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U.S. DEPARTMENT OF LABOR
Working Together for Public Service

Appendix D
Summaries from Site Visits and Examples, Including Contact Persons

The analysis and discussion in the Task Force report draws substantially on first hand observation and analysis of service improvements and cost savings from successful use of workplace cooperation and participation in state and local government. These Task Force interactions took place with hundreds of labor and management leaders, front line workers, elected officials, and often with community members. All of the examples are summarized briefly in this Appendix and contact persons at each site are noted.

The Task Force held ten days of field hearings and site visits in five regions of the country. All examples are arranged in the Appendix by region, whether they were part of these field hearings or received in Washington, DC hearings. In cases where the example is referred to in the report text or in the "Snapshots" following each chapter, the reader is referred there for more detail.

Many of the sites visited or heard from had more substantial programs than could be examined during a brief visit, and space limitations preclude comprehensive descriptions. Those limitations are reflected in the scope of these summaries. The purpose is to provide an indication of the range of settings and services we visited in which useful improvements were taking place, and the different ways in which they were approached.

Such a listing is necessarily incomplete. There are many other communities and government institutions that have cooperative service improvement partnerships and other successful participation programs. The Task Force tried to get a sample of them across regions of the country, at different levels of government, and in a range of services offered by state and local government. These and the many others that the Task Force was unable to visit, provide inspiring and informative examples from which others can learn.

NORTHWEST REGION SUMMARIES

King County, Washington

Note: For additional detail on the following, see Chapter 1 of this report.

Department of Metropolitan Services (METRO)
Issues: COLLABORATIVE BARGAINING, WORK TEAMS, JOB REDESIGN
Management: Paul Toliver, Director of Transit, King County METRO (206)684-1441)
Labor: Dan Linville, President, Local 587, Amalgamated Transit Union (206)448-8588)

Metro employees represented by ATU and the IBEW drive buses, provide power to the trolley buses and perform work in station and vehicle maintenance, rider information, safety and shelter design. Labor-management relations had been contentious for years, but the use of collaborative bargaining now produces quicker and more satisfactory settlements. Greater involvement of operations personnel in bargaining led to a change in emphasis from "problem avoidance" to "problem-solving." Through labor-management cooperation, Metro and its unions restructured and redesigned jobs, including the creation of work teams. Resulting cost savings and improved customer service include: fewer power interruptions to the electric trolleys, tunnel cleaning costs reduced by more than $100,000 over previously contracted out services as well as other savings; bus shelters free of graffiti because of the community's "buy-in" to a refurbishment project; ridership increased by 50 percent over the projected goal on specific routes as a result of a joint labor-management "drive for excellence." Phone information employees worked in teams to deal with the 5 million calls received per year. They left the office to learn how customers actually experience the services Metro delivers. Working with route planners and schedulers they developed a system map and a phone menu system, among other system improvements. The percentage of calls handled jumped from 50 percent to 90 percent, accuracy increased, and the average wait fell from 157 seconds to 65 seconds.

METRO Water Treatment Facilities
Issues: WORK TEAMS, GAINSHARING, INTEREST-BASED NEGOTIATIONS
Management: William Burwell, Operations Manager, METRO East Division Reclamation Plant (206)684-2408
Labor: Irene Eldridge, Union Representative, SEIU Local 6 (206)448-7348

Seattle's water treatment facilities are also part of Metro. The Renton plant has won awards for technical excellence and has also dealt creatively with changes in the workforce through a "Participative Workplace Program" (PWP) covering both union and nonunion employees. Out of 550 total employees, about 200 are in SEIU Local 6. A design committee of union, staff and management developed a plan for employee participation through "business teams" (natural work teams) and cross-functional project teams. Employees are empowered to "run their own part of the business" through enhanced communications and information sharing and exercising decision-making powers in many key areas, such as scheduling and maintenance. Supervisors are now "coaches, teachers, leaders." The change process also involved the development of a labor-management partnership based on collaboration and mutual goals. A joint labor-management policy committee addresses issues and helps to interpret the contract and deal with or prevent conflicts. In effect, this committee serves as the bridge between collective bargaining and workplace collaboration.

