, at which point the Office of Labor Relations assumes responsibility fat the grievance, and meets with the union's business manager. If still � settlement is reached, the grievance may go to arbit�ation, and the Minnesota Bureau of Mediation Services (BMS) will hear the grievance and make a ruling to wluch the City and the collective bargaining units must comply. The ruling of an azbitrator may be appealed to district court only under very limited circumstances such as: 0 Evidence of bias on the part of the arbitrator, ❑ The azbitrator �ceeded his or her powers--he or she did something contruy to law; ❑ The arbitrator refused to postpone the hearing when requestec}—according to law it is unfair for one side to be unprepared; ❑ If the subject being appealed is ruled non-arbitrable; or ❑ If the decisions is procured by unfair means (such as bribery). According to the OLR, appeals razely occur. 7999 Sai�e7Pttu! CrryConmil Rereolch PerEo�mazice Audit of the City of Saint Paul's Labor RelaRUns Activi4es 71 �� / teps and Participants in the Grievance Process' 5tep I: Informal meeting -� Grievant, Supervisor (oral) Step II: Formal meeting (orai) Step III: Office of Latwr Relations becomes formally involved (written) Step IV: Arbitration (written) � Union Steward, Department Manager � Union Business Manager (or President if collective bazgaining unit does not have a business manager), Office of Labor Relations � Bureau of Mediation Services, Union Business Manager, Office of Labor Relations An optional mediation step is also available to collective bargaining units and the City between Step III and N of the grievance process. Upon request of both parties, the Minnesota Bureau of Mediation Services will assign a mediator to the case. The pmcess is informal, and both sides have an opporiunity to present their evidence. This can be done in a joint session or in sepazate caucuses. At the request of both pazties, the mediator may issue an oral recommendation for settlement. Either party may request an assessment from a mediator as to how an arbitrator might rule in the case. If the grievance is resolved through mediation, the grievant will sign a statement accepting the outcome. If the grievance is not settled, it moves to azbitration, Step N of the grievance process. In addition to handling contract grievances, the Office of Labor Relations may also represent the City in disciplinary grievances following the process outlined in the collective bazgaining agreement. If the employee selects review by the Civil Service Commission, the Office of Human Resources would be involved. However, the City Attorney hand]es most disciplinary grievances, and works with the department to draft a letter of discipline and iFthere is a dischazge or suspension. The Office of the City Attomey also administers grievances resulting fram Civil Service Rules interpretation. The following diagrams illustrate the general grievance processes for both non-disciplinary and disciplinary grievances. '� The City Attomey's Office may also participate in any step of the process by providing legal and contract interpcetations. The Office of Human Resou�ces will provide additional resowces at any step of the process. I999 Sarxt Pau! Ciry CouxcilResearch 72 PerForm�re Audit of the Ciri of Sa"mt Paul's Iabor Relations AcYivities • I J I r NON-DISCIPLINARY GRIEVANCE PROCESS Step I: Informal ►� Step II: Formal Step III: OLR becomes ,�,� formally invoived Employer responds to union, union refers grievance to business manager, who meets with Office of Labor Relations Meeting Employee and supervisormeet iefomially to resohie iswe Meeting Emptoyer supervisor or Fugher IevN manageme� �r�s with union steward Step IV: Arbitration Appeai to District Court onty under very limited circumstances A Vlfdhin 7 days, union reqests arbitration B. Union and employer strike names from list of arbitrators sent from BMS C. Arbilrator has 30 days to wbmit final and binding decision *A non-disciplinary grievance is an alleged violarion of the terms and conditions of the collective bazgaining agreement. l999 SamtPauJCityCawxilResenreh Perfo+mance Audit of the �ry of Saint Paul's Iabor Itelatioas Activilies DISCIPLINARY GRIEVANCE PROCESS Notice of discipiinary action sentte employee and uniort within 72 hours of aation being taken; employee may file a grievance If disciplinary action is a discharge, reduction, or suspension, employee may choose review by the Civil Service Commission (CSC) or use grievance procedure contained in collective bargaining agreement If employee requests review by CSC, must make request within 5 days of notice of the action Foilow collective bargaining agreem¢nt procedure and initiate Step 1 of nondisciplinary grievance process Grievance reviewed by CSC Disciplinary actions indude oral and written reprimands, suspensions, reductio� in classification and discharges. My discipfinary adion that is not a reduction, suspension, w discharge can be grieved only through the co�lective bargaining agreemenYs grievance procedure. '��,$�D 1999 Soint Paul Ciry Cormci) Research 74 Pecfo�m�ce Audit of the City of Sain[ Pau Labor Relazioos Activities General Grievance Process Policies g 9- $�� Many of the grievance process policies apply to both parties in a grievance. These policies aze listed and discussed below. General Grievance Pmcess PoGcies Expression of views. [The Minnesota Pubilc Employees Labor Relations Act] dces nM affect the right of any public employee or the employee's representative to e�cpress or communicate a view, gievance, complaint, or opinion on azty matter related to Yhe condirions or compensation of public employment or their bettennent, so long as tlus is not designed to and does not interfere with the fiill faithful and proper performance of the duties of empioyment or circumvent the rights of the exclusive representative. Sections 179A.01 to 179A.25 do not require any public employee to perform labor or serveces against the employee's Will. Minnesata Stme Statute 179i1: Public Employees Labor Relations �ict 179.4.06 Rights and obligations of employees. Svbdivision l. Unfair la6or practices A copy of any complaint alleging an imfair lahor practice must be filed with the commissioner at the time it is brought in disirict court. �meesota State Stalute 179A; PuLlic Employees Labor Relations Act 779A.13 SUbdivision l. Actions. Unfair labor pracrices The party bringing an unfair labor practice action in district court shall also transmit to the commissioner any ordeis or judgmenu of the court wiUvn ten days of the order or judgment Min,resora Srare Stan.te t �9A: Fal,lic Emplayees I,abor Relations.4ct 179A.13 Subdivision l. Actions. Grievance arbitralion If the parties to a contract cannot agree upon an arbihaYOr or panel of arbitrators as provided by the contract grievance procedures or the procedures established by the commissioner, the parties sfiall altemately strike names &om a list of arbitrators selected by the commissioner until only one name remains. Minnesota State Statute 179A: Pu61ic Employees Labor Relatinns Act 179A.21 Subd 2. Setection. Grievance arbitralion The parties shall share equally the costs and fees of the et�itretOi. �ru�esota State Stalute 179A: Public Employees Labor Rela[ians Act 179A.21 Subd. l. Selection. Independent review. IL is the public policy of the state of Minnesota that every public employee should be provided with the right of independent review, by a disinterested person or agency, of any grievance azising out of the inteipretation of or adherence to terms and conditions of employment. Minnesora srare Srarure 179A: Poblic Employees Labor Relations Act 779A.25 Findings 1} It was repoded that upon occasion, a union member may circumvent the exclusive representative and communicate directly with a supervisor or manager regazding the terms and conditions of employment, but we found no obvious violations of the "Expression of Views" statute. Union members may sometimes feel as though they have not gotten a desired transfer or other changes as a result of expressing a view or filing a grievance, but none of the allegations have been substantiated. 1999 Saint Pau! Ciry Cowcd Research Perfom�ance Audit of ffie Ciry of Saiat Paui's Labor Relations Activities 2) When unfair labor practice complaints have been filed, both parties have complied with Minnesota Stahrtes. 3) Both parties in arbitrations have complied with the state statutes regazding selection of arbihators and the sharing of the costs and fees of the arbitrator. 4) The right to independent review is believed to be covered by Step N of the grievance process, which is azbitration. The City is in compliance with this policy. Grievance Processing in the Office of Labor Relations n ��_�� As discussed previously, the Office of Labor Relations carries primary responsibility for administering grievances, with the exception of Civil Service grievances. The policies below aze those that specifically address the responsibilities of the Office of Labor RelaYions. Grievance Pmcessing Policies for the Office of Labor Relations Develop a training program to train managers on workplace issues and contract 2dminiStCdtlon. O� j'/'ice of Labor ReTations Ongoing Budget Program Objecfives and 1998 Budget Project Objectives Develop joint initiatives which can fixrther both the City's interest and the unionized employee's interest while serving 5t. Pau] citizens, o�'ice oftabor Relallons Ongoing Budget Program Objectives ond 1998 Budget Project Objectives. Preambles to the Collective Bazgaining Agreements (See Example in Appendix E) Findings 1) The Office of Labor ltelations does not provide any training for managers on workplace issues and contract administration. 2) Few serious joint initiafives have been developed between the Office of Labor Rela6ons and the collective bargaining units. The health insurance labor-management committee was intended to be a joint initiative, but it has not met in over rivo years. The Violence in the Workplace Committee was also mentioned as a joint initiative, though it is run by the Mayor's Office, not through the Office of Labor Relations. Interest based bazgaining (IBB) has also been mentioned as a joint initiative, but has been used only on an extremely limited basis and was not used for such important items as salaries and benefits. The OLR claims a few other activities as joint labor-management agreements and initiarives as listed below, though the OLR is not directly involved in many of them: ❑ Labor-management committees at the department and division level to resolve issues related to seniority with the Tri-Council; ❑ Information Services centralization; ❑ Labor-management committee in the Fire Department; ❑ People Soft payroll project; I999 Saint Paul City Council Researoh 76 P er F wmance Audit of the City o Paul's Ia R e l abons Acfiv ❑ Ongoing meetings with AFSCME Clerical and Technical to discuss potential merger activity in the City; and the p n_ �� / 7 ❑ City/County Health Department merger. 3) Preambles to the agreements aze mutual statements made by the employer and the collecYive bargaining units outlining theit mutual interest and responsibilities. They are inciuded here as general policy statements. Neither the collective bazgaining units nor the city e�cpmssed any problems with adhering to the language in the preambles. Recommendation #58: The City of Saint Paul should provide training for supervisors and managers after each contract is ratifzed or a major arbitration award is handed down. These training sessions would give mnnagers and supervisors needed information on contract changes. If no sign�cant changes arose, a memo could simply be sent out to all relevant supervisors and managers. The Offzce ofLabor Relations should also hold an annual training session for managers 4nd supervisors on general contract policies such as: � the defittirion of "just cause" � differentiating between complainrs and o disciplinary actions (oral and wrinen grievances reprimands and suspensions) o sexual harassment prevention � work assignments o reasonable accommodation � overtime o workplace violence � adherence to City & depm7mental policy � grievance process. Such training sessiotts could potentially reduce the number of grievances resulting from uninformed contract inferpretatioru. Recommendation #59: The City of Saint Paul and the collective bargaining units should provide funding and time to arryone iuvolved in negotiations or conbact admittistration to anend the training sessions ofjered by the Bureau of Mediation Services. Topics include Conflict Resolution, Interest-Based Bmgaining, labor-management committees, mediation, basic labor relatiorrs, negotiation, and 1he �nnesota Public Employment Labor Relatioru Act. Recommendation #60: If the City has the goal of improving the relationship between management and Jhe collective bargaining unils, it should be pursuing more initialives of joint interest. A number ofuniorrs e.xpressed interest in mterest-based bargaining (IBB) during our interviews. We suggest training on a broader basis and expansion of the use of IBB. Employer Role in Grievance Processing The policies described in this section apply to the City of Saint Paul as the employer, and are applicable to all departments and offices. 13 Training topics taken from: Smythe, Cyrus. "The Importance of Supervisor Training.^ Minnesota Cities. 44. Sept. 1998. 7999 SaintPav! Ciry Coancil Resemch Peifom�ance Audit of ihe Ciry of Saint Paul's Labor Relations Activities Grievanee Process Po6cies for the Employer " �D aq-$ Promotion of an effective and timely dispute and grievance resolution process. Htrman Rumvices Division: Cn�e Consulting Services Orsgoing Bvdget Program Objectives tmd 1998 Budget Project Objectives Executive Responsibility [The] office of the mayor shall: Process grievances under collective bargaining agreements in coordination with the office of the city 3t[Oit1C}'. Saira Paul Adminisbative Code, Chapter 23: Collective Bargaining Process, Sec. 23.03 Unfair labar practices Public employers, their agents and representatives are prohibited from interfering, restraining, or coercing employees in the exercise of the rights guar�nteed in sections 179A.01 to 1�9A.25 (Minnesota Public Employees Labor Relations Act). Minnesota Srare Stature 179A: Public Emptoyees labor Relations Act 779A.13 Subd 2. Employers Unfair labor practices Public employers, their agents and representatives aze prohibited from dominating or interfering with the formation, e�stence, or administration of any employee organization or contributing other suppoR to it. Minnesota State Stahtte 179A: Public Employees Labor Relations Act 179A.13. Subd 2. Employers. Unfair Inbor practices Public employers, their agents and representatives aze prohibited from discriminating in regazd to hire or tenure to encoura$e or discourage memhership in an employee organization. Minnesota Srare Stature 179A: Public Emptoyees Labor Relations Act 179A.13 Subd. 2. Emplayers. Unfair labor practices Public employers, their agents and representatives are prohibited from dischazging or otherwise discriminating against an employee because the employee has signed or filed an affidavit, petition, or complaint or given information or testimony under sections 179A.01 to 179A.25 (Minnesota Public Employees Labor Relations Act). Minnesoro Stare Starure 1 �9a: Pubtic Emptoyees Labor Relations Act 179A13 Subd. 2. Employers. Unfair labor practices Public employers, their agents and representatives aze prohibited from refusing to comply with grievance procedures contained in an agteelTlent. Minnesota State Stahrte 179A: Public Employees labor Relations Act 179A.13. Subd. 2. Employers. Unfair labor practices Public employers, theu agents and representatives aze prolubited from distributing or circulating a blacklist of individuals �ercising a legal right or of inembers of a labor organization for the purpose of preventing blacklisted individuals from obtaining or retaining employment. Min,resora Srare Statute 179A: Pu87ic Employees Labor Relations Act 179A.13 Subd 2. Employers. Findings 1) The Office of Human Resources has taken four main steps to promote and effective and timely grievance resolution process: ❑ Placed the Civil Service Rules on ffie Intemet for easy access; ❑ Made improvements in scheduling for Civil Service grievances to speed up the process; I999 Sainf Poul City Council Research �s Paformance Audit of the City of Saiot Paul's I.abor Relations Activifies ❑ Created a handout for those interested in appealing decisions to the Civil Service Commission; and gC�_ 8�� ❑ Worked with the Office of Labor Relarions to clarify etnployees' rights to a Civil Service hearing. 2) The Office of Labor Relations dces work on a limited basis with the Office of the City Attomey, though the Attomey's Office serves primarily as a consultant on grievances. 3) We found no instances of City interference with the unions, discrimination because of union membership or achion or blacklisting. Collective Bargaining Unit Role in Grievance Processing The collecrive bazgaining units must follow certain laws and restrictions in relation to their practices. These policies aze listed in the following table. Grievauce Process PoGcies for Emplovees and Collecdve Bareainin¢ Units Responsibility of labor representntives and employees (3) Present grievances conceming terms and conditions of employment only in accordance with procedures outlined in the coIIective bazgaining agreements or by other grievance procedure established by administrative ordinance of ttus council. Sainr Pavt Administrative Code, Chapter 23: Collec[ive Bargainittg Frocess, Section 23.04. Unfair labor practices Employee organi�ations, their agents or representatives, and public employees are prohibited from restraining or coercing emgloyees in the exercise of rights provided in sections 179AA1 to 179A.25 (the Minnesota Public EmPloyees I.aboi Re13tiOnS ACt�. M:nnesota SYate Statute 179A: Public Employees Labor Relations Act 179A. ]3 Subd. 3. Emplayees. Unfair labor practices Employee organizarions, their agents or representatives, and public employees are pmhibited &om coercing or restraining any person with the effect to foree or require any public employer to cease dealing or doing business with any other person. Mi.�rsesora srnre Sr�ure I�va: aualto smpioyees tabo. Relalians Act 179A.13. Subd, 3. Employees. Unfair labor practices Employee organizations, their agents or representatives, and public employees aze prolubited &om coercing or restraining any peison with the effect to refuse to handle goods or perForm services. Minnesora Srare Starure I79A: PublicEmpToyeesLaborRelationsAct179A13. Subd.3. Employees. Unfair labor practices Employee organizations, their a$ents or representarives, and public employees aze prohibited &om coercing or restraining any person with the effect to prevenring an employee from providing services to the employer. M'�nnesota Smte Stande 179A: Public Employees Labor Redatin»s Act 179A.13. Subd. 3, Employeex 1999 Saint Paul Ciry Cormdl2esemch Performance Audit of the Ciry of Saint Paul's Labor Relalions Activities 79 Grievance Process Policies for Employees and Collective Continued Unfair labor practices Employee organizations, their agents or representatives, and public employees aze prohibited from causing or attempting to cause a public employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services which aze not performed or not to be perfottiled. Minnesota State StahUe 179A: Pvblic Employees Labor Relations Act 179A.13 Subd.3. Employees. Unfair labor practices Employee organizations, their agents or representatives, and public employees are prohibited from picketing which has an unlawful purpose such as secondary boycott. Etinnesora Stare Srarure t79A: Pubiic Employees Labor Relations Act 779A13. Subd. 3. Employees. Finding We found no compliance problems with these policies. GRIEVANCE ADMINISTRATION QUALITY AS5E55MENT PLANNING Summary Rating � Planuing is an exercise integral to the development - of an orgazaization or function. It integrates values and eJCpectations with practices. Planning requires an assessment of resources, influences, challenges, and requireinents that affect future opportunities and direction. As related to grievance administration, planning could include developing activities to prevent future grievances or development of plans to resolve grievances in a timely and efficient manner. Setting Strategic D'uection The parties involved in grievance administration devote very little time or resources to planning or setting strategic direction. The lack of planning in the City departments is reflective of an overall culture in the City that does not value plauning. It is also extremely difficult to develop meaningful short- and long-term plans without a strategic direction. Devetoping Actiun Plans The collective bargaiuing units primarily involve only the union steward and the union leadership in the planning process on a grievance-specific basis. As discussed in the previous quality sections, most collective bazgaining units focus their planning efforts on contract negotiation. KEY PLANNING CONICEPTS: � Set Strategic Direcdon o Develop Action Plans o Align Work With Plans . �1 1999 Saint Paul Ciry CouncARu¢arch 80 Perfocmance pudit of tfie of Saint Paul's I.abor Relazions Acbvities While planning is not an integral practice of any participant in the grievance admmistration process, it is unfair to say that no planning occurs. Both the City and the collective bazgaining units do make some short-term plans to administer grievances, although the plans do not incorpoiate a strategic direction or a philosophy reflective of a future orientation. One City staff petson mentioned there aze no plans for grievance prevention, only specific plans for each grievance. Therefore, while some plans are made, the focus is too narrow to be considered comparable to planning used by high quality organizations. Aligning Work with Plans The process of planning also involves the dissemination and use of plans, and the alignment of work assignments with the overall direction of the plan. This could be considered the acUOn phase of planning. Because the few plans that aze developed are limited in swpe to specific grievances, they aze not widely disseminated or useful to a broad array of people, and do not enhance the overall contract administration process. The final phase of planning is evaluation of the planning process and evaluation of the plans themselves. Because few plans exist, there can be little evaluation of the contract administration planning process or the actual plans of the participants. Without evaivation, new plans cannot be developed to complement and build on the strengths or correct faults in previous plans. Recommendatioa #61: The Human Resources Division, the Office of the City Attorney and the Office ofLabor Relations should develop short-term plans to deal with grievances, in particular addressing communication processes between the departments arul each department's respective role in the process. This will address misunderstandings between the departments regarding respective roles, contract interpretation, and lack of communication. Recommendation #62: The Offzce of Labor Relations, in concert with Risk Management and Of,�ice of Financial Services, should develop procedures to implement changes to the contract resulting from a grievance settlement. The changes should be tracked and analyzed by the O�ce ofLabor Relations for use and cottsideration during the next negotiating cycle. LEADERSHIP Summary Rating: �r� KEY LEADERSHIP CONCEPT3: � Mission � Vision � Values o Communication � --_---_---�.--r----s_ _--_ The leadership caYegory is an examination of how senior leaders in the grievance administration process guide the process and set direction, while seeking out firture opportunities. Strong leaders relate cleaz values and high performance expectations. Communication is a key element of effective leadership. Communication is broader than simply verbal communication, and includes a demonstration that stated values, directions and expectations are indeed the basis for the organization's key decisions and actions. 1999 Soint Poul Ciry Coaznri7 Research PerFo'mance Audit of t6e City of Saint PaW's I,abor Relations Activiries M13SI00 $1 �� F� An underlying mission of the Office of Labor Relations's grievance process is to make grievance outcomes uniform and therefore fair. However, because of a lack of communication between the OLR and depamnents, supervisors and manageis do not have a broad concept of what interQretation of the conhact means for the City. The resulting misinterpretations may lead to repetitive and unnecessary grievances. The Office of Labor Relations is trying to address the problems arising from azbitrary grievance resolutions by centralizing grievances in the Office of Labor Relations and advising departments to advance to Step III of the grievance process when the grievance is complicated or if it could have widespread implicarions. Vision Through interviews, we found very little evidence of a clear vision by any of the leaders in the grievance administration process. This lack of vision is partially a result of unclear values and expectations of leaders in the process. Neither the City nor the collective bazgaining units have a coherent or explicit vision fm the future. This lack of vision sometimes results in azbitrary interpretations of the conhacts by departments. Values Part of leadership involves maintaining and communicating a cleaz set of values. While no formal communication of values occurs within the City departments or the collective bazgaining units, some underlying values are reflected in the actions of the participants. Many pazticipants acl�owledged an occasional to frequent occurrence of informal recognition of grievance administration participants. The participants also found no evidence of discrimination in the grievance process, and felt the system is struchued in such a way to be fair to all participants. Communication Previously mentioned as an important aspect of effective leadership, couununication is an azea in dire need of improvement by all parties in the grievance process. The Office of Labor Relations shazes some grievance information with other City departments through the department and office director meetings and through memos, though this is a relarively new practice begun within the last yeaz. Other than these meetings, very little grievance information is shazed among Human Resources, the Office of the City Attomey and the Office of Labor Relations. This is a glaring problem considering each department is heavily involved in some aspect of gcievance admuristration. The primary vehicle for communication regarding grievance administration Uetween the collective bazgaining units and the City is the contract. Beyond the contract, little information is shazed. One exception may be communication between the Police and Fire Departments and the bazgaining units. They appeaz to have good levels of communication between the unions and their respective departmems related to grievances and other aspects of the contract. Recommendation #63: Leaders in the grievance administration process should develop a set of principles to guide decisions made about grievance processing. 1999 Saint Paul Ciry Council Research �z Perfocmance Recommendation #64: Collective bargaining units and depm�tment Pwl's Labor RelaROns Ac4vifies continue communication practices where currently efJ'ective, and other departments should begin the same panern of on-going communicarion between the parties to discuss issues of mutual interest. TRAINlNG & DEVELOPMENT Summary Rating: � KEY TRAINING & DEVELOPMENT CONCEPTS: � Job Design o Recognition gi i y, ough emp oyee s development shonld not be limiYed to one specific area, but should involve the variety of activities the organizaYion is involved in or the process requires. Work assignments and training and development should allow the employ� to contribute as effectively as possible to the or nj� tion, meet performance objecrives, and allow the employee to adapt to changes in the organization. Training and development is central to creating a high perfonnance workplace. Work assignments should be ali ed cvith ab'lit th 1 Idll Job Design Though the grievance process is fairly rigid, members of collective bargaining units do have oppor[unities to contribute to the processes used through direct contact with union leaderslup, surveys, or voting to cazry forkh a grievance. As the grievance moves through the steps it becomes more removed from the grievant and supervisor, and they receive less and less information until eventually all they hear is the final decision, though they most likely do not hear the reasons for the decision. Recognition Few parties in the contract administrarion process cited formal examples of recognition, though most made mention of informal recognition, Union stewazds are informally recognized at meetings as gievances are reviewed. Office of Labor Relations leadership expresses appreciation to staff for their work. Education and Training A lack of training is a City-wide problem that pervades many departments, including those involved in contract admuustration. No meaningfiil grievance training eacists for City staff, particulazly for si�pervisors or managers who oversee unionized employees. One department head comxnented that "you need to lmow the system to get what you need." This matter was discussed more fully in the contract administraiion policy section of the report. The Office of Labor Relarions staff do not provide grievance administration training for other city staff. OLR staff have attended some training themselves, though it has been rather limited. The Office claims a lack of staff rime and budgetary conshaints as reasons for not attending or providing training. The collective bazgaining units do provide some haining for union stewazds related to contract administrarion, though it is very limited. /999 Saint Paul City Council Reseorch Performance Audit of the City of Saint Paul's I.abor Relations Activities Employee Well-Being 83 �� A positive aspect of training and development found through interviews was a relativety good level of participant well-being and satisfaction. Many union members stated they Feet the grievance process is well structured and fair to all participants. However, ihey also feel the process takes too long and the City purposely delays responses. Recommendation #65: Make training a prioriry for Labor Relations sfaff involved in administering co�tracts and handling grievances. One way to emphasize training may be to make it part of annual review process. The OLR should not use Zack of time and staff as an excuse, as a lack of training makes staffeven Iess productive as they fail to develop their skills. It may well be worth the time to provide training if it improves the process and functions of the Office. Recommendalion #66.� The �ce of La6or Relations should develop contract administration training programs for department heads and supervisors. Such an effort may reduce the number ofgrievances and enhance understanding ofthe contracts. A component of this plan should specifzcally address the prevention of grievances. See also Recommendation #67, page 84 on grievance information collection and analysis. INFORMATION AND ANALYSIS Summary Rating: �s� Collection of Data KEY INFORMATION 8. ANALYSIS CONCEPTS: � Collection of Data � Use of Data � Malysis of Data o Comparison with Others The City departments most closely involved in gievance administration actively collect some data to assist them in their operations. The Office of Labor Relations has developed a grievance tracking system that allows them to enter the grievanYs name, deparhnent, date, subject, status, and the manner in which the grievance was resolved. The Office of Labor Relations �pects the data to assist them in determining length oFrime for grievance resolution and tracking grievance outcomes. However, while the data is being collected, it is not yet being utilized for in-depth or extensive evaluation of the process. The collective bazgaining units maintain varying amounts of grievance information, usually depending on the number of inember grievances and the size of the organization. However, all collective bazgaining units collect more information for negotiations than for grievance administration. Use of Data While it is certainly important to collect data, it is even more vital to accurately analyze and disseminate the information. The data that is collected by the City is available only to a small group of people in City. Others throughout the City may theoretically have access to I999 S¢inf Paul Ciry Council Researck 84 PerFormance Audit of the C ity of Saint PaW's Ia bor Rel Activit it, but are not aware of it. In general, the data is used for specific grievances, but not necessarity for ptanning and improvement of the grievance process, Consequendy, the data is not being used to evaluate the process, though the Office of Labor Relations is taking the first steps to do so. Cj Cj_ 8' ( � Analysis of Data Another vital aspect of data collection and analysis is the information systems used for tabulation and analysis. The City's informarion systems are adequate and have improved in recent years, but very few people understand the systems and how to use them. Rapid changes in the softwaze used have caused confusion for staff. In addition, the departmenu' information systems ate not integrated. It is difficult for one deparunent to obtain information from another departmenYs system. The current reliance by City departments on an antiquated system that only a select group of people understand is dangerous. If problems arise and the few people with the la�owledge are not available, Yhe City may find itself unable to perform necessary functions. Most collective bazgaining units use information systems on a very limited basis for grievance administration. Comparison with Others The City compazes arbitration information with other jurisdictions through the Bureau of Mediation Services, tfie Minnesota Police and Peace Officecs Association, and through negotiators' mundtables. The collective bazgaining units do similaz comparisons. Information on grievances that do not advance to azbitration is generally not compared. Recommendation #67: The O,/fice of Labor Relations har taken a great step toward improving the grievance process by tracking grievances. The Oj�ce ofLabor Relatiorrs should now determine ifgrievances me taking longer than they should through comp�isons and corrversations with other jurisdictioru. The Office should also look for industry standards and develop perf'ormance indicators accordingly. They should also further incorporate interpretation and evaluation into the data collection process. Recommendation #68: The City should continue to erplore infor�nntion systems upgrades and reduce reliance on institutional knowledge. Recognize danger of central "uing knowledge in one or two people, and have more widespread training on systems. PROCESSES FOR (MPROVEMENT Summary Rating: �s�s KEY PROCESSES FOR IMPROVEMENT CONCEPTS � Impmving Services � Improving Support Services � Improving Supplier Services Processes for improvement encompass methods for efficiency and effectiveness such as process design, a prevention orientarion, a linkage to suppliers and partners, cycle rime, and evaluation and continuous improvement. Impmvement practices e�mines how processes are designed, managed, and improved. 1999 Snint Pau! C+ry Counci[ Research Performance Audit of tLe City of Saint Paut's Iabor RelaSons Activities Improving Services 85�� The Office of Labor Relazions is taking a pro-active role towazd improving its contract admuristration process through development of the grievance tracking system. The Office has also begun to work with departments to resolve grievances before Step III, when City policy mandates they become involved See figure on page 71. If the grievance is complicated or has widespread implications, the OLR may work with departments to resolve the grievance at Step III to ensure consistent and fair outcomes. Some confusion regazding ttus practice was expressed by departments. Some felt the Office of Labor Relations was escalating the grievances to Step III simply because the Office was not interested in resolving the grievances at Step I or Step II and would rather control the grievance rather than allowing the individual departments to resolve them. However, the OLR is not informed of grievances until they aze at Step III unless they aze requested to assist the department. Therefore, these concems appeaz to be, for the most part, unfounded. Improving Support Services Evaluation of the grievance adminisuation process is a key component of improvement practices that is missing &om the activities of most City offices involved in the process, as well as the collective bazgaining units. Work assignments are rarely reviewed as roles aze fairly well defined and iarely change. Some admuustrative practices are reviewed, such as the grievance tracking system within the Office of Labor Relarions. Some collecrive bazgaining units have examined their method for disseminating information regarding grievances, and others have revised their grievance forms. However, overall administrative practices are rarely reviewed. Improving Supplier Services Participants in the process rarely receive formal perFormance reviews of their work related to grievance administration. Collective bazgaining units rarely review the performance of union stewazds or othecs involved in a grievance. For City staff, if their work is reviewed, it is a small component of an overall review. One interviewee suggested evaluating how management and supervisors handle their contract administration duties. Recommendation #69: Conduct more evaluations ofgrievance administration participants, even if they are informal evaluations, to identify areas for improvement and development. Recommendation #70: The grievance tracking system developed by the Office of Labor Relations is very useful and should continue to be refined and evaluated. Human Resources should also consider using a similar system, and share the information with the Office of the City Attorney, Office of Financial Services, and Risk Management. /999 Saixt Paal City Counci! Research 86 Pecfoim�ce Audit ofihe City of Saint PauPs Labor Relalions Activities CUSTOMER FOCUS q Summary Rating: ��`r Customer ldentification and Knowledge KEY CUSTOMER FOCUS CONCEPTS: � Customer ldenrification � Customer Knowledge � Customer Relations As in the contract negotiation process discussion, different parties in the grievance process idendfied different customers. Some parties cited depaRment heads as the primary customer, others cited union members, while still others identified cirizens as the primary customer. With all of these different customers, it is difficuk to meet the needs of everyone, and competing interests may impede the grievance administiation process. It is also conceivable that the lack of a uniform definition of the customer by the CiTy could be related to the timeliness issue, discussed in previous sections. While there are many competing customer plulosophies, there is no evaluation of customer needs or satisfaction on the part of the City. The collective bazgaining units have a faz better undeistanding of their customer, the union members. While they have an easily idenrifiable customer, they do very little formal evaluarion of their customers' sarisfaction or needs related to contract administration. Customer RelaHons The majority of customer service standards for all the parties appear to be behavioial and informal as menrioned in the conUact negotiation section. An example is the informal ptofessional ethic the Office of Labor Relarions follows. The majority of collective bazgaining units also have informal guidelines, with the eacception of Police and Fire, which both appear to have more defined guidelines. C�stomer relations appear to be at an acceptable level, although they could be improved through the establishment of some formal guidelines to educate and guide process participants. See Recommendation #16, page 24 on Office of Labor Relations Customer Service Guidelines. See Recommendation #72, page 87 on survey use arrd customer satisfaction. RESULTS Summary Rating: � Customer Sathsfaction KEY RESULTS CONCEPTS: � Customer Sarisfaction � Financiai Outcomes � Supplier Performance � Organization Outcomes The Office of Office of Labor Relations, Risk Management, and the Office of Financial Services do not do any formal evaluations of customer sa6sfaction related to grievance administration. Overall, the communication systems between the departments are poor, and even informal evaluations do not seem to be present. Intemally, no feedback mechanism 1999 Sairrt Pau1 Ciry Council Resrmch Perfomi�ce Audit of the City of Saint Paul's Iabor Relations Activities g7 �� y� � l� eacists for each department to evaluate the services it receives from the others on a holistic or individual level. The collective bazgaining units also fail to measure the level of customer satisfaction with the results of the grievance process, though informally they may receive feedback from particulaz grievants or other participants in a grievance process. N�nancial Outcomes Measurement of financial results is a larger part of the contract negotiation process than it is in the grievance admuustration process. Settlements involving lazge amounts of money would most likely be decided at Step N of the grievance process, at which point both sides must comply with the decision of the azbitrator, regazdless of the amount of money, unless the decision is appealed to court. Both the City and the wllective bazgaining units will compaze the azbitration outcome with other jurisdictions and unions through the Bureau of Mediation Setvices. Employee Performance and Well-Being Employee performance and well-being is evaluated for some ttuough formal annual reviews. However, there are employee participants who do not receive annual reviews and, therefore, their performance related to grievance administration is not reviewed. The collective bazgaining units may informally review the perFormance of grievance participants, but again no formal feedback is provided. Organizational Outcomes City departments use varying methods to measure their organizational and process outcomes. The Office of Labor Relations has begun to measure the results of the grievance process through the grievance tracking system, though staff seem uncleaz of the result they aze trying to obtain, and what they are trying to measure. One person has cited reducing the length of time of the grievance as a goal, while another stated the goal is to avoid azbitaation. While individual departments may claim to evaluate their work through these methods, there is no overall evaluation of the whole process. This lack of evaluation is pervasive and a true hindrance to any improvement practices that may be taking place on either side. Recommendation #71: Each department irrvolved in the grievance administration process and the collective bargaining units should establish benchmarkr related to their goals and vision, and use the benchmarks to measure results. Recommendation #72: The collective bargaining units, the Office of Labor Relations, and the Office of Human Resources should survey those who have participated in the grievance process to determine the level of satisfaction with the process and to solicit ideas for improvements. 1999 Saint PauT Ciry Council Resemch 88 PerFormance Audit of the City of Saint Paul's Labo Relarions Acb'vifia 9'9-8�a PERFORMANCE INDICATORS Performance indicators, also referred to as performance measures, provide an organi7ation with a means to gauge how well it is aclueving its goals. In the case of government argani�arions, they give information to both the organization—so it can improve itself; and to elected officials and citizens—so they can imderstand how to best invest public monies. Developing performance indicators begins with identifying what pieces of information indicate the organization's effectiveness, efficiency and quality. Some guidelines for the development of ineaningfiil performance indicators aze provided below: Performance Indicators Shou[d Be: ❑ Quantifiable, readily available, easy to calculate, "trackable" over time and show the direction of pmgress ❑ Sh�ongly connected to the mission of the organization ❑ Intrinsically meaningful and understood throughout the organization ❑ Focused on outcomes and products, rather than processes when possible Eramples of Performance Measu�es: ❑ Customer and employee satisfaction ❑ Volume of outputs as work units or products ❑ Productivity and efficiency: time and cost per unit of product ❑ Errois, mistakes, complaints, waste, retum rates or polludon O Quality ❑ Timeliness ❑ Impact: changes resulting from activity The following discussion provides suggested perfomiance indicators related to the three azeas addressed in this report: the Office of Labor Relations, the contract negotiation process and the grievance administration process. In some cases the performance indicators address problem azeas wluch have been identified, such as timeliness. In other cases, they are intended to be broad measures of success. Notably, what follows is not intended be an eichaustive list, but rather provides what we believe wauld be good measures for some aspects of the work. Some of the data needed for these measures is already collected, and in a few cases, measures are akeady being made. However, it is important to note that even though there aze some current measures, it is very difT"icult to draw conclusions because there is no basis for comparison. Comparisons aze best when they are made using similaz data from similar organizations, or if they compaze the same organization over time—Yhus the notion of tracking informarion over time. Comparing the City of Saint Paul's performance in these azeas over time is likely to yield somewhat more meaningfiil results because of the idiosyncraxic nature of these processes. Therefore, it is recommended that the following measures be tracked at periodic intervals for comparisons. 1999 Saint Paul Ciry Cwurcil Reseorch Perfocmance Audit of the Ciry of Saint Pwl's Iabor Relations AcGviUes 89 �� Performance Indicators for the Office of Labor Relations �� 1) Measure the timeliness of the Office of Labor Relations in the contrnct negotiation process tluough the number of weeks from when initial notice to negotiate is submitted to the Office of Labor Relations and the inirial meering of the City and collective bazgaining unit. 2) Measure on a biannual basis whether Office of Labor Relations employees find their work environment positive and compaze these responses over time. Quesrions to staff could address issues such as intra-office communication, leader's responsiveness to the needs of employees and the general work environment. Performance Indicators for the Contract Negotiation Process 1) Measure the timeliness of the contract negoriation process through a) percent of contracts completed prior to expiration; and b) number of weeks between expiration and approval of new contract for each bazgaining unit. 2) Both bazgaining units and the City should measure the estimated total cost for contract negotiation activities. These should be calculated by contract, and also by employee or bazgaining unit member. Bargaining units would then have an indication of negotiation cost per member, and the City would have negotiation cost by employee and negotiation cost by employee and bazgaining unit. 3) Measure the percent of contracts settled without intervenrion of inediator or azbitrator. 4) Deternvne the number of rimes each yeaz key participants in the contract negotiation process update the City Council on the status of contract negoHations. 5) Determine the number of times each year that the values of trust, respect, honesty and fairness aze violated by each party through the use of an annual survey of contract negotiation process participants. 6) The Office of Financial Services and Risk Management should measure the number of days between contract ratification by the bazgaining unit and Council and the actual date of conhact implementation. Performance Indicators for the Grievance Process 1) Both the Office of Labor Relations and the collective bazgaining units wuld measure the percentage of grievances resolved at Step III. This performance indicator should delineate between collective bazgaining units and type of grievance. Use data to determine if a particulaz type of grievance takes longer to resolve, and what factors may contribute to the longer length of time for resolution. 2) Measure the number of weeks it takes to resolve grievances at each step. 3) Determine the level of grievanu' and department staff' satisfaction with the process and assistance they received through survey distributed following grievance resolution. 