Committee debates arbitration changes for statewide education health plans

The Senate Education Committee considered May 7 proposed changes to the arbitration process used when statewide education employee health-care negotiations reach binding arbitration. Counsel for the employer commissioners told the committee the commissioners support language in an earlier draft (version 10.1) that would allow an arbitrator to choose elements from each party's last best offer, rather than selecting one party's complete final proposal.

Mr. McNeil, counsel for the employer commissioners, explained the change by referencing other labor statutes and told the committee that arbitrators often mix elements of both parties' proposals in practice: "In all or nearly all of the rounds of bargaining ... the arbitrator or the arbitration panel has indicated ... that if they were permitted to do so, they would not have selected either of the proposals from the 2 parties lock, stock, and barrel." He said adding a criterion requiring arbitrators to consider the percent change in education spending resulting from each offer and to compare proposals to plans available through Vermont Health Connect would produce better-informed decisions.

Chelsea, a witness speaking for education employers and districts, said rising health-care costs are a major pressure on local education budgets and described the proposal as "modest but meaningful" improvements that would give arbitrators additional context about affordability. "These additions will provide arbitrators with a clearer picture of affordability and sustainability," she said.

Several senators and other witnesses questioned the approach. One senator said picking and choosing among issues could undercut local collective bargaining by permitting arbitrators to reallocate costs between employee groups. Another member said the proposal did not address the underlying health-care cost problem and warned it would shift costs onto employees. After discussion, senators indicated they would not include the arbitration language in the miscellaneous education bill at this time. Multiple committee members suggested further study over the summer and potential return next legislative session; one committee member recommended deleting the section from the current draft pending additional work.

Neither the committee nor the full Senate took final action on the arbitration language during the hearing. Committee members said they would revisit the issue after additional analysis, including the fiscal and labor relations consequences of the proposed change.