Gainsharing is provided for all workers -- union, non-union, and managers -- who have an impact on costs. The program is a performance-based, team-incentive plan that links employee compensation with improvement at the plants and off-site facilities through employee involvement. Specific performance measures are targeted and a baseline has been established. Workers receive half the cost savings achieved: a recent quarterly net gain amounted to $133,332, of which half was returned to Metro and half went to employees. A description of the program is available. The joint labor-management committee is also working to develop a job and pay progression system in which advancement takes place through acquisition of skills, not just seniority. The goals are to apply the same measurable criteria to all employees and to encourage employee initiative and career advancement.

Mercer Island, Washington

City of Mercer Island
Issues: TEAMWORK, CHANGE PROCESS, PUBLIC WORKS, MORE FLEXIBLE CONTRACT, REGULATORY REFORM, EMPLOYMENT AND INCOME SECURITY
Management: Rich Conrad, Assistant City Manager, City of Mercer Island (206)236-3570
Labor: Dave Hart, President, Washington State Council of County and City Employees Local 21-M, AFSCME (206)236-3656

The task force heard from union and management representatives from Mercer Island, a small island/city in Lake Washington, just east of Seattle, which underwent restructuring and job redesign in 1991 to remedy service problems. First, in a non-union situation, the city improved its development services, such as issuance of building permits and conduct of inspections, by adopting a team approach and by "flattening" the department through elimination of some management positions. Then, members of the Public Works Department, represented by AFSCME, requested that their department undergo a similar process.

Key to the success of these efforts was early and constant employee and union involvement and a continuing recognition of the need to maintain employment security and pay security. A flattened organization replaced traditional hierarchies, and now almost 50% of employees work in a team structure. For example, maintenance employees work in construction, mechanical, environmental and support teams with no intervening supervisory level between them and the city manager. In the team structure, team leaders (not in the bargaining unit) facilitate work assignments, while team generalists act as field foremen. The parties developed a labor-management compact and an employee bill of rights in which parties strive to identify joint interests and not concentrate on pay and rules. There has been a natural impact on the collective bargaining agreement. The contract was described as more flexible and primarily focused on customer service and related objectives. Its length and complexity were also substantially reduced. There is deliberate inclusion of viewpoints of elected officials (through involvement of the mayor, council members, budget staff) in the cooperative relationship focused on service.

Seattle, Washington

City of Seattle
Issues: RESPONSES TO CONTRACTING OUT, JOINT LABOR-MANAGEMENT COMMITTEES, INCLUSION OF ELECTED OFFICIALS
Management: Lizanne Lyons, Director of Labor Relations, City of Seattle (206)684-4000
Labor: Tony Vivenzio, Executive Director, Seattle Fire Fighters Union Local 27 (206)285-1271

In the City of Seattle, a beginning effort at service focused cooperation developed between management and a coalition of about 30 unions in 50 bargaining units in response to a prolonged period of difficult relations. The situation had come to a stalemate -- with some in management seeking a contracting-out ordinance and unions planning a public campaign -- when, instead, labor and management crafted a "Statement of Joint Commitment." This statement set forth a shared cost-savings approach as an alternative to possible contracting out, and a structure of joint problem-solving committees whose membership includes city council members and staff. The process had just gotten under way with the selection of projects to work on. Bargaining issues may be discussed in the process, but they are pushed to the bargaining committee for consideration of actual changes. Both sides acknowledge, however, that the trust and candor built up in the committee process have improved the collective bargaining relationship. In the most recent round of talks, the parties settled COLA and medical issues for the non-safety services before the agreements expired, which is apparently unusual in that jurisdiction.