7999 Saint Paul Ciry Council Resemch 90 Pedormance Audit of the Ciry of Sairt Paul's Labor Retazions ActiviUes I � � , i CONCLUSION The City's labor relations' adivities aze important far beyond the number of staff involved or the money directly spent on these activities. Labor relations activiries affect the City's relationship with more than 3,000 City employees. The terms and condi6ons negotiated in contracts fundamentally affect the work lives of the City's employees who serve the residents and businesses in the Ciry of Saint Paul. It is, therefore, imperative that the City and its bazgaining units follow the best practices and operate with the highest integrity. Council Research staff were impressed by ihe competency and high eihical standards of the staff and bazgaining unit representatives interviewed. Almost all collective bazgaining pazticipants believe that they get what they need and, sometimes, what they want through the process. The negotiarion process participants felt overwhelmingly that rules and policies were adhered to the vast majority of the rime. Similaz views were held by those responsible for unplementing contracts and processing grievances. However, some critical deficiencies were noted in the process of conducting tlus performance audit. In addressing these deficiencies, both the City and its collective bargaining units will develop a stronger relationship and better negotiated agreements and grievance resolutions. Timeliness The lack of timeliness of negoriations and grievance settlement was a theme repeated throughout the performance audit process. There was a slrong feeling expressed among the bargaining units that both processes took an inordinately long time. It is currenUy almost impossible to assess if either the grievance process or the negotiation process take longer than they should because there are currenUy no standards against which Saint Paul's perFormance can be compared. It should be emphasized that it is not known if Saint Paul's "timeliness" in these azeas is better or worse than should be expected. However, the fact that many participants aze dismayed by the length of time involved indicates improvements should be made. Tfie City has only recently begun tracking grievances in a database that allows the relevant information to be analyzed. This system will in the futwe help the City to determine and measure its perfocmance in resolving grievances efficienUy and effectively. Professional literature and the experience of other cities offers little guidance in this azea, so improving performance by comparing past to present performance offers the most hope. Contract negotiation has not, and should not, be measured only by the time it takes to conclude contracts. However, lmowing ihe time and effort �pended on individual negotiation and cont�act unplementation activities will assist both the City and bazgaining �ini in planning future negotiations. Moreover, it is lmown that concluding negotiations in a timely manner allows for the more efficient implementation of contract for ttte City's payroll and benefits activities. Finally, timely negoriations gives employees more immediate use of theu money and the interest it can accrue. Sta�ng The slowness of grievance resolution and contract negoriarion was often discussed in terms of the inadequate staffing of the Office of Labor Relafions. The OLR has experienced a high l999SaintPaul CfryCounciJResearch PerFocmance Audit of the CiTy of Stint Paul's Labor Relations Activities 9� �'7� Q U �q- t� level of staff tumover in recent years, and has roufinely operated with at least one vacancy in its five-person staff. Therefore, it is very difficult to assess whether the current level of staff in the OLR is sufficient. This being said, the office's staffing has resulted in two cleaz situations. First, OLR staff report they operate in a very high stress environment, largely due to under-staffing. Second, the office has depended on the use of outside consultants to conduct negotiations with a number of collective bazgaining units. Training and professional development opportunities have been very limited for all City staff involved in labor relations activities. The problem is most acute in the Office of Labor Relations where such opportunities will likely improve the efficiency and skill level of staff, thus mitigating the under-staffing issue. Intemal training of supervisors on the grievance process has been noticeably missing for a number of years, although it continues to be listed as a budget prioriry. This type of training of front line supervisors may well provide an immediate return for the Office of Labor Relations and the City Attomey in terms of decreased time involved in correcting inadvertent mistakes. Informallon, Analysis and Evaluallon Both the bargaining units and the CiTy should be given credit for comparing the results of their collecting bargaining agreements with others. Unions which are affiliated on a state, national or international level routinely shaze information. Unions which aze not affiliated also seek out information on comparable bazgaining units. The City periodically compazes its results to other similaz jurisdictions. These information tracking and comparison activities aze especially laudable given the poor information systems historically used by the City and bazgaining units. All of these activities help to ensure the best quality negotiated agreements. Despite these admirable efforts, at this time no one knows how much it costs the City or bazgaining units in money and time to conduct negotiations, implement wntracts or resolve grievances. It is not lmown whether the City and its bazgaining units perform these functions well or poorly in comparison to others. It is Imown that there is significant variance in these measures across bazgaining units--or in the case of grievances, across individual cases. Despite these differences, insights could be gained by gathering and examining information more cazefully. Given the importance of the negotiation and gievance resolution processes, as well as the time, energy and hopes invested in them, performance indicators must be developed forthese areas. Communicallon There is a very high level of understanding of labor relations policy among the individual participants in the contract negotiation and grievance processes. However, this has not trartslated into a high level of communication among City staff responsible for negotiaring and administering collective bargaining agreements. Two critical communication City staff "disconnects were identified in the performance audit process. First, there is inadequate planning preparatory to negotiations. What pluming dces take place, does not involve a sufficiently broad array of stakeholders. Advice, insight and identification of key issues for upwming negotiations can be gained by implementing a more participatory planning process. Second, there is inadequate communication during and after negoriations with affected stakeholders. For example, periodic updates of the City Council on these activities has been lazgely absent. 1999 Saira Paul Ciry CouncU Research 92 Paut's La6or Relanons Activilies The Office of Labor Relations has made strides towazd systematizing many of�the City's labor relations activities in recent years. However, the City of Saint Paul government is made up of departments which have tradirionally been semi-autonomous. The City's Code and state statutes aze cleaz that responsibility for negoriating contracts and settling gievances aze vested in the City's designated representative, the Office of Labor Relations. To maintain a coherent and fair approach to these critical areas, this office must continue to take the lead in planning and communication. However, a balance of central organization of the City's labor relations function and its departments' independence must be struck, so that input is gathered and information shared. T'he labor relations activities of the City of Saint Paul will likely gow in importance in coming years. The City will continue to have a significant unfunded liability for future retiree health insurance. At the same time, the City and its collective bazgaining units will face a low regional unemployment rate and competition for qualified employees. And, as elsewhere in the counhy, there will be a demand for greater wages and also increased costs for health caze benefits. It is essential that the City make its labor relations activities, and their improvement, a priority. 1999 Saint Pau! City Covncil Research Perfoim�ce Audit of t6e City of Saint Paul's [abor RelaGOUS Activities 93 � APPENDIX A: �� List of Interviews Conducted Mos[ City interview subjects were selected because they have a specific integral role in the contract negotiaYion and administration process. Representarives from all of the City's labor unions were invited to pazricipate. Please note that names of interview participanu were not consistently collected, and therefore listings aze incomplete. Council Research is very grateful ta the fo[lowing individuals and organi7/�tions who shared their time and coruiderable expertise in this perfnrmance audit process It shauld be noted that participation in inlerviews fnr this performaeue audit does not mean an endarsement oJthe statemertts contained in this report Citv Interview Subiects Office of Labor RelaHous Mary Keazney, Director Jason Schmidt Steve Sonnabend Julie Kraus Office of Financial Services Joe Reid, Director Terry Haltiner Teddi Hayes OfSce of Human Resources John Hamiltoq D'uector Risk Mauagement Miriam Monasch Ron Guilfoile Office af CYty Attorney John McCormick Pub6c Works Departmeut Tom Eggum, Director Bob Hoaisberger Library Services Carole Williams, Director Fran Galt Linda Wilcox Police Department William Fiuney, Chief Fire and Safety Services Department Tim Fulier, Chief Collective Barqaininq Unit Interview Subiects Trades Group Lazry Bennet - Operative Plasterers and Cement Masons Local 633 Bemie Carey - Elevators Consuuctors, Loca19 Robert Swhwartzbauer, United Association Plumbeis and Gas Fitters Local No. 34 Jim Wagney Electrical Workers, Local ll0 Dick Vitelli, Electrical Workers, Loca( 110 Jim Kelzenberg, Spcinkler Fitters, Locat 417 Jerry Bazaes, Pipefitters I.ocal 455 Cazpenters and Pipefitters PoGce Federation Brad Jacobsen Butch Swintek American Federafion of State, County and Muoicipal Employees District #14 Local 2508 (Clerical) aod Loca11842 (Technical) Mary Schillinger Michael Windey Necia Holerud Bob Steiner Patrick Ryan L.ouise Langberg Linda Cobb Vicki Skupas A. John Klemanski Bazb Beuson Dave Nelmazk Cluis Rider Corrine Glassing Robin Madsea W iltiam Flansen Jecry Serfling Professioual Employees Associallon aud Steve Roy Mike Wilde Classified Confideufial Employee Associarion Eric Willems Saint Paul Supervisory Organization Roger Mohror Manual aud Maintenance Supemsors Associatiou Ron Rollins /999 Saint Paul City CouncJ Research 94 PerFomi�ce Audit of the City of Saint PaW's Labor Relations Activities APPENDIX B: g g � ° � Malcolm Baidridge Quality Assessment Questions OFFICE OF LABOR RELATIONS Strategic P[anning ]. How often dces the Labor Relations Office make short-teim (1-2 years) plaos? 2. Aow often aze short-term plans updated? 3. How often does the Labor Relations Office make long-term (3 years or more) plans7 4. How oRen are long-term plans updated? 5. Aow many stakeholders aze pazticipants in Labor Relations �ce planning processes? 6. How often are plans implemented? 7. Who monitors the implementation of plans? 8. Aow often is the Labor Relations �ce evaluated? 9. How many participants in the process are aware of the resulu of these evaluarions? 10. How oRea are plans changed based on the results of the evaluatioes? Leadership 11. How often dces the Labor Relatious Director convey a cleaz vision for ihe fut�e of the Labor Relations Office? 12. How oRen does the Mayor's Office convey a clear vision for [he fuhue of the Labor Retations Office? vision for tae fui�e of the Labor Retations OEfice? 14. How often does the Labor Relations Director recognize staffcontributions? I5. Does the Labor Relations Director mainiain a work eavironment fl�at is supportive of employees regatQless of race, color, class, geader, age, Qarional origin, seaval orientation or physical abilit}f? 16. Does The Labor Relations Director support participation in professional organizaaons? Training and Develapment 17. Is there an oppommity for staff to contribuce to the decisions made abou[ the opentions and procedures in the Labor Relations Office? 18. Dces the Labor Relations Office create opportunities for employees to conaibute meaningfully to the or° ^izations goals? 19. How often does the Labor Relations Office make use of education and training to improve pedormance? 20. Is the Labor Relations Office work environment conducive to the well-being and growth of all stafP? lnformation andArtalysis 21. For how many of the Labor Relations Office activities is data collected? 22. How often is the collected data used to assist in Labor Retations Office activities? 23. How often is the collected data used for evaluaiion of Labor Relatiovs Office activities? 24. How ofren aze employees of the Labor Relaiions Office evaluated? 25. Do computerized information systems meet the needs of the Labor Relations Office? /mp�ovement Practices 26. How often are work practices changed to improve perFoimance? 27. How oRen aze methods for evaluatieg employees reviewed for improvement? 28. How often aze methods for dete:mining work assignmeats reviewed for improvement? 29. How often are administrative practices (such as fo:ms and reporting procedures) reviewed for impmvement? 30. How ofien is the neribrmance of venAOrs (,orovideis of goods and contrected services) evaluated for improvement? 31. How oRen aze methods for the evaluation of the Labor Relations Office impmved? Custarae' Focus 32. Wluch of the following do you consider to be your customeis? 33. Does the Labor Relations Office have customer service standards or guidelines goveming their contract administration? (i.e.: Code of e@ucs; communication standards; behavior at negotiation table; public informaaon standazds.) 34. How oftea do staff follow established customer service standards or guidelines? 35. How often do staff moaitor for chaages in cusTOmer needs? 36. How often do staff monitor for changes in customer satisfaction? /999 Soint ParJ Ciry CowcARuearch PerFo'mance Audit of the CiTy of Saint Paul's Iabor Relations Activities 37. How responsive is the Labor Relations Office to changes in customers' needs? 38. How well does Labor Relarions Office respond to changes in customer SatisfaCtion? Resu(a (Outcomes) 39. How often dces the L,abor Relations Office measure results? CONTRACT NEGOTIATION Strategrc Plannirsg 1. How often aze short term plans made to impmve the contract negotiation pmcess? 2. How often are short term plans updated? 3. How oRen are long teim plans made to improve the contract negotiation process? 4. Aow often aze long tecm plaas updated? 5. How many participants in the contract negotiation process aze involved in planning? 6. How often are plans implemented? 7. Who monitors the implementation of ptans? 8. How often is the conhact negotiation process evaluated? 9. How many participants in the process aze awaze of the resuits of these evaluations? 10. I-Iow often aze plans changed based on ffie results of the evaluations? Leadership !n the category of leadership, "leaders" or "leadership" is understood as: (1) Oj}?ce of Lnbor Relalions personnel; (2) Elected Represerstatives of the vnions or collective bargaining units; (3) Business Agents of the collective bargaining units. 11. How often do leaders in the conhact negotiation process convey a cleaz vision for the future? 12. How often do leaders in the comract negotia6on process recognize contributions of participants in the process? 13. How often does the race, color, class, gender, age, narional origin, sexual orientatioq or physical ability of the participants affect the contract negotiarion process? 14. How often is information about the contract negotiation process conveyed to all participanu? 9 40. How often does the Iabor Relations Office compaze its resulu to those of similaz organiiations? 47. How often dces the Labor Relations Office measure its customecs' satisfaction? 42. How often does the Labor Relations Office compare its customer satisfaction results to those of similaz or ,� ni�ati 43. How often dces the Labor Relations Office achieve its desired goals? a�� 15. How oRen aze participants in [he contract negotiation process informed of staff changes? Trainirtg and Development 16. How often do participants in the coutract negotiation process have opportunities [o contribute to the decisions made about the procedures to be used during the contract negotiation process? 17. How many par[icipants ia the contract negotiation process 6ave oppor[unities to contribute meaningfvlly to the pmcess? 18. For 6ow many of the pazticipants is the contract negofiation process a positive experieuce? 19. How oftea do participants in the contract negotiation process make use of contiuuing education and training [o improve their skills? 20. How often do pazticipants in the comract negotiation process update their skills though participazion in professional organizations? Injormation andAna/ysis 21. For how many of the contract negotiation activities is data collec[ed? 22. How ofteu is the collected data used to usist in the contract negotiation process? 23. How ofteu is the collected data used for evatuation of the coatract negoriatinn process? 24. How many participanu in the conuact negotiation process have access to the collected data? 25. Do computerized iuforma[iou systems meet the needs of the participants in the contract negotiation process? Improvement PraMrces 26. How often do contract negotiation pazticipants change their practices to improve performance during the process? 2Z How often aze methods for determining work 1999 Saint Paul City Council Research � PerFo�mance Audit of ihe City of Saint Paul's I.abor Relarions Activities assignments diaing the process reviewed for improvement? 28. How often aze administrative practices (such as fotms, reporting and commimication procedures) reviewed for improvement? 29. How often is Le gerfqrm�n�Q �f.�anf�;�a�r� ;� rhr contract aegotiation prceess evaluated? 30. How often are methods for evaluation reviewed and npdated? Customer Focus 31. Which of the following do you consider to be your customers? razdc and file union; membeis; mayor, ciTy council; deparlment heads; citizens; other. 32. How well do participants in the process mderstand customers' needs and e�ectations? 33. How often do pacticipants in the process monitor customer needs for cLanges? 34. How responsive is the contract negotiation process to changes in customers' needs? 35. Do pazticipanis in the process have customer service standazds or guidelines goveming their contract negotiation? (i.e.: Code of eUrics; commimication standazds; behavior at negotiation table; public information standards.) CONTRACT ADMINISTRATION S6ategic Planning I. How often are short ierm glans m,ade to ionpro�e thQ contrac[ administrarion process? 2. How often are short texm plans npdated? 3. How often aze long texm plaos made to improve the contract administration process? 4. How often are long term pkans updated? 5. How many participants in the contract adminishation process are involved in planning? 6. How often are plaos implemented? 7. Who monitors the implementation of plans? 8. How often is the contract administration process evaluated? 9. How many participants in the process aze aware of the results of these evaluations? 10. How often are plans changed based on the resulu of the evalualions? � v-�3�v 36. How often do participants in ffie cont[ac[ neg process follow established customer service standards or guidelines? 37. Aow well do participants in the contract negotiation process respond to changes in customer satisfaction? ResuUs (Outcomes) 38. How often do participants in the conhact negotiation process measure results? 39. How often do the participants in the contract negotiation processes compare their results to those involved in similaz activiries? 4D. How often do the participants in the process measure their customers' satisfacaon? 41. How often do the pazticipanu in the process compare their customer satisfac[ion results to those involved in similar processes? 42. Aow oflen do participants in the contract negoliation process achieve their des'ued goals? Leadeiship `- °" - --� °--- -.'°=°°' ,- ,., , .. ... . . . � ----- -- -------' .:.:. ��... J • ..............�. •..:�:..:.... ... .:.'�:.�..::::�. is understood as: (IJ High Ieve7 management, (2J O,Qice oJLabor Relarions persormel; (3) Ciry Attorney; (4) President ojthe respective urrion or collective bmgairsing tatiY (5) Elected Representatives of the collective bargaining anit, (6) Bvsiness Agents ojthe edlective bargaining unit. I 1. How often do leadeis in the contract administration process coavey a cleaz vision for the fu[ure? 12. How often do leadeis in the process recognize contributions of participanu in the process? 13. How often does the nce, co(or, class, gender, age, national origin, sexual orieatalioa, or physical ability of the participants afFect the contract administration process? 14. Aow often is informarion about the contract administration processes conveyed to all participants? 15. How often aze participants in the process informed of staffchanges? 1999 Sairst Paul Ciry CouncJ Research Performance Audit of iLe Ciry of Saint Paul's Labor Relations Acfivities 97 �, y� � �; Training and Develapment Customer Focus 16. How often do participanu in the contract administration process have opportunities to contribute to the decisions made about the procedures to be used duriag ihe con�act administration process? 17. How many participants in the coatract a[lminishation process have oppommities to contribute meaningfully to the resolution of a grievance? 18. For how many of the participants is the contract administration process a posirive eaperience? 19. How often do participants in the contract administration process make use of continuing education and training to improve their skills? 20. How often do participanu in the contraa administration process update their skills though participation in professional or° ";zations? Information and Analysis 31. Which of the following do you consider to be your customexs? rank and file imion members; mayor; city council; depaztment heads; citizens; other. 32. How well do participanis in the process understand customers' needs and e�cpectations? 33. How often do participants in the process monitor customer needs for changes? 34. How responsive is the contract administrarion process to changes in customers' needs? 35. Do participants in the process have customer service s[andazds or guidelines goveming their contract administra[ion? (i.e.: Code of ethics; covununication standazds; behavior at negotiation table; public infoimation standards.) 36. How often do participants in the process follow established customer service standazds or guidelines? 37. How well do participants in the process respond to changes in customer satisfaction? 21. For how many of the contract administration activities is data co(lected? 22. How oftea is the collected data used to assist in the contract administration pmcess? 23. How often is the colleaed data used for evaluauon of the contract administration process? 24. How many participants in the contract administration process have access to the colleaed data? 25. Do computerized infocmation systems meet the needs of the participanu in the contract admiuistratiou process? Improvement PraMices 26. Aow often do contract administration participants change their practices to improve performauce during ffie process? 27. How ofteu are methods for determining work assignments during the process reviewed for improvement? 28. How oftea aze administrative practices (such as forms, reporting and commuuicatiou procedures) � reviewed for improvement? 29. How often is the performance of participants in the contract administration pmcess evaluated? 30. How ofteu aze methods for evaluation of the coatract administration process reviewed and updated? Resula (Outcomes) 38. How often do pazticipants in the contract adwinistration process measure results? 39. How often do the participants in the process compaze iheir resulu to ffiose involved in similaz activities? 40. How often do the participants in the process measure their customers' satisfaction? 41. How often do the participants in the process compare their customer satisfac[ion results to those involved in similaz processes? 42. How often do participants ia the contract administration process achieve their desired goals? 1999 Saint PauT Crry Cowcil Research 9S Performance Audit of ihe CLLy of Samt Pmil's Iabor Rela6ons Activi6a APPENDIX C: �� Ten-Year History of Collective Bargaining Agreement Conclusion Collective Bargaiuing Units Contracf Duration Resolution" Lag'IYme"' Time Period # Yesrs Ratifying Con. (Months) T�f�cl.-Iati�as,�.bca1132;=_-= q�36l84-= ° -`�� - --TI24l86:_= �- _ _ - - 3 - _-, ._ - - �_-` - = _ - � - - _— - .- - � &OperatmgEug�neers,LocaF47 �fk/$4 413U/9�_ �- - _� . -- =6(fM89-_ J _.. = .,.fy4 - _ - � ��. __� .._ _ �. = •- -- - "--- - - 6EC�er atDnve's, - :t,ocal-� � = _ . � . �- � _ }Fl10/92 =-._ -_ - - 6 " -- " —: -- - -,_— � _ �= . �-= � z_ -_ _--- — -�-:= .. s�sxi.--x��nm�z— _. �- =�_'�ic.x.o -= ' -_`: c8 �-'-.. _;:` Operating Engineers, I.ocal 70 1988 - 1959 1990 -1992 1993 - 1994 7/1/94 - 6/30/96 1997 -1998 t999 _ 2fNN1 2 6/16/88 5 %: 3 9/27/90 9 2 11/9/93 10 2 6/28/95 12 2 10/7/98 9 2 4/14/99 3 %: �-= _--<=,?`6t11/87.`r=<- - _ . - .6-... � -_ 8i3/4� __ =��- -_`-'- � -_ �7145-. �` i&Yz -'_ _�:- %- . . =: €'smim ` - ` u + .c -- _ ' Fire Fighteis, I,oca121 Rv�fwaai�mal Fmnlnvwna .�i&4�.(fiu6.� iII�. �..c rw. uuycsrmus = ---.—_ f�F�8II171ttOE . _ _' - - ' Saint Paul Manual and Maintenance Supecvisms Assn. 1987 - 1989 1990 - 1991 1994 - 1996 1997 799R - 1999 3 2 3 1 4/28/88 7/24/90 Z/28/96 7/9/97 16 6 Yz 26 6 =- 3(#j9� . -_ _ — _uoen ,- _ , 2�f- . - IOAA _ IOAU � OM9/AA A�/. i/i19fi-itisii�ii i'/z 7i31i96 7 1992 - 1993 2 6/30/92 6� 1994 - 1996 3 5/21J96 28 Yz 1997 - 1998 2 10/15/97 9 Y: 1999 - 2000 2 6/2/99 6 � °1988 2984`=. _`_=g _- -=-_ffiFI/8$-. -. -_-- - _'f=`--_ ---_ t942 1443 z 8/4192 7 "I494 I996. = c --3 -. SfIll96 2&'h -` -iR1T 1948-. --=F ' ?IISl98 T�54--- - =' -„ . _- -, _.- - =rcort �mn - T � _ -_ - a _ ` . � dre�m � _ c r� == .- 1988 - 1989 1990 - 1992 1993 - 1994 1995 - 1996 1997 - 1998 2 M29/88 4 3 5/8/90 5 2 3/23/93 2 %: 2 6/10/96 5 2 8/1/97 7 7999 SabRPaul Ciry Co�mcil Research Performance Audit of the City of Saint Paul's Labor Rela4oas Aclivities Collective Bargaining Units Contract' Duration Resotution" T'�me Period # Years Ratifying Con. `Ssi� Paal FueSupetvisoiy = ��-`=- = -=- - - 198T - �1959 " "-` '-- >-:- 3 � _ - - 4/1?l88 tlssociation - - - - .' - - � � 1990 -1991 -- 2 7/19/90 AFSCME Clerical, Local 2508 I1CeI, LOCBF� Saint Paul Classified Confidential Employee Assn. Intemational Alliance of Theatrical Stage Employees Boilermakeis, Loca1647 - _- .-_ 199L -�--" I =- - .- . ;_ -1992 - F993 _ '� Z �- = - ` _ 3l23/93 -`._�_1994-�996 -° ;3 � -� ?��=- - . ., 1998 -1999 �- 2 .--� - - - `6/16/99 1988 - 1989 2 3/29/88 1990 - 1991 2 3/14/90 1992 - 1993 2 2/25/92 1994 I 1/25/95 1995 - 1996 2 9/13/95 1997 - 1998 2 7/9/97 7009 _ 200(1 2 6/2/99 � 1988 - 1989 1990 - 1991 ]992 1993 1994 - 1996 1997 - 1998 1990 - 1992 ! 993 -1995 1996 - 1998 i o00 _ rr ii>o - wav�awi 1986 - 1989 7/I/89 - 6/30/92 7/1/92 - 6/30/95 7/1/94 - 9/31/96 10/1/96 - 9/31/98 �aq $� Lag Time"' (Mo nths) _� ¢. 6 Y 1334 - 14 �4 . - ".7-�.;. _� _- =17Y � - 3 2 %: 2 13 8'/: 6 2'=_ ..: :='_ 3/29/88 3 ;_ ; _ =_s;,;. 2 - — 5129190 _ _ S_ , -_ 2, - 225l92 2 � _ "Il25l95 I3�'. � ;° .`4i13/95 -. $`h 2 `;. 7!4/97 d ; ��,'�" _ � : 6/2/gy � g'-; _�_� 2 11/22/SS 10 %: 2 6/14/90 5 y: I 8/4/92 7 1 1/26/94 13 3 9/25/96 33 2 3/18/98 14 %: 3 SltU/89 4: ,> _ x. 2 A/22/4� 3`�'!: � _ - ' =fftTl96 =- 3�4 ° - - : 1 � � _- =10(8f9Z - 4 2 .;- s 6+ 3 8/2/90 7 3 3/9/94 14 3 12/4/96 11 3- - =-: `., 6t12l9Q _ -.._ T3 Yz � _ ` _ .4f20193 -.;� _ 11-� `_' t __ `5/9/9't `� � �4- - 3 - -" "ooen � �- � - �IS+� - 3 10/23/86 9 %: 3 6/12/90 11 Y: 3 4/27/93 10 2'/. 11/22/95 16 Y: 2 7/9/9'7 11 fatpenters; M2IStatewide _ -: _� - -- � � --1986 - T988 ' -'_,.-°>-- 3� -_ � - -. _ . 7/17/86' -'- � � - - -- 5/1B9 - 4/30192 -- 3 5/31/90 - - - - . - - _ - c�vm_ennroc - -- - - a � inniroa 6 iS - 13 � 1999 Saint Paul Ciry Cwmci[ Research ioo Collective Bargsining Units Opetative Plastereis and Cemen[ Masons-Loca1633 Elevator Construdois, Lceal 9 Paintera, Loca161 Plumbecs, I,acal 34 Contract' Duradoo 1�me Period # Yesrs 6/1/89 - 5/30/92 6/1l42 - 5l3�/95 5/1/96 - 4/30/98 S/1 /9R _ 3 3 2 1988 1 6/1/89 - 5/31/90 2 6/1/90 - 5/31/91 1 ---_ _...- - -- - - - � - - ..... __ . O/i/YG-3/91/YS Z 6/1/94 - 5/31/97 3 n io� _ uani�nnn : 5/1/86 - 4/30/89 5/1/89 - 4/30/92 5/]/92 - 4/30/95 5/1/95 - M30/98 5/1 /9R _ 3 3 3 3 5/1/87 - 4/30/89 5/I/89 - 4/30/90 5/1/90 - 4/30/91 5/1/91 - 4/30/94 � 5/I/94 - 4/30/97 5/I/97 - 4/30/99 2 1 1 3 3 2 Paui's La6or Relafions ActiviCes Ratifyiug Con. Lag Time" (Months) 6/12/90 4l27/93 7/8/97 10/6/88 5/IS/90 R/21 /9f1 4/73/Y3 2/7/96 7/31/86 5/31/90 5/11/93 10/11/95 10/8/87 6/12/90 9/13/90 10/1/91 12/I/95 10/1/97 sn�c Mera� worke.�, �a� io 5/1/87 - 4/30/89 5/1/89 - 12/31/90 1/1/91 - 4/30/94 5/1/94 - 4/30/97 5/1l97 - 4/30/99 2 1 �/s 3'h 3 2 1/6/87 I/30/90 1/20/92 t/19/96 �P� 12 11 14 5+ 9 l l %: 2'/-_ i� 20 3 13 12 Y� 5 %z IS + 5 13 %z 4 Y: 5 19 5 -4 9 12 %z 20'/: 27 + ' Amendmenu to Contracts are noi included in tlris table, although in some limited cases the amendments may have acted to emend the contract. It was considered that this eactension was not equivalent to settling a contract for the time period in question, `� When resolutions were not in the Office of I,abor Relations files, the date the contract was signed is used ��` The "lag time" represents the time—in montUs—wLich elapsed between the e�cpirarion of the old coniract and the ratificarion of the new contracK. A"+" (plus sign) indicates that the contract applying to the date of the publication of this report is not yet settled. A"-" (minus sign) indicates the contract was completed prior to the previous contracts expiration. 1999 Saim Paul Ciry Coimcil Reseaich PerFolmance Audit of the CiTy of Saint Paul's Labor Relafions Activifies 101 � nQ.$� APPENDIX D: Summary of Interest Based Bargaining Interest based bazgaining (IBB) provides for a greater recognition of the interests of the opposite side, and the needs and values of the organization. IBB comes in many forms with different names, such as win-win bazgaining, mu4�a1 v inc principles, interest-based negotiation, best practices or integrative bazgaining, and interest-based problem solving. Wtrile each of these methods varies slighdy, the fimdamental goal is to reach an agreement that recognizes and satisfies the needs of each side. The process begins by identifying issues to be resolved and discussing the interests and concems behind the issue, and jointly generating a number of options to resoive the matter. 'I'his process often leads to the recognirion of mutual interests and goals, though the desired method of achieving the goal and resolving the issue may be different for each side. Two questions can be asked during the IBB process to enhance the level of undeistanding: •What aze ihe reasons for thai particulaz position? •What concem is addressed by that issue? Interest based baz inin is an attempt to reduce the conflict that occurs during the negotiation process, and quite often can enhance the working relationship between management and labor. Lines of communication may open up, and joint problem solving may become more common and more effective. According to the Federal Mediation and Conciliation Service, a few principles must be followed in order for the IBB process to be effective: > Sharing relevant information is criticat for effective solutions. > Focus on issues, not personalities. > Focus on the present and future, not the past. > Focus on the i�erests underlying the issues, not only on positions. > Focus on mutual interests, and help satisfy the other party's interests as well as your own. > Brainstorming can generate options to satisfy mutual and separate interests. > Options to satisfy interests should be evaluated by objective and agreed-upon criteria, rather than power or leverage. Certainly, IBB is not perfect for every negotiation process. The IBB method is likely to fail without a number of necessary components, lisYed below: > evidence of labor-management cooperarion during the past conhact term; > sufficient time remaining prior to conhact ea.piration to complete the sequence of decision-maldng about IBB, training and applicarion of the process; > willingness of both parties to fully share relevant bazgaining informarion; > willingness to forgo power as the sole method of "winning"; > understanding and accepting the process by all participanis and their constituents. IBB may not eatirely replace the ixaditional method of negoriation. The negotiating parties must determine for themselves when IBB would be appropriate, and must be willing to invest a significant amount of time and energy into the new process to make it hvly effective. 1999 Sobu Pau! City Council Reseorch im Performance Audit of iLe City of Saint Paul's Iabor Relazions ActiviRes APPENDIX E: 99� $�° � Coltective Bargaining Agreement Preamble Sample The preambles of the collective bazgaining agreements between the City of Saint Paul and the bazgaining units generally contain preamble language stating the purpose of the agreements, which is in most cases to create a harmonious relationship between labor and management, and introducing the general azeas of agreement contained in the contract such as wages, hours of work and other conditions of employment. A few contracts do not have preambles, but rather have purpose statements which aze similar to the contrrcts. Listed below aze three sample preambles: May 1, 1997- April 30, 1999 Labor Agreement between the Ciry of Saint Pau1 and the International Brotherhood of Electrical Workers, Local 110. Preamble to fhe Contract: This AGREEMENT is entered into between the city of Saint Paul, hereinafter referred to as the EMPLOYER and the Intemational Brotherhood of Electrical Workers, Local 110 hereinafter referred to as the iJNION. The -------- --_-_ __=�_ -- - __----- - -- - - - --- ---- -- _ - -- . _... - - ----......- - - _ ' —__ — —_ _ _'_'_' '_"__ "� �._.. . _�._.....�.._�._.�. r .........� _�> .: �w._�.. .. Ycv'"'c.�v� c:a u:a responsibilities of the City of Saint Paul for the benefit of the general public through effective labor- management cooperation. The EMPLOYER and the LTDIION both realize that ttus goal depends not only on the words in the AGREEMENT but rather primarily on attitudes between people at all levels of responsibility. Constructive attitudes of the EMPLOYER, the iJTiION and the individual employees will best serve ihe needs of the geneial public. Preamble to the 1997-1998 Agreement beiween the City of Saint Paul and City of Saint Paul Classified Confidential Employees Association: This agreement, hereinafter referred to as the Employer, and the City of Saint Paul Classified Confidential Employees Association, hereinafter referred to as the Association, has as its pucpose the promotion of harmonious relations between the Employer and the Association, the establishment of an equitable and peaceful procedure for the resolution of differences, the establishment of rates of pay, hours of work, and other conditions of employment. 1997-1998 Collective Bargaining Agreement beriveen The Ciry of Saint Paul and AFSCME Loca1375�- <.esisi. iiuJ H�:[cGmCIIi Ci1CCICQ IDi0 DCLK'ECIl ID8 C;1LV OI �alIIl L'�. hQr��ai�er rrfPrrM tn ��th� the "Employer" or the "City," and the A.F.S.C.M.E. Loca13757-Legal hereinafter referred to as the Union, for the purpose of fostering and promoting hazmonious relations between the City and the Union in order that a high level of public service can be provided to the citizens of the City. Tfus Agreement attempts to accomplish this purpose by pmviding a fuller and more complete undecstanding on the part of both the City and the Union of their respecrive rights and responsibilities. The provisions of ttus Agreement shall not abrogate the rights and/or duties of the Employer, the Union, or the employees as established under the provision of the Public Employee Labor Relations Act of 1984, as amended. In addition to the three agreements above, we reviewed the following collective bazgaining agreements: � May 1, 1998- Apri130, 2001 Maintenance Labor Agreement between the City of Saint Paul and Bricklayers & Allied Craftsmen Local Union No. 1 of Minnesota � October 1, 1996 through September 30, 1998 Maintenance Labor Agreement between the City of Saint Paul and Internarional Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and Helpers, Lodge 647 o May 1, 1996 thru Apri130, 1998 Maintenance Labor Agreement between the City of Saint Paul and Operative Plasterers and Cement Masons Intemational Association, Local 633 o Preamble to the May, 1998 through April, 2001 Labor Agreement between The City of Saint Paul and Lakes and Plains Regional Council of Cazpenters and Joiners 1999 Saint Pau! Ciry CaurscilResearch Performauce Audit of the Ciry of Saint Paui's Labor Relations Acfivities ] 03 �y'� �v o July 1, 1997-June 30, 2000 Maintenance Labor Agreement between The City of Saint Paul and �� Intemational Union of Elevator Constructors, Local 9 � 1998-1999 Agreement between The City of Saint Paul and The Intemational Association of Fire Fighters AFL-CIO I.oca121 0 1997 AgreemenT between The City of Saint Paul and The Saint Paul Fire Svpervisory Association � July I, I997 through June 30, I999 Labor Agreement between the City of Saint Paul and District Lodge No. 77 Intemational AssociaYion of Machinists and Aerospace Workecs AFL-CIO � 1997-1498 Labor Agreement Between the City of Saint Paul and the Saint Paul Manual & Maintenance Supervisors Associazion 0 1999-2000 Labor Agreement between the City of Saint Paul and Intemationa] Union of Operating Engineers Local 70 � 1995-1998 Maintenance Labor Ageement between the City of Saint Paul and Intemational Brotherhood of Painters and Allied Trades Local 61 � May l, 1997 through April 30, 1999 Maintenance Labor Agreement Between the City of Saint Paul and United Association Pipefitters Local Union No. 455 � May 1, 1997 thru Apri130, 1999 Maintenance Labor Agreement Between the City of Saint Paul and the United Association Plumbers Local 34 and Sprinkler Fitters Local Union No. 417 0 1997-1994 Collective Bargaining Agreement between the City of Saint Paul and The Saint Paul Police Federation 0 1997-1998 Collective Bazgaining Agreement between the City of Saint Paui and the City of Saint Paul Professional Employees Association, Inc. 0 1997-1998 Colleccive Bargaining Agreement between the City of Saint Pau1 and Saint Paul Supervisors' Organization o May 1, 1997 thne Apri13Q 1999 Maintenance labor Agreement between the City of Saint Paul and Sheet Metal Workers Intemational Associarion Local 10 � February 1, 1996 through January 31, 1998 Collective Bazgaining Agreement between the City of Saint Paul and Internarional Alliance of Theatrical Stage Employees, Local No. 20 � May 1997 through April 2000 Coliective Bazgaining Ageement between the City of Saint Paul and the Tri-Council Local 120- Loca149 - and LOCAL 132 � 1997-1998 Agreement between the City of Saint Paul and Local Union 1842, District Council 14, oF the American Federation of State, counry and Municipal Employees, AFL-CIO. 0 1997-1998 Agreement between the City of Saint Paul and Local Union 2508 District Council 14 of the American Federation of State, County and Municipal Employees, AFL-CIO. 1999 Spint Pavl Cry Council ResearcA 104 Perfocmance Audit of the City of Sairt Paul's Labor Relations Activities APPENDIX F: � �I S�� Selected Bibliography Bohlander, George W., PH.D. (1992). Public Sector Grievance Arbitration: Structure and Administration, Jownal of Collective Neeotiations in the Public Sector, Vol. 21(4) 271 - 286. Bulach, Clete (1991). The Collective Bargaining Potpourri: Is There A Right Way??, Joumal of Collective Neeotiations in the Public Sector. Vol. 20(4) 281 - 292. Bureau of National Affairs, Inc., Collecttve Bargaining Negotiations attd Contracts; Preparing for Bargaining, 1996. Buteau of National Affaics, Inc., Collective Bargaining NegotiaKons arul Contracts; Traditional Bargaining, 1996. • -- -- . . „�,.._.._��__--- ° ------ ureau o ation airs, c., o ectrve arQacnino Noo�r:___ �__. ___—_____ - �,..,= vu, .ne i.._. --- - _�-------- --- --�� _--- - - --- __... -------_., _��. — -- Chandler, Timothy David (1988). I.abor Management Relations in Local Government, Municipal Year Book : 85 - 96. Chandler, Timothy David (1493). CoZZective Bargaining wirh Pdice Uniorts: Characferistics of Negnriators and Bargaining Strategies, Municinal Yeaz Book: 34 - 43. Elkouri and Elkouri, eds., Aow Arbitration Works Fifth Ed. Kearney, Richard C. Labor Relations in the Public Sector: Chapter 2; Legal Environment of Public Sector Labor Relations, Chapter 3; The Bazgaining Process, Chapter 8; Living With the Contract. New York, Basel, Hong Kang: Mazcel Dekkeer, Inc., 1989. Reynolds Jr, Osbome M. Handbook of G��P**_±*��t T- �--_ *:__ ��;; - ��,—;�. �t. raui, Iv1N: West ruoiisning C:o., 1982. v � Smythe, Cyrus (1998). The Importance of Supervisor Training, Minnesota Cities, Sept. p. 44. Urban Institute in cooperation with The National League of Cities and the National Association of Counties. Performance Measures: A Guide for Local Elected Officials. Washington D.C.: The Urban Institute Press, 1980. Walters, Jonathan. MeasurinQ Un: Goveruine's Guide to Performance Measurements for Geniuses and Other Public Manaeers. Washington D.C.: Governing Books, 1998. 1999 Saint Pav7Ciry Council Research Council File # q �G C� s Presented Referred To RESOLUTION CITY OF SAINT PAUL, MINNESOTA Green Sheet # I Do y5 e'L at Committee Date RESOLUTION ACCEPTING THE REPORT BNTITLED PERFORMANCE AUDIT OF THE CITY OF SAINT PAUL'S LABOR RELATIONS ACTIVITIES 1 WF�REAS, the Saint Paul City Council established a performance audit program for City departments and 2 offices and the City Council directed the Council Investigation and Research Center to conduct the audits; and 3 WFiEREAS, City Councii selected the City's Office of Labor Relations and the City's labor relations activities 4 for a performance audit and that the Council Investigation and Research Center has completed the audit; now 5 therefore, be it 6 RESOLVED, that the Saint Paul City Council accepts the report PerformarzceAudit of the City ofSaiHtPaul's 7 Labor Relations Activities. Requested by Department of: Adoprion Certified by Council Secietary B � a, _ I�s Appi � � Form Approved by City Attomey � Approved by Mayor fox Submission to Council � � � � �� Adopted by Council: Date �� ` `_t�°� council GREEN SHEET q1- 8Go ��r� No � �,� ;; �:. � 2 ,�a sv m4� u�� u��- � �� ..,� m„«� ��,wc o�aee ❑ wwcw�mMw,o.�. wuxn.�,on.,cc.o ❑MIdtWR4tflii111ff) ❑ TOTAL S OE SIGNATURE PAGES (CUP ALL IOCATIONS FOR SlGNATURE) Accept the report entitled Performance Audit of the City of Saint Paul's Labor Relations Activities PLANNING CAMMISSION CIB COMMRTEE CML SERVICE COMMISSION il��. i4•iaA TRANSACTIONf SOURCE (t7wWM F�e mie p�so�rum ewrxakea �mer e camaa ror+nis ckre�reM7 V6s MO Fles tlire Pc+aJfirm aer been a cdY empbyee7 YES NO DaestlNe pe�aqMum D�sa SIdN not ndme%yp� bY �Y aarent citY �WoY�� VE3 NO Is tltia persnUfem a ta/peted vendoR YES 1� COST/REVENUEBUDOETED�pRCLEONq Ip11i71+�`PCld�.7 YES NO �`� —��O & � � � � ; £ � x € � Y § ,� �:� _� °Y � �� a �'_ ,.,,� _ � � � : � � , x �� :;�, � �„ a � „ �. � °_ � � ' ; � �'o � � �� .o �- o � s « p o � = � ° s ��^,.: T O F � a a U 3 u � ■ ■ ■ � a s �� V� �� V� �R - �� b � s.. 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'L3 � ftT � .� .� � .� � 7 � U � O � � � f a s a � a s � e t m a a � . i z s a � g �� = w � � � N o �n -�, �,, . �' k� °� 5 $ � � : v s i � i i € e Ea 8 3 d § � � � � � �i� -�Gd � �. � .� c � U � V R v � � � '� � � C �kC s. �a�p�'"�-" ' „^' � �'6� C.��F s � ee -^�� R . �* U� :;�"'� � � +-+ v1 � ��`�,��,�� N �I�. �, .. ..; _ F .� r . -` �, � . u.> � �� cC N :!: � :/: .Sr - V �Y a `''�- / � C � O � � � � � OFF[CE OF LABOR RELATTONS Terry Xaltiner, Martager CTTY OF SAINT PAUL Norm Coleman, Mayor LABOR RELATTONS 400 City Hal! Annex 25 West FourlTr Street SaintP¢ut, Mim+esota 53702-1631 TelepSone: 651266-8897 Facsimile. 657 292-7656 �� i g6 � 9/8/1999 TO: Council President Bostrom Council Member Benanav Council Member Blakey Council Member Coleman Council Member Hams Council Member Lanhy Council Member Reiter FROM: Terry Haltiner, Labor Relations Manager � �� RE: Addressing the Recommendations specified by the Council Reseazch Audit of the Labor Relations Department Labor Relations staff have reviewed the "Performance Audit of the City of Saint Paul's Labor Relations Activities" and the 72 recommendations contained therein. Of these, there are 22 recommendations that we aze currently working on. These are listed below. The remaining recommendations will be discussed by staff when a new Labor Relations Director has been hired. Whi]e it is doubtful that all the recommendations will be implemented, I assure you they will be given thoughtful consideration. The following are specific recommendations that the Department of Labor Relafions is currently addressing: Recommendation #5: The OLR d'uector should improve intemal communication and take steps to keep staff well-informed. Maintaining a veil of secrecy to shield staff from the important and sensi6ve lssues wili only continue the impression that staff aze not husted. There may be instances when communicarion is not appropriate, for instance if the information communicated is of a highly sensitive nature and is not relevant to the duties of staff. However, our interviews suggest communications have been witUheld when this was not the case. This perception bas created a situation in which staff do not feel empowered to do their jobs. Weekly sraff ineetings are scheduled. Information is communicated to siaff at these rimes. Recommendation #6: D'uector should provide a forum and time by which staff can conhibute to decisions made about the organization, such as specific times set aside in staff meeting, suggestion box, etc. Input from staff is sought at staff meetings. RecommendaUon #7: The OLR D'uector should provide fmancial support for participarion in training and development acrivities. The director should also cieazly inform staff about the Office's membership in several professional organi�ations and urge staff to take full advantage of these memberships. In addition, i¢cenrives to participate in uaining and development activiries, such as posirive mazks on performance evaluations or formal recognition should be used. The budget for training has been increased in the 2000 Mayor's Proposed Budget. Rewmmendation #8: OLR should cukivate relationships with other organizarions that may have the expertise to assist the organizarion in its work. To this end, the OLR should create a City-wide labor relations work teazn wluch would be composed of representarives from the City Attorney's Office, Risk Management Division, the Financial Services Office, the Office of Human Resources and others. Such a task force would coordinate the City activities in the Labor Relations process and re-established relationships which have been neglected. The Labor Advisory Group will be recomened It is comprised of representatives of the above mentianed offices. Recommendation #1Q: The OLR director should immediately request that OLR professional staff receive access to HIJMMERS system. The Office of Human Resources should act posthaste to see this is done. The OLR director should also enswe that professional staff receive necessary training to operate the HUMIvIERS system and are capable of creating customized reports. Staff now have access. Recommendation #11: The OLR should conduct and integrate more complex analyses of labor relations data into its labor relations activities. Because the OLR's success is often determined by the use and analysis of data, this activity is of pazaznount importance. Moreover, the tremendous amount of data that resulu from the City's labor relations acrivities provides for a rich opportuniry for analysis. The OLR d'uector should provide additional training to staff; if necessary, to accomplish this recommendation. Staff are currently working on improving the data base. Recommendation #25: The Qffice of Labor Relations and the Budget Office should complete work on the development of costing models which meet all of the City's needs for contract cost information. Integrated costing models are being developed Recummendation #29: Given the reported staff shortage in the Office of Labor Relations, increasing the participation of the City Attomey in contract drafting and prepazation is warranted. Such an increased role should be explored thoroughly by the next Labor Relations D'uector. Sfaff have been working more closely with the Cify Atiorney's O�ce. Recommendation #32: The City should cease the practice of segregating some positions in the category of "promotional." The practice does not seem to be consistent with state law, it limiu the ability of ouuide qualified candidates to compete, and potentially promotes systemic inequalifies in the make-up of the CiTy's world'orce. Work has begun, with Human Resources, to explore this issue. Recommendation #33: The City should review posifions currently categorized as supervisory to determine if the job duties meet the BMS definirion of supervisor. Work has begun, with Human Resources, to explore this issue. Recommendation #34: The uniform settlement form provides for the development of a scatewide base of information on all public employer negotiated ageemenu and azbitration settlements for the State of Minnesota. As such, it is an important activity for the BMS to undertake, and had the potenrial to create a compararive database for use by all public employers and employees. Notable, the BMS has yet to develop such an informarion source. However, the City of Saint Paul has not consistently complied with this statutory requirement. The City should consistently complete the uniform settiement form in accordance with State law. An elecbonic version ofthis form has been developecl Sta�fare working to complete these forms for recent contracts. Recommendation #35: The Office of Labor Relations, Risk Management, and the Office of Financial Services should increase efforts to sh�eaznline contract implementation. All three offices should clarify communication systems to improve the administration process. This is an ongoing process. Staff will continue this effort. Recommendation #36: T1�e Office of Labor Relations should complete the data bank relating to parallel sections of the collective bargaining agreements. The existence and use of the data bank should he communicated to a11 effected parties, and the data bank should be used to identify azeas for negotiation. Work is continuing on thrs project. Recommendation #44: The OLR should make contract negotiarion training for eligible staff a priority. This should occur either in-house or through continuing educaflon at an off-site facility. The budget for training has been increased in the 2000 Mayor's Proposed Budget. Recommendation #46: The Office of Labor Relations, Financiai Services, Risk Management sbould develop a formal communication system to communicate and implement contract changes. This system is in pZace. Recommendation #47: The City should continue to seek to improve its data collection and analysis capabilities and should implement the total package costing progam. Likewise, unions need to continue to unprove their systems and fmd additional support for those units that do not curtentiy have quality systems. Staff continue to work on this. Recommendation #S2: The OLR needs to examine the role of the Ciry Attomey's Office, the Financial Services Deparhnent and Risk Management co determine if greaser pazmering accompanied by information sharing would be a more effective approach to negotiarion than presently exists. All of these departments should consider surveying their respective customers to determine the'u level of saflsfaction with negofiation and 'unplementation. The Labor Advisory Group shat! be reconvened. Recommendarion #56: The Office of Labor Relations should reinstitute the pmctice of having at least two staff members capable of negoriarion a collective bazgainutg agreemenc at all times. This would take pressure off the primary negoriator and allow the office to deal with administrative and management tasks more efficiently. The City recently fiZZed the Labor ReZations Manager position and is interviewing candidates for Director. Recommendarion #57: All contract employees should be evaluated for performance. This data should be used for planning and process improvement. This will occ�a ifarry are hired. Recommendafion #59: The City of Saint Paul and the collective bargaining units should pmvide funding and rime to anyone iavolved in negotiarions or coniract adminis�ation tn attend the training sessions offered by the Bureau of Mediation Services. Topics include Conflict Resolution, Interest-Based Bazgaining, labor-management committees, mediation, basic labor relations, negotiation, and the Minnesota Public Employment Labor Relations Act. We will consider a11 training optiorrs. Recommendation #65: Make training a priority for Labor Relations staff involved in administering contracts and handling grievances. One way to emphasize uaining may be to make it part of annual review process. T1�e OLR should not use ]ack of time and staff as an excuse, as a lack of uaining makes staff even less productive as they fail to develop their skills. It may well be worth the time to provide training if it improves the process and funcrions of the office. The budget for baining has been increased in the 2000 Mayor's Proposed Budget. Recommendation #68: The City should continue to explore information systems upgrades and reduce reliance on institufional knowledge. Recognize danger of centralizing knowledge in one or two people, and have more widespread rraining on systems. Staff will continue to work on Yhis. If you have any questions regazding this information please contact me at 266-8897. CC: Gerry Strathman, Director of Council Reseazch Performance Audit of The City of Saint PauPs Labor Relations Activities Sair�t Paul City Council Council Research Report August1999 ��'�� Tlus performance audit is, in essence, three different performance audits of tha City's labor relations activities. It exaaunes the contract negoriaYion and grievaace administration processes aad the Office of Labor Retations. Labor relations activities aze very important to both the City's govemment and its employees. There are 24 bazgainiug units which represent 98% of the Cify 3,332 employees. Supervisors and professional staff are represented in Saint Paul City government, bu4 in many parts of the country they are not. Finally, wages and fringe benefits make up 41% of the City's budget—representing the City's lazgeat expense category. PURPOSE OF THE CITY COUNCIL'S PERFORMANCE AUDIT PROGRAM The Saint Paul City Council established the PerFormance Audit Program to help fulfill two major legislative oversight responsibilities: ■" Ensure City practices aze consistent with applicable state and local laws and policies; and ■ Assess the degee af efficiency and effectiveness with which City policies aze being cazried out: EFFICIENCY AND EFFECTIVENESS The report examines whether the City's labor relarions activities are operating at an oprimal level of quality and, if not, what can be done to remedy any deficiencies. Information needed to ***�t –• Criteria fully developed and pracliced. **�* –� Criteria well developed and practiced. ** –i Criteria present and practiced to some extent. review the activities was obtained by document review and interviews. The seven criteria used to assess organizational development and to idenrify quality organizations are: planning, leadership, training and development, inforination and analysis, processes for improvement, customer focus, and results. The summary ratings are described in the box above. OFFICE OF LABOR RELATIONS KEY FIND(NGS & RECOMMENDAT/ONS ■ The Office has done a good job developing and maintaining records, in spite of spotty or poor information support systems available to them. Specifically, good past and current comparative information for negotiations has been developed, as well as a grievance database. ■ Eigh staff tumover and vacancies are an ongoing problem—there are currenUy two vaarncies in a staff of five: the Director and the Clerk IV. Low levels of stafftraining and development are problematic in light of SUMMARY RATINGS * Planning * Leadership * Training and Development ** Information and Analysis ** Processes for Improvement * C�stomer Focus *�t Results high stress levels, vacancies and tumover in the office. A commitment of fimds, time and incentives for ongoing training and development is necessary. ■ The Office has a poor level of communication with its paztners in the conkact negotiarion and grievance processes. ■ The Office nceds to gather, maintain and updaYe better information on customer needs and satisfactio�using a customer base beyond the Mayor. Very little work has been done in flus azea historically. ■ The Office would be very well served by developing and updating short- and long-tetm workplans. The development of these plans should involve ali Office sta� as well as input &om representatives of key customer groups and other City Offices involved in contract negotiation and grievance processes. Also key to tlus planning process is the development and clear communication of a vision for the future of the Office and functions it performs. CONTRACT NEGOTIATION PROCESS KEY FINDINGS & RECOMMENDATIONS ■ The Offioe of Labor Relations should be credited with having done a very good job of gathering and analyzing both lustoric and comparative informarion for the negoriation process. However, information on the negotiation process itself is not collecEed. Such information will assist in determining the costs of the negofiation and improve communication and problem-solving prior to future negotiation_cycles. SUMMARY RATINGS ** Planning ** Leadership ■ Collective bazgaining units shou[d also be credited with collecting good comparative information foi the negotiation process. • In the last 11 yeazs 130 collective bazgaining agreements with the City have been ratified. On average, these _ agreements aze concluded 10 months after the previous agreement expires. In only one case in 1987 was a coIlective bargaining agreement completed prior to expiration of the previous contract. As it is in the interest of both the City and its collective bargaining units, they should work together to make. contract negotiations more timely. ■ The Administration should bring to the City Council for consideration a five-yeaz negotiations timetable—as is outlined in the Administrative Cod�wluch decreases the amount of time between contract expiration and new contract ratificadon. The Administrarion also needs to communicate more regularly with the City Council on the status and progress of collective bazgaiising, as is specified is in the Administrative Code. ■ The City should develop a policy to be vsed by all departments—addressing employee time-off for : participarion in negotiations. ■ The Adminisiration needs to ensure outside labor relations consultants reoeive City Counail approval prior to engagiug in any-negotiations, or providing other services, on the City's behalf, as is outlined in the Adminishative Code. ■ Both the City and collective bargaining units should pursue more agreements that run for 3 years, as opposed to the standard 2 yeara. It would be in the interest of both parties to pursue 3-year agreements until the lag . time between old contract eacpirarion and new contract ratification decteases substantially. ■ Coliective bazgaining units need to ensure that ttieir communicarion with the City, on terms and conditions of employment, occurs with City's designated representative, rather than other City officials. GRIEVANCE ADMINISTRATION PROCESS KEY FIND/NGS & RECOMMENDATIONS ■ The Office of Labor Relarions should be given much credit for the development of the "grievance tracking system." The neact step is to begin using tlus information to prevent grievances in the future. ■ The City provides no contract, grievance resolution or SUMMARY RATINGS. * ri� ** Leadership * Training and Development ** Information and Analysis ** Processes for Improvement ** Customer Focus * Results gnevance adm�mstrahon traming for snpervisors, wanagers or department heads. Such a training progrdm is necessary to ensure that grievances are treated according to conhact provisions and fairly across departments. FOR QUESTIONS, COMMENTS OR A CQPY OF THE REPORT PLEASE CONTACT: Gerry Strathman, Counal Research Director Maraa Mcermond, Policy Analyst (651) 266-8575 or qem.strathmanC�ci.stpaul.mn.us (651) 266-8570 or marcia.moermondk�ci.stoaul.mn.us �iq ^�b CITY COUNCIL RESEARCH REPORT Performance Audit of The City of Saint Paul's � Labor Relations Activities .,�� 8 1 f. :L $ � :�. _, Ig54 °� ,� � M� � � �: � :. , ., . Saint Paul City Council Council Investigation and Research Center Saint Paul, Minnesota �q �� Saint Paul City Council City Council Investigation 8� Research Center Saint Paul, Minnesota 55102 Performance Audit of The City of Saint Paul's Labor Relations Activities 651.266.8560 http://www.stpaul.gov/counciUcirc.html August 1999 Director Gerry Strathman Policy Analysts Jennifer Dunn David Godfrey Marcia Moermond Kenneth Smith Questions? If you have questions regarding this report please contact Gerry Strathman at 651.266.8575 or gerrv.strath manCc�ci. stpaul. mn. u s City Council Research Report ��'`�� Performance Audit of The Ciry of Saint Paul's Labor Relations Activities TABLE OF CONTENTS INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 1 Research Methods . . . . . . . . . . . . . . . . . . . . . . 2 Scope of Performance Audit . . . . . . . . . . . . . . 2 Policy Compliance . . . . . . . . . . . . . . . . . . . . . . 4 Organizational & Pmcess Quality Assessment ............................6 Efficiency and Effectiveness . . . . . . . . . . . . . 6 Quality Categories . . . . . . . . . . . . . . . . . . . . 7 Research Methods for Quality Assessment .......................... 9 Criteria Ratings . . . . . . . . . . . . . . . . . . . . . 10 Performance Indicators . . . . . . . . . . . . . . . . . 10 OFFICE OF LABOR RELATIONS . . . . . . . . . 11 Planning .............................. 12 Leadership ............................ 14 Training & Development . . . . . . . . . . . . . . . . . 16 Information and Analysis . . . . . . . . . . . . . . . . . 18 Processes for Improvement . . . . . . . . . . . . . . . . 20 Customer Focus . . . . . . . . . . . . . . . . . . . . . . . 22 Resuks ..............................24 CONTRACT NEGOTIATION PROCESS . . . . 27 Contract NegoHaHon Policy Alignment ........................... 27 Representation ........................ 27 City Representation . . . . . . . . . . . . . . . . . . . 28 Collective Bazgaining Units . . . . . . . . . . . . 30 NegotiationsProcess ...................35 Research/Strategy Planning . . . . . . . . . . . . 35 SchedulingfPlanning ....... . ..... . .... 38 Items for Negotiations . . . . . . . . . . . . . . . . 39 Interest Based Bazgaining . . . . . . . . . . . . . . 44 Communication . . . . . . . . . . . . . . . . . . . . . . 44 Management Rights . . . . . . . . . . . . . . . . . . 46 Meet and Confer . . . . . . . . . . . . . . . . . . . . . 47 Mediation .......................... 48 Arbihation . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Strike .............................50 Ratification of Contracts . . . . . . . . . . . . . . . . 51 Contract Implementation . . . . . . . . . . . . . . . . 52 Office of Labor Relations . . . . . . . . . . . . 52 Risk Management .................. 54 Financial Services . . . . . . . . . . . . . . . . . 54 Collective Bazgaining Units . . . . . . . . . . 55 Quality Assessment for Contract Negatiation . . . . . . . . . . . . . . . . Plaoning ........................ I ,eadership . . . . . . . . . . . . . . . . . . . . . . . Training & Development . . . . . . . . . . . . Informarion and Analysis . . . . . . . . . . . Processes for Improvement . . . . . . . . . . CustomerFocus .................. Results ......................... GRIEVANCE ADMINISTRATION PROCESS ........................... Grievance Process PoGcy Alignment . . . Non-Disciplinary Grievances . . . . . . Disciplinary Grievance Process . . . . General Grievance Process . . . . . . . . Grievance Processing in the Office of Labor Relations . . . . . . . . . . . . Employer Role in Grievance Processing . . . . . . . . . . . . . . . . . . Collective Bazgaining Unit Role in Grievance Processing . . . . . . . . . Grievance Administration Quality Assessment . . . . . . . . . . . . . . . . . Planning ........................ Leadership . . . . . . . . . . . . . . . . . . . . . . . Training & Development . . . . . . . . . . . Information and Analysis . . . . . . . . . . . Processes for Improvement . . . . . . . . . . Customer Focus . . . . . . . . . . . . . . . . . . Results ......................... 56 56 58 61 63 64 65 67 70 70 72 73 74 75 76 FF:? 79 79 80 82 83 84 86 86 PERFORMANCE INDICATORS , . . . . . . . 88 CONCLUSION ............... ........ 90 APPENDIX A: List of Interviews . . . . . . . . . . APPENDIX B: Malcolm Baldridge Quality Assessment Questions . . . . . . . . . . . . . . . . APPENDIX C: Ten-Yeaz History of Collective Bazgaining Agreement Conclusion . . . . . . . . APPENDIX D: Summary of Interest Based Bazgaining ........................ APPENDIX E: Collecrive Bazgaining Agreement Preamble Sample . . . . . . . . . . APPENDIX E: Selected Bibliography . . . . . 93 94 98 1Q1 i02 104 Perform�ceAuditoftheCityof SaintPaui'slaborRelationsActivities 1 aa�� INTR4DUCTION Collective bazgaining and the adminisirarion of labor contracts are of vital importance to the City of Saint Paul's financial stability and operation. Although employces of Minnesota municipalities have been able to bazgain collectively since 1971, the City of Saint Paul is unique among most cities in the state because of its high-]evel of imionization. Twenty-four bazgaining units represent 98 percent of the City's permanent workforce. The only employees not represented aze department heads, non-represented managemenUprofessionals, and some provisional and temporary employees.' The contracts the City signs with its collective bazgaining units set the tertns and conditions of employment which specify employee wages, benefits, hours worked and the type of work to be performed. Labor relations activities, therefore, have the potential to significantly affect the nature and qualiTy of services received by the City's residents. In addition, contracts represent a major commitment of financial resources by the City. Salaries and fringe benefits will account for $199,000,000 of City spending in 1999. This is the lazgest expense category for City government and represents almost 41 percent of its total budgc�t. Because of the substanrial impact of collective bazgaining and conhact administration, the Saint Paul City Council commissioned a perFormance audit of the CiTy's labor relations activities. The City Council, as the goveming body of the City of Saint Paul, is responsible for establishing City policies and ensuring that City practices aze consistent with these policies. As the body responsible for approving the City Budget, the CiTy Council must also assess the efficiency and effectiveness of City operarions. lfierefore, the City Council established a Performance Audit Program in the fall of 1996 to help it fulfill these legislative oversight and budgetary responsibilities and directed Council Research to conduct performance audits of City operations. Performance audits analyze the consistency of departmental practices with City policies and provide insight into how policy directives aze implemented. The performance audit also examines whether an organization's practices aze efficient and reflective of those used by high-performing organizations. This is not a financial audit oFthe outcomes ofthe collective bazgaining process or a study of fiscal implications of Saint Paul's labor relarions environment. While such a project may be interesting and useful, it dces not fall within the guidelines of the performance audit progrnm. Moreover, a basic principle of collective bazgaining assumes labor and management have voluntarily entered 'mto an ageement which is mutually beneficial; if it was not, agreement would not have been reached. With this perspecrive, Council Research believes it is not worthwhile in this performance audit to make jixdgements about particular contracts or their fiscal impacts. � It should be noted here that the authors of this teport are not represented by a coliective bazgai�ing mi[ and are classified as non-represen[ed management professionals. 1999 Saint Pau1 City Council Research �q.�� 2 peffo�mznce Audit ofthe City of Saint Pwl's Labor Relafions AcGviSes RESEARCH METHODS To make certain this performance audit is comprehensive and that all aspects of the Office of Labor Relations, the contract negotiation and the grievance administration processes were reviewed, we used a number of inethods to gather information from a wide variety of sotuces. Review of Documents Numerous City documents e�st pertaining to labor relations activities and we have sought to eacamine them all. Among the many documents we reviewed, the most important have been the City's 1998 budget documents, the City's Administrative Code, and the Minnesota Public Employee Labor Relations Act (Minn. Stat § 179A.03 —179A.25 (1998)]. We also seazched the City Charter, e�sting and previous labor contracts, and located several relevant policies. Analysis of Labor Relations Data A gre�at deal of data results fram the labor relarions activities of the City. We aitempted to review as much of tlus data as possible, including grievance resolution data, the duration of contract negotiations and a review of decisions and rulings made by the State of Minnesota's Bureau of Mediation SErvices pertaining to the Cit�'s conttact negotiarions and coattact administration processes. Interviews Interviews with people who participate in the labor relations processes is the best way to obtain accurate information about the policies and practices of those involved in the City's labor relarions activiries. We conducted numerous structured interviews with a bmad cross- s�tion of labor relations participants. We interviewed the entire Office of Labor Relations statFand all other City officials involved in the labor relarions processes. In addition, we interviewed representaUves of over 18 collective bargaining units, In total, we conducted 40 structured interviews typically involving from one to ten individuals lasting &om one to eight hours each. These structured interviews served to not only obtain answers to prepared questions but also as an oppofiuuty for respondents to eicplain the reasons for their answers and to suggest additional issues about which they thought we should be aware. SCOPE OF PERFORMANCE AUDIT This performance audit is essentially three distinct performance audits of the labor relations activiries of Saint Paul City govemment combined into one document. This was done to idenrify and discuss fhoroughiy, yet separately, the intemal operarions of the Office of Labor Relations and the interaction between the City and the collective bazgaining units that represent its employees. This performance audit should be considered a"snapshot in rime," Z See Appendix A for a list of interview subjects, Appendix B for [he interview questionnaire and Appendix F for the list of and citations of documenu reviewed 1999 Soint PauJ Ciry CormcU Research Perfolm�ce Audit of ihe Ciry of Saint Paul's I.abor Relations Activities 3 �� rather than a history of the City of Saint Paul's labor relations activities. Our intention is to t� provide a cuaent and accurate picture of the City's labor relaYions activiries, to identify problems and to make recommendations to remedy these problems. The scope of the three distinct subjects and the functions and parties associated with each aze discussed below. Office of Labor Relatioos T'he first secrion of the performance audit will exaznine the intemal operations of the Office of I.abor Relations (OLR). Intemal operations include such functions as work and staff assignments, staff training and development, leadership within the OLR, intemal planning, daTa collection and analysis activities. The OLR section will examine, through an organizational quality assessment, the extent to which the intemal operations of the office aze efficient and effective. Interviews with OLR staff and intemal office documents served as the two informational resources for this section of the audit. The stafF of the Office of Labor Relations consist of the Labor Relations D'uector, a Human Resowces Specialist, a Research Analyst, a Clerk Typist, and a Labor RelaLions Specialisi position which, for part of 1998 and up to the present, has remained vacant. This position was recently filled at the higher classification of Labor Relations Manager. Other participanu in the labor relations process, whether representing the City or collective bazgaining units, were not interviewed for this section. Because of the intemal focus of this section, we believe OLR staff are the only appropriate source for information regarding their internal operations. The OLR is responsible for numerous policies. To provide a comprehensive picture of the grievance administration and negotiation processes, the question of whether the OLR practices are consistent with policies will be discussed in the contract negotiation process and contract admivistration policy compliance sections. Contract 1�Iegotiation Process This section of the performance audit will review every aspect of the negotiation process and all parties involved, such as the Office of Labor Relations, the Risk Management Office, the City Attorney's Office, Financial Services, bargaining units and others. The contract negotiation process will be assessed holistically. The process is evaluated as a distinct entity but recommendaYions are made for specific parties involved in the City's labor relation activities. We have also included a discussion of contract implementation. These recommendaYions, we believe, will lead to improvement in the operation of the entire process. This section will include quality assessment and policy compliance discussions. Grievance Administration Process The grievance administration process secrion of the performance audit will address grievance activiUes and the parties involved such as the Office of Labor Relatians, Risk Management, the City Attomey's Office, Financial Services, the bazgaining units and others. The grievance process will be assessed in the same manner as the contract negotiaflon process. This section will indude quality assessment, policy compliance and perFormance measure discussions. 1999 Saint Pavl City Couxci! Research �/,'�� 4 1/' Perfo�mance Audit ofthe City of Saint Paul's Labor Relazions Activi[ies POLICY COMPLIANCE The contract negotiation and grievance adminishation chapters will include policy compliance sections which present the policies under which the City and the collective bazgaining uniu aze expected to operate. The section will then discuss the degree to which current piactices aze consistent with those policies. The policies Council Research considered aze from a number of sources including the City's Administrative Code, the City's 1998 budget, the City's labor contracts and Minnesota Statutes. Over 130 policies were identified and reviewed with the assistance of staff from the Office of Labor Relations, other City staff and representatives from collective bazgaining units. For each process section, the intent of the policies are reviewed, and Council Reseazch findings and recommendations presented It was not Council Research's intent to make specific findings on every individual policy statement. Rather, we tried to focus on groups of policies peRaining to specific topics, and draw conclusions about these topical areas. It is our belief this approach is more useful to both policy makers and the participants involved in the City's labor relations activities. Minnesota State Statutes Public labor relations of Minnesota municipalities aze govemed primarily by the Public Employee Labor Relations Act (PELRA) [Minn. Stat. § 179A.03 —179A25 (1998)]. The Act, passed in 1971, allows for the formation of public emptoyee unions and establishes the legal framework for all aspects of contract negotiation and grievance administration activities. Policies taken from PELRA make up the vast majority of policies reviewed in this audit. Where discrepancies are found between the practices observed in labor relations activities and PELRA, the reason offered for these differences will be provided along with recouunendations to bring policies and practices into alignment. These recommendarions may suggest changes in participants' prackices in order for them to maintain compliance with state law. City Policies The City Coimcil establishes policies that govem the operations of al] City activities including the City's labor relations functions. While there aze many general City policies wluch affect alI City activities, this report addresses only spec:ific policies which apply to the Office of Labor Relations, the contract negotiation and grievance administration processes. City Charter, Ordinances and Council Resolations We searched the CiTy Charter, the Legislative and Administrative Codes, and City Council Resolutions for policies pertaining directly to the CiYy's labor relations activities. A number of relevant policies were found in the Administrative Code and the Charter, although we found tittte in the Legislative Code or Council Resolutions relevant to either ihe contract negotiation or grievance administration processes. The City's Adminisuative Code is the compilation of City Ordinances which pertain to City govemment structure and operations. The City Code is usually explicit and leaves little l999 Saint Paul Ciry Cow+crl Reseamh Perfoimance Audit of @�e City of Saint Pwl's Lalwr Relatons Activities 5 � room for administrative discretion conceming the execution of ordinances. The City Charter - Y � establishes the powers of the City and the form of iu govemment. It is equivalent to a constitution for the City. The Council would view failure to comply with the Charter or the City Code to be a serious matter. The policy compliance sections of this report will identify any differences between ordinances and the charter, and existing practices. In addition, this report will provide expianations of these differences and offer recommendations to resolve these inconsistencies. Budget Performauce Plan Each year, as part of the City budgeting process, the Office of Labor Relations and several other City departments and agencies (i.e. Office of Financial Services Office, Risk Management, and the City Attomey's Office) include in their Activity Performance Plans objectives for labor relations activities. These plans are included in the budget when it is presented to the City Council for approval. The plans identify both the ongoing and annual objectives of each budget activity. The City CounciPs allocation of funds is directly related to these perFormance plans and, as such, these objectives represent City policies. City departments and agencies aze subject to the legislative oversight of the City Council and as part of this legislative oversight function, the City Council has fundamental interest in whether the policies of city agencies and departments aze consistent with their practices. Therefore, these budget performance plans are appropriate for review in a performance audit. While the Council understands that objectives set as part of the budget process may be ambifious and are sometimes thwarted by unforseen developments, the City budget is an official City policy document and city departments and agencies are responsible for operating in conformance with these adopted policy statements. Budget policy directives for 1998, rather than ] 999, are used in order to examine policies that should have been fully 'vnplemented prior to the performance audit. The policy comgliance sections of this report will focus on budget perFormance plans to identify differences between policies and practices and provide the division's explanations of these differences. Recommendations will also be offered to minimize such differences in the future. Collective Bargaining Contracts Labor contracts were also examined for potential policies. These contracts are legally binding agreements which must be approved by Ciry Council resolution. As stated eazlier, this audit does not attempt to evaluate the fiscal impact of the City's labor relations activities. Therefore, we have not examined the fiscal details of any of the City's 24 collective bazgaining contracts. However, almost all collective bazgaining agreements include language in their preambles which express the wish of both parties to pursue a hannonious and mutually beneficial relationship which they hope to maintain over the duration of the contract. We believe this sentiment is central to the quality and productivity of the labor relations processes. Therefore, we included the contract preambles in the group of policies examined for this audit. 1999 Saint Paul City Courscil Resemch 6 Perfocmance Audit of the �Ty of Saint Paul's La6or Relations Activities ORGANIZATIONAL 8� PROCESS QUALITY 9Q �� ASSESSMENT The efficiency and effectiveness of each of the subject azeas of this report (i.e. Office of Labor Relations, contract negotiation process and the grievance adminishaLion process) are evaluated using an Organizational Qaality Assessment. While there are several methods to evaluate whether the participants involved in labor relations activities aze effective and efficient, our appmach is based on work done by fhe organizers of the Malcolm Baldridge National Quality Award. Efficiency and Effectiveness The City Council is very interested in the value received by citizens for money expended. Ta�cpayers rightly expect money provided for the operations of the Office of Labor Relations will be spent to achieve the best result with the least expenditure of public funds. In addition, taacpayers have a fundamental interest in the fiscal outcomes that result from the contract negotiations and grievance administration processes. The efficiency and effectiveness of govemment operations and processes can be assessed in many ways. One common approach is for auditors to examine an organization at a micro-level to detemiine if the organization is following sound procurement piactitices, properly protecting iu resources, and complying with the requirements of laws and regulations. Tlvs micro-level appmach to auditing is closely related to financial auditing and is often conducted by accountants who spend a great deal of time and effort examining fhe inner worldngs of the organization. While we accept there are situations where this type of micro-level audiring is appropriate, such as when fraud is suspected, we believe a lugher level audit is most appropriate here. The City Council is less concemed with the minutia of daily operations and more concemed with lmowing if the Office of Labor Relations is a top-quality organization and if labor relations activities of the City of Saint Pau1 are efficient and effective. If not, they want to Imow what can be done to remedy any deficiencies preventing the Office of Labor Relaiions and ail other parties participating in the City's conhact negotiation and gievance adminisharion pmcesses from achieving a high tevel of excellence. Fortunately, there is a vast body of knowledge and experience delineating the characteristics of lugh-performing organizarions. While this lmowledge and e�cperience e�ctends back many decades, it has been crystalized by the Malcolm Baldrige National Quality Awazd. Public Law 100-107 (1987) established the Awazd and gave the responsibility for its development and administration to tfie Secretary of Commerce and the Nationai Institute of Standards and Technology. Pursvant to this charge, criteria for this award were establishad at the national level defining the characteristics of top-perfomung organizations. Assessment methods designed to �amine these characteristics have been developed and refined over the past ten years. In addition, State Councils for Quality aze now established throughout the nation with the Minnesota Council for Quality in the forefront of this movement. The Minnesota Council for Quality has gone beyond the national model by expanding the model into the public and not-for-profit sectors. For example, Councii Reseazch was a participant in fhe 1996 Minnesota Qualiry Award process as were the Eden Prairie School District and the Minnesota Division of the American Cancer Society. Many leading businesses in the nation (i.e., Motorola, Westinghouse, Federal Express, AT&T.) and in Minnesota (i.e., Allina, Dayton's, Ecolab, Honeywell, IBM, 3M) aze using 7999 Saint Pau! City Cormcil Research Perfolmance Audit of the City of Saint Pau1's Labor Relations Activities 7 � these assessment criteria to evaluate their progress. In fact, three Minnesota businesses �� /� (IBM-Rochester, Custom Research and 3M-Dental Division) have won the national Malcolm Baldrige awazd in recent yeazs. In Saint Paul City govemment, the Minnesota Council for Quality used these csiteria to assess Council Research in 1996 and we used similaz criteria in performance audits of Fire Operarions (1997) and Recreation Centers (1998}. Some terminology used in this report aze adaptations of the national and state criteria These adaptations are necessary because some language popular in the private sector is not commonly used in the public sector. For example, we have subsrituted the public sector terms of "developmenY' and "integration" for the less familiar private sector terms of "approach" and "deployment " We believe these adaptations improve the understanding of our public sector audience while retaining the essence of ideas involved. Quality Categories The study of high-performing organizations has identified seven characteristics believed to be essential for an organization to achieve excellence. We apply these criteria to the OfFice of Labor Relations and the labor relations processes. These criteria have been idenfified from studies over many years and are widely accepted as indicators of organizational excellence. The types of criteria used by the Malcolm Baldrige National Quality Awazd and the Minnesota Quality Awazd to assess organizational development and to identify quality organizations aze snmmarized in the table below. Detailed explanations of the criteria foilow. Assessment ❑ Planning ❑ Leadership ❑ Training and Development ❑ Information and Analvsis ❑ Processes for Improvement ❑ Ctiastomer Focus ❑ Results Planning The pursuit of excellence requires a strong futwe orientation and a willingness to make long- term commitments. Planning must anticipate many types of changes including those that may affect customers' expectation of services, technological developments, changing demogaphics, evolving requirements and community expeclations. Plans, strategies and resowce allocations need to reflect these commitments and changes. Quality organizations make both long-term plans extending three yeats or more years and short-term plans covering one to two years. These plans should not only be developed, but they also need to be carried out and updated frequently. Leadership Senior leaders (Labor Relations Director, Collective Bazgaining UniC Presidents and Business Agents) need to set direction, create customer orientation, establish cleaz values and have high expectations. Reinforcing values and expectations requires personal commitment and involvement. The leaders need to take part in the creation of strategies, systems and methods for achieving excellence. These systems and methods need to guide al] activities and ! 999 Sairc( Paul Ciry Cowuil Research 8 Perfo�ce Audit ofihe G5ty of Saint Paul's Labor Relafions Aaivities decisions of organirations involved in the labor relations processes. Seniot leaders need to commit to Yhe development, participation and creativity of their entire staf� membership or �oi,�t�-�. 99-�6 a Training and Development Employces in successful organizations are provided the tools they need to produce quality services. These same employces are given encouragemenY and the resources to develop a set of skills that allow them to contribute effectively to the organization. Successful organizations also liuk the haming and development of their employees to the organiTarion's goais and priori6es. Tlus linkage occurs through the development and implementation of a long-term strategic plan tied to basic organizational values. Information and Analysis Infocmation and analysis are a vital pazt of any organization. Awazeness of how one is performing at all times is important Performance improvement information includes customer, service performance, operation, supplier, employee-related, and financial data. Organizarions should coacentrate on collecting and using data that relate to their goals and plans. Collecting data serves fittle purpose if the information is not analyzed and used to make improvements. Analyses shouid eacamine hends, projections, compazisons, and cause-and- effect relationships. Using data and analysis systematically to set ptiorities is important in ereating goals, developing plans and allocating priorities. Information should be deployed throughout the organizarion and used to evaluate the organization �d assess progress, Information is essential in monitoring performance against measurabie goals and it should play a key role in tfie decision-malong process. Processes for Improvement This category reviews the desigo, management and improvement of intemal organizational prceesses. Improvement processes should be part of the daily work within the organization. They should seek to eliminate problems at their source and be driven by opportunities to improve. improvements may be of several types: (1) enhancing value through new and improved services; (2) improving responsiveness; and (3) improving ef�ciency in the use of all resources. Improvement processes must contain cycles of plaaning, implementation and evaluation wluch requine infom�ation and methods for assessing progress. Sucfi information and methods shou[d provide direct links between performance goals and intemal operations. It is critical that all processes be continuously evaluated to identify problems and successes. It is also important to bave vendor requiremenu in place as vendors provic3e needed goods and services to Yhe organization. In addition to specific vendor requirements, organizations should have indicators used to assess vendor performance, a pmcedure for determining whether vendors are meeting those requirements, and a system for giving them feedback. Customer Focus Attention to customer needs is crucial if an otganization strives for excellence. Organizarions that excel in customer satisfaction have obtained information by crearing and managing (999 Sabu Pad City CounciJ Reseorch Perfoimance Audit of the City of Saint Pw('s T.abor Relations Activities y � relationships with their customers. The organization gathers information from its customers ``' � on service requirements, near and long-term expectations and degrees of customer satisfaction. The successful use of cusiomer satisfaction information is integrally linked to an organization's ability to gather and analyze data conceming customer requirements. Knowing the requiremeNS of its customers enables an organization to develop service standards designed to enhance customer satisfactian. In order for these standards to be effecrive they must be understood by everyone. Results Successfixl organizations know how well they perform. By using results they can calculate their efficiency and effectiveness. A common way for an organization to evaluate its performance is to measure its results. For example, if the goal of the organization is to provide customer satisfaction, then the organization would collect and analyze data indicative of customer expectations, work practices to meet these expectations and the resulting ]evels of customer satisfaction. In addition to customer service results, high-quality organizarions also track human resources, financial and organizational results. The organization can track its performance over time and compaze its results with those of other organizations. These comparisons with other similaz organizations can represent benchmarks against which to compaze outcomes, efficiency and effectiveness. Research Methods for Quality Assessment Both the Malcolm Baldrige National Quality Awazd and the Minnesota Quality Award use a system in which applicant organizations prepaze a self-assessment used as a basis for an evaluation by outside examiners. Outside examiners study the self-assessment report and wnduct a site visit to seek clarifications and verify claims with respect to the qualiry criteria. Awazds aze based on the findings and evaluaiions of the outside e�caminers. Since we aze seeking to assess the efficiency and effectiveness of the Office of Labor Relations and the City's labor relations processes on behalf of the Ciry Council, we used a modified process for this study. We believe the best way to assess the level of an organization's development is to ask those most lmowledgeable about the organization or a process--the people who work in the organization or participate in the process. We believe the people who participate in the City of Saint PauPs labor relations activities lmow the strengths and wealrnesses of their organizations and will, when asked, candidly report their opinions. Therefore, we have gone directly to the participants to ask them about quality. To this end we conducted 40 structured intetviews with key participants involved in labor relations activities. The organizational assessment reports in this section are based on these employee interviews. In the employee and participant interviews, we asked questions designed to elicit evaluative information regarding each of the seven organizational quality criteria. Two analysts conducted each interview and independently recorded responses. The analysts then compazed their recorded notes and resolved any differences with clarification from the participants. There was a very high degree of consistency between the assessments recorded by the analysts during the interviews. 1999 Sa "vu P¢ul Ciry Council Research io PerFormance Audit of Ne Ciry of Saint Paul's Labor RelaROns Ac4vities Criteria Ratings ■ ' • ' We have gathered a wealth of information about the ]abor relations adivities of the City of Saint Paul while conducting this perfoxmance audit. Although caphuing all of this inforniation in any raring system is impossible, we believe a rating system will help decision- makers grasp the essence of the information. We have developed a simple summary rating system that conveys the essence of our findings. This system reflects what interview subjects have told us about the Office of Labor Relations and labor relations processes. While organizafions and processes consist of individuals, we intend these ratings to reftect current organizational practices and should not be interpreted as judgements about individuals. The ratings used in this section aze built upon our assessments regazding development and inYegration of the seven qualiTy criteria. Summary ratings aze intended to portray both the level of development and the level of integration of each quality criteria. The sumuiary ratings used in these sections aze: ��{'r�i Criteria fully developed and practiced. �}�}�}-.� Criteria well developed and pracriced. ��}-� Criteria present and practiced to some eactent. �} ..� Criteria sometimes present, occasionally practiced. Development, in this performance audit, means the extent to which high-valued chazacteristics aze in evidence. High-value characterisrics are ones in which the criteria being examined is systematic, manifest, pro-active, fact-based, and evaluated. Integration tefers to the extent criteria is pncriced in the Office of Labor Relations and in the labor relarions processes. It is possible, indeed likely, for criteria to be pncticed in some parts of the organization, but not in others. In this performance audit vety few of the criteria were fully practiced in either the Office of Labor Relations or in the labor relalions processes. Therefore, integration is discussed only when the development of the critetia has reached a stage when a notable level of integration of the criteria has occurred. PERFORMANCE INDICATORS The Performance Indicator chapter identifies measures which can be used to evaluate the quality of the activities of the labor relation processes. Perfortnance measurement in this perfrnmance audit means the regular collection of specific information about the effectiveness, quality, and efficiency of services and programs 3 The suggested indicators will enable organizations to evaluate whether the labor and financial resources expended oa an activity aze used efficiently, Performattce measures should also be used to determine whether services or programs have the intended effect and result in a quality outcome. Indicatots can be based on information obtained from written records, observations by specially trained staff or surveys from customers. This performance audit will suggest performance indicators for participants and particulaz functions in the processes. However, the audit will not perform the actuai measurements. Tkte Urban Institute (1980). Performance Measurement: A Guidefor Cocal Elected Officia[s. Waslilngtoa D.C.: The Urban Institute, p. 1. 7999 Soint Pnu/ Ciry Covncil Re.search Performance Audit ofthe City of Saint Yau1's Labor Relariosvs Activities ti qq,$�D OFFICE OF LABOR RELATIONS This section of the performance audit will examine the intemal operations of the Office of Labor Relations (OLR). Intemal operations include such functions as OLR work, staff assignments, training and development of OLR staff, leadership within the OLR, intemal planning, and data collection and analysis activities. The OLR section will examine, through an organizarional quality assessment, the eaRent to which the intemal operarions of the office aze efficient and effective. Where OLR operations are found to be inefficient or ineffective, recommendations will be made to correct these deficiencies. The Offtce of Labor Relations is the City of Saint PauPs designated representative for all labor relations activities. As the City's representative, the OLR negotiates the terms and conditions of employment with unions that represent the City's employees. It also represents the City in many of the grievance hearings grieved through procedures estab]ished by collective bazgaining contracts The Office of Labor Relations was created in the City Code as a special office of the administration. The OLR consists, at the moment, of five positions. Their titles and duties aze listed below. Director of the Office of Labor Relarions — The director serves as the City's exclusive representative in all labor relations activiUes, manages the labor relations work for the City, serves as a spokesperson in the collective bargaining process and oversees the administration of the Office of Labor Relations. Human Resources Specialist — This employee investigates and develops cases relating to union contract grievances, provides grievance case ana]ysis and recommendations, and represents the City in grievance meetings with union and management representatives. Researeh Analyst — This employee collects and analyzes labor relations data, information and policies, and makes recommendations regazding the City's labor relations aetivities for the OLR. Clerk IV — This employee performs skilled clerical support services which include scheduling and organizing the work of the OLR and produces documents for the OLR. A fifth posirion exists which has remained vacant since October 15, 1998. This position was classified as a Labor Relations Specialist but has now been upgraded to the level of Labor Relafions Manager. This position was, and will continue to be at its new level, responsible for negoriating some contracts. It should also be noted the Office of Labor Relations Director, who was in place during this audit, resigned on May I I, 1999. As of the publication date of this report, no interim or permanent replacement has been appointed. 4 The City Attomey's Office represents the City in all disciplinary grievances grieved through the contract. The Office of Human Resources represents the City in gievances filed through the Civil Service system. 1999 Saint Poul City Counci! Research �z Perfotmance Audit ofihe City of Saint Paul's Labor R A ct i v iti es LABOR RELATIONS ORGANIZATIONAL CHART 99 �/�� Relations Clerk N Mayor Relations Resources Research Analys! 1 PLANNING Summary Rating � KEY PLANNING CONCEPTS; � Set Strategic Direction o Develop Action Pians o tv� work w�cn ri� The development and implementation of plans which anticipate changes in an organization's environment aze crucial for a quality organization to develop a strong future orientation and an ability to fulfill long-term commifinents and goals. Set Strategic Direction Witttin the last frve yeazs one long-temi plan has been developed. A written, strategic plan was developed in 1994 by the Mayor's Chief of Staff, the City's Budget Director, the City Attomey and the Office of Labor Relations Director. The plan included the AdminisVation's goais for the City's external labor relations functions and the internal operations of the Office of Labor Relations. In 1996, this plan was updated by the OLR director. Neither department and agency heads nor the OLR staff, with the exception of one senior OLR pmfessional employee, were involved in the development or revision of the office's intemal operations segment of the long-term planning effort. One explanation provided by the OLR Director as to why OLR staff were not involved in long-term pianning was staff 7999 Saint Paul Ciry Cowcil Research PerEormance Audit of the City of Sa'urt Paut's iabor Reialions Ac[ivities 73 tumover and inexperience. Only one member of the OLR staff reported knowing of the �f �, � G/ � e�stence of the long-tecm plans. � There is a prevalent belief among staff that long-term planning is not possible in the dynamic environment in which the Office of Labor Relations operates. In addition, it was suggested long-tecm planning was limited by the lack of Imowledge about the size of the City's budget for the long-term. These explanations, however, do not appear to be reasonable given that planning should anticipate a diverse array of changes in the organization's environment. The fact that an organization's environment is dynamic and its fuhue resources ue unknown does not excuse the need for ]ona term planning. Moreover, organizations for which much of the future is unknown would particulazly benefit from planning activities. Action Plans The Office of Labor Relations regularly makes unwritten short-term plans. Most of these plans aze created in a circumstantial and reactive manner. The short-temi plans aze made in response to the Mayor's labor relations goals, the budget process and upcoming contract negotiations. In addition, both written and unwritten planning calenders aze created for specific negotiations. Staff inembers, however, report the OLR Director does not frequently engage staff in planning efforts. Most plans aze developed by the OLR Director, the City's Financial Services Director and the Mayor's Office. Furthermore, these plans aze not regulazly updated or revised. The OLR staff repor[ed they are often unawaze of the content of specific plans. Short-term plans known to staff aze reported to be implemented frequently. Plans regazding attempts to reduce the future liability of re6ree health care insurance costs and plans for upcoming negotiations were reported to have been successful. Many of the Office of Labor Relations short-teim planning efforts aze not consistent with the characteristics of a quality organization. Short-term plans aze reactive and aze, at most, a year in duration. T'here is no evidence that plans aze made to anticipate changes in the environment; i.e. changing demographics, evolving requirements, and shifting customer and community expectations. Rather, plans appeaz to be made as a result of such changes. Align Work with Alans The Office of Labor Relations Director is the primary person responsible for monitoring both long-term and shor[-term plans. The Duector of Financial Services and the Mayor's Chief of Staff also monitor the implementa6on of plans. The OLR staff, with one exceQtion, stated they are never involved in overseeing plans. This is not surprising considering the OLR staff are unawaze of the existence of plans and do not participate in their development. The Director believes the disconnect between planning activities and staff is the result of their lack of experience and tenure. For the purpose of this gerformance audit, formal evaluation is defined as a systematic, data- based inquiry which pmvides leaders with information to assist them in the decision-making process. Evaluation is important in the planning process because it enables leaders to determine whether existing plans have their intended effect. In addition, evaluation results provide data which inform fuhue planning efforts. No formal evaluation occurs in the QLR regarding the internal operations of the office, customer satisfaction or whether the OLR is achieving its desired goals. 