Some of the results thus far include efficiencies from equipment sharing and scheduling adjustments, and saving from a redefinition of overtime, with 50% of the latter savings earmarked for employee training and development. Unlike earlier attempts at "TQM," which were "top-down" and more staff driven, this effort was agreed to by both labor and management principals. The inclusion of council members and council staff brought in another key stakeholder, cited as important for success in view of the council's important role in the budget.

Washington State

Note: For additional information, see Chapter 4 of this report.

Department of Labor and Industries
Issues: TOTAL QUALITY MANAGEMENT, JOINT LABOR-MANAGEMENTCOMMITTEES, TRAINING, INTEGRATION OF TECHNOLOGY, CROSS-FUNCTIONAL TEAMS, CONTRACT CONTAINING QUALITY PROCESS
Management: Lucille Christenson, Assistant Director for Human Resources (360)902-4226
Labor: Dianne Lutz, Director of Union-Management Relations, AFSCME Council 28 (360)352-7603; Mike Zenk, Business Representative, IBEW Local 76 (206)475-1192; Al Gilmore, Business Manager, United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry Local 32 (206)728-1832

The Washington Department of Labor and Industries (L&I) headquartered in Olympia has collaborated with AFSCME, IBEW and PPF representing its approximately 2,600 employees to implement quality initiatives, reorganize the Department and the workers' compensation office, and revolutionize claims processing through the adoption of imaging technology. AFSCME represents about 2,400 L&I workers, the IBEW about 150, and there are 25 plumbers and pipefitters. Restructuring of L&I was undertaken to improve customer service, access and satisfaction. The effort, accomplished between March 1993 and 1994, followed the principles of a Total Quality Management initiative embarked upon two years prior: customer focused, employee involvement and data driven.

The reorganization plan sought to eliminate "turf" issues that got in the way of customer service by organizing around common customers as opposed to statutes or funding source, and to eliminate or combine duplicate services. The effort was driven by data from over 3,200 customer contacts (internal and external). The number of supervisors was reduced from 500 to 300, number of divisions reduced from eight to four and fully empowered regional service delivery organizations were created. Many managerial and supervisory positions were eliminated and their incumbents redeployed to provide direct customer service and/or to field service locations. According to witnesses, the reorganization worked because there was a successful labor-management relationship, employee involvement, customer focus, and good involvement of stakeholders and a supportive administration.

Cross-functional teams redesigned the five major service areas of the department. Managers were urged to serve on the teams. Unions either assigned a liaison to the team or had members on the team; part of their role was to identify issues on which formal collective bargaining had to take place. A significant effort was made to protect the basic employment security of the workers. Notably, the cooperation was so effective that no grievances were filed over the reorganization, even though hundreds of jobs were affected. (A hiring freeze resulted in more than 300 jobs being offered to the 110 managers losing their positions. There were only two bumps.) Witnesses noted some spill-over from the teams' efforts to later collective bargaining negotiations, since relationships of trust had been built between labor and management.

As an example of ongoing quality efforts, the new technology of "claims imaging" has transformed case processing in the workers' compensation area. It was implemented as a result of labor-management quality efforts. Under the old microfiche technology, it took two or three weeks for a claims manager to get updated files once key information was received. Now, they can have the file almost instantaneously when they receive an inquiry. Timeliness and accuracy of case handling have improved vastly and customers are being served in much less time. Labor-management cooperation was instrumental in getting retraining for workers (e.g., in keyboard and other computer skills) so that layoffs were avoided. An ad hoc labor-management committee addressed issues such as ergonomics, selection of equipment, and design of new jobs. The new technology is projected to save the state $10 million a year.