1999 Sarnt Paul Ciry Cour+cil Reseorch ia of Sain[ Paui's i�bor Relalions Acfivities 99-g/� � Reeom�nendation #1: T7re OLR should create regular, wrinen long- and short-term plcros. Plans shoutd rrot only focus on the contract negotiation and grievance adminisbation pracess but also on how to make the internal operatiorrs of the OLR as e�cient and effective as possible. Planning e�'nrts should include the entire sinfj° Serious and continuing e,[j`orts must be made to ensure employees fully understand all plans and are regularly remiruled of how they can contribute to !he achievement of these plans. The OLR director should require stafj,' with the exception of interns and other terr�pormy employees, to monitor the implementation of all plans. �21 no time should plarrs be kept secret from staff because they are deemed to be too "sensirive" or "important. " Recommendation #2: The OLR occasionally implements new work processes or systems to improve its inteneal operation cmd the City s labor relatiorrs activities. The OLR should systematically evaluate new work processes or systems in order to determine whether plans have been successful. Information from evaluafiotts should be used to direct future planning efJ'orts. LEADERSHIP Summary Rating: � KEY LEADERSH(P CONCEPTS: � Mission 4 Vision � Values o Communication In high-quality organizations, senior leaders set direction, create cvstomer orientation, establish clear values and have high expectations. Leaders must detnonstrate a lugh-level of personal commitrnent and involvement in creating strategies, systems and methods which guide all activities and decisions of the organizarion. Communication is an important aspect of efT�ective leadership, Effective communication must include the ongoing demonsUation that values, direckions and eacpectations are the basis for the organization's key directions and actions. In addition, senior leaders need to commit to the development, pazticipation and creativity of their entire staff. OLR staff state the D'uector only rarely or occasionally provides a cleaz ard comprehensive vision of the fubue for the organization. The OLR director aclmowledged that a vision which reflects �ganizational values and goals has not baen articulated regulazly. Occasionally staff are informed at weekly staff meetings about certain objectives. ParCicularly conceming is that some staff members questioned whether it was even possible, given the dynamic and sometimes chaotic nature of labor relations activities, to provide a clear organi7ational vision for the OLR. Whi1e it is important for leaders in any organization to provide a clear vision, it is patkiculazly important to fiunish a clear vision for new staff who lack experience, as is the case in tiie OLR The OLR Director has made a more concentrated efforf to provide city department heads with updates regazding her vision for the OLR Updates take place at the Directors and Office Directors meerings. However, similaz discussions are not conducted with OLR staff. The Mayor is idenrified by both the staff and the OLR Director as the prunary source for a future vision of the OLR. The Dircctor believes the creation of a vision is the responsibility of the Mayor and it is her job to implement the vision. The OLR Director meets with the Mayor once every two to three weeks to discuss labor relations activities. This deferential appmach is not sufficient if the OLR is to become a high-quality organization. While the 1999 SairttPaul Cny Coumcil Res�earc)� Pafo+mance Audit oflfie CSIy of Stint PaW's Iabor Itelations Activities 15 �` Mayor is clearly invested in the work of the OLR, the OLR Direc.�tor oversees the daily a"{'� U operations of the office and, therefore, must convey the Mayor's vision to the staft: The Dinector should also communicate her own vision which cleady outlines how she expec.�ts the Mayor's ideas to be implemented. Aowever, when staff were asked, they staYed they were imaware of the specifics of the Mayor's vision for the Office_ Tfiere is a significant lack of commimication regazding the intemal operations of the Of�ce of Labor Relations. Staff report it is difficult to get fcedback from the OLR Dir�tor at times other than regulaz staff meetings. In a short-lived and hapha�ardly imptemented effort to provide a regulaz forum for communication, the Director set aside a block of one or two hours daily for staff questions. This umovation lasted for several months unril it was discontinued once a new mund of negotiations began. In addition, staff are not toid about the content of most of the OLR's plans, nor are they told about ttte Mayor's goals and objectives for the Office. One staff member was of the opinion there were some issues which were inappropriaYe for OLR stafF to know about conceming the direc.-tion of the OLR It is hard to imagine such a situation eacisring if the OLR Direetor had tcvst and confidence in the sfaff. One explanation given by the Director for the dearth of communication within the OLR is the stal�s relative ineacperience. However, staff inexperience is not sufficient justification for keeping them ill-informed For the organization to meet its goals, staff must beinformed aboutthe Director'sthe values and expectations. Becognizing staff contribtrtions is another mechanism for communicating organizational values and expectations. Staff contributions in the OLR aze recognized through informal mechanisms such as verbal recognition at staff meetings and through the annual individual performance evaluations. Staff reported an excellent environment was maintained in the Office of Labor Relations for women and other protected classes of employees. No discemable evidence of discrimination was reported. The OLR director, staff noted, is very committed to creaYing a fair organization for everyone and strongly values diversity in the workplace. Recommendation #3: The director should develop as+d articulate a clear vision of the future and enlist OLR staff to make this vision a reality. The director needs to create opportuniHes to express this vision to staff on a regular basis. Likewise, the director must develop an ongoing process for errsuring employees fully understand how they can individually or collectively participate in making this vision a reality. A part of this i�rvolves greater personal recognition of the contributions of staff who are advancing the vision, including formal acknowledgments. Recominendation #4: The impanance the OLR director places on the Mayor's goals and objectives for the City's tabor relatiorts activities demands they be fully communicated ro OLR staff on a regular basis. These goals cmd objectives should be explicitly incorporated into the Office's short- arrd long-term plarrs. Recommendatinn #S: The OLR director should improve internal communication and take steps to keep staff well-informed. Maintaining a veil ofsecrecy to shield stafjfrnm the important arrd sensitive issues will only continue the impression that staff are not trustecl. There may 8e irrstances when communication is not appropriate, for i»stance if the information communicated is of a highly sensitive nature and is not relevant to the duties of staff. However, our interviews suggest communications have been withheld when this was not the case. This perception has created a situation in which staff do not feel empowered to do their jobs. 1999 Soint Pou1 City CouncilRerearch 16 petformance Audit oFthe Ciry of Saint Pau]'s LaborRe�lions AcKivifies TRAINING � DEVELOPMENT Summary Rating: � KEY TRAINING 8� DEVELOPMENT CONCEPTS: � Job Design 99 8�8 o Recognition � Education & Training Employee Well-Being Employees in successful organizations are provided the tools they need to produce quality services. These same employees aze given encouragement and the resources to develop skills that allow them to contribute effectively to the organization. Successful orgaztizations also tink training and development to the organization's goals and priorities. There aze several key organizational factors that should make training and development functions of particulaz importance to the Office of Labor Relations. The cuaent staff, with the exception of the Director, has had a brief tenure with the OLR. Cunently, the longest serving staff inember is the Clerk Typist IV, who has been with the Office for less than three years. One professional employee has been with the organization for a year and half and the other for less than eight months. In addition, the two professional staff members do not have prior professional eacperience working with public sector labor relations. Inexperience creates acute problems in labor relations enduonment because, as the OLR Direc:tor reports, capabte labor relations professionats mainly leam their cratt through on-the-job experience. The Director reports it is a profession-wide norm for labor relations professionals to have at least seven yeats of expetience prior to becotIIillg cluef negotiators. Moreover, as noted in ihe intraduction, this is a very small staf� with a total of fow employees, that must operate in a compleac and sttessful work environment. The challenges faced by an orgaoization tlus size have been magnified by a professional staff vacancy that has remained unfilled for the last nine mornhs. The Office has also experienced a significant level of staff tumover which has lead to the loss of institutional Imowledge and experience. Job Design There is agreement between the OLR Director and staff that opportunities aze created for only some employees to contribute to decisions made about the operations and procedures used in the Office. T1te clerical staff member reported she has contributed to decisions made about procedutes used for the contract implementation process and other administrative prceesses. Professional staff have had less chance to contribute to decisions made about the Office's labor relations functiona No specific process exists for staff to contribute to important decisions. The OLR director will request their input, on occasion, in staff meetings. However, professional staff report the D'uector does not regulazly engage them in flus type of activiTy and it is often very difficult to bring forvvud ideas and suggestions. One staff member believed they were not consulted on a regulaz basis about action pians or strategies because the Director didn't consider them to be peers. The Director more or ]ess confirmed tlus view by explaining that pzofessional staff were not consulted on certain issues because they lacked necessary experience. Not surprisingly, one of the pmfessional employees felt little opportunity eacisted to contribute meaningfiilly to the organization's goals. Office of Labor Relations employees aze evaluated formally once a year during their annual performance review. The Dir�tor conducts more frequent perFormance reviews of new employees. Staff report no formal, systematic review of specific work products. However, informal feedback through coaching is given on a regulaz basis. One area for concetn is that 1999 Samt Pau! Ciry Counci! Research PerFormance Audit ofihe Giy of Saint Paul's Labor Itelstions Acfivities 17 evaluation methods are frequently changed with no explanation to staff. Staff report being �� v� confusecl and nervous about the criteria an wtrich they are to be judged. Despite the lugh demands of the wark load and the identified inexperience of the OLR statF, there appears to be only limited uTilization of other staff in the City govemment that may be able to ameliorate some of the work load problems facing the OLR The OLR imder the current Administration has made less use of professional staff from the City Attomey's Office and the Risk Management Division than in the past. These offices, in recent yeazs, have lost staff with significant labor relazions experience. However, little attempt has been made to cultivate relationslups with current staff who might be able to assist with the City's labor relaYions activities. Employee Well-Being Since maintaining a positive work environment that is conducive to the well-being and gowth of all employces is seen as the foundation for improved work perFormance, this issue was investigated in our interviews. OLR staff reported that a fair or poor work environment was mainGVned. Interestingly, staff members in general reported a more positive view of the environment than the Director, who reported the work environment to be a poor one. All OLR interviewees reported being overworked and that the environment is stressful and hectia The Director identified the overwhelming work load and the staff's inexperience as the primary reasons for her negative assessment of the office environment. Education and Training The OLR does not make significant use of t�aining opportunities for staff. Staff state they are encouraged by the Director to take advantage of such opportunities but these have been limited by time and budgetary consuaints. Professional staff reported attending the Minnesota Public Employee Labor Relations Association annual conference. Both employees e�cpressed iY was an excellent experience and wished for similaz oppor[unities in the furiue. Qne professional employee also reported attending a seminaz about work-place wnduct invesrigation at the University of Minnesota. The OLR Director identified computer training as an area that needed specific attention. However, staff reported no participation i� any computer haining. Given the Office of I.abor Relations Director's concems about staff inexperience and the impact this has on their ability m particigate fully in Yhe work of the organization, one would expect strong support for training and development activities. The Director cites budget constraints as the primary reasan for not making greater use of these opportunities. Staff members stated the I?irector would support more training if the OLR had greater resources. One employee also stated that low utilization of training and development activiries was not the fault of the Director but was endemic to City govemment. The OLR Director supports participarion in professional organizations for staff through office memberships in the Minnesota Public Employers AssociaYion and the National Public Employers Association. The Office is unable to support individual memberships in r�ent years because of budget cuts. The majority of staff were unaware of the office's membership in these organizatians and indicated the subject of individual memberships has never been discussed. I999 SairAPaut City Cotmcil Resem'ch 18 Performance Audit of ihe City of Saint Paul's Labor Relations Acfivities Recommendation #6: The OLR Director should provide a forum and time by which sta,�j"can contribute to decisions made about the organization, such as specific times set aside in stafj" meeting, suggestion box, etc. 99-�'�D Recom�nendation #7: The OLR Director should provide fina»cial support for participation in training and development activities. The director should also clearly inform staff about the �ce's membership in several professional organizations and urge staff to take full advantage of these memberships. In addition, incentives to participate in training and development activities, such as positive marks on performance evaluations ar formal recognition should be used. Recommendation #8: The OLR should cultivate relationshiPs with other organizatians that may have the expertise to assut the organuation in its worl� To lhis end, the OLR should create a City-wide labor relations work team which would be composed of representatives from the City Attorney s Office, the Risk Management Division, the Financial Services O,�Sce, 1he O, ffice of Human Resources and others. Such a task force would coordinate the City acrivities in the Labor fte[atiotts process and re-establish relationships which have been neglected. Recommendation #9: The OLR Director should promptly alert staff when methods for perf'ormance evaluation are changed. The new methods should be ezplained clemly and well in advance of the employee's annual performance review. INFORMATION AND ANALYSIS Summary Rating: �r� KEY INFORMATION & ANALYSIS CONCEPTS: o Collection of Data � Use of Data o Analysis of Data Information gathering and analysis are vital fimctions for I a Comparison with Others � any organization. Quality organizations should collect _ _ _ _ _ _ _ _ _ _ _ _ data on customers, service performance, operations, suppliers, emptoyees and costs. Organizations should concenRate on coltecting and using data that relate to their goals and plans. Data collected should be analyzed and used to make improvements. Information is essential in monitoring performance against measurable goals and it should play a key role in the decision-making process. Collection of Data The Office of Labor Relations oollects a sizable aznount of data from the contract negotiation and grievance adtninistration processes. Indeed, labor relaiions is a field in which data plays a vitai roie. The data available often determine whether negoriation items or gtievances aze won. The OLR Director should be credited with making data wllection a high prioriry. 1n the past, this has not been an azea in which the Office performed adequately. Data cotlected in the contract negoriation process includes information about comparable wages and benefits in other jurisdictions, calculations of future wages and benefit cosu, histories of pay-rate increases, rates of sick Ieave use, and specific contract language which is identified as obsolete, aznong other items. Data is collected in anticipation of upcoming 1999 Saint Paul City Comrcil R¢snvrclt Perfoimance Audit of the City of Saint Pwl's Labor Relations Activities 19 ��{� � V contracts and during negotiations. Staff state they will attempt to obiain any daYa that can be� measured for an issue which they know is or will be contested. This information is usua]ly used only for the duration of the contract cycle. Some daTa is collected on issues that are ongoing concems such as retiree health care benefiu. Data collection for grievance administration is even more well-developed. Over the last year and a half the OLR has implemented a computerized grievance database. The database stores information regazding the number of grievances outstanding, the types of grievances submitted, how the grievances aze resolved, the level in the process at which resolution takes place, the numher of grievances by department and bazgaining unit, and the amount of time taken to resolve the gcievance. If the gtievance has gone to arbitration, the OLR collects information about the results and arbitrator information, such as previous decisions and biases. The Office of Labor Relations has �perienced difficulties integtating and accessing data from other information services (IS) systems in the City. Over the last year professional staff have sought, but have not gained, access to the Office of Human Resowces's HUMMERS database. HUMMERS contains daca and pre-arranged reports containing employee information which would great]y assist the OLR in pteparing for negoria6ons and grievance hearings. In addition, staff have sought training on how to customize reports from the HUMMERS system but this has not been forthcoming. Staff also report IS support services have traditionally been weak but have recently improved. Anatysis and Use of Data As noted above, data is collected and used on a regulaz basis for the OLR's activiries. Analysis, although it occurs, is done less frequently. Analyses of grievance activity is often done and pzesented to department heads and managers. Basic analyses of contract negotiation outcomes are done through comparisons with other jurisdictions. More, however, could be done in both areas. Comprehensive analysis of grievance data for grievance prevention putposes would be very useful. Analysis of data also appears to be lilndered by the IS system integration difficulties the OLR has experienced. For instance, full implementation of the costing model would allow for a more comprehensive budgetary analysis of newly negotiated contracts. Comparison with Others The OLR regularly compares results data from the contract negotiation and administration process with similaz govemmental units. For a further discussion of these comparisons please see the Results section of tiris chapter. No data comparisons are made by the OLR regazding human resources, customer service or intemal budget and operations. The OLR has developed a solid foundation fot future efforts to collect and analyze data. Fur[her efforts need to be taken to analyze data and to ensure IS systems aze accessible to OLR staff for the Information and Analysis eriteria to be fully integrated within the organizarion. 5 HC7MMERS is a concocted expressiou which stands for Human Resources. 1999 Saint Pou! Ciry Councr! Research 20 Pertoimance Audit oftbe City of Saint Paul's Labor Relations Asliviries Recommendalion #10: The OLR Director should immediately request that OLR �q g�0� professional stg�°receive complele access So HpM�Lf�RS system. The O�ce of Human Resources should act posthaste to see this is done. The OLR Director should also ensure that professional staff receive necessary training to operate the HUMMERS system attd are capable of creating customized reports. Recommendation #11: The OLR should conduct and integrate more complex analyses of labor relations data inlo its labor relations activities. Because the OLR's success is of}en determine by the use and analysis of data, this activity is of paramount importance. Moreover, the tremendous amount of data that results from the Ciry's labor relations activiries provides for a rich opportuniry for analysis. The OLR director should provide additional training to sta}j, if necessrny, to accomplish this recommendation. See also Recommendation #25, page 37 on contracl costing. PROCESSES FOR IMPROVEMENT Summary Rating: �� KEY PROCESSES FOR IMPROVEMENT CONCEPTS o Improving Services o Impmving Support Services � Impmving Supplier Services Processes for improvement includes the design, management and improvement of intemal organizational prceesses. Improvement pmcesses shoutd be part of the daily wotk within tfie arganization. They should seek to eliminate problems at theu source aud be driven by opportunities to improve. Improving Services In general, the Office of Labor Relations employs reactionary methods for improving practices. While the Office should be given credit for making improvements in particulaz problem areas, most efforts undeRaken have been circumstantial and ad hoc. The OLR I3irector approaches making improvements from a coping mode rather than a pro-active, managing mode. Staff reported that practices fi�equendy changed reactively when they or the Director realize current practices are not working. Acc;ording to sta� this type of activiry occurs hvo ot three times a yeat. The OLR Director states work assignments are reviewed for improvement at three to s'vc month intervals. Sta� however, state work assigunents are rarely, if ever, reviewed and there is no formal mechanism by which this activity can occur. When the subject is brought up, it occurs at staff meetings and the discussion is usuaily regazding specific projects, not about ongoing'or peimanent adjustments in work assig�uneczts. One statF member said changing work assignments was very difficult because the positions in the OLR are very distinct� Tlvs difference in perception is very conceming. Improving Supplier Services Vendors and oontractocs are rarely reviewed Labor telations consultants are the primary form of contractor employed by the OLR. A consultant was most recexrtly contracted for the period of hme 1, 1998 to January 1, 1999 to negoriate contracts. Another consultant was 1999 S¢iwt Pau'City Coaxil Resemich P�frnmaece Audit oflhe Criy of Saint Pwl's Iabar Relztions Activities 21 � hited in 19941995 to work on the merger of the City and County public health agencies. ��'" � The OLR Director is solely responsible for evaluating consultants. Tiaditionally, tUis has been done on a regulaz, yet informal, basis. Staff reported the most recent consultant received a gmat deal of feedback from the Director regacding his performance. Over the coutse of the consultanYs contract period the OLR Director iniriated a formal evatuation process ofhis work. Other vendors the OLR uses, such as copier and office supply companies, are shared with and contrac[ed by the Office of Human Resources. While these vendo� appear to meet the nceds of the OLR, the Office provides little or no feedback to Human Resoutces about the perfannance of these vendots. Past Efforts to Improve Practices The Office of Labor Relations and its director should be credited with undertaking a number of efforts to improve practices which have been problemaric in the past. ❑ The OLR has reviewed and restructured the intemal system for processing grievances. This endeavor was the result of problems experienced with the City not processing grievances in a timely manner. ❑ The OLR has attempted to begin to coilect data abouY grievancES in a grievance-tracking database. The analysis detived from the data assists the Office in identifying problem areas that could be impmved ❑ The OLR is working with the Financial Services Office to streamline the contract implementation process by creating a consistent process by which a contract is implemented. ❑ The OLR also created a data base to identify what they described as "old or obsolete" contract language and has worked with the Financiat Services Office to create a conuact costing model which could be used by both offices. 0 The OLR developed a staff manual for adjusting on building trade union wage rates and benefits. ❑ The OLR augmented the record system to ensure appropriate historic information would be available for future negotiations. While si�ificant attemgts have been made to nnprove organizational practices, improvements have been idendfied tUrough informal means. In addition, follow-tluough and the initial completion of these projects is a substanrial problem. The e�cistence and import of the �ievanc�tracldng system has not been communicated to the OLR's stakeholders; despite the fact the OLR has an explicit budget objeetive calling for this. Also, the contract language data base and costing models have not been developed to the point where they aze useful to staff. While undeRaking improvements is admirable, impmvements must be implemented and integrated into the organiaation for them to be effective. Recnmmendation #IZ: The OLR shauld create processes by which improvements can be made and reviewed. These processes should be used regulardy to examine work assignmenrs, evaluate vendors and identify other areas of the OLR internal operations which may be improved. Regutar stafjmeetings would be an excellent forum for this activity. Moreover, 7499 S¢int Paul Ciry Cavncil Re.searcfi � Pafotm�ce Audit ofthe Ciry of Saint Paul's Iabor [telations Aclivities stq�'should be empawered to take a leadership role in overseeing mcmy of these � d � � improvement processes, p Reeommendation #13: The OLR should work with the Human Resources Division to provide feedback on mutual ve�rdors. Recommendatio» #14: The OLR should make a greater effort to follow-through with improvement practices undertaken and communicate these improvements to appropriate sYakeholders who would benefit from such information. A City-wide labor relaiions committee would be excellent vem�e for communicating these activities. CUSTOMER FOCUS Summary Rating: � Attention to customer needs is crucial for otgaztizations to �� achieve excellence. Thmugh the creation attd managecnent of relatianships with their customers, organi�ations which excel in customer satisfaction obtain information on customer service requirements, eas�ectatipns and satisfaction. Knowing the requirements of its customets enables an otganization to develop standards which aze designed to enhance customer satisfaction. For these standards to be effective, they must be undersYood by everyone in the organization. KEY CUSTOMER FOCUS CONCEPTS: � �stomer ldenrification � cuscomer Know�edge � Customer Relations Castomer ldentificadon In order to design standards which enhance customer satisfaction, an organi�ation must clearly identify its customers. Once customets are identified, the organization must determine their needs and satisfaction. Unfo�ately, consensus does not exist in the Office of I.abor Relations about who their customers are. When asked to identify their customers, staff were consistent in identifying the Mayor, City Council and department heads. There was not consensus on whether citizens, union representatives or ciry employees were aiso customers. One staffmember stated during his tenute there has neva been a discussion of who were the OLR's customers, This is problematic, since cleatly identifying customers is a necessary steg� for determining customer needs and satisfaction. If an organiration has multiple definitions of their customer group, it is difficult to consistently meet all customer needs. From the interview responses it is cleaz the OLR Director and staff recognize the Mayor as tlteir primary customet As noted above, the Mayor is perceived by OLR stat£ as setting the vision and strategy for the organization. In addition, given the effect labor relations activities have on goods and services delivered by the City and the import of these ac[ivities on the budgetary process, it is not surprising that OLR staff would idenUfy the Mayor as the primary customer. What is remazkable, however, is the magnitude by which the Mayor's needs and eacpectations are held in much higher esteem by OLR when compared to the needs and expectations of other customers, such as the City Council or department heads. This is obvious when examining the extent to which ihe Mayor's needs and saYisfaction are monitored compared to the other customers. 7999 Sairrt PouJ Ciry Cmmci! ResemcPr Perfolmance Audit of the City of Saint Paul's Labor Relations Activibes Customer Knowledge � q°'�� With the exceprion of the Mayor, the OLR makes no systematic attempt to monitor the needs and e�cpec.�tations of its customers. The OLR IIirector meeu with the Mayor once every hvo- three weeks. At these meetings, the IJirector provides the Mayor with updates on the labor relations activities and the Mayor provides fcedback to the Direc[or about the OLR's work. The OLR Duector does not communicate this fcedback to staff. Despite not being fiilly awaze of the Mayor's customer requirements, the Office of Labor Relations staff report a high-level of responsiveness to the Mayor's needs and expectations. Out research indicates, despite this inconsistency, the OLR has maintained a well-developed level of customer focus in its relationslup with the Mayor. Monitoring the needs and expectaYions of depar[ment heads, management-level staff and the City Council is less developed. The Office of Labor Relations will meet with these parties if specific problems occur or if they request meerings. With the exception of a reported periodic survey of department and office directors, the OLR does not systematically seek out these parties for fcedback on services provided by the organization. Nor does the OLR director provide regulaz updates to these parties on labor relations activities. This situation indicates a disconnect between the customers identified and the customers monitored. The OLR Director is the organization's only staff person to monitor customer needs and expectations. Staff are not given the opportunity to monitor customer needs and e�cpectations. It is not surprising they demonstrate little resgonsibility or ownership of the organization's customer focus functions. This situation is emblematic of a more general pmblem, identified throughout this report, of staff not being involved in decisions or activities which are of vital importance in creating a quality organization Customer Relations Formal standatds assist organizations in communicating the values and expectations of organizations. No written or formal customer service standards exist within the OLR. Staff report success in meeting its customers' significant needs; i.e. negotiating contraets beneficial to the City. However, they are less succ�ssful meeting less significant customer needs; i.e. retuming phone calls in a timely manner. Having customer service guidelines for some of these low-level tasks may assist the OLR in meeting these needs. However, stafF do abide by unwritten professional standards or ethics. These standards typically have to do with treating customers, City employees and representatives from bazgaining units with respect and fauness. Staff also identified the OLR has problems managing customers expectations. Very often customers put pressure on the Office to produce results that aze unreasonable or, even, illegal. OLR staff believe these unrealisric elcpectations elcist because of a lack of understanding on the part of the Mayor's Office, department heads and managers about what can be achieved through the negoriaYion and grievance processes. This lack of understanding by key customers may also result from the lack of communication between eustomers and the OLR. The OLR has idenrified this as a problem azea, especially in the contract administration process, and intends to create a teaining program for managers. With the exception of monitoring the Mayor's needs and expectations, there is very little evidence this function has been integrated throughout the entire organization. The Mayor's customer requirements, while monitored, are not regulazly communicated to OLR staff. Therefore, we cannot say these requirements have been fully integrated into the organization. 1999 SoiM Paul Ciry CouncAResemch Z PerFotmmce Audit of ihe City oFSaiM Paul's labpr Relations Activifies Recnmmendation #1 S: In order for customers to have a realistic understanding of the services that are provided by the OLR, rhe OfJ"zce should undertake a broad effort 10 educate its customer-base about all aspects of public Iabor relations, especially grievance processing. CiCI - �� Zj Recommendation #16: The OLR should create customer service guidelines for activiNes in which its sta,/J'have contact with customers. 77rese guidelines should include expectations such as the number of hours in which a phone call should be reherned and protocols regca�ding how to handle frequently asked questions or requests. Recommendatiox #1 �• The OLR should collect and analyze customer informarion on other custnmers it identifies beyond the Mayor. .4 system should be created by which all OLR customers can be monitored on a regular baris. In order for staff to have a good understanding of customer information, this efjort should encourage all s1a,�'to monitor cusiomer expectations attd needs. If customer information is gathered and monitored by the director, there should be a clear communication to sta,�"of key non-confulential fzndings. RESULTS Summary Rating: ��r Successful organizations lmow how well they perform. The measurement of results is a common KEY RESUtTS CONGEPTS: o Customer Satisfaction o Financial Outcomes ° SupPlier Performance � Organization Oufcomes way for an organization to evaluate its perFormance, efficiency and effectiveness. Organizations should track their performance over rime and compaze their results with other organizations. Finauciat Outcomes Labor relations activity is, by its very nature, results-oriented work. Par[ies involved in labor relations processes continuously focus on ihe outcomes of negotiations and grievances. Unions and management, alike, have an inclination to compare resvlts with the past and with similaz organi7ations. The Office of Labor Relations is no different in having this resuhs-focus predisposition. However, the OLR's focus on results is almost entirely on the outcomes from the comract negotiation and grievance administration process, :ather than its own intemal operarions. The OLR &equently coilects results regatding outcomes of specific contract negotiations. The results exan�ined include the percentage increase in pay and benefits &om the previous contract, the totai financial cost of the contract, changes in sick leave and vacation hours provided, specific language changes in contracts and arbiUation settlements. Comparisons of these results are made wiffi previous contracts or with comparable govemmecttat units. The OLR has a set of five governments in the state of Minnesota with which it compates the conhac;ts of the City's non-pubiic safety woricforce. The group consists of the State of Minnesota, the City of Minneapolis, Hennepin County, Ramsey County and the Metropolitan Council. These govemmental uaits were selected because they have similaz work forces and aze, along with the City of Saint Paul, among the lazgest 1999 Saint PaulCity Cowrcil Research Perfmmance Audit ofthe City af S�nt Paui's Labor Aelazions AcHvides 25 � govemmental units in the Minneapolis-Saint Paul metcopolitan uea The OLR also uses the"t� � something cailed the Vemon Model for comparisons. This model, developed by a professor of the same name from the University of Wisconsin, compares the contract resuits of Saint Paul's workforce to the 15 ciries which aze ranked'unmediately above Saint Paul in population and the 15 cities ranked immediately below Saint Paul. The data for the City's puhlic safety workforce is compazed to Cities in the Northem United States. T'his was done because of the lack of a comparable public safety worl�orce aznong all but one of the governmental units used for comparisons for the non-pubiic safety workforce. Percent of pay increase, total cost of the contract, sick leave, vacation hours and the comparison of pay scales for specific job classifications aze the primary measurements compazed with other governmental units. It should be noted that the data for results compazed are not hacked over time and the reliability and validiry of the indicators used are not reviewed on a regulaz basis. The OLR also collects a significant amount of information about results associated with the gievance process. They include information regazding how each grievance is resolved and at what leve] in the process, the number of grievances by department and bazgaining unit, and the amount of time taken to resolve the grievance. If the grievance has gone to arbitration, the OLR collects infotmation about the results and tracks who was the azbitrator. Results aze not collected for the contract implementation process. Customer SatisFartion Despite this orientation to collect results, the OLR makes no similaz effort to collect information about the outcomes of its internal operations. Collecting data on customet sa6sfaction results, such as surveying department heads about contract administration services provided, would be valuabie information for the organization. Collecting customer satisfact3on results would also assist the OLR staff in evaluating how to best serve their customers and provide it with information on its performance. Organizational Outcomes The OLR does not collect human resources results, such as measuting employee satisfaction or absenteeism. Collecting such results may help explain the high-level of tumover the OLR has experienced and may provide some helpfiil information on how to address the "unacceptable levels of stress" reported by OLR staff. The OLR Director and staff report the organizarion has achieved most of its desired goals. While the organization appears, upon casual observation, to perform many of its basic functions well with limited resowces, it is difficult to state conclusively that desired goals aze aclueved efficienfly without systematically measuring the resuks of the OLR's intemal operations. The OLR has done a good job integrating results from the contract negotiation process, and to a lesser extent those from the grievance administrarion process, into the regulaz work of the organization. However, there may be other performance indicatars the OLR is not using to evaluate these processes, such as measuring the timeliness of the negotiaUon process and emgloyee sarisfaction. These aze discussed in greater detail in the Performance Indicators Chapter of this audit. As noted above, the OLR has not developed measures for its intemal operations. Therefore, no integra6on of this aspect of the category can be said to have taken place. 7999 Saint Paul Ciry CovncrT Research � Perfocmance Audk ofthe Citv ofSaint Paul's Lalwr Reiaeons Activities Recommendation #18: The OLR should develop comparisonr for contract administration re,sults and attempt to form partnerships with other jurudictionr to 6enchmark these results. The OLR should utilize relarionships it has developed with other public employers to create these partnerships. l�C�_ g� Q Recommendation #19: The OLR should develop measurements for i�rternal organizational resalts. Customer needs and satisfaction shou2d be surveyed on a regular basis. The OLR Director should survey stajj'to identify areas for improvement in the OLR's work errvironmenr. The OLR d'uector shouid also measure outcomes that may serve as a good indicator of human resources and workload results. Recommendation #20: The OLR should review the relrability and validiry af the indicators used for the comparison of results. This will ensure indicators are memaingjul mrd consistent with what other jurisdictions are nsing. Comparisons should also be tracked over time for a more informed and complete analysis of whether the OLR's long-term goals are being accomplished. t 999 Saint Paul Ciry Council Rcsea.ch Perfamance Audit of We City o. Saint Pavl's Iabor Re�tions ActiviHes 2�� /�� CONTRACT NEGOTIATION PROCESS The Conhact Negotiation Process chapter of this report is divided 'urto two seations. The fust discusses relevant policies and the City's and bazgaining units' alignment with those policies. The second section provides a quality assessment of the contract negotiafion process. CONTRACT NEGOTIATION POLICY ALIGNMENT Contract Negotiation Policy Alignment will address the many state and local policies which pertain to the contract negotiation or collective bargaining process. The discussion is organized more or less chronologically as the collective bazgaining process occurs. First to be&scussed is representation of the interested par[ies in the process. Then the actual negotiation procedures are presented, including: greparation, the items negoriated and methods for conducting negotiations are presented. Finally, conhact preparation, ratificaYion and implementation aze discussed. Each section will present the relevant laws, ordinances, policies, Council Research findings and recommendations. REPRESENTATION There aze essentially two key parties involved in municipal govemrnent contract negotiation: the city and the bazgaining unit. The City is represented in negotiations by its Office of Lalwr Relations. The employees aze represented by their respective bargaining units, 27 in all. However, before this discussion begins, it should be noted that public sector collective bacgaining is recflgnized as having significandy more "interested parties" than the traditional private sector negotiation process. Most important is the role of local politics. Bazgaining units are reco�ized as lobbying orgazuzations and tndirionally play an active role in local elections. The contract ratification process for the City also introduces the City Council as an indirect partieipant. The citizenry and the media should be recognized as currently inactive, but potential participants in the process. The role of public perception can be very strong, not oniy in the negoriation process itself, but in the long-term relationship between the City workforce as a whole, and the citizenry it works for. Finally, although local govemment does engage the issue of financial solvency, its influence is not generally understood to be as powerful as the private sector's "bottom line." The roles of these less directly involved par[ies will be discussed throughout the section. 1999 Soint Paul Ciry Council Researcfi 28 Perfo+mance Audit of ihe Criy of Saint AaW's Labor Relalions Activilizs City Representation �/9-�/v0 City representation in the bazgaining process is perFormed mainIy by the Office of Lalwr Relations, However, there are a number of other key City departments and offices which should be mentioned. These participants are ouYlined below: ❑ Office of Labor Reladons is chiefly responsible for conducting negotiations for the CiTy. ❑ City Attorney's Office plays a key role in the provision of legal advice in negotiations, as well as in reviewing contracts prior to their submission Yo the City Counci] for ratification. ❑ Payroll function within Office of Financial Services implements wage changes from contracts and therefore should be consulted in contract negotiation. O Risk Management within the Technology and Management Services Department implemenu benefit changes &om contracfs and therefore shouid be consulted in contract negotiation. ❑ Budget Office within the Office of Financial Services partners wiYh the Office of Labor Relations in the preparation of contract cost projections. ❑ Mayor's Office pmvides political and poticy direction to the Office of I.abor Relations. ❑ City Counci! rarifies contracts and indirectly provides political and policy direcrion. 4 Departments provide advice to the Office of Labor ReIations prepazatory to negodations. Effective communication and understanding among these parties is essential to a coherent City negotiation strategy. Additionally, the roles of the various participants must not be blurred because the City's "management position" must be presented with clatity. Policies relating to each of these puticipants will be discussed throughout the Con4ract Negoriation Policy Alignment Chapter. Office of Labor Relations Office of Labor RelaRons Neeotiation Reoresentation Policies Ezecutive Respvrrsibility ['The] office of the tnayor shall: Make periodic teports to the city counci] on the status and progress of the colledive bargaining process. Saint Paul Administrative Code, Chapter 23: Collective Bargaining Process, Sec. 23.03. Unfair labor practices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees aze prohibited from restraining or coercing a public employer in the e[ection of representatives to be employed to meet and negohate or to adjust grievances. Minnesota Srare Srarure l79A: Public Employees Labor Relalions Act 179A.13. 1999 Saint Paul Ciry Cormcil Research Saint Paul's Labor Relatioas Acfivifies r1/11�1�gS � �� 1) The Office of the Mayor, through its delegate for collective bazgaining, the Office of Labor Relations, has provided some perialic reports to the City Council on the status and progress of the collective bazgaining process. However, these updates have tended to take the form of annual briefings of individual Counci]membets. The Council rarely holds closed sessions to discuss specific negotiations or grievances. Generally, the Council as-a-whole is rarely updated on collective bugaining. 2) There is no evidence to suggest collective bazgaining units have tried to influence the selection of the City's representative to meet and negotiate or adjust grievancss. Recommendation #ll: The Office ofLabor Relarions should undertake measures to consistently inform the City Council of the status and progress of the collective bargaining process. This report should include among other things the number of settlements, staff changes, time lines and settlement statistics. This could be in the form of a quarterZy report thai would be sent to customers and presented to the City Council by the Labor Relations Director at designated council meerings. Consultants The City, from time to time, lures consultants to assist in the contract negotiation process. The policies goveming these consultants tend to more closely mirror those relating to the hire of outside counsel than those pertaining to other types of consultants. This is likely because labor relations constiltants aze empoweted to negotiate agreements on behalf of the City, as is the case with outside counsel. Cousultants Policies Legislative Responsibility (2) Approve and ratify by resolution the selection of labor consultants to aid and assist in labor relations aetivities as determined by the executive branch of government. Sninr Pmd Adminisaa[ive Code, Chaprer 23: Coltective Bargaining Process, Sea 23.02 Executive Responsibiliry [The] office of the mayor shall: Select with the approval of the city council labor relations consultants to assist in the colSective bazgaining process when deemed necessary by the mayor to carry out the city's responsibili- ties in an efficient and competent manner. Saint Paut Admin,s�arive Code, Chaprer 23: CollectiveBargainingProcess, Sea 23.03. Supervision of consultants Labor relations consultants selected in accordance with section 23.03(1} herein and approved by the city council shall take direc:tion and be under the supervision of the office of the mayor. The specific duties and responsibilities of consultants shall be set forth in an agreement to be approved by teSOlUhOn Of thC city cAUncil. Saint Paul Administrative Code, Chapter 23: Collec[ive Bargaining Process, Sec. 23.05. Findings 1) Two labor relations consultants have been hired by the City in recent years. In both cases, there is no evidence the City Council was consulted prior to ihe wnsultants assuming 1999SamtPaul CdyCouncdResearch 30 PerFom�ance Audit of H�e negotiaiion responsibilities. However, in both cases, the Council ratified the �pfioin�inents prior to payment for services being made. Councii Reseazch believes this pattern is not consistent with the City's Administtative Code provisions. Given the weight accorded to the appointment of labor relations consultants, we view this to be a very problema6c situation. 2) The supervision of labor relafions consuitants has been conducted by the Office of Labor Relations on behalf of the Office of the Mayor. Recammendation #22: The Office ofLabor Relations and O�ce of the Mcryor should henceforth ensure that labor relations consultant appointments are approved by the City Council prior to their urrdertaking negotiation responsibilities. Risk Management Office Risk Managemeat Office Negotiarion Representation Policies Provide management and negotiating assistance in the bazgaining unit contcact piOCeSS. Risk and Employee Management Services Division: I998 Ongoing Budget Program Objectives Finding Risk Management provides a limited amount of ne$otiating assistance to the Office of Labor Relations. Assistance typically involves cost estimates for ftinge benefits, suggested contract ianguage changes for clarity and possible attematives to current proposals. According to interview comments on this policy, signi&cantty more assistance has been provided in the past. Collective Bargaining Units There aze 24 active colledive bargaining units in Saint Paul City govemment. Despite maay similarities, there aze distinct govemance struchires within each of these bazgaining units. All collective bargaining units elect officers, such as the president and vice president of the unit The eleded officers of the bargaining unit are often refernd to as the e-boazd (executive board). Some bargaining units have business agents/managers who provide advice or act on their behalf in negotiations and grievance settlement. There are several bargaining units with large enough membership bases to have stewazds disseminate and gather information. Finally, most bazgaining units have conhact negotiating teams wlrich are separate from their e-boazd, although there may be some duplication in their composition. One consultant referred to is Dennis Goldberg whose contract was approved by the City Counci] on August 12, 1998. This contrnct was back-dated to provide a June 1, 1998 start. However, billing records shared with Council Research staff indicated the first work billed was for August 12. This is aot consisteni wiih the spirit of the City Code indicating the Council approve ffie selection and responsibilities of labor relations consultants. The second such consultant was Craig Ayers, whose contract was approved by tfie City Comcil on May 26, 1999, whose duties also began well prior to Council approval of the conhact. This situakon is a clear violarion of the City Code relating to Labor Reladons Consultants. IA99 Saint PorJ Ciry CormciPRuearch Perfo:mmce Audit of the Ciry of Saint Paul's [ abor Relarions Aaivifies 31 �� Collective bargaining units represent the vast majority of the City's 3,332 employees. I3on-'"�� represecrted employees include some mayoral staff, legislative aides to Councilmembers, Council Research professional staff, department and office heads, plus a handfut of other department management staff. Also included as non-represented employees are RivecCentre employees and special employees, such as stage hands, house custodians, lifeguards and intems. Finally, City Attomeys are listed as appointed in the City's financial records, aithough they are represented by AFSCME-Legal. Therefore, in practice, the City's permanenf worl�orce has approximately 2% unrepresented. City of Saint Paul 1998 Employment by Full Time Equivalent (FPE) Represented Employees Appointed : Ciry Attomeys 3,101 F'I'E's 44 FT'E's 3,332 FT'E's The City of Saint Paul is somewhat unique in that its supervisory and wnfidential employees aze represented by their own collective bazgaining units. In many settings, these types of posirions have been classified as "managerial" and thereFore were not represented. However, Saint Paul has tradirionally defined management very narrowly. Formafion & Jurisdictioa The majority of the City's collective bazgaining units have been in place since the early and mid-1970s. Therefore, most of the jurisdictional and exclusive representation selection activities occurred at that time. Aowever, from time to time some groups of employees are switched from one cnllective bargaining unit to another, either by their own petition to the Bureau of Meditation Services (BMS) or the City's. This has been the case with some employees moving between Classified Confidential Employees Associarion (CCEA) and Professional Employees Association (PEA). Additionally, on rare occasion, groups of employees who were not previously represented may form a collective bazgaining unit, as occurred with AFSCME-Legal, Finally, a group of employees may break away from a collective bazgaining unit which has previously represented them to form the'u own unit, which was the course of action taken by the Fire Supetvisory Association. The majority of the following discussion will focus on these types of situations. Collective Bareainina Units Formation & Surisdiction Policies Legulative Resporrsibility (1) Recognize by resolution exclusive representatives of employee organizarions in accordance with state law. Sainr Paul Administ,ari,�e Code, Chapter 23: Coltective Bargaining Process, Sec. 23.02 1999 Saint Paul Ciry Council Auearch I�Ion-Represented Employees (breakdown below) 231 FTE's 32 PerFormance A¢dit of the City of Saint Paut's Labor RelaROrts Activiries Collective Bargaining Units Formatian & Jurisdiction Policies, ConHnued 99 Public employees have the right to form and join labor or employee organizations, and have the right not to form and join such organizations. Minnesota Srare Srarure 179A: Pvblic Employees Labor Relations Act 179A.06 Rights and obligations of employees. An employer shall eaRend exclusive recognirion to a representative of or an organization of supervisory or confidential employ�s...for the purpose of negotiating terms or conditions of employment, in accordance with sections 174A.01 to 179A.25, applicable to essential employees. Minnesara Srare Srarwe 1 �vA: Public Employees l,abor Relatio+cr Act 179.4.06 Rights and obligations of employees. Empioyee organizations, their agents or representafives, and public employees are prohibited from calling, instituting, maintaining, or conducting a strike or boycott against any public employer on accoant of any jurisdicrional controversy. �nnesara State Statute 179A.• Public Employees Iabor Relatiorxs,4ct 179.4.13 Unfair labor pracrices. Subd. 3. Emp[oyees. Employee organizations, their agents or representatives, and public employees aze prohibited from coercing or restraining any person with the effect to force or require a public employer to recognize for representation purposes an employee organization not certified by the commissioner. Mnnesora Srare srarure t79A: Publ;c Employees Labor Relatians Rct 179A.13 Unfair labor pracfices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees are prohibited &om forcing or requiring any employer to assign pazkiculaz work to employees in a particulaz empioyee organization or in a particulaz trade, craft, or class rather than to empioyees in anather employee organization or in another trade, C73ft, Ot C1355. Minnesota State S[atute 179A; PvLlic Employees Labor Relations Act 179A.13 Unfair labor practices. Subd 3. E»1j1jOyBeS. Nonteachers. [If] on the eacpiraYion date of an e�sting contract a representation proceeding is before the commissioner, section 179A.18, subdivision 1, clause (1), shali apply. In those cases, however, the employer and the exclusive representative of the employees shall execute a written contract or memorandum of contract no later than 45 days after a certification by the commissioner of a new or different exclusive representative or the resoludon by the commissioner of a I'0p70SeRt2tlOn pI'OCeCding. Minnesota State Statute 179A: Public Employees Labor Relationt Act 779A,77 New exc[usive representatives. Subd. 2. Findings 1) The City recognizes, by resolution, e�cclusive representatives of employee organi�ations. 2) The vast majoriTy, 98%, of the CiTy's permanent workforce is represented by collective bazgaining units. Therefore, there is ample evidence to infer that employees' right to organize has not been infringed upon. However, there do appeaz to be differing interpretations of the term "exclusive representative" and whether it refers to an organization, or an individual representing an organization. This issue has caused some difficulty in AFSCME-Legal where it was reported that the business agent was not allowed to attend at least some negotiation and grievance resolution sessions. It shou[d be noted that the Minnesota Bureau of Mediation Services certifies exclusive representatives, and the AFSCME-Legal business agent is so certified. 7999 Saint Paul Ciry Counci! Ruearch Perfolmmance Audit of the Gty of Saint Paul's Labor Relarions Activiries 33 �jy (j U 3) Supervisory and confidential employees of the Ciry aze represented by collective `� bazgaining units, including Saint Paul Supervisors Organization (SPSO), Manual and Maintenance Supervisors (M&Ms), Fire Supervisors Association, and the Classified Confidential Employees Association (CCEA). 4) There have been no strikes of any unions in the City workforce over the last two decades, and therefore, there have been no shikes due to jurisdictional controversies. 5) There has been no instance of the City being forced to recognize, for representation purposes, any collective bazgaining unit not recognized by the BMS. 6) Although there was a low-level problem reported in the assignment of particulaz work to a particular bazgaining unit reported in the trades area, there have been no complaints filed. Therefore, it agpeats there have been no violations of this policy. 7) When initiating their own bazgaining units, both the Fire Supervisors Association and AFSCME-Legal went tluough the memorandum of understanding and BMS certification processes articulated in statute with apparently no problems. The only situation which could be problematic would be if one of the bargaining units did not wish the change, in which case there wotild be a hearing at the BMS. This too has occurred with some City collective bazgaining units according to the ptocess spelled out in state statute. Recommendation #23: Measures should be tnken by AFSCME-Legal and the Ciry to ensure that a consistent understandings of the term "exclusive representative, " is developed and applied--crs the City has an obligation to meet with the exc[usive representative of employee groups. Elections There have been relatively few significant changes in the representation of City employees in the collective bargaining process, as discussed previously. However, collective bargaining nni do elect officers periodically according to their bylaws. City designation of a chief staff negotiator is based on Mayoral selection and Council approval. Collective Bareainin¢ Units Election Polices Public employees in an appropriate unit have the right by secret ballot to designate an exclusive representative to negotiate grievance procedures and the terms and conditions of employment with their employer. �,mesora Sr�e Sraru:e 1 �9A: Public Employees Labor Relations Act 179A.06 Rights and obligations ojemployees. � Public employers, their agents and representatives are prohibited from violating rules established by the commissioner regulating ihe conduct of representation eleCtions. Mirsnesota State Statute 179A: Public Employees Labor Relations Act 179A.13 Unjair laborproctices. Subd.2. Employers. Employee organizations, their agents or representatives, and public employees aze prohibited from violating rules established by the commissioner regulating the COIIdUCt Of YCpiC5Ci1t3ti0Il CiCCtIOIlS. Minnesota State Stahete 779A: Public Employees Labor Relations Act 179A.13 Unfair labor practices. Subd. 3. Emplayees. I999 SaintPaul Ciry Council8esearch 34 Performance Audit of the City of Saim Paul's Iabor Relafions Activities Findings �ff�_ g�� 1} No pmblems were identified with the election/designation of exclusive representative to negotiate by secret ballot. 2) No instances of City interference in the selection of bargaining anit representarive were reported. Sunilazly, there were no reported instances of bazgaining unit interference in the selection of City negoUators. Rights and Responsibility of Representatives The majority of the CiTy's supervisory and confidential employees are represented by collective batgauvng units. Yet it is recognized their pazticipation in the negotiation of wntracts for other employee groups represents a potential for conflicts of interest. Therefore, their participation is limited by state law. Public employers, for their part, must provide reasonable time off for employees to participate in negotiating their contracts. This time off is recogrrized as time spent on behalY of the bazgaining unit. It stands in contrast to the time bargaining unit representatives spend in the grievance resolution pra;ess which is considered to be time spent on behalf of the City. and Responsibility of Representatives Policies Supervisory or confidential employee organizations shall not participaze in any capacity in any negotiations wluch involve units of employees other than supervisory or confidential employees. Min,resora State Srarure 179�: Public Employees Lnbor Relations dct 179A.06 Rights and obligations of employees. A public employer must afford reasonable time off to elected officers or appointed representatives of the exclvsive representative to conduct the duties of the exclusive representative and must, upon request, provide for leaves of absence to elected or appointed of�iciais of the exclusive representative.... Minnesora Srare Siatvte 179A: Pub(ic Employees Labor Relations Act 179A.07 Rights and obligatinns aJ employers. Subd, 6. Time off. Findings 1) Supervisory and confidential employees of the City of Saint Paul do not par[icipate in the negotiation of contracts other than their own. These employees do occasionally support the negodation process with information and analysis they prepaze as a part of their overall job duties. Notably, City officials must patrol this boundary carefully, because even the perception of a conflict of interest can damage the negotiation process. 2) Reasonable time off has been afforded by the Ciry to employees involved in the collective bargaining process.� However, there are significant differences beiween deparhnents in how time off is handled. Some departments allow for schedule modifications, so employees will � Eiected baz aznin unit re resentatives aze ovided time oPf to work on B� g p pr gievance situations. ]999 Saint Paul Ciry CoumciJResearch Performance Audit of the City of Saint Paul's Labor Relations Acdvipes 35 not be required to take vacation or other leave time. Other deparhnents have tacit agteements that time off for negotiazing will be paid_ Finally, some departments simply enswe time off is pzovided, buL the employee is required to take leave. Notably, many negotiazion sessions take place in the evenings, after standard work hours to accommodate employee work schedules. Reco�nmendation #24: There should be greater equity across City departments in the poZicies for provision of time to participate in the negotiation process. A City-wide policy addressing this usue should be developed by the Administration for Council review and adoption. This policy should then be clearly communicated to the City's management and supervisory stajf. NEGOTIATIONS PROCESS The negotiation process section of this chapter breaks down the contract negotiation process into several major pieces. First to be discussed is the planning and scheduling required of both parties before entering into negotiation. Ne�ct to be discussed aze the actual items that are required to be in collective bazgaining agreements. Following this, negotiation methods and procedures will be �amined. Included in this discussion are those policies relating to impasses in negotiation and methods for resolving those differences. A diagram portraying the wntract negotiation process appears on the following page. Research and Strategic Planning Research and strategic planning are necessary elements in preparing to undertake any negotiation. This is required of all parties involved to justify the detnands they bring to the table. The policies wluch follow provide legal guidance about prepararion prior to negotiation. Note the quality assessment of the contract negotiation process includes a discussion on planning. Research and Strategjc Planning Policies With the Budget Office, develop computer costing model which is usable both for negotiations and general budgetary considerations. O�ce ofLabor Relations Ongoing Budget Program Objectives and 1998 Budget Project Objectives. Make recommendarions to Mayor regarding improved methods for handling vita] economic issues in bazgaining. Of�'ice ofLabor Relations Ongoing Budget Program Objectives and 1498 Budget Project Objectives. Develop azbitration strategy w]uch will fiuther City interest in keeping wage and benefit increases at a level St. Paul can afFord. O�ce of Labor Relations Ongoing Budget Program Objectives and 1998 Budger Project Objectives. Reduce City's unfimded liability on retiree health inswance, via negotiations. Office of Labor Relatiorrs Ongoing Budget Program Objectives and 1998 Budget Project Objectives. �(�D 1999 Saixi Pau! Ciry Caursci! Ruenrch 36 PerFormance Avdit of ffie City of Saint Paul's Iabor Relations Activilies CONTRACT NEGOTIATTON PROCESS 99�8'�Od Notification for Negotiation Exclusive representative and employer meet and negotiate No �� Mediation at BMS No BMS declares Impasse I�erest Arbitrationbegins either. • Upon request of either party for esse�iai emptoyees; or �lpon request of both pafies for non essential empioyees BM5 catifies issues for arbitration Pa�ties agt� ro a couhact Contract submitted to City Council for Approval by resoluGon CoMract ser� to Financial Services w►�hin 10 days of �pprovaf by Counc PaAres agree to a coNract Non�esse�ial choose to shike PaAies agree to a conhad Final Co�ract �ilf�BfOf ISSU25 award decision, binding on both pafies (In City of Sai� Paui, City's finat position must be approved by the City Council� May be appealed m Dishict cou�t Co�ract su6mitted to C�y Council for Approval by resolution Co�ract sent to Financial Services within 10 days of approval by Council 1999 Soint Pau! City CouncU Research Performance Audit of ihe City of Saint Paul's Iabor RelaCOns Acdvipes Research and Strategic Planning Policies, Continued Public employers, their agents and representatives are prohibited &om refusing to provide, upon the request of the exclusive representative, all informarion pertaining to the pubtic employets 6udget both present and proposed, revenues, and other finanoing informarion provided that in the executive branch of state govemment this clause may not be considered contrary to ihe budgetary requirements of (Minnesota 5tatuYes] sections 16A.10 and 16A.11. Minnesota State Statute 179A: Public Emptoyees Iabor Relations Act 179A.13 Unfair tabor practices. Subd. 2. Employers. Findings 37�� I _� �)� 1) The City cunently assesses wllective bazgaining agreements for financial unplicazions four times. First, the Office of Labor Relations applies "total package cosY' formulas widely used in the field of labor relations for calculating the cost of a contract that takes into account the old costs versus the costs of the new contract. Second, the Budget Office assesses the agreements for impact on the City budget for the term of the contract. Third, Risk Management determines if there are any changes in fringe benefits costs. Their calculations are forwazded to the Office of Labor Relations and the Budget Office as appropriate. Fourth, the City prepazes a uniform settlement form to be sent to the state. The Office of Labor Relations, in cooperation with the Budget Offic�, is developing a computer costing model which is usable for negotiations, general budgetary considerations and preparation of the uniform settlement form. This system is intended to ptovide sound information on the impacts of various negotiation proposals, as well as a financial assessment of the final negotiated agreement for the City. 2) Staff in the Office of Labor Relations report they proactively provide reaommendations to the Mayor on improved methods for handling vital economic issues in bazgaining. 3) Strategy development for azbitrations which furthers the City's interest in keeping wage and benefits at a level the City can affotd is not yet fuily developed. Notably, City staff prepaze for azbitrations on a case-by-case basis. There has been one azbitration in recent years, and "staff preparations° for three others. Staff report data aze being collected and analyzed wlvch wou]d assist in a broader planning effort. However, only one person interviewed articulated an azbitration strategy or described its implementation. 4) The Office of Labor Relations, in conjunction with Risk ManagemeM and the Budget Office, have successfully negotiated substantial decreases in the City's unfimded liability on retiree health insutance. These negotiated_decreases were lazgely accomplished in negotiations occurring three to four yeazs ago. 5) The City has provided all financial, budget and revenue information requested by bazgaining units. Although the City has provided this information, there were some reported delays and misunderstandicigs in the provision of such informarion, but none of these have translated into unfau practices complaints. Recommendation #25: 77te Of�'ice of Labor Relatiorrs and the Budget O�ce should complete work on the development of costing models which meet all of the City s needs for contract cost information. J999 Saint Paul Ciry Councit Ruearch 38 PerFocmance Audit of ihe City af Saint Pau L ab o r R ela t io n s Activilies Recnmmendatinn #26: The Of)5ce af Labor Relatiorzs, in concert wiJh other imolved City agencies should arsess the appropriateness of the following budget objective language: `Develop mbitration strate� which wi11 further City interest in keeping wage and benefit increases at a level Saint Paul can a�'ord. " Given the very small number of mbitrations, it would likely be better ro refer to individual arbitration situations. C1 CI_,�� Recommendation #27.• The Office ofLabor Relations change its budget proposal references to decreasing the City's unfunded liability for retiree health insurance until such time as it intends to again actively pursue these issues in negotiations. The budget references should clearly indicate this is a long-term goal, rather than orre that will rrecessarily be applied in all contract negotiations for all cycles. This would honor negotiation "etiquette" which maintains you should not seek concessions on the same issue for two consecutive negotiations. Recommendation #28: All Ciry agencies in a position to provide budget, revenue and finance informarion should work with bargaining units in a way that leads to clearer expectations as to the availability of such data and the time required to assemble it. Similarly, bargaining units should be ezplicit in all requests for these types of data. Scheduling and Planning Negotiation Sessions The contract negotiation process requires meetings and meeting rooms be scheduled, drafts of proposals circulated and agreements dratted. The following policies from the City's Administrative Code and state statutes specify responsibilities for these activities. and Plannin¢ Policies [The] office of the mayor shall: Carry on the day-to-day collective bugaining process, including, but not limited to, the planning, scheduling and conducting of negotiation sessions; the drafting and prepazation of necessary documents and agreements in coordination with the office of the city attorney. Sainr Pau[ Adminrsbative Code, Chapter 13: Collecfive Bnrgeining Process, Sec. 23.03 Ezecukve Respnnsibility Responsibility of labor representatives and employees (2) Submit written demands conceming desired changes in the terms and conditions of employment in accordance with a timetable to be established by the mayor and approved by the city couticil. Sairst Paul Administrative Code, Chapter 23: Col[ective B�vgaining Process, Sectian 23.04. Initiation of negotiation. When a party to a contract desires to meet and negotiate an agreement subsequent to the initial agreement, the party shall give written notice to the other party and to the commissioner at least 60 days before the termination date of the e�sting contract. Minnesota Srate Srarure 179A: Public Employee� Labor RelaBons AM 179A.14 NegoNation procedures. Subd I. Public meetings. All negotiafions, mediazion sessions, and hearings between public employers and public employees or their respective representatives are public meetings except when otherwise provided by the commissioner. titinnesora State Statute 179A: Public Employees Labor Re[ations Act 179A.14 Negadntion pracedures. Subd. 3. 1999 Sainr Paul Ciry Cormcil Rerearch Perfotmance Audit of tlm City of Saint Paul's I.alwr Relations Activities 39 � � I Findings �Q � 1) The Office of Labor Relations does plan, schedule and conduct negotiatian sessions. For the past fow years, the City Attorney has maintained a muumal role in the drafting and prepazation of negotiated agrcements. The Office of Labor Relations reports the City Attomey is consulted from time-to-time on specific points of law. The City Attomey does not actively participaYe in negoriations ot the drafting of collecrive bazgaining agreements. 2) Collec[ive bazgaining units are required to submit written demands conceming desired changes in their terms and conditions of employment. However, the City's Administrative Code speci6es these submissions aze to occur in accordance with a tirnetable established by the Mayor and approved by the Council. No such timetable has been developed in at least the last five years. 3) There aze two instances of reported problems associated with the initiation of negotiation via written notice, once with openting engineets and once with the Fire Supervisors Association. In neither case did the City pursue penalties against the bazgaining units. 4) Although state statute requires negotiations be[ween public employers and public employees be public meetings, there are no examples in recent history of parties, other than those negotiating, being present at a session. Notably, tlus openness is wntrary to traditional negotiation practice in the private sector, where negoriations are closed. However, many states and localities have opened the negotiation process in view of the fact that the services provided by govemments are public by their very nature. Recommendation #29: Given the reported staff shortage in the Off'ice of Labor Relations, increasing the participation of the Ciry Attorney in contract drafting and preparation is warranted. Such an increased role shautd be explored thoroughty by the next Labor Re[ations Director. See also Recammendation #31, page 43 on the development of a, fiveyem timetable for negotiations. Items for Negotiations There are three key items which must be included in any pubiic employee collective bargaining agreement in the State of Minnesota, in addition to the fact that collective bargaining agreements must not be contraty to state or local laws. The three elements which are in these contracts aze: ❑ Terms and conditions of employment; ❑ Grievance procedures; and ❑ Contract duration provisions. Terms & Conditions Terms and conditions broadly describes both performance expectarions for employees and compensarion from the employer in the form of wages and fringe 6enefits. Although there aze no policies covered here which directly relate to these, there are several which provide some parameters. 1999 Saint Pav7 Ciry Council Research M1 Perfoimance Audit of tLe City of Saint Pa�il's Labor Relations Activities Terms & CondiHons Policies 7 9 Meet and negotiate. Public employees, through their certified exclusive representaYive, have the right and obligation to meet and negotiate in good faith with their employer regarding the tern�s and conditions of employment. Minrsesora State Statute 179A: Public Employees Labm Relations Act 179A.06 Rights and obligations of emp[oyees. Subd. 5. Meet and negotiate. A public employer has aa obligation to meet and negotiate in good faith with the exclusive representative of public employees in an appropriate unit regarding grievance pmcedures and the tenns and condirions of employment... Minnesotn State SJatute 179A: Pub7ic Empinyees Labw Relntions Act 179A.07 Rights and obligations ofemployers. Subd. 2. Former employee benef:ts. A contract may not obIigate an employer to fund all or part of the cost of health care benefits for a former employee beyond the duration of the contract, subject to section 179A.20, subdivision 6. Minnesora Srnee Srature 779A: Public Employees Labor Relatians Ad 779A.20 Corttracts. Subd. 2a. Former employee benefits. A pecsonnel policy may not obiigate an empioyer to fund all or part of health caze benefits for a former employee beyond the duration of the policy. �nnesota State Stande 179A: Pvblic Employees Labor Relations Act ]79A.20 Co�et>nMS. Subd.la Former employee benefits. A policy may not erctend beyond the teanination of the contract of longest duration covering other employees of the employer or, if none, the temiination of the budgetary cycle during which the policy is adapted. Minreesota State Stahite 179A: Public Employees Labor Relations AM 179A.20 Contracts. Subd. 2a. Findings 1) There were no reported cases of collective bazgaining units or the City not meeting and negotiating in good faith. 2) City contracts are all in accordance with state and other laws with respect to former employee benefits. Notably, the City included provisions on former employee benefits prior to statutory prohibition of tlus practice. Therefore, the practice is continued and legai in the City's negoriated agreements. Grievance Procedure Grievance Procedure Policies Meet and negotiate. Public employees, through their certified exclusive representarive, have the right and obligation to meet and negotiate in good faith with their employer regarding grievance procedures. �nnesora Srare Srarute t7va: Public Employees Labor Relationr Act 179A.06 Rights and obligations of e�nployees. Subd. S. 1999 Saint Paul CUy Cormcil Resemch Performance Audit of the Ciry of Saint Paul's Labor Relazions Activi5es Grievance Procedure PoHcies, Continued 41� � �� (\ �ll Meet and negotiate. Public employees, through their certified exclusive representative, have the right and obligation to meet and negotiate in good faith with their employer regazding grievance procedures. Mtmlesma 5:me Stanue 1�9A: Public Employees Labar Relations Act 779A.06 Rights and obligations of employees. Subd. S. Grievance procedure. (a) All contracts must include a grievance procedure provlding for compulsory bmding arbitrarion of grievances including all written diSCiplinary actions. Mimrerota Stme Stmute 179A: Public Employeu Labor Relations Act 179A.20 Contiacts. Subd. 4. Grievance procedure. Notwithstanding any home rule charter to the contrary, after the probationary period of employment, any disciplinary action is subject to the grievance procedure and compulsory binding arbitration. Mtnneso:a Srate Sraru:e 179A: Public Employees Labor Relations Act 779A10 Contracts. Subd 4. Findings 1) There were no reported cases of either the City or collective bargaining units not meeting and negotiating in good faith on grievance procedures. 2) All contracts were reviewed and found to have grievance procedures with compulsory binding azbitration provisions. Contract Prohibitions Contract Prohibition Policies No contract provisiorrs contrary to law. No provision of a contract shall be in conflict with the laws of Minnesota. Minnesora Srme Siatute 179A: Pubtic Emptoyees Labor Relations Act 179A.2Q Contracts. Subd. 2. No contract provisiorts conirary to law. No provision of a contract shall be in wnflict with rules gromulgated under law, or municipal charters, ordinances, or resolutions, provided that ffie rules, charters, ordinances, and resolutions aze consistent with this chapter. Minnesora srare Sraruse 17va: Puvt�a Emptoyees Labor Relations Act 779A10 Contracts,Subd. 2. Finding There aze currently no reported contradictions between state or local law and the provisions in the City's collective bazgaining agreements. One case was reported of a sick leave provision that required updating in a contract to be consistent with state provisions that sick leave may be used for the care of a sick child. These updates typically occur as a result of staff review of professional literature and state and local laws. Both collective bazgaining units and the City aze alerted to such changes. 1999 Saint Pau! Ciry Counci! Resemch 42 PaCom�e Audit ofthe CSLY of Samt Paul's I abo r Relatims e4tivrties Contract Duration I/ V .,/ Contract Duration Policies ��-- ��— = Duration. The duration of the contract is negotiable but shaii not e�cceed three �' � = - yC'drs. Af'tnnesota Stmte Statute 179A: Public Er�loyees I.abor Relatiom�.1M 179A.20 '__ ° Comracts. Svbd, 3. _ - --- —�°_��--�`,--�_ ° . --�� Finding Almost all City conhacfs with collective bargaining units aze negotiated for a dimation of two years. Occasionally, canuacts are negotiated for a duration of three yeazs. 17us has usually occ�rred when contract negotiations are concluded approximately one year after the expiration of tfie previous agreement. Thus, the agreemeut still reaches out only two yeazs into the firture. The main reason providad for tlus durnrion of ageemeut is the increasing level of unceRainty for both parties fiuther into the future. Recommendarion #30: The City cmd cdleclive bargaining units should pursue more negotiated agreements that run for three years. Such a strategy, although iniroducing in some slight increase in uncertpinty offuture revcmues, Dras the potential to significantly decTease the costs of negoiiating agreements for both pm7ies. Such casts could be calculated in terms of time imolved in negotintion and contract implementation adminisirarion overhead. Negotiation Practices Negotiation practices are govemed by state policies wluch outline e�cpected negotiation behavior. These policies state, in essence, that both pmties aze to meet and negoriate in good faith and comply with decisions of the Bureau of Mediation Services. Prac4ces Policies Public employers, the'u agents aad representatives are prolubited from refusing W mee[ and negotiaYe in goad faith with the exclusive cepresenAative of its employees in an apprapriate unit M'urnesota State SYahrte 179.4: Public Employees LaLor Relations Aet 179A.13Unfairlaborpractices. Subd.2. Employers. Public employers, their agerns and representatives are prohibiled from riolating or refusing to comply with any lawfui order or decision issued by tfie commissioner. �rmesnta Stote Stahue 179A: Public Employees Zabor Relations Act 179A.13 Unfair labrn practices. Subd 2. Employers. Employee organizations, their agents or xepresentatives, and public employees are prohibitad &om refusing to meet and negotiaze in good faith with a public employer, if the employee organization is the exclusive representative of employees in an appropriate unit Afzrrreesota State Statute 179A: Public Employees Labor Relations Act 179A.13 Unjair labor practices. Subd. 3. Employees. Employee organizations, their agents or representatives, and public employees are prohibited from violating or refusing to compiy with any lawfiil order or decision issued by the commissioner. Minnesota State Starute 179A: Public Employees Labor Relations Acr 179A.13 Unfair labor practices. Subd. 3. Employees. 1999 SauuPavl Ciry Coancil ResearcA rsr«�a�a s�me�w•s�x�v�an�.�a Findings a 1) There were no teported cases of either the City or a collective bazgaining unit refusing to comply with a decision of the BMS. 2) There were no reports of either collective bazgaining �mits or the City refusing outright to meet and negotiate in good faith. However, there were some serious concerns iaised about the rimeliness of the negotiation process. Typically, these concems centered on the City's propensity to slow negoriations through delays, rescheduling and lack of preparation. The primary reason given for these delays was lack of City slaff dedicated to the negotiarion process. Another reason for "Ciry-eaused" delays is the City's effort to decrease the City's unfunded liability for retiree health insurance. "Union-caused" delays were reported to be related to intemal union politics, union delays pending outcomes of local elecrions and the AFSCME lawsuit relating to the City's plan to reduce retiree health care benefits. The vagueness of the term "good faith" complicates this situation. It is certainly a possibility that such delays could be a negotiation tactic, although it is very difficult to substantiate. Appendix C provides data on contract ratifications over the last ten years. From it we can see a definite pattem of contracts being concluded long after the previous contract has expired Specific increases in tardiness can also be connected to the content of the negotiated agreements, such as decreases in the City's unfunded liability for retiree health insurance in 1994 and 1995. That being said, it is also apparent that the average lateness of 130 contiact conclusions over the last 10 years is 10 months. The chronic state of lateness of contract conclusions is especialiy troubling if it is used as a negotiation tadic. The following table briefly eacamines some of the costs and benefits of delaying contracts. Although all of the possible advantages and disadvantages can not be listed, when they are looked at more closely, we see that the City has some advantage over the bargaining units in delaying. Brief Cost Benefit Analysis for Contract Conclusion Delays Benefits Costs C�j� • Retum on investment of • Adminishative costs of rehoactively implementing money not paid to contract (m;o;n,;�Pa by fact that e�cisting staff used) employees during • Additional reso�ces required for negotiating (often negoriation minimi7zd by fact that e�cis[ing staff used) + Increased negotiation � Budget pxocess becomes more compleac and imcettain leverage ■ Potendally bad public relations Ci0112Ct1Y@ • Increased leverage • Lost use of increased wages iesulting from contract Bargaining ' Mayassistpoliticalgoals • Potentiallybadpublicrelations UI11tS of uaion leadership for ■ Increased unpaid time spent in negotiarions local or union elections Xecommenda6on #31: The City should develop a fiveyear workplan with spec� timetables--ns required in the Administrative Code--which provides for the conclusion of most of its callective bargaining agreements prior to their expiration. This is especially irrrponant in tight of the many parties interview who indicated the negotiation process was untimely. 1999Sa�tPaa1 CiryCounc�l Research 44 Perfocmance Audit of the City of Saint Paul's Labor Rela4ons Activities Interest Based Bargaining �9�g�� Traditional (also known as adversarial) bargaining is most often viewed as an adversarial process which leads to an agreement that offers the most of what is desired by the negotiating parties at the least cost to each. It is, almost by definirion, a secretive process where not ali irue goals aze shared at the negotiating table. In recent yeazs an altemative to this style of bargaining has increased in popularity: interest based bazgaining. Interest based bazgaining provides for a more open sharing of true negotiation goals aad joint problem solving. Appendix D provides a summary of the interest based bargaining process. The City has also endeavored to use this process, as is reflected by the following City budget policy statement. Notably, interest based bazgaining should not be seen as a panacea for problems associated with traditional bazgaining methods. It is also inappropriate to use interest based bazgaining in some negotiaYing situations, such as when there are very low levels of trust between the parties. Interest Based With at least one compatible union, conduct bazgaining using interest-based b2ig3tI11IIg. O�ce of Labor Relatiotts Ongoing Budget Program Objecb'ves and 7998 Bvdget Project Objectives Findings 1) Interest based bargaining was used with the Police Federarion in 1997 and 1998 for 21 issues addressed in the contract. Notably, it was not used for wage-related negotiation items. The City also used a modified version of the interest based bazgaining process with Tri- Council in the same contract cycle. Z) Severai coilective bazgaining units indicated that although they had expressed interest in using interest based bazgaining, the City chose not to use this altemative negotiation method with them. Communication Complex communications is a hallmazk of the public collective bargaining process. This is in lazge measure due to the many "stakeholders" involved, including not only supervisors and employees, but also potentially, department heads, professional staff in the Office of Labor Relations, City Attorney's Office, Human Resources, Risk Management and occasionally elected officials. In Saint Patil's case, the situation may be complicated fixrther by the decentralized nature of City govemment with its semi-autonomous departments. Also, the number of collective bargaining units with which the City negotiates agreements inevitably complicates communicarion. Communicaflon about tertns and condirions of employment between pubiic employers and public employees is clearly govemed by state statute. These laws specify that public employers and employees may talk about the terms and conditions of empioyment only with designated representatives. The statutory language is intended to protect both pazties from unofficially negotiated, but potentially Iegally binding, contract changes. 1999 SointPaul Ciry Cowxi7Research PerFolmance Audit of iLe City of Saint Ywl's Labor Relations Activities Communication Policies Responsibiliry of Zabor representatives and employees (1) Conduct discussions and negotiations conceming tem�s and conditions of employment only with the designazed representative of the city. Saini Paul Adminisnarive coae, Chapter z3: Collective Bargaining Process, Sec[ion 23.04. Other communication. If an exclusive representative has been certified for an appropriate unit, the employer shall not meet and negotiaie or meet and confer with any employee or group of etnployees who are in that unit except through the exclusive representative. Minnesota State Sratute 174A: Public Employees Labor Relaiions Act 179A.07 Rights and obligations ojemployers. Subd. 4. Findings 45 �Q-$�' 1) Communication between the City and labor representatives and employees does not consistenUy occur with the City's e2cclusive representative. Rather, other City representatives, without the aid and advice of the Iabor Relations Office, purposefiilly or unintentionally discuss and make decisions on matters relating to the tetms and conditions of employment. This type of situation was reported to occur in a variety of ways and is discussed in the following findings. 2) The lowest level of this problem seems to occur when an employee or labor representative makes an inquiry of City staff, be it about fringe benefits, titles and classifications or other matters. City staff then proceed to answer the question to the best of their Imowledge. However, there aze a number of circumstacices where the answet requires an interpretation of the collective bargaining agreement. The individual City stafF member's interpretation may or may not be consistent with other interpretations that have been given by other City representatives at other times. This creates a situation where sophisticated employee representatives could, and reportedly do, shop for the best answer. 3) The grievance process involves a number of steps, the first two of which do not require the involvement of the Office of Labor Relafions unless over $7,500 is involved. This lowest level of problem resolution is believed to be the best because it involves fewer people and less time and frustration. Grievance resolution, by definition, involves interpretation of the contract and probably discuss"son of the tetms and conditions of employment. Therefore, it is very easy to develop situations where grievance settlements are not consistent within employee groups or across departments. Thus the set[lement may seem fair and appropriaYe for an individual however, it may create inequities in the way other employees are treated, or have been treated. Several such instances were reported. 4) There were also reported instances of other professional City staff acring to settle a grievance without the full knowledge and participation of the Office of Labor Rela6ons. These situations seem to atise when there is the involvement of mukiple City representatives, such as the depaRment head, the Office of the City Attomey, Human Resources or others, in addirion to the Office of Labor Relations. $ A policy statement in ffie Collec[ive Bazgaining Units Fonnation and 7urisdiction section of this report, from the Minnesota Statz Statutes Ci�apter 179A.06, covers [lus situation as well. 1949 S¢int P¢ul City Council ReseurcA � Perfmm�ce Audit oFihe City of S�nt Paul's [abor Rela4ons Aclivities 5) There were no reported instances of the City and employees or employee groups meeting and negotiating terats and conditions of employment, other than through the bazgaining units' exclusive representative. () (�_ (y / !� 7 f� (O U Management Rights Management dghts, also known as management pr�erogatives, clarify those responsibilities wltich management traditionally does not allow to be negotiated. They are considered to be automarically within the purview of management. An example of the e�ccercise of management rights is the requirement that some employees, such as police of6cers, weat uniforms. The terms and conditions nelated to the requirement wluch would likely be negotiated is who pays for the uniforms. There is one state law reviewed in this audit which addresses this ana. PoGcies Inherent Managerial Policy A public employer is not required to meet and negotiaYe on matters of inherent managerial policy. Matters of inherent managerial poticy include, but are not limited to, such areas of discretion or poticy as the fimctions and pmgrams of the employer, its oveiall budget, ukilization of technology, the organizationai structiue, selection of personnel, and direction and number of personnel. No public employer shall sign an agreement which limits its right to select petsons to serve as supervisory employees or state managers under section 43A.18, subdivision 3(Managerial Plan, 1989� or requires the use of seniority in their selection. Minnesora State Sraute 779A: Public Emptoyees Labor Relations Acf 779A.07 Rights mtd obligations of employas, Subd. I. Finding The concept of pmmotional positions is embodied in most of the City's collective bazgaining agreements, as the "Maintenance and Standards" clauses often, by reference, include the City's Civtl Service mles in the signed conhack The City does make "promorional positions" available only to current City employees and flvs is allowed according to the City's Civil Service Rules. However, if any of these positions have supervisory responsibilities the City's actions are likely inconsistent with state law. Some of the promotional positions aze snpervisory. Therefore, by definition, the City wluch is a public employer, has limited supeivisor selection to only cutrent employees. This situation may be further complicated by the fact that the BMS has a list of criteria wiuch determine whether positions are supervisory. The application of these criteria would ]ikely produce a different list of supervisors than the City currenfly uses in practice. Recommendation 32: The City should cease the practice of segregating some positions in the category of "promotional. " T7re praclice does not seem to be consistent with state law, it limits the ability of outside qualified candidates Co compete, arul potentially promotes systemic inequalities in the make-up of the City's workforce. 9 The concept of inherent manageriai rigfits is also covered in Minnesota Statutes under Employer Rights and Obligations, Minnesota Statute 179A.067. I999Sain[ Pav1 LYty Councif Rerearch PerFotmance Audit of ihe CiTy of Saint Paul's Labox Relatio� Activities 47 (, G �� Recommendation 33: The City should review positions currently categorized ar supervisory to determine if t&e job duties meet the BMS definirion of supervisar. Meet and Confer Meet and confer policies aze designed to provide a forum for the discussion of workplace issues which aze not terms and condirions of emgloyment T'hey aze intended to address the needs of nonrepresented professional employees, but in practice, all employees may meet and confer with the City. A hypothetical meet and confer conference could discuss computer usage in an office or government policies. Meet and Confer Policies Professional employees have the right to meet and confer under section 179A.08 with public employers regazding policies and matters other than terms and CAn(Iltions of CTI1p1oyIltCrit. �nnesota State Srature 1 �9A: Pubtic Employees Labor Relationr Act 779A.06 Rights and obligatians ojemployees. Subd. 4. Meet and confer. A public employer has the obligation to meet and confer, under section 179A.08, with professional employees to discuss policies and other matters relating to their employment which are not terms and condirions of employment. Minnesora Srare Stahtte 179A: Pvblic Employees Labor Relations Act 179A. D7 Rights and obligations of employers. Subd. 3. Meet and co»jer. The professional employees shall select a representative to meet and confer with a representative or committee of the public employer on matters not specified under section 179A.03, subdivision 19, relating to the services being provided to the pUb11C. �nnesota State Stahtte 179A: Public Employees Labor Relalions Act 779A.0 Rights and obligations oJemployers. Subd. 2. Meet and confer. The public employer shall provide the facilities and set the time for [meet and confer] confBiCrices to t31Ce p12Ce. Minrresota Sraie Stariere 179A: Public Employees Labor Relations Act 179A.08 Policy consultants. The par[ies shall [attend meet and confer conferences] at least once every fow IDonths. Minnesota State Statute 179A: Public Employees Labor Relations Act 779A.08 Policy cnnsultants. Finding In practice, meet and confer policies apply to all employees. However, they were written with the intent of providing a discussion forum for unrepresented professional staff. In the City's case, that means the non-managerial staff in the "Alonrepresented Managers and Legis]ative Operating Employee Group." No such meet and confer conferences were reported. In the case of professional legislarive staff, the policy is especially obscure and provides no indication with whom these staff should meet and confer. Notably, these policies have little impor[ for the City given the small number of nomepresented professional employees and organizational location. 1999 Sairtt Paul Ciry Council Research 48 Performartce Audit ofthe City of Saint Paul's I.s6or Relatious Activities Mediation 99 g�¢ � Mediation introduces into the negotiation process a third party whose mle is to act as an intermediary and assist in the development of a negotiated agmemenY or grievance settlement Any settiement reached would require the acceptance of both sides. 7'he Minnesota Bureau of Mediation Services (BMS) assigns mediators when requested. Mediation was recently used in the AFSCME Clerical and T�luucal agreem�ts and is being used for the AFSCME-Lega! agreement. The mediaYion policies in the following box address how the BMS is to be contacted for mediation assistance and attendance at mediation sessions. Mediation Policies A petition [for mediation] by an employer shall be signed by the emptoyer or an authorized officer or agent. A petition [for mediation] by an e�cclusive representative shall be signed by its authorized officer. All petirions shall be delivered to the commissioner in person or sent by certified mail. The petirion shall state briefly the nature of the disagreement of the parties. .