Portland, Oregon

Portland Water Bureau
Issues: PARTNERSHIP, INVOLVEMENT OF ELECTED OFFICIALS, QUALITY, CONTRACTING OUT, REDEPLOYMENT, GAINSHARING
Management: Michael Rosenberger, Administrator, Portland Water Bureau (503)823-7555
Labor: Thomas O'Dea, Council Representative, AFSCME Council 75 (503)239-9858

The Portland Water Bureau's 500 employees are represented by AFSCME and five other unions. The Bureau's quality improvement process began in 1989 with an effort initiated from the top down by union and management leadership and that focused on work groups and an overall culture change. In 1991, the city completed installation of a new consolidated water control system that cut in half the number of operators needed, and brought about a 10 percent reduction in energy costs needed to run the pumps. The control center and laboratory were redesigned through labor-management collaboration. Working together to address the need to reduce positions overall in the bureau, the parties were able to bring about redeployment without layoffs. Joint planning in the earliest stages let employees cycle into vacancies; thus a key element of the success of the cooperation was that people knew they wouldn't lose their jobs.

Political leaders (i.e. city commissioners) are included in the overall planning process along with managers and union leaders. Moreover, the role of labor has changed: it is more than a stakeholder, it is an "equal sponsor" of change. Collective bargaining issues are not part of the partnership (though the parties do use a collaborative approach to bargaining). A significant area for cooperation is in the broad area of assessing how to provide the best services economically. Although pressed to consider privatization, the Water Bureau does not assume that privatization is automatically the right idea, rather, the question is posed: "What is most economic and effective?" Parties are collaborating in addressing the development of sophisticated measurement tools for making cost comparisons, as well as the careful listing and consideration of other criteria for such decisions: e.g., customer service, long- run human resource development, how best to serve the ongoing needs of maintaining the system. A booklet has been produced by the parties on this subject.

Multnomah County, Oregon

Note: For additional detail on the following summary, see Chapter 1 of this report.

Multnomah County
Issues: TEAMWORK, PARTNERSHIPS, QUALITY FOCUS, INCREASED PUBLIC SERVICE, CULTURAL CHANGE
Management: Beverly Stein, Chair, Multnomah County (503)248-3308; Barry Crook, Manager, Budget and Quality Manager, Multnomah County (503)248-3575; Ginnie Cooper, Director of Libraries, Multnomah County (503)248-5403
Labor: Joe Devlaeminck, President, AFSCME Local 88 (503)248-3749; Bunny Harrold, Representative, Multnomah County, Oregon Nurses Association (503)248-6168

Multnomah County government has engaged in a comprehensive labor-management cooperative approach to improve delivery of public services in which the wall between labor and management is crumbling.

Chapter One describes their comprehensive quality and cooperation efforts, "RESULTS: Reaching Excellent Service Using Leadership and Team Strategies." As an example, a panel from the library system described changes that occurred as the system moved from private to publicly run. Separate unions cooperated, and the work began to be done in teams. They addressed issues such as scheduling and the development of performance standards -- very different from the traditional areas in which employees had input. As in other government functions, the customer determines what is good service. The bottom line for this group was that their survival depends on their ability to cooperate. A noteworthy result of their efforts is that libraries are now open one more day a week with no staff increase and an increasing number of cost savings are emerging.

Northeast Health Clinic

Issues: TEAMWORK, BECOMING COMPETITIVE, RESPONDING TO MARKET
Management: Teresa Williams, Clinic Manager (503)248-5183
Labor: Michael Alexander, Labor Representative, Oregon Nurses Association (503)293-0011; Jim Younger, Business Representative, AFSCME Local 88 (503)239-9858

The Northeast Health Clinic is a large, primary care facility run by Multnomah County. Employees are represented by the Oregon Nurses Association and AFSCME Local 88. Relationships were formerly adversarial, with a bitter nurses' strike in 1980. Although attempts to establish quality programs were initiated subsequently by management, it was the institution of the Oregon Health Plan in early 1994 -- putting the Clinic into competition with other providers -- that has brought about the most significant developments in union and employee involvement, a focus on customer satisfaction, and joint problem-solving. Tmhe process has involved creation of a quality improvement steering committee and a customer service/professionalism committee. A vision statement and standards for excellence were developed, and there is increased emphasis on teamwork, problem-solving, joint information-gathering, and a change in attitude toward the clientele. Customers benefit from a multilingual staff, better information signs in the clinic, and other service improvements.