�&,rnesota srare S[a[ute 779�t: PubTrc Employees Labor Rela[ims Rct 179A.15 Mediation. All parties shail respond to the s�mmmons of the commissioner for [mediarion] conferences and shall continue in [mediation] conference until excused by the ComID15SlOne1'. M'anne.sota Stnte Stnhde 179A: Pvblic Employees Labor Relations Ad 179A.15 Mediation. Finding There were no re�wrted problems with the me@iation policies. Arbitration Arbihation (also referred to as butding azbitration or interest arbitration), like mediation, introduces a third party into the negotiating process whose mle is to act as an intermediary and assist in the development of a negotiated agreement or grievance settlement. However, in the case of azbi0ration, the parties agree bePonyhand to abide by the terms of the arbihated settlement. EmpIoyee groups classified as "essentiai" have the right to arbitration for their negotiated agreements. However, these groups are not allowed to strike. "Essential" bargaining units in the City are the following: a Attorneys (AFSCId&Legal) � Saint Paul Supervisocs OrganiTation e Manual aad Maintevance Supervisozs o Classified Confidential Employee Association a Firz Fightets I.oeal #21 e F've Supervisory Assceiation o Police Federation `2�Ionessential" employee groups have the right to request arbitration, but the City, as a public employer, mnsY agree to it. `2�TOnessential" employee groups have the right to strike. These groups include all of the bazgaining units not listed above. There has been only one City arbitration in receni history, and it was with the Fire Supervisory Associafion in 1996. The City prepared for lwo others, one with the Police 1999 Saint Paul City Couttci/Rcvearch PerFormance Audit of the City of Saint Paul's Labor Relations Activiries 44 �l_D (U Federation (1994 - 96 contract) and one with the Manua] and Maintenance Supeivisors (1995-96 contract). However, those settled prior to arbitration. There have been no cases of arbitzation with a`honessential" employee group. Arbitrafion Policies Public employers, their agents and representatives aze prohibited from refusing to comply with a valid decision of a binding azbitration panel or arbitrator. ,�,ne4om StmeStmrde779A:PublicEmployeesLaborRelationsAct179A.13Unfa"v7aborprac7ices. Svbd2. Employers. Employee organizations, theu agents or representatives, and public employees are prohibited from refusing to wmply with a valid decision of an arbitratian panel or 3Tt71V3TOi. .N'mnesota Stme Stande 779A: Public Employees Iabor RelationsAct 179A.13 Unfoir labor pmctices. Subd 3. Emp7oyees. Nonessential employees [The party requesting interest azbitration must provide a] written notice of the request to the other party and the commissioner. The written request for azbitration must specify the items to be submitted to azbitration and whether conventional, final-offer total-package, or final-offer item-by-item 2Lb1Y[3tlOri iS CORtCIRp13YC(� b}� YI10 LCGllCSY. A1'mnesota Stme Stande 179A: Public Employees IabarRelalionsActI79A.167nteresearbitralion. Subdiviciorsl.. Nonessential emp7oyees. If an agreement to azbitrate is reached, it must be reduced to writing and a copy of the agreement filed with the commissioner. Afirxesota State Stat+de 779A: Pubtic Emplayees Labor Retm'wnsAct 179A.1 b Intere.st arbitration. Subdivision J. Essential employees. An exclusive representative or employer of a unit of essential employees may petition for binding interest azbitration by filing a written request with the othet pazty and the commissioner. 'T'he written request must specify the items which that party wishes to submit to binding azbitration. Nt�:o Sfote StahUe 179A: Public Employees Labor Relmions Act 179A.167nterest mbitration. Subd. 2. Procedure. Within 15 days from the time the commissioner has certified a matter to be ready for binding arbitratian because of an agreement under subdivision 1 or in accordance with subdivision 2, both parties shall submit their final positions on Y.�LC1tCIRSliI(I15plltC. dSnnesataStateStutate179A:PvblicEmployeesLaborRe7ationsAct199A.16 Interestm�bkration. Subd.3. Selection of arbitrator or panel of arbitrators. The parties shall alternately strike names from the list of ubitrators until only a single azbitrator remains, unless the parties request and mutually agree to utilize a panel of tl�ree arbitrators. ar�„e.sofa State Stahue 179A: Public Employees Lobor Ifeladons Act 179A.167ntaest mbib�ion. Subd. 4. [Any] hearing must be held in the county where the principal administrative offices of the employer aze located, unless another location is selected by agreement of the parties. In case of refusal to obey a subpoena issued under this section, the district court of the state for the county where the proceeding is pending or where the person who refuses to obey is found, or resides, or t�ansacts business, on application of the azbitcator or panel, has jurisdiction to issue an order requiring the person to appear before the panel, to produce evidence, or to give testimony. Fai]ure to obey the order may be punished by the court as a contempt. Posthearing briefs, if any, must be received by the azhitrator within 14 a3}'SOfY�1C�1C'dTing. M'innesotaState5latiae179A:Pub7icEmployeesLa6orRetationrAct179A.16 Interest arbtirmion. Subd. 6. Powers of the �bitrator orpanel. 7999 Saint PauT Ciry Councrl Research 50 PaForm�ce Audit ofthe ciry of Sa P I�bar Rel a criv i4 e s Arbitration PoHcies, Continued �� l0 � Database; fees; charges, and per diems. For each arbitration decision rendered by an arbitrator, ttte arbitrator shali submit a copy of the awazd and a description of all fees, charges, and per diems assessed to the parties to the commissioner. Data &om this database must be available to the public. All costs of the panet must be shared equally by the parties to the dispute. �e�oro srme swnue i �9A: rLbu� s,,,p�oy� LabarRelationsAct179A.167nterestmbitration. Svbd.8. Findings 1) There were no probiems reported in complying with decisions reached tIuough azbihaYion. However, there were several comments on the timeliness of City implementation of decisions. 2) With respect to the "procedure" policy specifying that final positions be submitted within I S days: the City has a practice of requesting a 15-day extension to allow the Council time to consider the City's position, 3) Both the City and the bazgaining units appeaz to be in wmpliance with all azbitration policies. Strike Although strike is an option available to `honessential" employee groups, there has not been a strike of any City employees since the mid-1970s. Strike Policies Public employe�, their agents and representatives are prohibitsd from grartting or offering to grant the status of permanent replacement employee to a person for performing bazgaining unit work for the employer d»�ng a lockout of employees in an employee organization or during a strike authorized by au employee organization that is an exclusive representative. Minnesora Srme Srarure 179A: ru6lic Employees Labor Relations Act 779A.13 Unfair labor practices. Svbd. 2. Employers. Employee organizations, their agents or representatives, and public employees aze prolubited from committing any act designed to damage ar actually damaging physical property or endangering the safety of persons wlule engaging in a strike. �nnesota State Statute 179.4: Public Employees Labor Relariou Rct 179A.13 Unfair labor practices. Subd.3. Employees. Employee organizations, their agents or representarives, and pubiic employees ate prolubited from engaging in an unlawful strike. Minnesora Smre Srarure 179A: Public Emplayees Labor Relations Act 179A.13 Urfair labor praMices. Subd 3. Employees. Employee organizations, their agents or representarives, and public employees aze prohibited from picketing which unreasonably interferes with the ingress and egress to facilifies of the public employer. Minnesora Srare Srar,ue [79�t: Public Employees Labor Relations Act 179A.13 Unfair labor pracrices. Subd. 3. Employees. 7994 Smnt Paul CYry Councd Research Performance Audit of the City of Saint Paul's Cabor Relalions Activities Strike Policies, Confinued Employee organizations, their agents or representatives, and public employees are prohibited &om seizing or occupying or destroying property of the employer. �nnesota State Stah�te 179A: Public Employees Zabor Relatfons Act 179A.13 Unfair labo> practices. Subd 3. Employeu. Finding 51�� dl„ � ��Ud As there has been no strike of City employees in recent history, there were no reported problems with any of the strike policies. However, there was an informational picket held by the Police Federation which was conducted in accordance with the above policies. RATIFICATION OF CONTRACTS Contracts are prepazed by the City following the contract negotiation process and are reviewed with the bazgaining unit for completeness. � Rafification of the contract by the Ciry requires Council approval. It is assumed that the Mayor supports the contract, as the Administrative Code specifies that contracts aze to be negotiated by the Mayor or his/her designee. Contracts aze approved by the collective bazgaining units t6rough votes held in accordance with the'v bylaws. Ratification Policies Uniform senlement form. A public employer...shall complete a uniform collective bazgaining agreement settlement document for each collective bazgaining agteement or azbitration awazd. Minnesota Srare Stnrare 179A: Public Emptoyees Labor Relaaons Act 179A.07 Rights and obtigations oJemptoyers. Subd. 7. Uniform settlement form. The gublic employer shall present the settlement document to the governing body at the time it ratifies a collective bargaining agre6ment or aTbiVation awazd. Minnesora Srare Srature 179A: Public Employees Labor Relations Act 174A.07 Righrs and obligafions oJemployers. Subd. 7. Implementarion. Upon execution of the contract, the employer shall implement it in the form of an ordinance or resolution. If implementation of the contract requires adoption of a law, ordinance, or charter amendment, the employer shall make every reasonable effort to propose and secure the enactment of this law, oidinance, resolufion, or charter amendment. Minnesota Sr�rre Sranrre 779A: Public Employees Labor Relations Act 179A.20 Contracts. Subd. 5. Findings 1) The State requires the City prepare a uniform settlement form for all collective bargaining agreements and azbitration awazds. The City has a spotty tustory of completing this form, and it completely stopped for a period of about two years. When the City began completing the �� The Administrative Code policy ouUining the City's responsibility to dra$ agreements appears earlier ia this chapter in the section: Contract Negotiation Preparation--Seheduling and Planning. 1999 SnirrtPaul City Coemcil Research FYa Perfotmance Audit ofthe City of Saini Paui's Labot Relaiions Aclivities uniform seitlement again, past versions were completed and filed with the BMS. The Office of Labor Relations reports three reasons for problems in completing the uniform settlement form. First, low staff levels were cited. Alsq they indicated the form developed by the State of Minnesota is very cumbersome and of limited value, as it was originally developed for use by school districts. Finally, there was concem the informarion required in the uniform settlement form is not consistent with information used in other analyses developed for use at tha negotiation table, or later when totai package costs are estimated. Therefore, it was believed that the informarion presented in ffie uniform settlement would produce greater confusion. 2) The City of Saint Paul bas made available uniform settlement forms when requested. However, there have been occasional delays because the forms needed to be prepared before they could be distributed. Recommendation #34: The uniform settlement form provides for the development of a statewide base of fnfnrmarion on all public employer negotialed agreements and arbilralion settlements for the State of �nnesota. As such, it is an important activiry for the state to undertake, and has the potential to create a comparative databare for use by all public employers and employees. Notably, the state has yet to develop such an informaKon saurce. However, the City of Saint Paul has not consistently complied with this statutory requirement The City should corrsistently complete the uniform senlement form in aceordance with State laov. CONTRACT IMPLEMENTATION Conhact implementation activities involve changing wage rates, altering payroll deduc[ions as a result of benefit adjustments, adjusting sick teave and vacation to reflect negoriated changes, and administering any oLher changes resulting from a new contract. The process involves a number of City depaztments and offices. The following chaz[ illustrates the rote each plays in implementing the contract. The collective bazgaining units are involved to a limited eztent in contract implementation. Union leadership and membership may monitor to ensure that any new contract changes are implemented by the City. Contract Implementation in the Office of Labor Relations The Office of Labor Relations is responsible for ensuring contracts are implemented and administered correctly. This responsibility is shared wiffi other departments, such as Risk Management and the Department of Financial Services. Coutract Implementafion Policies for the Office of Labor Rela6ons Work with Finance Department to streamline contract unplementation process. Offrce ojLaboiRelatfons Orsgob1g Budget Program Objecrives and 1998 Budget ProjeaObjectives Refine development of data bank relating to the many parallel sections of the 25 collective bazgaining agreements and comtnunicate to affected gersons. O�ice of Labor Relations Orsgoing Bvdget Prograrrs Objectives and 1998 Bvdget Psoject Objectives 1999 Somt Paul Ctiy Coimcil Rueorch Pecfotmance wudit of ibe City of Saint PaW's Laboc Relafions Activibes Contract Policies for the Office of Labor Relations, Continued Executive Responsibility (The) office of the mayot shall: Administrate collective bargaining agreements in accordance with their terms and provisions as approved by the City CoutlCil. St. Paul AdminCode, C7w1i.23: ColTective Bm�gaining Process, Sec. 23.03 CONTRACT IMPLEMENTATION PROCESS PARTICIPANTS Office of the Mayor Oversees contract implementation Office of Labor Relations Prepares & distri6utes conhact, oversees Findings Office of the City Atturney Provides conhact & legal for City Risk Management Services Division of Technology and Management 5ervices Dept Administers changes in benefits Office of Financial 5ervices Makes wage and benefits deductians or additions Other Departments Responsible for complying with contract �q�$�� 1) The Office of Labor Relations has worked with Financial Services to streamline the contract implementation process. Tentative agreements aze given to the Offics of Financial Services to determine the length of time iY will take to implement the contract. Financial Services then brings any questions to the Office of Labor Relations and to Risk Management for clarification. Responses to questions aze in writing. Payroll has stated it is sometimes difficult to obtain coherent answers to questions, as there is a reluctance by the Office of Labor Relations to write down speeific answers. 2) The OLR has done some work on the collective bazgaining agreements databank, though it has not been completed and the work has not been kept up. The information in the data bank has not been communicated to affected individuals or departments. 1999 Sarm Pau1 City Codncil Research � ofSairtt Paul's iabotRelations Activities y y Recommendatian #35: The Offzce of Labor Relations, Risk Management, and the Office of Financial Services should increase efforls to sireamline contract implementation. �411 three offices should clarify communication systems to improve the administrative process. Recommendation #36: The O�ce of Labor Relationr should complete the data bank relating to parallel secrions of the collective bmgaining agreements. The existence and use of the data bank should be communicated tn all aj j'ected parties, and the data bank should be used to identify arear for negotiation. Contract Implementation in Risk Management Risk Management is responsible For administering the benefit packages of City employees. They implement and monitor programs such as workets' compensation and health insurance. They also work closely with other departments such as the Office of Financial Services to monitor the e�cpenditures associated with such progcams. Contract Imolementation Policies for Risk Administer the health and welfaze benefit programs for the City and Water Utility to insure that employees/retirees receive proper benefits and all bazgaining unit Cont['dCts �nd laws aze 3dhefed to. Risk and Employee Management Division 1998 Orsgaing Bardget Progrmn Objectives Assist the Budget Office in determining and monitoring the unfvnded liability and cost alIocation in self-insuted progrems (these programs include workers' compensation, tort liability, and retiree health insurance) in order to establish a budget reserve in accordance with risk management industry standards. xiskmwt Employee Management Services 6ivision: 1998 Ongoing Bvdget Progrmn Objectives Finding Risk Management has followed through with its budget objectives. They are requited to monitor unfunded ]iability to meet general Govemmental Accounting Standazds Board requirements. They also monitor the contracts to ensure proper administration of benefits. RecanAtendation #37.• Risk Management and the O�ce of Financial Services should develop performance indicators to ensure Nmely implementation of contract changes. These ittdicators should be developed in the context of a systematic form of communication between all imolved City o�j?ces. Risk Management currently attempts to implement contracts in one month, but a formal benchmark to measure against would assist in tracking implementarion time. Contract Implementadon in Fivancial Services Financial Services is responsible for processing contract changes and ensuring that all changes are reflected in the payrotl records and consequently the payroll checks the employees receive. 1999 Soint PouJ Ciry Cormcil Reseorch Perfoimance Audit of ihe CiTy of Saim Paul's Iabox Relations Activities 55 �� Contract Implementallon Policies for Financial Services �� Rights and obligations of emptoyees The employer shall deduct the [fair shaze] fee from the eamings of the employee and hansmit the fee to the exclusive representative 30 days after the written notice was provided. ,�.rinnesora Srare S�ature 179A: Public Emplayees Labor Relafions Act 779A. D6 Dues check of}' Public employees have the right to request and be allowed dues check off for the exclusive representative. Minnesora Srare Sran.re 1 �9A: Pubttc Employees Labor Relatiom Act 179A.06 Rights and obligations of employees. Subd 6. Finding We found no probleaus with the Financial Services policies. The Office of Financial Services does provide written notice to the collective bazgaining units of any fair shaze fees, and also provides dues check offs. Contract Implementation in Collecrive Bargaining Units Contract Implementation Policies for Collective Bargaining Units Fairsharefee The elcclusive representative shall provide advance written notice of the amount of the fair shaze fee to the employer and to unit employees who will be assessed the fee. The employer shall provide the �clusive representative with a IiSt of all Uriit employCeS. Minnesota State Statute 179A: Public Employees Labor Relations Act 179A.06 Rights and obligallons of employees. Subd. 3. �'tritli�tg No serious problems were identified with this policy. Most of the collective bazgaining units provide advance written natice of the fair shaze fee, and the Office of Labor Relations provides the collective bargaining units with a list of all of the unit employees on a monthly basis. 7999 Saurt PauJ Ciry ComecU Research 56 PerFormance Audit of the City of Saini Paul's Labo Rel A ct iv i d es QUALITY ASSESSMENT FOR 9 � - �� CONTRACT NEGOTIATION PLANNtNG Summary Rating �`r� Planning is a method for achieving a goal. Planning should include knowledge and inclusion of key participants, systematic processes, the release of a well-circulated document or planning product and an effective implementation strategy. Goal-oriented organizations that pursue excellence require a broad-based vision directed towazd the future with a wiilingness to embrace long-term commitments. Planning should strive to anticipate many types of changes including those that may affect customers' expectarion of services, technoiogical developments, evolving requirements and community expectations. Planning strategies that lead to effective allocation of resowces need to reflect these commitments against the back-drop of a dynamic environmenY. Setting Strategic Direction Parkicipants in the conhact negotiaYion and implementation planning process for the City and the collective bazgaining units do not engage in formalized planning activities. The Labor Relations Director, with direcrion &om the Mayor, ouflines pre-negoriation stntegies that are shazed verbally with key members of her staff. For the most part, department heads and the City Council are not included in these informal pre-negotiazion strategy sessions. Historically, there were three groups convened by the Labor Relations Director to develop negotiation agendas and strategies. These groups have been relatively short-lived and experienced varying levels of success. They did not include direct-service department or City Council representation. ❑ 1994 - 95: Executive Bargaining Team: Md every other week and during negoriations on an as-needed basis. Ii included representatives from Risk Management, fhe Budget Office, Human Resources, the City Attorney's Office and all Office of Labor Relations professional staff. ❑ 1996-97: Executive Bargaining Team Revised Structure: Met as needed. It inciuded representatives &om the Budget Office, the City Attomey's Office, the Department of Finance and Technology, the Mayor's Office and all Office of Labor Relarions professional staff. ❑ 1998: Labor Advisory Group (LAG): Met rarely. It included representarives from Risk Management, the Budget Office, the City Attorney's Office, Human Resources and all Office of Labor Relations professional staff. Some, but not all, union negotiators are involved in the preparation of formalized structured planning for pending contract negotiations. 'Tl�ose not involved develop "as-needed" negoriation strategies. Implementatiott acrivities are planned on a contract-by-contract basis, and there do not appeaz to be overall stratagic measures. KEY PLANNING CONCEPTS: o Set Strategic Direction � Develop Action Plans � Align Work With Plans 1999 Saint Pau1 Ciry Covncil Resemch PerFo�m�ce Audit of the �ty of Saint Paul's Labor Relatioas Activities 57 �71 V Developing Action Plans �� In spite of their good intentions the p]anning efforts made by the collective bazgaining units and the City do not produce long-or short-teim plans that meet broadly accepted requirements for useful planning. However, some pre-negotiation activities do occur: ❑ Staff from the Office of Labor Relations report� the Labor Relations Directot has engaged in talks with some City department heads, prior to negotiations, in an attempt to gather information about what they want included in a contract settlement, i.e. working conditions, overtime hours, job classification etc.; ❑ City attomeys have attended meetings where short-term plans were reported to have been made; ❑ The Office of Labor Relations sent questionnaires to the Public Works Department asking for any potential changes in the contract. ❑ Several collective bargaining urtits reported they make short-term plans before contract negotiations. They make pre�negotiation plans at committee meetings and survey the membership to obtain a sense of their wishes prior to negotiation. Often, these plans are listed goals that union negotiators use during contiact negotiation. Unfortunately, these as-needed negotiation strategies do not contain the breadth and scope of a well-developed, resource-specific, integrated plan that reflects the vision and values of organization members. Some collective bargaining units reported they were involved with the City in pre- negotiation planning meetings. Still, no formal document or plan was produced. The pre- negotiafion vetbal agreements attempted at these meetings do not rise to the level of a strategic fomialized planning process. The results from these encounters do not anticipate changes in the negotiation environment and therefore limit the opportunity of acquiring improvements that could reduce the time it takes to complete a negotiation. A$er an agreement is reached and before the actual contract is ratified, a copy is given to Financial Services to allow them to develop strategies to implement the changes in the contract. However, only short-term conttact implementation plans are made at this point with the relevant departments and the Office of Financial Services Office. Consulting key departments on the compleacity of contract implementation is relatively new and not yet fully developed Staff in various depaRments report there appeazs to be no meaningful incorpotation of wntract implementation concems into the negotiation process. As with pre- negotiation, 'vnplementation strategies aze task-speci£ic and do not include an initial assessment of the resources required nor do the plans considet future changes that may arise. Aligning Work With Plans While we may fault the City and the unions for their lack of a formalized planning process, both sides stress the importance of informal short-term planning which allows them to engage in successful contract negotiations. Also, pazticipants in the conkact negotiation process have expressed their safisfaction or dissafisfaction by informally reviewing the outcomes of a completed negoriation. This may take the form of conversations over dinner, a pat on the back when leaving a negotiation or a post-negotiation union meeting where the rank-and-file express to the leadership how they feel about the results from the previous round of negotiations. These meetings might also include an informal comparison of results 1999 Soint Pavl Ciry CounCil Ruemch 58 PerFocro.ance Audit of ibe City of Saint Paul's Labor Relations Activi4es with other jurisdic[ions. They have noi mutinely evaluated information to enhance the process in the fimue. The same siYuation eacists for contract implementation. The short ]ength of time between agreement on the contract and implementarion does not ailow for much evaivation during the implementation process. The departments involved in implementation do not do any formal evaluations of implementation strategies, though each par[y understands their mle in the process, and follows practices that have been in place for some time. Recommendatian #38: The Office of Labor Relations should include deparhnenl heads and the City Council in a planning process prior to contract negotiations. Planning should include aspects of timeliness, cusiomer expectations, process improvements, information exchanges and a determination of who should be at the table. Short- and long-term plans shouJd adso include consideration of fulure changes in codleclive bargaining units, internal staf�'ing, Compete Saint Paul and other factors that arise. Recommendation #39: The O�ce of Labor Relarions and union leaders should develop a formalized planning process that occurs prior to contract negotiations. Among other things this process should cover issues of communication, timeliness, standards of behavior and exchanges in sta,�ng information. Such a process would irrclude items iraditionally discussed in establuhing "ground rules"for a negoriation, as we[I as items relating to the longer-term relatioruhip between the City and bargaining unit. Recommendation #40: Union leaders should survey their membership and use this survey as an instrument to deve[op short- and long-term pians to more accurately assess the needs and wants of the membership. This plan should reflect a vision for future negotiations, be written and disseminated to all members. LEADERSHtP Surnmary Rating: �� KEY LEADERSHIP CONCEPTS: o Mission o Vision o Values o Communicarion The process of contract negotiation requires leadership from a diverse group of senior leaders represenring a variery of mterests. The City's Labor RelaYions Duector along with the union presidents and business agents for more than twenty bazgaining units shaze leadership responsibility. While these senior leaders may have individual differences with respect to values and visions for the future, they al] have a responsibilit7 to create and express a clear set of values for the process and a clear vision for the future of conlract negotiations with the City of Saint Paul. Leaders in the conhact implementation stage include staff in Financial Services, the OfBce of Labor Relations and Risk Management. Vision No ciear vision has been developed for how the contract negotiation or implementafion processes are to be conducted in the future. Senior leaders do not articulate a vision for the future that is more fhan expecting to repeat what has been done in the past. An exceprion is that the Labor Relations Director and a few union leaders believe there may be a role for interest-based bazgaining in future contract negotiations. They have conducted some 1999 Saint P¢ul Ciry Cwmcil Researah Perfo�mmce Audit of the City of Saint Paul's Iabor Relalions Activities $ �� experimental interest-based bargaining sessions and see ttus approach as having application - 1 `� in cer[ain situations. There is not, however, a clear vision of how this technique, or any other, is to be used in the fuhue to improve the contract negotiation process. The timeliness of the wntract negotiation process is universally acknowledged to be a serious problem but senior leaders have not provided an altemative vision that will address this failing. Contract negotiations are seldom completed prior to expiration and they sometimes run as much as one to two years behind schedule. It is the responsibility of senior leaders to develop and articulate a vision for the future that will end this frustrating and expensive practice. Values Senior leaders must articulate and model the values they believe should guide the contract negotiation process. While senior leaders seem to agree that trust, respect, honesty and fauness should be primary values, these values aze seldom articulated and sometimes ignored. There aze often retold stories of disrespect, dishonesty, mistrust and unfaimess in contract negotiations. The instances of reported disrespect ranges from accounts of unions officials using a stick to beat an effigy of a City official during breaks in the contract negotiations process to accounts of a City officia] bringing a dog to a negotiating session. There are also reports from both sides of instances where negotiators did not tell the truth or failed to cazry through on promises. It has also been suggested that faimess is not always applied when dealing with "lower-status" or femal�dominated bazgaining units. We found no clear evidence of this, although there is a widely held belief that this is the case. Communicarion In a well-managed process communications aze open, rapid and effective. In order for each partner in the process to be able to make conect judgements and optimal decisions, everyone must have all the information they need to make the best decisions. Communications within the City's part of the wntract negotiations process are cleazly lacking. Secrecy and exclusion characterize the City style. Only a handful of City officials are informed about the contract negatiation process. Even most staff in the Office of Labor Relations are il]-informed. Likewise, City department directors and the City Council are provided with little or no meaningfiil information. The head of key contract administration activities such as� Risk Management and the City Attorney aze lazgely in the dark. In sum, the City's communications systems with respect to contract negotiations have the nalure of a closed process known only to a very small, select group of City officials. It may be suggested that secrecy is necessary for an inherently adversarial process but such �treme secrecy is not maintained by the bazgaining units nor by many other public and private entities when they engage in contract negotiarions. The unions, in contrast to the Ciry, maintain open communications about conhact negotiations. All union members aze invited to participate in meetings where contract negotiations processes and objectives aze initially discussed. They invite members to serve on the union eacecutive boazd that reviews the progess of contract negotiarions and ptovides advice and direction to union negoflators. Also, many union members have the opportunity to serve as members of the union contract negotiating team. The unions provide support and recognition to members who participate in the contract negotiations process through formal recognitions and awazds to members who contribute to the contract negotiation process. 7999 Sqin! Paul Ciry Council Researth �o ��;o�A�riti� Union leaders also meet with their membership after contract negotiations are�comp�eted to explain the contract, though Risk Management reports it still r�eives calls from union membecs asking for clarification of terms in the contract. Many factois may contribute to these inquiries such as confusion resulting from the information presented to the membership by the collective bazgaining units. Altematively, the employees could be "shopping azound" for an answer they like. Perhaps it is a practice that remains from years ago when union members expected Risk Management to interpret the contract for them. Communications between the City and bazgaining units regarding contract negotiations are not paRicuiarly productive, Bargaining units complain about City staffnot retuming their telephone calls and being very slow to respond to written communications. Also, the City dces not always notify bargaining units of statYchanges that may ai�'ect the process. While City leaders claim they maintain good communications with the bargaining units, there aze allegations that this is not so. Communication is also key to implementing any resulting contract changes. Financiai Services has a system established to communicaYe changes to payroll contacts, though communication between the Office of Labor Relarions and Financial Services regarding contract changes is not always productive. Financial Services stated they sometimes find it difficult to obtain necessary informarion &om Labor Retations. However, both depar[ment reported collaborating to address this ptoblem. Recommendation #41: The Labor Relations Director should take the initiative to irrvite bmgaining unit leaders to join in a professionally facilitated process that will lead to the creation of a vision for the future of cantract negotiatio�rs in the City of Saint Paul. This facilitaied process should review past successes and f4ilures with an eye to developing o common vision of how the process will proceed more effectively and e�ciently in the future. This visioning process should occur at least once ench year to ensure they continually refine and adjust it to deal with changes in circumstances attd changes in leadership. Recommendation �t42: Senior leaders from both fhe City and the bargaining units should define !he values thar will govern the contracl negotiation process and commil themselves to ensuring these values are regularly articulated cmd followed without zxception. A mechanism for identifying and correcting arry faiZures to adhere to these values should be established and enforced. Recommendation #43: The City wouid be better served if it were to be much more open and inclusive in developing and communicating with other City officials cmd union representatives about contract negotiariotts. Certainly such key players as Risk Management med the City Attorney should be kept fully informed mrd imited to participate in the development and pursuit of City contract negotiation objectives. The City should cease treating contract rregotiations as the exclusive purview of a small cabal of City offzcials and seek the active prnticipation of a wide spectrum of Ciry managers and elected oJJicials. We believe whatwer tacacal advantages may be lost by reducing secrecy and �.rclusivity will he more than offset by the benefits to be derived by urvolving a wide spectrum of City o,f�J'icials in the contract negotiation process. 1 A99 Saint Paul City Co�mcit Resemch Perfurmance Audit of ihe City of Saint Pau('s Labor Relatioas Acrivifies 61 /� n f141' U TRAINING $� DEVELOPMENT Summary Rating: �� Employees in successfu] organizations aze provided '�.� --- -- the tools they need to produce quality work. These same employees aze given encouragement and resources to develap a set of skills that allows them to contribute effedively to organizational undertakings. For example, if an organization identifies continuing education for its employees as a key strategic value, it will provide workers the opportunity and resources needed for them to attend classes, seminars or in-house training. If an organization values promoting from within, it will have well-defined advancement systems that aze attainable tivough hazd work and adherence to organizational priorities. Successfu] organizations also ]ink the training and development of their employees to the organization's goals and priorities. This linkage occuts through the development and release of a long-term strategic plan that identifies organization strategies that aze widely known and tied to basic organizational values. Education & Training Tnining and development does not appeaz to be a high priority for either the City or most union negotiators. On the City side, the Labor Relations Director is the only staffperson in the Office of Labor Relations that negotiates for the City." Organizationally, this is not a healthy situation. This situation is exacerbated by the Director's history of not sharing information and customer expectations with her staff. While Labor Relations staff have expressed interest in becoming negotiators, there is currently no formal training program for them to accomplish this goal within the City. Union negotiators make use of some training offered through their union affiliations. Unfortunately, all unions do not have the resources nor the infrashucture necessary to train and develop future negotiators. In many instances individuals on the negotiation teams aze untrained volunteers with no discernable negotiation experience. Job Design The Office of Labor Relatians recently hired a Labor Relations Manager with a requirement that he or she have five years of contract negotiation experience. This will improve the situation of inexperienced city negotiators. The Labor Relations Director has informally pass�l on some negofiarion strategies to her staff. Similazly, some staffhave attended MPELRA conferences where limited training did occur. City staff, based on their particular position and role in contract implementarion, have some opportunities to contribute to the process. Labor Relations staff al] have specific roles related to implementation and contribute through their respective roles; however, the primary 1 � In 1994, 1995, 1998 and 1999 the City hired Labot Relations consultanu. In 1994 and 1995 the consuitants worked with the Health Insurance Labot Management Committee and in 1998 and 1999 the consultants assisted in contract negotiations. KEY TRAINING 8. DEVELOPMENT CONCEPTS: � 3ob Design � Recognition o Fducation & Training n Employee Well-Being 7999 Sain! Pau! City Council Reseorch 62 Perfmmance Audit of the decisions are made by the director. Risk Management and Financial Serv� 9 �tr�b�e greatly to the process, and implement the wntract changes as required. However, this is somewhat problemaric, as some contract changes that are agceed to may in reality be very difficult to implement. Employee Well-Being & Recoguition Participants in the contract negotiation process reported significant leveis of disriust. Apparently, this distrust is not only between the City and the collective bazgaining units but also between participants within their respective goups. Within the City, participants in the process hold different views on negotiation sirategies and disagree about the leveI of service thaz should be provided to their competing customers. It was reported the actions of some department heads run contrary to the vision of contract negotiation expressed by the Administration. Labor Relations staff expressed concern that some department heads are making decisions contrary to the policies of the Office of Labor Relations. In contraSt, some department heads and other key staff believe they are left out of the negoriation process and feel e�ccluded by the Director. City staff involved in contract implementation expressed some frustration with the difficulty in obtaining the necessary information regazding contract changes. These employees also work undet stressful conditions when implementing contract changes, as the time frame between contract ratification and implementation is often very limited. Some union participants reported they do not always feel respected by their leaders. Smaller collective bar�aiuing units reported the negotiation process te.nded to be a positive experience for them, while some participants &om larger unions feIt worn down by the length of Ume it takes to reach an agreement. They believe extending the time it takes to reach an agreement is a negotiation strategy employed by the Ciry to better its outcomes. Recommendation #44: The O�ce of Labor Relations should make contract negotiakon training for eligible staff a priority. This should occur either in-house or through continuing education at an ofj-site facility. Recom�nendation #45: AIl unions should offer training in contract negotiation to members of the negotiation team. Recommendation # 46: The Oj�ce of Labor Rel4tions, Financial Services, ared Risk Management should develop a formal communication system to communicate cmd implement contract changes. See also Recommendation #56, page 69 on maintaining at least two negotiators an staff in the OLR. 1999 Saint Paul CityCoarxil Resemck Perfo�nce Audit of the City of Saint Pau1's Labor Relarions Activities �^(� $�� , !�{�-� INFORMATION AND ANALYSIS Summary Rating: �s�r�r Information and analysis aze vital for managing and improving processes. Performance improvement KEY lNFORMATION & ANALYSiS CONCEPTS: o Collec[ion of Data � Use of Data � Analysis of Data o Comparison with Others information includes customer, employee-related and cost information. Collecting data serves little purpose if it is not analyzed and used to make improvements. Extracting lazger meaning from data to support evaluation and decision maldng for the contract negotiation process is very important. Analysis should include trends, projections and comparisons. Using data and analysis systematically in setting priorities is important in properly setting goals, developing plans and allocating resources. Information should be available to all parties to the process and used to evaluate the process and assess progress. Information is essential in monitoring performance against measutable goals and it should play a key role in the decision-making process. Collection, Analysis, and Use of Data Both the City and the unions aze good at collecting and using data related to contract negotiation. While the City's systems for collecting and analyzing data have historically been weak, they aze now better and continuing to improve. Past City problems have been primatily related to inadequate wmputer hazdware, unstable softwaze and weak technical support. Improvement is due to better technical systems and sugport and the higher priority placed on the maintenance of quality data by the Labor Relations Director. The City continues to maintain two computer-based systems intended to do "total package costing." T'his appazent duplication is not only inefficient but, they tell us, often produces different cost projections. This duplication and instability suggest that more work needs to be done to improve the situation. Other City departments also collect varying amounts of information related to negotiation and implementation. The Payroll Office in Financial Services keeps copies of letters sent to employees describing pay changes, though ffiey do not keep any other formal files of changes. Benefits collects data on sick leave use and other benefits. Collective bazgaining units also use data and computer analysis to evaluate proposals and compare agreements with other jurisdictions. The use of this type of data and analysis varies among the bazgaining units with some being more sophisticated in their use of computerized data analysis than others. Most, if not all, bargaining units use data and analysis at least to some e�ctent to evaluate the products of the contract n�egotiarion processes. Comparison with Others The collective hazgaining units collect and shaze a fair bit of information on comparable contracts. They generally obtain this information from other locals or from na6onal labor organizations. This compazative data is used extensively by unions to study trends and to assess the equity of settlement proposals offered by the City. While City staff attend and participate in meetings with the labor relations directors of other govemmental units in the metro azea, the information gathered in this forum is thought to be 1999 Samt Paul Ciry Counci! Rueamh � Perfwmmce A�edit of the City of Saint PaW's Labor Relations Activities of limited value. This is because shazed information often lacks sufFcient debi] to accurately assess the total agreement and the desire of participants to make the settlements they have achieved look as gaod as possible to their peers. This group is sometimes, jokingly, called the "liazs club:' Nevertheless, the collection of this type of comparative information is important and helps the City understand the broader collective bazgaining environment. Regazding the outcomes of the contract negotiation process, some data is collected and analyzed by both parties, however, little data is collected by either party about the process itself. There is no systematic information gathered regazding ihe costs of the current process in either time or money. Lacking such information there is little incentive or basis for seeking to make process improvements. Recommendation #47: The City should continue to seek to improve its data collection and attalysis capa8ilities and should implement the total package costing program. Likewise, unions need ro continue to improve their systems and find additional supporl for thase units that do not currently have quality systems. Recommendation #48: The City and unions should continue to work to improve their data collection attd analysis systems for negotiation outcomes. The parties should also mutually define process cost measures and jointly collect arrd share data on these indicaiors. These data should then be used fo analyze the efficiency of the process with an eye to making improvements. This information can be used for a comparative evaluation of alternative negotiation methods. Alternatives should be used erperimentally until proven and then adopted for all conCract ttegotiations. The process would be well-served ifpresent leaders were 10 make a concerzed effort to break free of their long-starrding beliefs about how to conduct contract negotiation and seriously consider alternative dispute resolution processes. Some of these alternatives, may, prove to be superior to current processes which are, unfortunately, performing poorly in many cases. PROCESSES FOR IMPROVEMENT Summary Rating: �`r�`r KEY PROCESSES FOR IMPROVEMENT CONCEPTS: � Improving services o Improving Suppoft Services o Improving Supplier Services This section reviews the design, management and improvement of the conhact negofiation and implementation processes. Impmvement practices should be an integral part of any process. Both parties should be seeking to eliminate problems at their sowce and be driven by oppofiuiities to improve. Improvements may be directed towazd responsiveness, timeliness and efficiency in the use of resources. Improvement must contain cycles of planning, implementation and evaluation that require information and methods for assessing progress. It is critical tiiey continuously evaluate all processes to identify problems and successes. The coniract negotiation process reflects little management of the process by either party. All recognize their inability to complete contract negotiations on a rimely basis but little, if anything, is being done to remedy this most serious pmcess failure. Despite the higlt cost of this conYinuing failure in both frustration and direct expense, the parties have done nothing 1999 SaiM Paul Ctty CowrcAReseamh Performanw Audit of the CiTy of Saint Paul's Labor Relazions Activities effective to ameliornte this problem. While trends aze not entirely clear, in part because no one bothers to collect data on timeliness and hack �ends, this situation continues. 65 a � ��n Although it is commonly believed by the parties that the current "zero-sum" type of bazgaining is ineffective and needlessly expensive, there have been few attempu to improve the process by adopting altemarive models. Some have tried to use "interest-based bazgaining" with parts of a few contracts, but they have not attempted to pursue new and possibly better methods of resolving differences between the parties. Leaders on both sides seem to be deep]y invested in long-standing contract negotiation processes and either cannot see, or do not want to see, that there may be better ways of reaching mutually acceptable collective bazgaining agreements. One reason there may be so little impetus to improve the contract negotiation process is no systematic evaluation of current processes is ever done. No one collects or analyzes quantitative data about the methods in use. Without systematic evaluation, there is no way to imow how current processes are worldng and to identify the areas in need of improvement. Recommendation # 49: Parties irtvolved in contract implementation should corrduct surveys to identify tevets of supplier performance and search for areas and ideas for improvement. Suppliers might include those agencies and individuals who provide necessury informatian for the negotiation process. See Recommendations #47 and #48, page 64 on information analysis in contract negotiations. CUSTOMER FOCUS Summary Rating: ��`r Attention to customer needs is crucial if an organizaGon is 1 striving toward e�ccellence. Organizations that excel in customer satisfaction have obtained information by creating and managing relationslups with their customers that give the organization key service requirements, neaz and long-term expectaiions and degrees of customer satisfaction. The successful use of customer satisfaction information is linked to an organization's ability to gather and analyze data conceming customer requirements. Knowing the requirements of its customers enables an organization to develop service standards. In order for these standards to be efFective they must be distributed Uiroughout the organization and understood by KEY CUSTOMER FOCUS CONCEPTS: o Customer ldentification o Customer Knowledge � Customer Relations everyone. Castomer ldentification When it comes to contract negoriation both the City and the unions have a pretty clear idea of who their customers aze. The collective bazgaining units have identified the rank and file membership and the citizens of Saint Paul as their primary customers. Those individuals who aze involved in the negotiation process for the city have identified the Mayor, Ciry Council, department heads, the rank and file and citizens as their primary customers. 1999 Saint Paul Ciry Councr7 Research � Perfomoance Audit ofihe Interestin 1 eno 9' 9` ��a g y ugh, even though the City Council was identified as a customer, no actions during the negotiation process back this statement, The Council is not kept up-to-date on contract negotiations, collected information is not forvvazded to them, informarion on staff changes is fonvazded slowly and presentations before the Council by the Labor Relations Director are not regulazly scheduled. Customer Knowledge The participanu in the contract negotiarion process have a ciear understanding of who theu customers aze. They also believe they have a clear understanding of their customer's needs and expectarions. However, in spite of this belief, the participants do not have formal processes to assess customer needs, expectations and satisfaction. The Office of Labor Relations identified multiple customers but the only customer who is involved in any kind of process to determine customer needs, expectations and satisfaction level is the Mayor. The Labor Relarions Director held frequent meetings with the Mayor where the Mayor shared his vision for the future wnceming the d'uection in which contract negoHarions should proceed, This information was then used by the Office of Labor Relations in subsequent negoriarions. Unfortunately, very little was done to capture informaYion on the needs and expectations of other customers idenrified by the Office of Labor Relations. The OLR Director indicated that on at least one occasion a survey of department and office directors was conducted. Similazly, there were very few regularly scheduled meetings with the City Council Yo assess their needs and e�cpectaYions. According to some collective bazgaining units, informal conveisations and occasional surveys were used by union leaders to monitor the eacpectations and needs of the rank-and- file. They held infocmal conversations with union membeis after negotiations to determine their satisfaction with a settlement. The information shared at these meetings tended to revolve azound financial and bene5t matters; no information conceming impmved practices and meeting behavior was usually given. Furthecmore, these practices have not been formalized or practiced over time in order to compare customet sarisfaction results with other jurisdictions or with past performances. Negotiato� do not fol[ow any formal customer service standards or guidelines when it comes to such issues as communication between offices, information analysis, meeting time lines and negoriation behavior. Customer service standards, if shared with all key negotiators and their staff, would provide a frunework for a[I pazficipants in tfie negotiation process to understand the vision, goals and eacpectations of key customers prior to and during negotiations. Cnsfomer Relations High quality organizarions stress relationship enhancement as an important part of an averall "listening and leaming strategy." Some members of lazger collective bazgaining units did report communication problems between themselves and the leadership. For tite most part however, union negotiators did provide information conceming the negotiation prceess to iu membership on a regulaz basis. Unfortunately, no formal consistent process to determine customer satisfaction e�sts between the leadership and iu members. Therefore, important customer feedback may not to make it to union negotiators in a timely manner. Without an effective method to assess the needs and expectations of key customers the effecriveness of the negotiation process is limited. 1999 SairetPmrlCrry Counci! Research PeA'onnance Audit of the City of Saint Paul's Labor Reietions Activities 67 Reconen:endation #S0: The unions should create a formal process to measure the r� �� expectations mrd satisfaction IeveLs its members have concerning the contract negotiation process. The usues identified in this process shauld not be limited to financial arrd benefzt outcomes but should also stress communication between the leadership and its members, informatian d"usemination, sruff changes, timeliness, processes for improveirsen[ and general leadership concerns. Recommendation #SI: Both the City and the unions should use the informatinn it receives from surveying its customers to establuh customer service standards and guidelines whzch in turn would be used during tiee contract negotiation process. Recommendalion #52: The Office of Labor Relations needs to ezainine the role of the City Anorney's O�ce, the O�ce of Financial Services and Risk Management to determine if greater p�tnering accompanied by information sharing would be a more effecrive approach to negotiation than presently eruts. All of these departments should consider surveying their respective customers to determine their level ofsatisfaction with negotiation and implementation. See also Recommendations #17 and #19, pages 24 and 26 respectively, an Ciry Cauncil and other customer communication and information gathering. RESULTS Summary Rating: �r� Successful organizations know how well they aze doing. By using results they can caiculaie their KEY RESULTS CONCEPTS: o Customer Satisfaction � Financial Outcomes � Suppler Performance � Organization Outcomes efficiency and effectiveness. For example, if the goal of the organization is to pmvide a high level of customer satisfaction with a product, the organization would collect and analyze data indicative of customer expectations, work practices to meet these eacpectations and the resulting levels of customer satisfaction. Once they establish outcomes, the organization can track its perfomtance over time and compare its results with those of other organizations. These comparisons with other similaz organizations can represent benchmarks against which to compare outcomes, efficiency and effectiveness. Participants in the contract negoriation and implementation processes do not have formal methods to measure their outcomes. They do not track performance over time and any comparisons to similaz organizarions are limited in scope and not part of any annual assessment. Customer Saiisfaction We diswvered customer satisfaction with the results of the negotiation process is not systematically measured by either the City or the unions. Only a few unions survey membership periodically. Because no accurate customer satisfaction results aze gathered, no current customer satisfaction comparisons to similaz organizations can occur. There is no formal evaluation of the process used for negotiation and implementation of contracts for either the City or unions. Overall, the communication systems between the 1999 Saint Povl Ciry Council Resemch Paul's Labor Relazions Activifies depaztments are goor, and even informal evaluations do not seem to be preseni " In�emally, no feedback mechanisms eacist for each department to evaluate the services it receives &om the othecs on a holistic or individual level. Therefore, it is even more difficult to aclueve efficiencies in the negotiation process for the upcoming negotiation cycle. Organizatiouat Bc Ftinancial Outcomes It is natural far both sides in the contract negotiation process to be concemed about the outcomes of that ptocess. However, the City aud the unions have goals that are too narrowly defined as "mazginat financial outcomes." Because their goals are limited in scope the �mions and the City believe they achieve most of their desired goals. Union and City negotiators occasionally measure the outcomes of a negotiation session by having informal conversations after a round of negotiations. While we tecogniae concentrating on fivancial results is a natural reaction to conffact negotiations, we must point out that lugh quality organizations have identified other measurement criteria that determine whether they aze achieving their goals. Such criteria deal with issues of communication between participants, information shareng, rimeliness, standards of behavior and negotiating environment. Little attendon has been given to other aspects of the negotiation process to see if possible efficiencies can be ide�tified and impmved upon before the ne�ct round of negotiations. The Office of Labor Relations dces compaze its financial results Yo other municipalities. They also compare current financial results to resuhs from other years. Some collective bargaining units infoanally compare their financial and benefit results to similaz organizations and national pazent organizations. Organizational and financial outcomes related to contract implementation are not tracked or evaluated by the City. The Payroll unit states that it measures results by whether paychecks aze correct. If they are not, the Payroll unit states it will heaz of the problem, and would then consider its results unsatisfactory. Risk ManagemenY has a one-month plan to incorporate any benefit changes, and measures its res�ilts according to this pian. While individual depattments may claim to evaluate their work through these methods, there is no evaluation of Yhe whole process. Ttris lack of evaluation is pervasive and a hue lvndrance to any improvement practices that may be taldng place on either side, Employee PerFormance & Well Being Multiple staff changes in the Office of Labor Relations ovet the past few years have resulted in a situation wheie only the Labor Relations Direc;tor has the ability and lmowledge to negotiate a contract. Historicaliy, the Office has had two, and occasionally three, professional staff capable of negotiating contracts. However, for almost one ye� the Office has had only the Director and hired consultanu able to negotiate contracts. This situation is fuRher exacerbated by an office that does not vatue additional training and development for its staff. Continuous staff tumover in the Office of Labor Relations has made it difficult for the unions to establish a normal working relationslrip with the office over time. Intemal office assignments shift from person to person without long-term adminishative projects being completed. 7999 San1t Pau(City Cmmci! Research Performance Audit ofthe City of Saint Paul's Labar RelaROns ActiviRes 69 � Supplier Performance �V�� In 1998 the Office of Labor Relations contracted with a consultant to help with contract negotiations. The Labor Relations Director reports to have formally evaluated the consultant for his value and effectiveness; however, no documentation of this has been produced. Recommendation #53: Both the Office of Labor Retations and the unions should develop formal processes to measure and track goal-oriented outcomes. These outcomes should inciude more than just,financial and benefit information. Participants in the contract negotiation process should establish criteria that would also measure aspects of the negotiation process associated with communication between participants, information sharing, timeliness, standards of behavior and the negotiating emironment. Recommendation #54: The Office ofLabor Relations, Risk Management, Financial Services ar+d the uniotts should measure customer satisfaction arrd compare those results with similar jurisdictions. Survey instruments should be developed and sent out bi-annualdy fo all ident�ed customers. Recnmmendatfon #55: The Office of Labor Relations in conjunction with the Office of Human Resources should conduct an employee retention study to assist the new director in recruiting and maitttaining staff with the goal of reducing employee attrition. Recommendation #56: The Ojfzce of Labor Retations should reinstitute the practice of hcrving at least rivo staff inembers capable of negotiaring a collective bargaining agreement at a11 times. This would rake pressure o, f,�'the primary negotiator and allow the of�ce to deal with administrative arrd management tasks more efficiently. Recommendtttion #57: All contract employees should be evaluated for performance. This data should be used for planning and process improvement. 1999 Soint PauT Ciry CounciT Reseorch 7 0 Pe r F mm�ce Audit of the C ity o Saint pan!'s Iabo Re�tioos Activities ■ • •- i GRIEVANCE PROCESS POLICY ALIGNMENT Grievances may arise ouY of three different sources: 1) interpretation of the conhact agreement; 2) disciplinary action; and 3) Civil Service Rules. If an employee or union feels the temis of the contract have been violated a grievance may be filed. An individual employee may also file a grievance if they feel a disciplinary action taken against them was unjustified. Finally, a grievance can be filed if there is an alleged violation of tke Civil Service Rules. Civil Service grievances are handled by the Office of Human Resources and the CiTy Attomey's Office. Contract and disciplinary grievances that advance to Step III (e�cplained below) and beyond are managed by the Office of Labor Relations, with some assistance &om the City Attomey's Office, Tfus performance audit examines only the grievances handled by the Office of Labor Relations. Grievances generally follow a four-step process, outlined in each collective bazgaining uniYs contract. Time limiu on each of the steps e�cist to assist in moving the grievance forward in a timely manner, though time limits can be waived by mutual agreement. Step I of the grievance pracess unvolves onty the employee and his/her supervisor. They meet informally to resolve the issue. If they are unable to reach a mutually acceptable decision, the grievance moves to Step II, and the union stewazd meets with the department head or another higher- level management representative. If the gievance cannot be resolved at the two lowest levels, it advances to Step IlI, at which point the Office of Labor Relations assumes responsibility fat the grievance, and meets with the union's business manager. If still � settlement is reached, the grievance may go to arbit�ation, and the Minnesota Bureau of Mediation Services (BMS) will hear the grievance and make a ruling to wluch the City and the collective bargaining units must comply. The ruling of an azbitrator may be appealed to district court only under very limited circumstances such as: 0 Evidence of bias on the part of the arbitrator, ❑ The azbitrator �ceeded his or her powers--he or she did something contruy to law; ❑ The arbitrator refused to postpone the hearing when requestec}—according to law it is unfair for one side to be unprepared; ❑ If the subject being appealed is ruled non-arbitrable; or ❑ If the decisions is procured by unfair means (such as bribery). According to the OLR, appeals razely occur. 7999 Sai�e7Pttu! CrryConmil Rereolch PerEo�mazice Audit of the City of Saint Paul's Labor RelaRUns Activi4es 71 �� / teps and Participants in the Grievance Process' 5tep I: Informal meeting -� Grievant, Supervisor (oral) Step II: Formal meeting (orai) Step III: Office of Latwr Relations becomes formally involved (written) Step IV: Arbitration (written) � Union Steward, Department Manager � Union Business Manager (or President if collective bazgaining unit does not have a business manager), Office of Labor Relations � Bureau of Mediation Services, Union Business Manager, Office of Labor Relations An optional mediation step is also available to collective bargaining units and the City between Step III and N of the grievance process. Upon request of both parties, the Minnesota Bureau of Mediation Services will assign a mediator to the case. The pmcess is informal, and both sides have an opporiunity to present their evidence. This can be done in a joint session or in sepazate caucuses. At the request of both pazties, the mediator may issue an oral recommendation for settlement. Either party may request an assessment from a mediator as to how an arbitrator might rule in the case. If the grievance is resolved through mediation, the grievant will sign a statement accepting the outcome. If the grievance is not settled, it moves to azbitration, Step N of the grievance process. In addition to handling contract grievances, the Office of Labor Relations may also represent the City in disciplinary grievances following the process outlined in the collective bazgaining agreement. If the employee selects review by the Civil Service Commission, the Office of Human Resources would be involved. However, the City Attorney hand]es most disciplinary grievances, and works with the department to draft a letter of discipline and iFthere is a dischazge or suspension. The Office of the City Attomey also administers grievances resulting fram Civil Service Rules interpretation. The following diagrams illustrate the general grievance processes for both non-disciplinary and disciplinary grievances. '� The City Attomey's Office may also participate in any step of the process by providing legal and contract interpcetations. The Office of Human Resou�ces will provide additional resowces at any step of the process. I999 Sarxt Pau! Ciry CouxcilResearch 72 PerForm�re Audit of the Ciri of Sa"mt Paul's Iabor Relations AcYivities • I J I r NON-DISCIPLINARY GRIEVANCE PROCESS Step I: Informal ►� Step II: Formal Step III: OLR becomes ,�,� formally invoived Employer responds to union, union refers grievance to business manager, who meets with Office of Labor Relations Meeting Employee and supervisormeet iefomially to resohie iswe Meeting Emptoyer supervisor or Fugher IevN manageme� �r�s with union steward Step IV: Arbitration Appeai to District Court onty under very limited circumstances A Vlfdhin 7 days, union reqests arbitration B. Union and employer strike names from list of arbitrators sent from BMS C. Arbilrator has 30 days to wbmit final and binding decision *A non-disciplinary grievance is an alleged violarion of the terms and conditions of the collective bazgaining agreement. l999 SamtPauJCityCawxilResenreh Perfo+mance Audit of the �ry of Saint Paul's Iabor Itelatioas Activilies DISCIPLINARY GRIEVANCE PROCESS Notice of discipiinary action sentte employee and uniort within 72 hours of aation being taken; employee may file a grievance If disciplinary action is a discharge, reduction, or suspension, employee may choose review by the Civil Service Commission (CSC) or use grievance procedure contained in collective bargaining agreement If employee requests review by CSC, must make request within 5 days of notice of the action Foilow collective bargaining agreem¢nt procedure and initiate Step 1 of nondisciplinary grievance process Grievance reviewed by CSC Disciplinary actions indude oral and written reprimands, suspensions, reductio� in classification and discharges. My discipfinary adion that is not a reduction, suspension, w discharge can be grieved only through the co�lective bargaining agreemenYs grievance procedure. '��,$�D 1999 Soint Paul Ciry Cormci) Research 74 Pecfo�m�ce Audit of the City of Sain[ Pau Labor Relazioos Activities General Grievance Process Policies g 9- $�� Many of the grievance process policies apply to both parties in a grievance. These policies aze listed and discussed below. General Grievance Pmcess PoGcies Expression of views. [The Minnesota Pubilc Employees Labor Relations Act] dces nM affect the right of any public employee or the employee's representative to e�cpress or communicate a view, gievance, complaint, or opinion on azty matter related to Yhe condirions or compensation of public employment or their bettennent, so long as tlus is not designed to and does not interfere with the fiill faithful and proper performance of the duties of empioyment or circumvent the rights of the exclusive representative. Sections 179A.01 to 179A.25 do not require any public employee to perform labor or serveces against the employee's Will. Minnesata Stme Statute 179i1: Public Employees Labor Relations �ict 179.4.06 Rights and obligations of employees. Svbdivision l. Unfair la6or practices A copy of any complaint alleging an imfair lahor practice must be filed with the commissioner at the time it is brought in disirict court. �meesota State Stalute 179A; PuLlic Employees Labor Relations Act 779A.13 SUbdivision l. Actions. Unfair labor pracrices The party bringing an unfair labor practice action in district court shall also transmit to the commissioner any ordeis or judgmenu of the court wiUvn ten days of the order or judgment Min,resora Srare Stan.te t �9A: Fal,lic Emplayees I,abor Relations.4ct 179A.13 Subdivision l. Actions. Grievance arbitralion If the parties to a contract cannot agree upon an arbihaYOr or panel of arbitrators as provided by the contract grievance procedures or the procedures established by the commissioner, the parties sfiall altemately strike names &om a list of arbitrators selected by the commissioner until only one name remains. Minnesota State Statute 179A: Pu61ic Employees Labor Relatinns Act 179A.21 Subd 2. Setection. Grievance arbitralion The parties shall share equally the costs and fees of the et�itretOi. �ru�esota State Stalute 179A: Public Employees Labor Rela[ians Act 179A.21 Subd. l. Selection. Independent review. IL is the public policy of the state of Minnesota that every public employee should be provided with the right of independent review, by a disinterested person or agency, of any grievance azising out of the inteipretation of or adherence to terms and conditions of employment. Minnesora srare Srarure 179A: Poblic Employees Labor Relations Act 779A.25 Findings 1} It was repoded that upon occasion, a union member may circumvent the exclusive representative and communicate directly with a supervisor or manager regazding the terms and conditions of employment, but we found no obvious violations of the "Expression of Views" statute. Union members may sometimes feel as though they have not gotten a desired transfer or other changes as a result of expressing a view or filing a grievance, but none of the allegations have been substantiated. 1999 Saint Pau! Ciry Cowcd Research Perfom�ance Audit of ffie Ciry of Saiat Paui's Labor Relations Activities 2) When unfair labor practice complaints have been filed, both parties have complied with Minnesota Stahrtes. 3) Both parties in arbitrations have complied with the state statutes regazding selection of arbihators and the sharing of the costs and fees of the arbitrator. 4) The right to independent review is believed to be covered by Step N of the grievance process, which is azbitration. The City is in compliance with this policy. Grievance Processing in the Office of Labor Relations n ��_�� As discussed previously, the Office of Labor Relations carries primary responsibility for administering grievances, with the exception of Civil Service grievances. The policies below aze those that specifically address the responsibilities of the Office of Labor RelaYions. Grievance Pmcessing Policies for the Office of Labor Relations Develop a training program to train managers on workplace issues and contract 2dminiStCdtlon. O� j'/'ice of Labor ReTations Ongoing Budget Program Objecfives and 1998 Budget Project Objectives Develop joint initiatives which can fixrther both the City's interest and the unionized employee's interest while serving 5t. Pau] citizens, o�'ice oftabor Relallons Ongoing Budget Program Objectives ond 1998 Budget Project Objectives. Preambles to the Collective Bazgaining Agreements (See Example in Appendix E) Findings 1) The Office of Labor ltelations does not provide any training for managers on workplace issues and contract administration. 2) Few serious joint initiafives have been developed between the Office of Labor Rela6ons and the collective bargaining units. The health insurance labor-management committee was intended to be a joint initiative, but it has not met in over rivo years. The Violence in the Workplace Committee was also mentioned as a joint initiative, though it is run by the Mayor's Office, not through the Office of Labor Relations. Interest based bazgaining (IBB) has also been mentioned as a joint initiative, but has been used only on an extremely limited basis and was not used for such important items as salaries and benefits. The OLR claims a few other activities as joint labor-management agreements and initiarives as listed below, though the OLR is not directly involved in many of them: ❑ Labor-management committees at the department and division level to resolve issues related to seniority with the Tri-Council; ❑ Information Services centralization; ❑ Labor-management committee in the Fire Department; ❑ People Soft payroll project; I999 Saint Paul City Council Researoh 76 P er F wmance Audit of the City o Paul's Ia R e l abons Acfiv ❑ Ongoing meetings with AFSCME Clerical and Technical to discuss potential merger activity in the City; and the p n_ �� / 7 ❑ City/County Health Department merger. 3) Preambles to the agreements aze mutual statements made by the employer and the collecYive bargaining units outlining theit mutual interest and responsibilities. They are inciuded here as general policy statements. Neither the collective bazgaining units nor the city e�cpmssed any problems with adhering to the language in the preambles. Recommendation #58: The City of Saint Paul should provide training for supervisors and managers after each contract is ratifzed or a major arbitration award is handed down. These training sessions would give mnnagers and supervisors needed information on contract changes. If no sign�cant changes arose, a memo could simply be sent out to all relevant supervisors and managers. The Offzce ofLabor Relations should also hold an annual training session for managers 4nd supervisors on general contract policies such as: � the defittirion of "just cause" � differentiating between complainrs and o disciplinary actions (oral and wrinen grievances reprimands and suspensions) o sexual harassment prevention � work assignments o reasonable accommodation � overtime o workplace violence � adherence to City & depm7mental policy � grievance process. Such training sessiotts could potentially reduce the number of grievances resulting from uninformed contract inferpretatioru. Recommendation #59: The City of Saint Paul and the collective bargaining units should provide funding and time to arryone iuvolved in negotiations or conbact admittistration to anend the training sessions ofjered by the Bureau of Mediation Services. Topics include Conflict Resolution, Interest-Based Bmgaining, labor-management committees, mediation, basic labor relatiorrs, negotiation, and 1he �nnesota Public Employment Labor Relatioru Act. Recommendation #60: If the City has the goal of improving the relationship between management and Jhe collective bargaining unils, it should be pursuing more initialives of joint interest. A number ofuniorrs e.xpressed interest in mterest-based bargaining (IBB) during our interviews. We suggest training on a broader basis and expansion of the use of IBB. Employer Role in Grievance Processing The policies described in this section apply to the City of Saint Paul as the employer, and are applicable to all departments and offices. 13 Training topics taken from: Smythe, Cyrus. "The Importance of Supervisor Training.^ Minnesota Cities. 44. Sept. 1998. 7999 SaintPav! Ciry Coancil Resemch Peifom�ance Audit of ihe Ciry of Saint Paul's Labor Relations Activities Grievanee Process Po6cies for the Employer " �D aq-$ Promotion of an effective and timely dispute and grievance resolution process. Htrman Rumvices Division: Cn�e Consulting Services Orsgoing Bvdget Program Objectives tmd 1998 Budget Project Objectives Executive Responsibility [The] office of the mayor shall: Process grievances under collective bargaining agreements in coordination with the office of the city 3t[Oit1C}'. Saira Paul Adminisbative Code, Chapter 23: Collective Bargaining Process, Sec. 23.03 Unfair labar practices Public employers, their agents and representatives are prohibited from interfering, restraining, or coercing employees in the exercise of the rights guar�nteed in sections 179A.01 to 1�9A.25 (Minnesota Public Employees Labor Relations Act). Minnesota Srare Stature 179A: Public Emptoyees labor Relations Act 779A.13 Subd 2. Employers Unfair labor practices Public employers, their agents and representatives aze prohibited from dominating or interfering with the formation, e�stence, or administration of any employee organization or contributing other suppoR to it. Minnesota State Stahtte 179A: Public Employees Labor Relations Act 179A.13. Subd 2. Employers. Unfair Inbor practices Public employers, their agents and representatives aze prohibited from discriminating in regazd to hire or tenure to encoura$e or discourage memhership in an employee organization. Minnesota Srare Stature 179A: Public Emptoyees Labor Relations Act 179A.13 Subd. 2. Emplayers. Unfair labor practices Public employers, their agents and representatives are prohibited from dischazging or otherwise discriminating against an employee because the employee has signed or filed an affidavit, petition, or complaint or given information or testimony under sections 179A.01 to 179A.25 (Minnesota Public Employees Labor Relations Act). Minnesoro Stare Starure 1 �9a: Pubtic Emptoyees Labor Relations Act 179A13 Subd. 2. Employers. Unfair labor practices Public employers, their agents and representatives aze prohibited from refusing to comply with grievance procedures contained in an agteelTlent. Minnesota State Stahrte 179A: Public Employees labor Relations Act 179A.13. Subd. 2. Employers. Unfair labor practices Public employers, theu agents and representatives aze prolubited from distributing or circulating a blacklist of individuals �ercising a legal right or of inembers of a labor organization for the purpose of preventing blacklisted individuals from obtaining or retaining employment. Min,resora Srare Statute 179A: Pu87ic Employees Labor Relations Act 179A.13 Subd 2. Employers. Findings 1) The Office of Human Resources has taken four main steps to promote and effective and timely grievance resolution process: ❑ Placed the Civil Service Rules on ffie Intemet for easy access; ❑ Made improvements in scheduling for Civil Service grievances to speed up the process; I999 Sainf Poul City Council Research �s Paformance Audit of the City of Saiot Paul's I.abor Relations Activifies ❑ Created a handout for those interested in appealing decisions to the Civil Service Commission; and gC�_ 8�� ❑ Worked with the Office of Labor Relarions to clarify etnployees' rights to a Civil Service hearing. 2) The Office of Labor Relations dces work on a limited basis with the Office of the City Attomey, though the Attomey's Office serves primarily as a consultant on grievances. 3) We found no instances of City interference with the unions, discrimination because of union membership or achion or blacklisting. Collective Bargaining Unit Role in Grievance Processing The collecrive bazgaining units must follow certain laws and restrictions in relation to their practices. These policies aze listed in the following table. Grievauce Process PoGcies for Emplovees and Collecdve Bareainin¢ Units Responsibility of labor representntives and employees (3) Present grievances conceming terms and conditions of employment only in accordance with procedures outlined in the coIIective bazgaining agreements or by other grievance procedure established by administrative ordinance of ttus council. Sainr Pavt Administrative Code, Chapter 23: Collec[ive Bargainittg Frocess, Section 23.04. Unfair labor practices Employee organi�ations, their agents or representatives, and public employees are prohibited from restraining or coercing emgloyees in the exercise of rights provided in sections 179AA1 to 179A.25 (the Minnesota Public EmPloyees I.aboi Re13tiOnS ACt�. M:nnesota SYate Statute 179A: Public Employees Labor Relations Act 179A. ]3 Subd. 3. Emplayees. Unfair labor practices Employee organizarions, their agents or representatives, and public employees are pmhibited &om coercing or restraining any person with the effect to foree or require any public employer to cease dealing or doing business with any other person. Mi.�rsesora srnre Sr�ure I�va: aualto smpioyees tabo. Relalians Act 179A.13. Subd, 3. Employees. Unfair labor practices Employee organizations, their agents or representatives, and public employees aze prolubited &om coercing or restraining any peison with the effect to refuse to handle goods or perForm services. Minnesora Srare Starure I79A: PublicEmpToyeesLaborRelationsAct179A13. Subd.3. Employees. Unfair labor practices Employee organizations, their a$ents or representarives, and public employees aze prohibited &om coercing or restraining any person with the effect to prevenring an employee from providing services to the employer. M'�nnesota Smte Stande 179A: Public Employees Labor Redatin»s Act 179A.13. Subd. 3, Employeex 1999 Saint Paul Ciry Cormdl2esemch Performance Audit of the Ciry of Saint Paul's Labor Relalions Activities 79 Grievance Process Policies for Employees and Collective Continued Unfair labor practices Employee organizations, their agents or representatives, and public employees aze prohibited from causing or attempting to cause a public employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services which aze not performed or not to be perfottiled. Minnesota State StahUe 179A: Pvblic Employees Labor Relations Act 179A.13 Subd.3. Employees. Unfair labor practices Employee organizations, their agents or representatives, and public employees are prohibited from picketing which has an unlawful purpose such as secondary boycott. Etinnesora Stare Srarure t79A: Pubiic Employees Labor Relations Act 779A13. Subd. 3. Employees. Finding We found no compliance problems with these policies. GRIEVANCE ADMINISTRATION QUALITY AS5E55MENT PLANNING Summary Rating � Planuing is an exercise integral to the development - of an orgazaization or function. It integrates values and eJCpectations with practices. Planning requires an assessment of resources, influences, challenges, and requireinents that affect future opportunities and direction. As related to grievance administration, planning could include developing activities to prevent future grievances or development of plans to resolve grievances in a timely and efficient manner. Setting Strategic D'uection The parties involved in grievance administration devote very little time or resources to planning or setting strategic direction. The lack of planning in the City departments is reflective of an overall culture in the City that does not value plauning. It is also extremely difficult to develop meaningful short- and long-term plans without a strategic direction. Devetoping Actiun Plans The collective bargaiuing units primarily involve only the union steward and the union leadership in the planning process on a grievance-specific basis. As discussed in the previous quality sections, most collective bazgaining units focus their planning efforts on contract negotiation. KEY PLANNING CONICEPTS: � Set Strategic Direcdon o Develop Action Plans o Align Work With Plans . �1 1999 Saint Paul Ciry CouncARu¢arch 80 Perfocmance pudit of tfie of Saint Paul's I.abor Relazions Acbvities While planning is not an integral practice of any participant in the grievance admmistration process, it is unfair to say that no planning occurs. Both the City and the collective bazgaining units do make some short-term plans to administer grievances, although the plans do not incorpoiate a strategic direction or a philosophy reflective of a future orientation. One City staff petson mentioned there aze no plans for grievance prevention, only specific plans for each grievance. Therefore, while some plans are made, the focus is too narrow to be considered comparable to planning used by high quality organizations. Aligning Work with Plans The process of planning also involves the dissemination and use of plans, and the alignment of work assignments with the overall direction of the plan. This could be considered the acUOn phase of planning. Because the few plans that aze developed are limited in swpe to specific grievances, they aze not widely disseminated or useful to a broad array of people, and do not enhance the overall contract administration process. The final phase of planning is evaluation of the planning process and evaluation of the plans themselves. Because few plans exist, there can be little evaluation of the contract administration planning process or the actual plans of the participants. Without evaivation, new plans cannot be developed to complement and build on the strengths or correct faults in previous plans. Recommendatioa #61: The Human Resources Division, the Office of the City Attorney and the Office ofLabor Relations should develop short-term plans to deal with grievances, in particular addressing communication processes between the departments arul each department's respective role in the process. This will address misunderstandings between the departments regarding respective roles, contract interpretation, and lack of communication. Recommendation #62: The Offzce of Labor Relations, in concert with Risk Management and Of,�ice of Financial Services, should develop procedures to implement changes to the contract resulting from a grievance settlement. The changes should be tracked and analyzed by the O�ce ofLabor Relations for use and cottsideration during the next negotiating cycle. LEADERSHIP Summary Rating: �r� KEY LEADERSHIP CONCEPT3: � Mission � Vision � Values o Communication � --_---_---�.--r----s_ _--_ The leadership caYegory is an examination of how senior leaders in the grievance administration process guide the process and set direction, while seeking out firture opportunities. Strong leaders relate cleaz values and high performance expectations. Communication is a key element of effective leadership. Communication is broader than simply verbal communication, and includes a demonstration that stated values, directions and expectations are indeed the basis for the organization's key decisions and actions. 1999 Soint Poul Ciry Coaznri7 Research PerFo'mance Audit of t6e City of Saint PaW's I,abor Relations Activiries M13SI00 $1 �� F� An underlying mission of the Office of Labor Relations's grievance process is to make grievance outcomes uniform and therefore fair. However, because of a lack of communication between the OLR and depamnents, supervisors and manageis do not have a broad concept of what interQretation of the conhact means for the City. The resulting misinterpretations may lead to repetitive and unnecessary grievances. The Office of Labor Relations is trying to address the problems arising from azbitrary grievance resolutions by centralizing grievances in the Office of Labor Relations and advising departments to advance to Step III of the grievance process when the grievance is complicated or if it could have widespread implicarions. Vision Through interviews, we found very little evidence of a clear vision by any of the leaders in the grievance administration process. This lack of vision is partially a result of unclear values and expectations of leaders in the process. Neither the City nor the collective bazgaining units have a coherent or explicit vision fm the future. This lack of vision sometimes results in azbitrary interpretations of the conhacts by departments. Values Part of leadership involves maintaining and communicating a cleaz set of values. While no formal communication of values occurs within the City departments or the collective bazgaining units, some underlying values are reflected in the actions of the participants. Many pazticipants acl�owledged an occasional to frequent occurrence of informal recognition of grievance administration participants. The participants also found no evidence of discrimination in the grievance process, and felt the system is struchued in such a way to be fair to all participants. Communication Previously mentioned as an important aspect of effective leadership, couununication is an azea in dire need of improvement by all parties in the grievance process. The Office of Labor Relations shazes some grievance information with other City departments through the department and office director meetings and through memos, though this is a relarively new practice begun within the last yeaz. Other than these meetings, very little grievance information is shazed among Human Resources, the Office of the City Attomey and the Office of Labor Relations. This is a glaring problem considering each department is heavily involved in some aspect of gcievance admuristration. The primary vehicle for communication regarding grievance administration Uetween the collective bazgaining units and the City is the contract. Beyond the contract, little information is shazed. One exception may be communication between the Police and Fire Departments and the bazgaining units. They appeaz to have good levels of communication between the unions and their respective departmems related to grievances and other aspects of the contract. Recommendation #63: Leaders in the grievance administration process should develop a set of principles to guide decisions made about grievance processing. 1999 Saint Paul Ciry Council Research �z Perfocmance Recommendation #64: Collective bargaining units and depm�tment Pwl's Labor RelaROns Ac4vifies continue communication practices where currently efJ'ective, and other departments should begin the same panern of on-going communicarion between the parties to discuss issues of mutual interest. TRAINlNG & DEVELOPMENT Summary Rating: � KEY TRAINING & DEVELOPMENT CONCEPTS: � Job Design o Recognition gi i y, ough emp oyee s development shonld not be limiYed to one specific area, but should involve the variety of activities the organizaYion is involved in or the process requires. Work assignments and training and development should allow the employ� to contribute as effectively as possible to the or nj� tion, meet performance objecrives, and allow the employee to adapt to changes in the organization. Training and development is central to creating a high perfonnance workplace. Work assignments should be ali ed cvith ab'lit th 1 Idll Job Design Though the grievance process is fairly rigid, members of collective bargaining units do have oppor[unities to contribute to the processes used through direct contact with union leaderslup, surveys, or voting to cazry forkh a grievance. As the grievance moves through the steps it becomes more removed from the grievant and supervisor, and they receive less and less information until eventually all they hear is the final decision, though they most likely do not hear the reasons for the decision. Recognition Few parties in the contract administrarion process cited formal examples of recognition, though most made mention of informal recognition, Union stewazds are informally recognized at meetings as gievances are reviewed. Office of Labor Relations leadership expresses appreciation to staff for their work. Education and Training A lack of training is a City-wide problem that pervades many departments, including those involved in contract admuustration. No meaningfiil grievance training eacists for City staff, particulazly for si�pervisors or managers who oversee unionized employees. One department head comxnented that "you need to lmow the system to get what you need." This matter was discussed more fully in the contract administraiion policy section of the report. The Office of Labor Relarions staff do not provide grievance administration training for other city staff. OLR staff have attended some training themselves, though it has been rather limited. The Office claims a lack of staff rime and budgetary conshaints as reasons for not attending or providing training. The collective bazgaining units do provide some haining for union stewazds related to contract administrarion, though it is very limited. /999 Saint Paul City Council Reseorch Performance Audit of the City of Saint Paul's I.abor Relations Activities Employee Well-Being 83 �� A positive aspect of training and development found through interviews was a relativety good level of participant well-being and satisfaction. Many union members stated they Feet the grievance process is well structured and fair to all participants. However, ihey also feel the process takes too long and the City purposely delays responses. Recommendation #65: Make training a prioriry for Labor Relations sfaff involved in administering co�tracts and handling grievances. One way to emphasize training may be to make it part of annual review process. The OLR should not use Zack of time and staff as an excuse, as a lack of training makes staffeven Iess productive as they fail to develop their skills. It may well be worth the time to provide training if it improves the process and functions of the Office. Recommendalion #66.� The �ce of La6or Relations should develop contract administration training programs for department heads and supervisors. Such an effort may reduce the number ofgrievances and enhance understanding ofthe contracts. A component of this plan should specifzcally address the prevention of grievances. See also Recommendation #67, page 84 on grievance information collection and analysis. INFORMATION AND ANALYSIS Summary Rating: �s� Collection of Data KEY INFORMATION 8. ANALYSIS CONCEPTS: � Collection of Data � Use of Data � Malysis of Data o Comparison with Others The City departments most closely involved in gievance administration actively collect some data to assist them in their operations. The Office of Labor Relations has developed a grievance tracking system that allows them to enter the grievanYs name, deparhnent, date, subject, status, and the manner in which the grievance was resolved. The Office of Labor Relations �pects the data to assist them in determining length oFrime for grievance resolution and tracking grievance outcomes. However, while the data is being collected, it is not yet being utilized for in-depth or extensive evaluation of the process. The collective bazgaining units maintain varying amounts of grievance information, usually depending on the number of inember grievances and the size of the organization. However, all collective bazgaining units collect more information for negotiations than for grievance administration. Use of Data While it is certainly important to collect data, it is even more vital to accurately analyze and disseminate the information. The data that is collected by the City is available only to a small group of people in City. Others throughout the City may theoretically have access to I999 S¢inf Paul Ciry Council Researck 84 PerFormance Audit of the C ity of Saint PaW's Ia bor Rel Activit it, but are not aware of it. In general, the data is used for specific grievances, but not necessarity for ptanning and improvement of the grievance process, Consequendy, the data is not being used to evaluate the process, though the Office of Labor Relations is taking the first steps to do so. Cj Cj_ 8' ( � Analysis of Data Another vital aspect of data collection and analysis is the information systems used for tabulation and analysis. The City's informarion systems are adequate and have improved in recent years, but very few people understand the systems and how to use them. Rapid changes in the softwaze used have caused confusion for staff. In addition, the departmenu' information systems ate not integrated. It is difficult for one deparunent to obtain information from another departmenYs system. The current reliance by City departments on an antiquated system that only a select group of people understand is dangerous. If problems arise and the few people with the la�owledge are not available, Yhe City may find itself unable to perform necessary functions. Most collective bazgaining units use information systems on a very limited basis for grievance administration. Comparison with Others The City compazes arbitration information with other jurisdictions through the Bureau of Mediation Services, tfie Minnesota Police and Peace Officecs Association, and through negotiators' mundtables. The collective bazgaining units do similaz comparisons. Information on grievances that do not advance to azbitration is generally not compared. Recommendation #67: The O,/fice of Labor Relations har taken a great step toward improving the grievance process by tracking grievances. The Oj�ce ofLabor Relatiorrs should now determine ifgrievances me taking longer than they should through comp�isons and corrversations with other jurisdictioru. The Office should also look for industry standards and develop perf'ormance indicators accordingly. They should also further incorporate interpretation and evaluation into the data collection process. Recommendation #68: The City should continue to erplore infor�nntion systems upgrades and reduce reliance on institutional knowledge. Recognize danger of central "uing knowledge in one or two people, and have more widespread training on systems. PROCESSES FOR (MPROVEMENT Summary Rating: �s�s KEY PROCESSES FOR IMPROVEMENT CONCEPTS � Impmving Services � Improving Support Services � Improving Supplier Services Processes for improvement encompass methods for efficiency and effectiveness such as process design, a prevention orientarion, a linkage to suppliers and partners, cycle rime, and evaluation and continuous improvement. Impmvement practices e�mines how processes are designed, managed, and improved. 