State of Oregon

Oregon Health Sciences University
Issues: COLLABORATIVE BARGAINING, TOTAL QUALITY MANAGEMENT, PROCUREMENT, GRIEVANCE REDUCTION
Management: Keith Tintle, Associate Hospital Director, Oregon Health Sciences University (503)494-4035
Labor: Dianne Lovell, Council Representative, AFSCME Council 75 (503)239-9858; Randi Post, Labor Relations Representative, Oregon Nurses Association (503)293-0011

The adoption of interest based negotiations, improvements in grievance handling, and joint projects to streamline procurement were described by a panel of labor and management from the State of Oregon Health Sciences University. Employees are represented by AFSCME and the Oregon Nurses Association. After individuals attended an FMCS-sponsored labor-management conference in Washington D.C. about five years ago, the parties began to initiate collaborative bargaining and TQM. With regard to the negotiations process, training in problem-solving has been provided by a state conciliator. Facilitators who were generalists learned how to teach the parties how to solve problems themselves. The quality process helped to smooth contract negotiations, and when the negotiations got in trouble, the parties had the foresight to look beyond those problems. Changes in grievance-handling pushed the process lower down the hierarchy and eliminated two of the five steps. Grievances have been reduced by 40 percent, and a grievance adjustment board made up of two each from labor and management has reduced reliance on arbitration.

An example of where teamwork has produced substantial savings, and is likely to produce much more, is procurement. Fourteen different departments at the university engaged in procurement; customers and suppliers were not satisfied, either with the process or the costs. A labor-management steering group from the various units initiated a study of the procurement process with the help of a consultant. From flow charts, the team saw what the old process looked like, saw the opportunities for savings, designed a new process, and decided how to implement it. It is expected that savings resulting from the team's efforts in this area will be substantial. Although there has been no guarantee of continued employment, attrition and retraining have been relied on to ensure that the smallest possible number of workers are affected.

State of Montana

Note: This testimony was received during the Task Force's January 10-11, 1995 Washington, DC hearing.

University of Montana
Issues: HIGHER EDUCATION
Management: James Lopach, Associate Provost, University of Montana (406)243-4829
Labor: Jerry Furniss, Associate Professor, University of Montana Business School and Past President, University Teachers Union (406)243-2062

Testimony was presented on how the employer-employee relationship was turned around at the University of Montana, where labor-management relations had traditionally been adversarial and narrowly focused: all issues other than money were ignored. In 1993, a new approach was attempted that involved the sharing of information and exploration of a wide range of issues, including workload and student access to classes. A strategic plan for bargaining was developed with the involvement of a neutral mediator and trainer. Training of parties in the process was done jointly, the process was broadened to include those who could implement the decisions, and other stakeholders, such as students, the board of regents, and the governor's office, were included. Parties acknowledged they were taking a risk because the outcome of such a process was uncertain, and union members received assurances that they could go back to traditional bargaining at any time. This seemed to give them needed security to engage in the process, which included more emphasis on problem-solving, joint problem-definition, and data-gathering.

NORTHEAST REGION SUMMARIES

State of Massachusetts

Note: For additional detail on the following summary, see Snapshot: MassHighway.

Massachusetts Highway Department
Issues: TEAMWORK, COMPETITION, SCHEDULE CHANGES, REDUCTION IN OVERTIME, SICK TIME AND TIME LOST; IMPROVED SKILLS, TRUST, BETTER COMMUNICATION
Management: Charles Kostro, Chief Policy Analyst, Executive Office of Transportation and Construction (617) 973-7255
Labor: Frank Borges, Secretary-Treasurer, SEIU Local 285 (617) 426-0410 ext 113; AFSCME Council 93 (617)367-6000 ; NAGE (617)376-0220

In 1992, Governor Weld's administration proposed to turn over all highway maintenance to one private contractor. In meetings with employees, the possibility of an in-house bid was discussed. Under the initial program, seven contracts were put out for bid in Essex County: four went to private contractors, three to a union consortium (NAGE and AFSCME were part of the group).