1999 Snint Pau! C+ry Counci[ Research Performance Audit of tLe City of Saint Paut's Iabor RelaSons Activities Improving Services 85�� The Office of Labor Relazions is taking a pro-active role towazd improving its contract admuristration process through development of the grievance tracking system. The Office has also begun to work with departments to resolve grievances before Step III, when City policy mandates they become involved See figure on page 71. If the grievance is complicated or has widespread implications, the OLR may work with departments to resolve the grievance at Step III to ensure consistent and fair outcomes. Some confusion regazding ttus practice was expressed by departments. Some felt the Office of Labor Relations was escalating the grievances to Step III simply because the Office was not interested in resolving the grievances at Step I or Step II and would rather control the grievance rather than allowing the individual departments to resolve them. However, the OLR is not informed of grievances until they aze at Step III unless they aze requested to assist the department. Therefore, these concems appeaz to be, for the most part, unfounded. Improving Support Services Evaluation of the grievance adminisuation process is a key component of improvement practices that is missing &om the activities of most City offices involved in the process, as well as the collective bazgaining units. Work assignments are rarely reviewed as roles aze fairly well defined and iarely change. Some admuustrative practices are reviewed, such as the grievance tracking system within the Office of Labor Relarions. Some collecrive bazgaining units have examined their method for disseminating information regarding grievances, and others have revised their grievance forms. However, overall administrative practices are rarely reviewed. Improving Supplier Services Participants in the process rarely receive formal perFormance reviews of their work related to grievance administration. Collective bazgaining units rarely review the performance of union stewazds or othecs involved in a grievance. For City staff, if their work is reviewed, it is a small component of an overall review. One interviewee suggested evaluating how management and supervisors handle their contract administration duties. Recommendation #69: Conduct more evaluations ofgrievance administration participants, even if they are informal evaluations, to identify areas for improvement and development. Recommendation #70: The grievance tracking system developed by the Office of Labor Relations is very useful and should continue to be refined and evaluated. Human Resources should also consider using a similar system, and share the information with the Office of the City Attorney, Office of Financial Services, and Risk Management. /999 Saixt Paal City Counci! Research 86 Pecfoim�ce Audit ofihe City of Saint PauPs Labor Relalions Activities CUSTOMER FOCUS q Summary Rating: ��`r Customer ldentification and Knowledge KEY CUSTOMER FOCUS CONCEPTS: � Customer ldenrification � Customer Knowledge � Customer Relations As in the contract negotiation process discussion, different parties in the grievance process idendfied different customers. Some parties cited depaRment heads as the primary customer, others cited union members, while still others identified cirizens as the primary customer. With all of these different customers, it is difficuk to meet the needs of everyone, and competing interests may impede the grievance administiation process. It is also conceivable that the lack of a uniform definition of the customer by the CiTy could be related to the timeliness issue, discussed in previous sections. While there are many competing customer plulosophies, there is no evaluation of customer needs or satisfaction on the part of the City. The collective bazgaining units have a faz better undeistanding of their customer, the union members. While they have an easily idenrifiable customer, they do very little formal evaluarion of their customers' sarisfaction or needs related to contract administration. Customer RelaHons The majority of customer service standards for all the parties appear to be behavioial and informal as menrioned in the conUact negotiation section. An example is the informal ptofessional ethic the Office of Labor Relarions follows. The majority of collective bazgaining units also have informal guidelines, with the eacception of Police and Fire, which both appear to have more defined guidelines. C�stomer relations appear to be at an acceptable level, although they could be improved through the establishment of some formal guidelines to educate and guide process participants. See Recommendation #16, page 24 on Office of Labor Relations Customer Service Guidelines. See Recommendation #72, page 87 on survey use arrd customer satisfaction. RESULTS Summary Rating: � Customer Sathsfaction KEY RESULTS CONCEPTS: � Customer Sarisfaction � Financiai Outcomes � Supplier Performance � Organization Outcomes The Office of Office of Labor Relations, Risk Management, and the Office of Financial Services do not do any formal evaluations of customer sa6sfaction related to grievance administration. Overall, the communication systems between the departments are poor, and even informal evaluations do not seem to be present. Intemally, no feedback mechanism 1999 Sairrt Pau1 Ciry Council Resrmch Perfomi�ce Audit of the City of Saint Paul's Iabor Relations Activities g7 �� y� � l� eacists for each department to evaluate the services it receives from the others on a holistic or individual level. The collective bazgaining units also fail to measure the level of customer satisfaction with the results of the grievance process, though informally they may receive feedback from particulaz grievants or other participants in a grievance process. N�nancial Outcomes Measurement of financial results is a larger part of the contract negotiation process than it is in the grievance admuustration process. Settlements involving lazge amounts of money would most likely be decided at Step N of the grievance process, at which point both sides must comply with the decision of the azbitrator, regazdless of the amount of money, unless the decision is appealed to court. Both the City and the wllective bazgaining units will compaze the azbitration outcome with other jurisdictions and unions through the Bureau of Mediation Setvices. Employee Performance and Well-Being Employee performance and well-being is evaluated for some ttuough formal annual reviews. However, there are employee participants who do not receive annual reviews and, therefore, their performance related to grievance administration is not reviewed. The collective bazgaining units may informally review the perFormance of grievance participants, but again no formal feedback is provided. Organizational Outcomes City departments use varying methods to measure their organizational and process outcomes. The Office of Labor Relations has begun to measure the results of the grievance process through the grievance tracking system, though staff seem uncleaz of the result they aze trying to obtain, and what they are trying to measure. One person has cited reducing the length of time of the grievance as a goal, while another stated the goal is to avoid azbitaation. While individual departments may claim to evaluate their work through these methods, there is no overall evaluation of the whole process. This lack of evaluation is pervasive and a true hindrance to any improvement practices that may be taking place on either side. Recommendation #71: Each department irrvolved in the grievance administration process and the collective bargaining units should establish benchmarkr related to their goals and vision, and use the benchmarks to measure results. Recommendation #72: The collective bargaining units, the Office of Labor Relations, and the Office of Human Resources should survey those who have participated in the grievance process to determine the level of satisfaction with the process and to solicit ideas for improvements. 1999 Saint PauT Ciry Council Resemch 88 PerFormance Audit of the City of Saint Paul's Labo Relarions Acb'vifia 9'9-8�a PERFORMANCE INDICATORS Performance indicators, also referred to as performance measures, provide an organi7ation with a means to gauge how well it is aclueving its goals. In the case of government argani�arions, they give information to both the organization—so it can improve itself; and to elected officials and citizens—so they can imderstand how to best invest public monies. Developing performance indicators begins with identifying what pieces of information indicate the organization's effectiveness, efficiency and quality. Some guidelines for the development of ineaningfiil performance indicators aze provided below: Performance Indicators Shou[d Be: ❑ Quantifiable, readily available, easy to calculate, "trackable" over time and show the direction of pmgress ❑ Sh�ongly connected to the mission of the organization ❑ Intrinsically meaningful and understood throughout the organization ❑ Focused on outcomes and products, rather than processes when possible Eramples of Performance Measu�es: ❑ Customer and employee satisfaction ❑ Volume of outputs as work units or products ❑ Productivity and efficiency: time and cost per unit of product ❑ Errois, mistakes, complaints, waste, retum rates or polludon O Quality ❑ Timeliness ❑ Impact: changes resulting from activity The following discussion provides suggested perfomiance indicators related to the three azeas addressed in this report: the Office of Labor Relations, the contract negotiation process and the grievance administration process. In some cases the performance indicators address problem azeas wluch have been identified, such as timeliness. In other cases, they are intended to be broad measures of success. Notably, what follows is not intended be an eichaustive list, but rather provides what we believe wauld be good measures for some aspects of the work. Some of the data needed for these measures is already collected, and in a few cases, measures are akeady being made. However, it is important to note that even though there aze some current measures, it is very difT"icult to draw conclusions because there is no basis for comparison. Comparisons aze best when they are made using similaz data from similar organizations, or if they compaze the same organization over time—Yhus the notion of tracking informarion over time. Comparing the City of Saint Paul's performance in these azeas over time is likely to yield somewhat more meaningfiil results because of the idiosyncraxic nature of these processes. Therefore, it is recommended that the following measures be tracked at periodic intervals for comparisons. 1999 Saint Paul Ciry Cwurcil Reseorch Perfocmance Audit of the Ciry of Saint Pwl's Iabor Relations AcGviUes 89 �� Performance Indicators for the Office of Labor Relations �� 1) Measure the timeliness of the Office of Labor Relations in the contrnct negotiation process tluough the number of weeks from when initial notice to negotiate is submitted to the Office of Labor Relations and the inirial meering of the City and collective bazgaining unit. 2) Measure on a biannual basis whether Office of Labor Relations employees find their work environment positive and compaze these responses over time. Quesrions to staff could address issues such as intra-office communication, leader's responsiveness to the needs of employees and the general work environment. Performance Indicators for the Contract Negotiation Process 1) Measure the timeliness of the contract negoriation process through a) percent of contracts completed prior to expiration; and b) number of weeks between expiration and approval of new contract for each bazgaining unit. 2) Both bazgaining units and the City should measure the estimated total cost for contract negotiation activities. These should be calculated by contract, and also by employee or bazgaining unit member. Bargaining units would then have an indication of negotiation cost per member, and the City would have negotiation cost by employee and negotiation cost by employee and bazgaining unit. 3) Measure the percent of contracts settled without intervenrion of inediator or azbitrator. 4) Deternvne the number of rimes each yeaz key participants in the contract negotiation process update the City Council on the status of contract negoHations. 5) Determine the number of times each year that the values of trust, respect, honesty and fairness aze violated by each party through the use of an annual survey of contract negotiation process participants. 6) The Office of Financial Services and Risk Management should measure the number of days between contract ratification by the bazgaining unit and Council and the actual date of conhact implementation. Performance Indicators for the Grievance Process 1) Both the Office of Labor Relations and the collective bazgaining units wuld measure the percentage of grievances resolved at Step III. This performance indicator should delineate between collective bazgaining units and type of grievance. Use data to determine if a particulaz type of grievance takes longer to resolve, and what factors may contribute to the longer length of time for resolution. 2) Measure the number of weeks it takes to resolve grievances at each step. 3) Determine the level of grievanu' and department staff' satisfaction with the process and assistance they received through survey distributed following grievance resolution. 7999 Saint Paul Ciry Council Resemch 90 Pedormance Audit of the Ciry of Sairt Paul's Labor Retazions ActiviUes I � � , i CONCLUSION The City's labor relations' adivities aze important far beyond the number of staff involved or the money directly spent on these activities. Labor relations activiries affect the City's relationship with more than 3,000 City employees. The terms and condi6ons negotiated in contracts fundamentally affect the work lives of the City's employees who serve the residents and businesses in the Ciry of Saint Paul. It is, therefore, imperative that the City and its bazgaining units follow the best practices and operate with the highest integrity. Council Research staff were impressed by ihe competency and high eihical standards of the staff and bazgaining unit representatives interviewed. Almost all collective bazgaining pazticipants believe that they get what they need and, sometimes, what they want through the process. The negotiarion process participants felt overwhelmingly that rules and policies were adhered to the vast majority of the rime. Similaz views were held by those responsible for unplementing contracts and processing grievances. However, some critical deficiencies were noted in the process of conducting tlus performance audit. In addressing these deficiencies, both the City and its collective bargaining units will develop a stronger relationship and better negotiated agreements and grievance resolutions. Timeliness The lack of timeliness of negoriations and grievance settlement was a theme repeated throughout the performance audit process. There was a slrong feeling expressed among the bargaining units that both processes took an inordinately long time. It is currenUy almost impossible to assess if either the grievance process or the negotiation process take longer than they should because there are currenUy no standards against which Saint Paul's perFormance can be compared. It should be emphasized that it is not known if Saint Paul's "timeliness" in these azeas is better or worse than should be expected. However, the fact that many participants aze dismayed by the length of time involved indicates improvements should be made. Tfie City has only recently begun tracking grievances in a database that allows the relevant information to be analyzed. This system will in the futwe help the City to determine and measure its perfocmance in resolving grievances efficienUy and effectively. Professional literature and the experience of other cities offers little guidance in this azea, so improving performance by comparing past to present performance offers the most hope. Contract negotiation has not, and should not, be measured only by the time it takes to conclude contracts. However, lmowing ihe time and effort �pended on individual negotiation and cont�act unplementation activities will assist both the City and bazgaining �ini in planning future negotiations. Moreover, it is lmown that concluding negotiations in a timely manner allows for the more efficient implementation of contract for ttte City's payroll and benefits activities. Finally, timely negoriations gives employees more immediate use of theu money and the interest it can accrue. Sta�ng The slowness of grievance resolution and contract negoriarion was often discussed in terms of the inadequate staffing of the Office of Labor Relafions. The OLR has experienced a high l999SaintPaul CfryCounciJResearch PerFocmance Audit of the CiTy of Stint Paul's Labor Relations Activities 9� �'7� Q U �q- t� level of staff tumover in recent years, and has roufinely operated with at least one vacancy in its five-person staff. Therefore, it is very difficult to assess whether the current level of staff in the OLR is sufficient. This being said, the office's staffing has resulted in two cleaz situations. First, OLR staff report they operate in a very high stress environment, largely due to under-staffing. Second, the office has depended on the use of outside consultants to conduct negotiations with a number of collective bazgaining units. Training and professional development opportunities have been very limited for all City staff involved in labor relations activities. The problem is most acute in the Office of Labor Relations where such opportunities will likely improve the efficiency and skill level of staff, thus mitigating the under-staffing issue. Intemal training of supervisors on the grievance process has been noticeably missing for a number of years, although it continues to be listed as a budget prioriry. This type of training of front line supervisors may well provide an immediate return for the Office of Labor Relations and the City Attomey in terms of decreased time involved in correcting inadvertent mistakes. Informallon, Analysis and Evaluallon Both the bargaining units and the CiTy should be given credit for comparing the results of their collecting bargaining agreements with others. Unions which are affiliated on a state, national or international level routinely shaze information. Unions which aze not affiliated also seek out information on comparable bazgaining units. The City periodically compazes its results to other similaz jurisdictions. These information tracking and comparison activities aze especially laudable given the poor information systems historically used by the City and bazgaining units. All of these activities help to ensure the best quality negotiated agreements. Despite these admirable efforts, at this time no one knows how much it costs the City or bazgaining units in money and time to conduct negotiations, implement wntracts or resolve grievances. It is not lmown whether the City and its bazgaining units perform these functions well or poorly in comparison to others. It is Imown that there is significant variance in these measures across bazgaining units--or in the case of grievances, across individual cases. Despite these differences, insights could be gained by gathering and examining information more cazefully. Given the importance of the negotiation and gievance resolution processes, as well as the time, energy and hopes invested in them, performance indicators must be developed forthese areas. Communicallon There is a very high level of understanding of labor relations policy among the individual participants in the contract negotiation and grievance processes. However, this has not trartslated into a high level of communication among City staff responsible for negotiaring and administering collective bargaining agreements. Two critical communication City staff "disconnects were identified in the performance audit process. First, there is inadequate planning preparatory to negotiations. What pluming dces take place, does not involve a sufficiently broad array of stakeholders. Advice, insight and identification of key issues for upwming negotiations can be gained by implementing a more participatory planning process. Second, there is inadequate communication during and after negoriations with affected stakeholders. For example, periodic updates of the City Council on these activities has been lazgely absent. 1999 Saira Paul Ciry CouncU Research 92 Paut's La6or Relanons Activilies The Office of Labor Relations has made strides towazd systematizing many of�the City's labor relations activities in recent years. However, the City of Saint Paul government is made up of departments which have tradirionally been semi-autonomous. The City's Code and state statutes aze cleaz that responsibility for negoriating contracts and settling gievances aze vested in the City's designated representative, the Office of Labor Relations. To maintain a coherent and fair approach to these critical areas, this office must continue to take the lead in planning and communication. However, a balance of central organization of the City's labor relations function and its departments' independence must be struck, so that input is gathered and information shared. T'he labor relations activities of the City of Saint Paul will likely gow in importance in coming years. The City will continue to have a significant unfunded liability for future retiree health insurance. At the same time, the City and its collective bazgaining units will face a low regional unemployment rate and competition for qualified employees. And, as elsewhere in the counhy, there will be a demand for greater wages and also increased costs for health caze benefits. It is essential that the City make its labor relations activities, and their improvement, a priority. 1999 Saint Pau! City Covncil Research Perfoim�ce Audit of t6e City of Saint Paul's [abor RelaGOUS Activities 93 � APPENDIX A: �� List of Interviews Conducted Mos[ City interview subjects were selected because they have a specific integral role in the contract negotiaYion and administration process. Representarives from all of the City's labor unions were invited to pazricipate. Please note that names of interview participanu were not consistently collected, and therefore listings aze incomplete. Council Research is very grateful ta the fo[lowing individuals and organi7/�tions who shared their time and coruiderable expertise in this perfnrmance audit process It shauld be noted that participation in inlerviews fnr this performaeue audit does not mean an endarsement oJthe statemertts contained in this report Citv Interview Subiects Office of Labor RelaHous Mary Keazney, Director Jason Schmidt Steve Sonnabend Julie Kraus Office of Financial Services Joe Reid, Director Terry Haltiner Teddi Hayes OfSce of Human Resources John Hamiltoq D'uector Risk Mauagement Miriam Monasch Ron Guilfoile Office af CYty Attorney John McCormick Pub6c Works Departmeut Tom Eggum, Director Bob Hoaisberger Library Services Carole Williams, Director Fran Galt Linda Wilcox Police Department William Fiuney, Chief Fire and Safety Services Department Tim Fulier, Chief Collective Barqaininq Unit Interview Subiects Trades Group Lazry Bennet - Operative Plasterers and Cement Masons Local 633 Bemie Carey - Elevators Consuuctors, Loca19 Robert Swhwartzbauer, United Association Plumbeis and Gas Fitters Local No. 34 Jim Wagney Electrical Workers, Local ll0 Dick Vitelli, Electrical Workers, Loca( 110 Jim Kelzenberg, Spcinkler Fitters, Locat 417 Jerry Bazaes, Pipefitters I.ocal 455 Cazpenters and Pipefitters PoGce Federation Brad Jacobsen Butch Swintek American Federafion of State, County and Muoicipal Employees District #14 Local 2508 (Clerical) aod Loca11842 (Technical) Mary Schillinger Michael Windey Necia Holerud Bob Steiner Patrick Ryan L.ouise Langberg Linda Cobb Vicki Skupas A. John Klemanski Bazb Beuson Dave Nelmazk Cluis Rider Corrine Glassing Robin Madsea W iltiam Flansen Jecry Serfling Professioual Employees Associallon aud Steve Roy Mike Wilde Classified Confideufial Employee Associarion Eric Willems Saint Paul Supervisory Organization Roger Mohror Manual aud Maintenance Supemsors Associatiou Ron Rollins /999 Saint Paul City CouncJ Research 94 PerFomi�ce Audit of the City of Saint PaW's Labor Relations Activities APPENDIX B: g g � ° � Malcolm Baidridge Quality Assessment Questions OFFICE OF LABOR RELATIONS Strategic P[anning ]. How often dces the Labor Relations Office make short-teim (1-2 years) plaos? 2. Aow often aze short-term plans updated? 3. How often does the Labor Relations Office make long-term (3 years or more) plans7 4. How oRen are long-term plans updated? 5. Aow many stakeholders aze pazticipants in Labor Relations �ce planning processes? 6. How often are plans implemented? 7. Who monitors the implementation of plans? 8. Aow often is the Labor Relations �ce evaluated? 9. How many participants in the process are aware of the resulu of these evaluarions? 10. How oRea are plans changed based on the results of the evaluatioes? Leadership 11. How often dces the Labor Relatious Director convey a cleaz vision for ihe fut�e of the Labor Relations Office? 12. How oRen does the Mayor's Office convey a clear vision for [he fuhue of the Labor Retations Office? vision for tae fui�e of the Labor Retations OEfice? 14. How often does the Labor Relations Director recognize staffcontributions? I5. Does the Labor Relations Director mainiain a work eavironment fl�at is supportive of employees regatQless of race, color, class, geader, age, Qarional origin, seaval orientation or physical abilit}f? 16. Does The Labor Relations Director support participation in professional organizaaons? Training and Develapment 17. Is there an oppommity for staff to contribuce to the decisions made abou[ the opentions and procedures in the Labor Relations Office? 18. Dces the Labor Relations Office create opportunities for employees to conaibute meaningfully to the or° ^izations goals? 19. How often does the Labor Relations Office make use of education and training to improve pedormance? 20. Is the Labor Relations Office work environment conducive to the well-being and growth of all stafP? lnformation andArtalysis 21. For how many of the Labor Relations Office activities is data collected? 22. How often is the collected data used to assist in Labor Retations Office activities? 23. How often is the collected data used for evaluaiion of Labor Relatiovs Office activities? 24. How ofren aze employees of the Labor Relaiions Office evaluated? 25. Do computerized information systems meet the needs of the Labor Relations Office? /mp�ovement Practices 26. How often are work practices changed to improve perFoimance? 27. How oRen aze methods for evaluatieg employees reviewed for improvement? 28. How often aze methods for dete:mining work assignmeats reviewed for improvement? 29. How often are administrative practices (such as fo:ms and reporting procedures) reviewed for impmvement? 30. How ofien is the neribrmance of venAOrs (,orovideis of goods and contrected services) evaluated for improvement? 31. How oRen aze methods for the evaluation of the Labor Relations Office impmved? Custarae' Focus 32. Wluch of the following do you consider to be your customeis? 33. Does the Labor Relations Office have customer service standards or guidelines goveming their contract administration? (i.e.: Code of e@ucs; communication standards; behavior at negotiation table; public informaaon standazds.) 34. How oftea do staff follow established customer service standards or guidelines? 35. How often do staff moaitor for chaages in cusTOmer needs? 36. How often do staff monitor for changes in customer satisfaction? /999 Soint ParJ Ciry CowcARuearch PerFo'mance Audit of the CiTy of Saint Paul's Iabor Relations Activities 37. How responsive is the Labor Relations Office to changes in customers' needs? 38. How well does Labor Relarions Office respond to changes in customer SatisfaCtion? Resu(a (Outcomes) 39. How often dces the L,abor Relations Office measure results? CONTRACT NEGOTIATION Strategrc Plannirsg 1. How often aze short term plans made to impmve the contract negotiation pmcess? 2. How often are short term plans updated? 3. How oRen are long teim plans made to improve the contract negotiation process? 4. Aow often aze long tecm plaas updated? 5. How many participants in the contract negotiation process aze involved in planning? 6. How often are plans implemented? 7. Who monitors the implementation of ptans? 8. How often is the conhact negotiation process evaluated? 9. How many participants in the process aze awaze of the resuits of these evaluations? 10. I-Iow often aze plans changed based on ffie results of the evaluations? Leadership !n the category of leadership, "leaders" or "leadership" is understood as: (1) Oj}?ce of Lnbor Relalions personnel; (2) Elected Represerstatives of the vnions or collective bargaining units; (3) Business Agents of the collective bargaining units. 11. How often do leaders in the conhact negotiation process convey a cleaz vision for the future? 12. How often do leaders in the comract negotia6on process recognize contributions of participants in the process? 13. How often does the race, color, class, gender, age, narional origin, sexual orientatioq or physical ability of the participants affect the contract negotiarion process? 14. How often is information about the contract negotiation process conveyed to all participanu? 9 40. How often does the Iabor Relations Office compaze its resulu to those of similaz organiiations? 47. How often dces the Labor Relations Office measure its customecs' satisfaction? 42. How often does the Labor Relations Office compare its customer satisfaction results to those of similaz or ,� ni�ati 43. How often dces the Labor Relations Office achieve its desired goals? a�� 15. How oRen aze participants in [he contract negotiation process informed of staff changes? Trainirtg and Development 16. How often do participants in the coutract negotiation process have opportunities [o contribute to the decisions made about the procedures to be used during the contract negotiation process? 17. How many par[icipants ia the contract negotiation process 6ave oppor[unities to contribute meaningfvlly to the pmcess? 18. For 6ow many of the pazticipants is the contract negofiation process a positive experieuce? 19. How oftea do participants in the contract negotiation process make use of contiuuing education and training [o improve their skills? 20. How often do pazticipants in the comract negotiation process update their skills though participazion in professional organizations? Injormation andAna/ysis 21. For how many of the contract negotiation activities is data collec[ed? 22. How ofteu is the collected data used to usist in the contract negotiation process? 23. How ofteu is the collected data used for evatuation of the coatract negoriatinn process? 24. How many participanu in the conuact negotiation process have access to the collected data? 25. Do computerized iuforma[iou systems meet the needs of the participants in the contract negotiation process? Improvement PraMrces 26. How often do contract negotiation pazticipants change their practices to improve performance during the process? 2Z How often aze methods for determining work 1999 Saint Paul City Council Research � PerFo�mance Audit of ihe City of Saint Paul's I.abor Relarions Activities assignments diaing the process reviewed for improvement? 28. How often aze administrative practices (such as fotms, reporting and commimication procedures) reviewed for improvement? 29. How often is Le gerfqrm�n�Q �f.�anf�;�a�r� ;� rhr contract aegotiation prceess evaluated? 30. How often are methods for evaluation reviewed and npdated? Customer Focus 31. Which of the following do you consider to be your customers? razdc and file union; membeis; mayor, ciTy council; deparlment heads; citizens; other. 32. How well do participants in the process mderstand customers' needs and e�ectations? 33. How often do pacticipants in the process monitor customer needs for cLanges? 34. How responsive is the contract negotiation process to changes in customers' needs? 35. Do pazticipanis in the process have customer service standazds or guidelines goveming their contract negotiation? (i.e.: Code of eUrics; commimication standazds; behavior at negotiation table; public information standards.) CONTRACT ADMINISTRATION S6ategic Planning I. How often are short ierm glans m,ade to ionpro�e thQ contrac[ administrarion process? 2. How often are short texm plans npdated? 3. How often aze long texm plaos made to improve the contract administration process? 4. How often are long term pkans updated? 5. How many participants in the contract adminishation process are involved in planning? 6. How often are plaos implemented? 7. Who monitors the implementation of plans? 8. How often is the contract administration process evaluated? 9. How many participants in the process aze aware of the results of these evaluations? 10. How often are plans changed based on the resulu of the evalualions? � v-�3�v 36. How often do participants in ffie cont[ac[ neg process follow established customer service standards or guidelines? 37. Aow well do participants in the contract negotiation process respond to changes in customer satisfaction? ResuUs (Outcomes) 38. How often do participants in the conhact negotiation process measure results? 39. How often do the participants in the contract negotiation processes compare their results to those involved in similaz activiries? 4D. How often do the participants in the process measure their customers' satisfacaon? 41. How often do the pazticipanu in the process compare their customer satisfac[ion results to those involved in similar processes? 42. Aow oflen do participants in the contract negoliation process achieve their des'ued goals? Leadeiship `- °" - --� °--- -.'°=°°' ,- ,., , .. ... . . . � ----- -- -------' .:.:. ��... J • ..............�. •..:�:..:.... ... .:.'�:.�..::::�. is understood as: (IJ High Ieve7 management, (2J O,Qice oJLabor Relarions persormel; (3) Ciry Attorney; (4) President ojthe respective urrion or collective bmgairsing tatiY (5) Elected Representatives of the collective bargaining anit, (6) Bvsiness Agents ojthe edlective bargaining unit. I 1. How often do leadeis in the contract administration process coavey a cleaz vision for the fu[ure? 12. How often do leadeis in the process recognize contributions of participanu in the process? 13. How often does the nce, co(or, class, gender, age, national origin, sexual orieatalioa, or physical ability of the participants afFect the contract administration process? 14. Aow often is informarion about the contract administration processes conveyed to all participants? 15. How often aze participants in the process informed of staffchanges? 1999 Sairst Paul Ciry CouncJ Research Performance Audit of iLe Ciry of Saint Paul's Labor Relations Acfivities 97 �, y� � �; Training and Develapment Customer Focus 16. How often do participanu in the contract administration process have opportunities to contribute to the decisions made about the procedures to be used duriag ihe con�act administration process? 17. How many participants in the coatract a[lminishation process have oppommities to contribute meaningfully to the resolution of a grievance? 18. For how many of the participants is the contract administration process a posirive eaperience? 19. How often do participants in the contract administration process make use of continuing education and training to improve their skills? 20. How often do participanu in the contraa administration process update their skills though participation in professional or° ";zations? Information and Analysis 31. Which of the following do you consider to be your customexs? rank and file imion members; mayor; city council; depaztment heads; citizens; other. 32. How well do participanis in the process understand customers' needs and e�cpectations? 33. How often do participants in the process monitor customer needs for changes? 34. How responsive is the contract administrarion process to changes in customers' needs? 35. Do participants in the process have customer service s[andazds or guidelines goveming their contract administra[ion? (i.e.: Code of ethics; covununication standazds; behavior at negotiation table; public infoimation standards.) 36. How often do participants in the process follow established customer service standazds or guidelines? 37. How well do participants in the process respond to changes in customer satisfaction? 21. For how many of the contract administration activities is data co(lected? 22. How oftea is the collected data used to assist in the contract administration pmcess? 23. How often is the colleaed data used for evaluauon of the contract administration process? 24. How many participants in the contract administration process have access to the colleaed data? 25. Do computerized infocmation systems meet the needs of the participanu in the contract admiuistratiou process? Improvement PraMices 26. Aow often do contract administration participants change their practices to improve performauce during ffie process? 27. How ofteu are methods for determining work assignments during the process reviewed for improvement? 28. How oftea aze administrative practices (such as forms, reporting and commuuicatiou procedures) � reviewed for improvement? 29. How often is the performance of participants in the contract administration pmcess evaluated? 30. How ofteu aze methods for evaluation of the coatract administration process reviewed and updated? Resula (Outcomes) 38. How often do pazticipants in the contract adwinistration process measure results? 39. How often do the participants in the process compaze iheir resulu to ffiose involved in similaz activities? 40. How often do the participants in the process measure their customers' satisfaction? 41. How often do the participants in the process compare their customer satisfac[ion results to those involved in similaz processes? 42. How often do participants ia the contract administration process achieve their desired goals? 1999 Saint PauT Crry Cowcil Research 9S Performance Audit of ihe CLLy of Samt Pmil's Iabor Rela6ons Activi6a APPENDIX C: �� Ten-Year History of Collective Bargaining Agreement Conclusion Collective Bargaiuing Units Contracf Duration Resolution" Lag'IYme"' Time Period # Yesrs Ratifying Con. (Months) T�f�cl.-Iati�as,�.bca1132;=_-= q�36l84-= ° -`�� - --TI24l86:_= �- _ _ - - 3 - _-, ._ - - �_-` - = _ - � - - _— - .- - � &OperatmgEug�neers,LocaF47 �fk/$4 413U/9�_ �- - _� . -- =6(fM89-_ J _.. = .,.fy4 - _ - � ��. __� .._ _ �. = •- -- - "--- - - 6EC�er atDnve's, - :t,ocal-� � = _ . � . �- � _ }Fl10/92 =-._ -_ - - 6 " -- " —: -- - -,_— � _ �= . �-= � z_ -_ _--- — -�-:= .. s�sxi.--x��nm�z— _. �- =�_'�ic.x.o -= ' -_`: c8 �-'-.. _;:` Operating Engineers, I.ocal 70 1988 - 1959 1990 -1992 1993 - 1994 7/1/94 - 6/30/96 1997 -1998 t999 _ 2fNN1 2 6/16/88 5 %: 3 9/27/90 9 2 11/9/93 10 2 6/28/95 12 2 10/7/98 9 2 4/14/99 3 %: �-= _--<=,?`6t11/87.`r=<- - _ . - .6-... � -_ 8i3/4� __ =��- -_`-'- � -_ �7145-. �` i&Yz -'_ _�:- %- . . =: €'smim ` - ` u + .c -- _ ' Fire Fighteis, I,oca121 Rv�fwaai�mal Fmnlnvwna .�i&4�.(fiu6.� iII�. �..c rw. uuycsrmus = ---.—_ f�F�8II171ttOE . _ _' - - ' Saint Paul Manual and Maintenance Supecvisms Assn. 1987 - 1989 1990 - 1991 1994 - 1996 1997 799R - 1999 3 2 3 1 4/28/88 7/24/90 Z/28/96 7/9/97 16 6 Yz 26 6 =- 3(#j9� . -_ _ — _uoen ,- _ , 2�f- . - IOAA _ IOAU � OM9/AA A�/. i/i19fi-itisii�ii i'/z 7i31i96 7 1992 - 1993 2 6/30/92 6� 1994 - 1996 3 5/21J96 28 Yz 1997 - 1998 2 10/15/97 9 Y: 1999 - 2000 2 6/2/99 6 � °1988 2984`=. _`_=g _- -=-_ffiFI/8$-. -. -_-- - _'f=`--_ ---_ t942 1443 z 8/4192 7 "I494 I996. = c --3 -. SfIll96 2&'h -` -iR1T 1948-. --=F ' ?IISl98 T�54--- - =' -„ . _- -, _.- - =rcort �mn - T � _ -_ - a _ ` . � dre�m � _ c r� == .- 1988 - 1989 1990 - 1992 1993 - 1994 1995 - 1996 1997 - 1998 2 M29/88 4 3 5/8/90 5 2 3/23/93 2 %: 2 6/10/96 5 2 8/1/97 7 7999 SabRPaul Ciry Co�mcil Research Performance Audit of the City of Saint Paul's Labor Rela4oas Aclivities Collective Bargaining Units Contract' Duration Resotution" T'�me Period # Years Ratifying Con. `Ssi� Paal FueSupetvisoiy = ��-`=- = -=- - - 198T - �1959 " "-` '-- >-:- 3 � _ - - 4/1?l88 tlssociation - - - - .' - - � � 1990 -1991 -- 2 7/19/90 AFSCME Clerical, Local 2508 I1CeI, LOCBF� Saint Paul Classified Confidential Employee Assn. Intemational Alliance of Theatrical Stage Employees Boilermakeis, Loca1647 - _- .-_ 199L -�--" I =- - .- . ;_ -1992 - F993 _ '� Z �- = - ` _ 3l23/93 -`._�_1994-�996 -° ;3 � -� ?��=- - . ., 1998 -1999 �- 2 .--� - - - `6/16/99 1988 - 1989 2 3/29/88 1990 - 1991 2 3/14/90 1992 - 1993 2 2/25/92 1994 I 1/25/95 1995 - 1996 2 9/13/95 1997 - 1998 2 7/9/97 7009 _ 200(1 2 6/2/99 � 1988 - 1989 1990 - 1991 ]992 1993 1994 - 1996 1997 - 1998 1990 - 1992 ! 993 -1995 1996 - 1998 i o00 _ rr ii>o - wav�awi 1986 - 1989 7/I/89 - 6/30/92 7/1/92 - 6/30/95 7/1/94 - 9/31/96 10/1/96 - 9/31/98 �aq $� Lag Time"' (Mo nths) _� ¢. 6 Y 1334 - 14 �4 . - ".7-�.;. _� _- =17Y � - 3 2 %: 2 13 8'/: 6 2'=_ ..: :='_ 3/29/88 3 ;_ ; _ =_s;,;. 2 - — 5129190 _ _ S_ , -_ 2, - 225l92 2 � _ "Il25l95 I3�'. � ;° .`4i13/95 -. $`h 2 `;. 7!4/97 d ; ��,'�" _ � : 6/2/gy � g'-; _�_� 2 11/22/SS 10 %: 2 6/14/90 5 y: I 8/4/92 7 1 1/26/94 13 3 9/25/96 33 2 3/18/98 14 %: 3 SltU/89 4: ,> _ x. 2 A/22/4� 3`�'!: � _ - ' =fftTl96 =- 3�4 ° - - : 1 � � _- =10(8f9Z - 4 2 .;- s 6+ 3 8/2/90 7 3 3/9/94 14 3 12/4/96 11 3- - =-: `., 6t12l9Q _ -.._ T3 Yz � _ ` _ .4f20193 -.;� _ 11-� `_' t __ `5/9/9't `� � �4- - 3 - -" "ooen � �- � - �IS+� - 3 10/23/86 9 %: 3 6/12/90 11 Y: 3 4/27/93 10 2'/. 11/22/95 16 Y: 2 7/9/9'7 11 fatpenters; M2IStatewide _ -: _� - -- � � --1986 - T988 ' -'_,.-°>-- 3� -_ � - -. _ . 7/17/86' -'- � � - - -- 5/1B9 - 4/30192 -- 3 5/31/90 - - - - . - - _ - c�vm_ennroc - -- - - a � inniroa 6 iS - 13 � 1999 Saint Paul Ciry Cwmci[ Research ioo Collective Bargsining Units Opetative Plastereis and Cemen[ Masons-Loca1633 Elevator Construdois, Lceal 9 Paintera, Loca161 Plumbecs, I,acal 34 Contract' Duradoo 1�me Period # Yesrs 6/1/89 - 5/30/92 6/1l42 - 5l3�/95 5/1/96 - 4/30/98 S/1 /9R _ 3 3 2 1988 1 6/1/89 - 5/31/90 2 6/1/90 - 5/31/91 1 ---_ _...- - -- - - - � - - ..... __ . O/i/YG-3/91/YS Z 6/1/94 - 5/31/97 3 n io� _ uani�nnn : 5/1/86 - 4/30/89 5/1/89 - 4/30/92 5/]/92 - 4/30/95 5/1/95 - M30/98 5/1 /9R _ 3 3 3 3 5/1/87 - 4/30/89 5/I/89 - 4/30/90 5/1/90 - 4/30/91 5/1/91 - 4/30/94 � 5/I/94 - 4/30/97 5/I/97 - 4/30/99 2 1 1 3 3 2 Paui's La6or Relafions ActiviCes Ratifyiug Con. Lag Time" (Months) 6/12/90 4l27/93 7/8/97 10/6/88 5/IS/90 R/21 /9f1 4/73/Y3 2/7/96 7/31/86 5/31/90 5/11/93 10/11/95 10/8/87 6/12/90 9/13/90 10/1/91 12/I/95 10/1/97 sn�c Mera� worke.�, �a� io 5/1/87 - 4/30/89 5/1/89 - 12/31/90 1/1/91 - 4/30/94 5/1/94 - 4/30/97 5/1l97 - 4/30/99 2 1 �/s 3'h 3 2 1/6/87 I/30/90 1/20/92 t/19/96 �P� 12 11 14 5+ 9 l l %: 2'/-_ i� 20 3 13 12 Y� 5 %z IS + 5 13 %z 4 Y: 5 19 5 -4 9 12 %z 20'/: 27 + ' Amendmenu to Contracts are noi included in tlris table, although in some limited cases the amendments may have acted to emend the contract. It was considered that this eactension was not equivalent to settling a contract for the time period in question, `� When resolutions were not in the Office of I,abor Relations files, the date the contract was signed is used ��` The "lag time" represents the time—in montUs—wLich elapsed between the e�cpirarion of the old coniract and the ratificarion of the new contracK. A"+" (plus sign) indicates that the contract applying to the date of the publication of this report is not yet settled. A"-" (minus sign) indicates the contract was completed prior to the previous contracts expiration. 1999 Saim Paul Ciry Coimcil Reseaich PerFolmance Audit of the CiTy of Saint Paul's Labor Relafions Activifies 101 � nQ.$� APPENDIX D: Summary of Interest Based Bargaining Interest based bazgaining (IBB) provides for a greater recognition of the interests of the opposite side, and the needs and values of the organization. IBB comes in many forms with different names, such as win-win bazgaining, mu4�a1 v inc principles, interest-based negotiation, best practices or integrative bazgaining, and interest-based problem solving. Wtrile each of these methods varies slighdy, the fimdamental goal is to reach an agreement that recognizes and satisfies the needs of each side. The process begins by identifying issues to be resolved and discussing the interests and concems behind the issue, and jointly generating a number of options to resoive the matter. 'I'his process often leads to the recognirion of mutual interests and goals, though the desired method of achieving the goal and resolving the issue may be different for each side. Two questions can be asked during the IBB process to enhance the level of undeistanding: •What aze ihe reasons for thai particulaz position? •What concem is addressed by that issue? Interest based baz inin is an attempt to reduce the conflict that occurs during the negotiation process, and quite often can enhance the working relationship between management and labor. Lines of communication may open up, and joint problem solving may become more common and more effective. According to the Federal Mediation and Conciliation Service, a few principles must be followed in order for the IBB process to be effective: > Sharing relevant information is criticat for effective solutions. > Focus on issues, not personalities. > Focus on the present and future, not the past. > Focus on the i�erests underlying the issues, not only on positions. > Focus on mutual interests, and help satisfy the other party's interests as well as your own. > Brainstorming can generate options to satisfy mutual and separate interests. > Options to satisfy interests should be evaluated by objective and agreed-upon criteria, rather than power or leverage. Certainly, IBB is not perfect for every negotiation process. The IBB method is likely to fail without a number of necessary components, lisYed below: > evidence of labor-management cooperarion during the past conhact term; > sufficient time remaining prior to conhact ea.piration to complete the sequence of decision-maldng about IBB, training and applicarion of the process; > willingness of both parties to fully share relevant bazgaining informarion; > willingness to forgo power as the sole method of "winning"; > understanding and accepting the process by all participanis and their constituents. IBB may not eatirely replace the ixaditional method of negoriation. The negotiating parties must determine for themselves when IBB would be appropriate, and must be willing to invest a significant amount of time and energy into the new process to make it hvly effective. 1999 Sobu Pau! City Council Reseorch im Performance Audit of iLe City of Saint Paul's Iabor Relazions ActiviRes APPENDIX E: 99� $�° � Coltective Bargaining Agreement Preamble Sample The preambles of the collective bazgaining agreements between the City of Saint Paul and the bazgaining units generally contain preamble language stating the purpose of the agreements, which is in most cases to create a harmonious relationship between labor and management, and introducing the general azeas of agreement contained in the contract such as wages, hours of work and other conditions of employment. A few contracts do not have preambles, but rather have purpose statements which aze similar to the contrrcts. Listed below aze three sample preambles: May 1, 1997- April 30, 1999 Labor Agreement between the Ciry of Saint Pau1 and the International Brotherhood of Electrical Workers, Local 110. Preamble to fhe Contract: This AGREEMENT is entered into between the city of Saint Paul, hereinafter referred to as the EMPLOYER and the Intemational Brotherhood of Electrical Workers, Local 110 hereinafter referred to as the iJNION. The -------- --_-_ __=�_ -- - __----- - -- - - - --- ---- -- _ - -- . _... - - ----......- - - _ ' —__ — —_ _ _'_'_' '_"__ "� �._.. . _�._.....�.._�._.�. r .........� _�> .: �w._�.. .. Ycv'"'c.�v� c:a u:a responsibilities of the City of Saint Paul for the benefit of the general public through effective labor- management cooperation. The EMPLOYER and the LTDIION both realize that ttus goal depends not only on the words in the AGREEMENT but rather primarily on attitudes between people at all levels of responsibility. Constructive attitudes of the EMPLOYER, the iJTiION and the individual employees will best serve ihe needs of the geneial public. Preamble to the 1997-1998 Agreement beiween the City of Saint Paul and City of Saint Paul Classified Confidential Employees Association: This agreement, hereinafter referred to as the Employer, and the City of Saint Paul Classified Confidential Employees Association, hereinafter referred to as the Association, has as its pucpose the promotion of harmonious relations between the Employer and the Association, the establishment of an equitable and peaceful procedure for the resolution of differences, the establishment of rates of pay, hours of work, and other conditions of employment. 1997-1998 Collective Bargaining Agreement beriveen The Ciry of Saint Paul and AFSCME Loca1375�- <.esisi. iiuJ H�:[cGmCIIi Ci1CCICQ IDi0 DCLK'ECIl ID8 C;1LV OI �alIIl L'�. hQr��ai�er rrfPrrM tn ��th� the "Employer" or the "City," and the A.F.S.C.M.E. Loca13757-Legal hereinafter referred to as the Union, for the purpose of fostering and promoting hazmonious relations between the City and the Union in order that a high level of public service can be provided to the citizens of the City. Tfus Agreement attempts to accomplish this purpose by pmviding a fuller and more complete undecstanding on the part of both the City and the Union of their respecrive rights and responsibilities. The provisions of ttus Agreement shall not abrogate the rights and/or duties of the Employer, the Union, or the employees as established under the provision of the Public Employee Labor Relations Act of 1984, as amended. In addition to the three agreements above, we reviewed the following collective bazgaining agreements: � May 1, 1998- Apri130, 2001 Maintenance Labor Agreement between the City of Saint Paul and Bricklayers & Allied Craftsmen Local Union No. 1 of Minnesota � October 1, 1996 through September 30, 1998 Maintenance Labor Agreement between the City of Saint Paul and Internarional Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and Helpers, Lodge 647 o May 1, 1996 thru Apri130, 1998 Maintenance Labor Agreement between the City of Saint Paul and Operative Plasterers and Cement Masons Intemational Association, Local 633 o Preamble to the May, 1998 through April, 2001 Labor Agreement between The City of Saint Paul and Lakes and Plains Regional Council of Cazpenters and Joiners 1999 Saint Pau! Ciry CaurscilResearch Performauce Audit of the Ciry of Saint Paui's Labor Relations Acfivities ] 03 �y'� �v o July 1, 1997-June 30, 2000 Maintenance Labor Agreement between The City of Saint Paul and �� Intemational Union of Elevator Constructors, Local 9 � 1998-1999 Agreement between The City of Saint Paul and The Intemational Association of Fire Fighters AFL-CIO I.oca121 0 1997 AgreemenT between The City of Saint Paul and The Saint Paul Fire Svpervisory Association � July I, I997 through June 30, I999 Labor Agreement between the City of Saint Paul and District Lodge No. 77 Intemational AssociaYion of Machinists and Aerospace Workecs AFL-CIO � 1997-1498 Labor Agreement Between the City of Saint Paul and the Saint Paul Manual & Maintenance Supervisors Associazion 0 1999-2000 Labor Agreement between the City of Saint Paul and Intemationa] Union of Operating Engineers Local 70 � 1995-1998 Maintenance Labor Ageement between the City of Saint Paul and Intemational Brotherhood of Painters and Allied Trades Local 61 � May l, 1997 through April 30, 1999 Maintenance Labor Agreement Between the City of Saint Paul and United Association Pipefitters Local Union No. 455 � May 1, 1997 thru Apri130, 1999 Maintenance Labor Agreement Between the City of Saint Paul and the United Association Plumbers Local 34 and Sprinkler Fitters Local Union No. 417 0 1997-1994 Collective Bargaining Agreement between the City of Saint Paul and The Saint Paul Police Federation 0 1997-1998 Collective Bazgaining Agreement between the City of Saint Paui and the City of Saint Paul Professional Employees Association, Inc. 0 1997-1998 Colleccive Bargaining Agreement between the City of Saint Pau1 and Saint Paul Supervisors' Organization o May 1, 1997 thne Apri13Q 1999 Maintenance labor Agreement between the City of Saint Paul and Sheet Metal Workers Intemational Associarion Local 10 � February 1, 1996 through January 31, 1998 Collective Bazgaining Agreement between the City of Saint Paul and Internarional Alliance of Theatrical Stage Employees, Local No. 20 � May 1997 through April 2000 Coliective Bazgaining Ageement between the City of Saint Paul and the Tri-Council Local 120- Loca149 - and LOCAL 132 � 1997-1998 Agreement between the City of Saint Paul and Local Union 1842, District Council 14, oF the American Federation of State, counry and Municipal Employees, AFL-CIO. 0 1997-1998 Agreement between the City of Saint Paul and Local Union 2508 District Council 14 of the American Federation of State, County and Municipal Employees, AFL-CIO. 1999 Spint Pavl Cry Council ResearcA 104 Perfocmance Audit of the City of Sairt Paul's Labor Relations Activities APPENDIX F: � �I S�� Selected Bibliography Bohlander, George W., PH.D. (1992). Public Sector Grievance Arbitration: Structure and Administration, Jownal of Collective Neeotiations in the Public Sector, Vol. 21(4) 271 - 286. Bulach, Clete (1991). The Collective Bargaining Potpourri: Is There A Right Way??, Joumal of Collective Neeotiations in the Public Sector. Vol. 20(4) 281 - 292. Bureau of National Affairs, Inc., Collecttve Bargaining Negotiations attd Contracts; Preparing for Bargaining, 1996. Buteau of National Affaics, Inc., Collective Bargaining NegotiaKons arul Contracts; Traditional Bargaining, 1996. • -- -- . . „�,.._.._��__--- ° ------ ureau o ation airs, c., o ectrve arQacnino Noo�r:___ �__. ___—_____ - �,..,= vu, .ne i.._. --- - _�-------- --- --�� _--- - - --- __... -------_., _��. — -- Chandler, Timothy David (1988). I.abor Management Relations in Local Government, Municipal Year Book : 85 - 96. Chandler, Timothy David (1493). CoZZective Bargaining wirh Pdice Uniorts: Characferistics of Negnriators and Bargaining Strategies, Municinal Yeaz Book: 34 - 43. Elkouri and Elkouri, eds., Aow Arbitration Works Fifth Ed. Kearney, Richard C. Labor Relations in the Public Sector: Chapter 2; Legal Environment of Public Sector Labor Relations, Chapter 3; The Bazgaining Process, Chapter 8; Living With the Contract. New York, Basel, Hong Kang: Mazcel Dekkeer, Inc., 1989. Reynolds Jr, Osbome M. Handbook of G��P**_±*��t T- �--_ *:__ ��;; - ��,—;�. �t. raui, Iv1N: West ruoiisning C:o., 1982. v � Smythe, Cyrus (1998). The Importance of Supervisor Training, Minnesota Cities, Sept. p. 44. Urban Institute in cooperation with The National League of Cities and the National Association of Counties. Performance Measures: A Guide for Local Elected Officials. Washington D.C.: The Urban Institute Press, 1980. Walters, Jonathan. MeasurinQ Un: Goveruine's Guide to Performance Measurements for Geniuses and Other Public Manaeers. Washington D.C.: Governing Books, 1998. 1999 Saint Pav7Ciry Council Research