According to the parties the results have been excellent. Drawbridge operators have produced a 70 percent reduction in overtime, and substantial decreases in sick time. For the entire workforce that won contracts, there has been a 60 percent reduction in workers' compensation claims, and workers are credited with being directly responsible for the improvements in highway maintenance. Workers' ideas produced savings from such changes as flexible scheduling, putting maintenance personnel in the field, adding night shifts, or identifying where preventive maintenance could usefully be done. Much of the success has been due to teamwork and planning, as well as skills enhancement that has enabled internal, upward mobility. Virtually all the changes have been made within the scope of the current collective bargaining agreement, its wage and benefit provisions, and the personnel system, although the degree of trust and focus on service and customer satisfaction allows the parties to use those systems more flexibly. Nearly $8 million have been saved through a variety of cost saving improvements undertaken including the benefits of this effective cooperative relationship. Union and management are looking for ways to extend similar cooperation and cost savings to other parts of the state.

Massachusetts Joint Labor-Management Committee for Municipal Police and Fire
Issues: ALTERNATIVE DISPUTE RESOLUTION, JOINT LABOR-MANAGEMENT COMMITTEE, CONTRACT DISPUTES, IMPROVING TIME TO SETTLEMENT, PUBLIC SAFETY
Management: Don Hawkes, Management Senior Staff (617)727-9690
Labor: James Costello, Labor Senior Staff (617)727-9690

The Joint Labor-Management Committee, established by legislation in 1977, has six members representing labor, six representing management, and two neutrals all appointed by the governor for three-year terms. It exercises broad oversight responsibility for collective bargaining negotiations involving municipal police officers and fire fighters. It assists the parties in resolving contract disputes without going to arbitration by invoking mediation and other voluntary forms of dispute resolution and problem-solving; serves as a forum for the discussion of current issues in public safety labor-management relations, and strives to foster an environment conducive to productive and responsible collective bargaining.

The committee may invoke a specified form of limited arbitration in cases that "have remained unresolved for an unreasonable period of time" and that "constitute a potential threat to public welfare." In such cases, the decision shall be binding on the union and the employer "subject to the approval of a funding request by the municipal legislative body" (city council or town meeting). The committee process also permits the voluntary use of arbitration by agreement of the parties. The committee each year issues a report detailing its activities in settling disputes.

This approach is an example of innovative uses of alternative dispute resolution in a labor-management context, keeping parties focused on problem solving.

Boston Edison Company

Note: This testimony was received during the Task Force's January 10-11, 1995 Washington, DC hearing.

Boston Edison Co.
Features: GRIEVANCE MEDIATION, CROSS-FUNCTIONAL TEAMS, CONTRACT SETTLEMENT, LONG-TERM CONTRACTS, SAFETY NET, IMPROVED BARGAINING RELATIONSHIP, LONG TERM BUSINESS PLANNING
Management: John Higgins, Senior Vice President, Boston Edison (202)273-1960
Labor: Don Wightman, Vice President, Utility Workers Union of America (202)347-8105

In this example, the Task Force heard testimony about labor relationships in a privately owned utility company because of the similarities between such regulated utilities and the public sector.

Boston Edison had a history of unproductive labor-management relations, including bitter strikes and thousands of grievances, since at least the 1960s. In the mid 1980s, competition forced the company to change how it did business internally. It brought in a neutral expert to develop systems for mediation and expedited handling of the grievance backlog. The goal -- and result -- was to shift from a perspective of win-lose and scoring points to one of problem-solving. The witnesses provided figures to indicate a much higher settlement rate under the new system, with greatly reduced costs. No cases have even been mediated in the past two years -- the issues are being resolved at lower levels. Total per-case mediation costs average $200 versus $3,000 for arbitrator fees alone.

The parties indicated that the improved skills, trust and relationships from the process have also affected contract talks, prompting easier settlements. They created cross-functional teams to deal with customers, and used problem-solving techniques to consolidate job classifications, moving in one area from 70 to 35 workers without layoff (retraining was provided, along with a higher rate of pay for remaining workers). Open discussions led to operating changes. The labor agreement is for six years and remaining issues are being addressed in problem-solving groups.

Management selection and development practices are changing to develop leaders who work more effectively in problem-solving with employees and union leaders.

The parties noted that commitment of top leadership on both sides is crucial to success of such efforts. Further, the union emphasized the importance of job security to encourage creativity, risk taking and acceptance of dramatic change.

Portland, Maine

Portland, Maine has a comprehensive labor-management program producing service and cost improvements. For a detailed account of the following summary, see Snapshot: Portland, Maine.

Hadlock Field
Issues: JOINT COMMITTEES, TEAMWORK, SELF-MANAGED TEAMS, CROSS-
TRAINING, GAINSHARING, GRIEVANCES, CONTRACTING-IN
Management: Robert Ganley, City Manager, City of Portland (207)874-8689; Nadeen Daniels, Assistant City Manager, City of Portland (207)874-8779
Labor: Jim Pritchard, President, AFSCME Local 481 (207)874-8300 ext 8821

The task force heard testimony from city officials and employees of Portland, Maine on three major cooperative efforts: construction of a baseball stadium, the public works districting program, and the city construction company. The city had fairly adversarial labor relations in the 1980's, and over a third of the city's public works employees (represented by AFSCME local 481) were laid off in 1981. When a financial crunch again faced the city in 1990, management joined with union leaders and employees in a labor-management committee that prioritized issues, studied them in subcommittees, and brainstormed innovations that led to cost savings and increased efficiencies.

In 1993, the city decided to build a baseball stadium to attract a minor league team, but realized that the cost of using outside contractors would be prohibitive. The city manager challenged city workers to build it themselves. Begun in August 1993, it was ready for opening day 1994, despite the severity of the intervening winter. The stadium cost the city $2.5 million (minor league ballparks in other cities have cost $8 million to $10 million). The stadium was built through cooperation and teamwork. The stadium project also inspired other new ways of work organization producing excellence in city government. (See Snapshot: Portland, Maine.)

State of Maine

Employee Health Commission
Issues: JOINT LABOR-MANAGEMENT COMMITTEE, HEALTH CARE COST SAVINGS
Management: Jo Gill, Executive Director, Maine State Employee Health Insurance Program (207)287-6780
Labor: Bill McPeck, Health Commission Member, Maine State Employees Association, SEIU (207)622-3151

The Maine Employee Health Commission was created to deal with health care issues when traditional collective bargaining failed to deal with a strict funding cap imposed by the legislature. (The size of the premium paid by workers is still subject to bargaining.) The commission has created the first, statewide managed care program in Maine. The commission operates by consensus and has succeeded in bringing labor-management cooperation to bear on the costs and complexities of health care in the face of typical political and fiscal pressures facing state governments.

Massabesic, Maine

Massabesic Public Schools
Issues: COLLABORATIVE BARGAINING, IMPROVING BARGAINING RELATIONSHIP, IMPROVING TIME TO SETTLEMENT
Management: Millard Gethner, School Board Chairman, Maine School Administration District 57 (207)247-3221
Labor: Priscilla Wood, President, Massabesic Teachers Association (207)247-6126
Neutral: John Alfano, Mediator, Maine Labor Relations Board (207)282-3992

In this example, the parties had a very unsatisfying and contentious relationship: bargaining was positional and confrontational, and there was no binding resolution of economic items. Both sides were willing to take the risk of trying something new, and agreed to try preventive mediation. They employed major elements of collaborative bargaining, including jointness in problem solving, developing standards for solutions through brainstorming, and bringing more peoples' ideas to the table. The traditional caucus method of developing positions and demands was not used. People -- union reps and board members alike -- came to the table with problems, not answers, and they focused on problem-solving instead of trade-offs. The contract was settled in much less time than before. Both parties agreed it was a better agreement, with more mutually satisfactory solutions.

State of Connecticut

Note: For additional detail on the following summary, see Chapter 1 of this report.

Department of Mental Retardation
Issues: SAFETY, TEAMS, COST SAVINGS, REDUCTION OF TIME-LOSS INJURIES
Management: Christopher Lassen, Coordinator, Quality of Worklife Program (203)566-3249; Del Pelletier, Assistant Regional Director, Department of Mental Retardation (860)579-6030
Labor: Lou Weisenbacher, Member, New England Health Care Employees Union, SEIU District 1199 (203)262-9623

The statewide Quality of Work Life program has been funded through the collective bargaining agreement at the rate of $350,000 per year. Pilot programs have been established, by consensus between labor and management, in areas such as child care, training, absenteeism, and safety. One pilot program focused upon a statewide safety improvement program in living units of the state's custodial mental health facilities. The program approached the issue by empowering the caregivers with the ability to improve safety in the individual work site. It was noted that only direct care staff can reduce injuries so a team approach was needed that included the active involvement of facility leadership. Labor-management teams were then established one-by-one in several facilities. Significant decreases in injuries and time loss, including nearly $5 million savings in the first year, were identified. (Chapter One.)

Bridgeport, Connecticut

Labor-Management Cooperative Program
Features: JOINT LABOR-MANAGEMENT COMMITTEE, HEALTH CARE COST CONTAINMENT, RESPONSES TO FINANCIAL PROBLEMS, TOTAL QUALITY MANAGEMENT, EFFECT ON BARGAINING RELATIONSHIP
Management: Dennis Murphy, Chief Administrative Officer, City of Bridgeport (203)576-7119; Charlene Hosticka, Labor-Management Coordinator, City of Bridgeport (203)576-8358
Labor: Mardi Schroer Mattie, Field Representative, Connecticut Education Association (203)378-2101

Bridgeport, with a population of 142,000, was described as "the biggest and poorest [city] in the state, with the highest taxes." It filed for bankruptcy in 1991 and has experienced significant layoffs. The FMCS funded a position to coordinate labor-management cooperation among 15 bargaining units. The city has 4,000 employees, 40 of whom are not unionized.

When the city's health care plan was canceled, the labor-management group was used to help solve the crisis. The joint approach led to a single-provider plan, with equalized benefits among unions. The revamped program was reported to have saved the city more than $8 million. Annual costs of the new program have stayed level for the last few years.

Building on the success of its involvement in health care, Bridgeport's cooperative program has been broadened to focus on other areas, using TQM principles. A labor-management steering committee has selected five project areas out of 40 initially identified as possible areas of focus. Teams of employees are currently working on such projects as reducing illegal dumping, reducing costs and improving purchasing of office products and services, increasing use of existing computer equipment and output, and improving the telephone system to improve customer satisfaction and effective use of resources. The cooperative behaviors learned in these efforts have affected the collective bargaining relationships positively, as trust and problem-solving skills have been found to be useful in bargaining as well.

Ulster County, New York

Labor- Management Committee
Issues: Joint Labor-Management Committee, Effect on Bargaining Relationship
Management: Karen MacIntosh-Frering, Labor-Management Coordinator, Ulster County (914)340-3542
Labor: Deborah DeCicco, Ulster County Local Government Representative to the Board of Directors, CSEA Local 856 (914)340-3491

A joint labor-management committee was established 20 years ago in the collective bargaining agreement between Ulster County, New York (with a work force of about 1,600) and CSEA Local 856, but the relationship did not become a truly productive problem-solving team effort until nearly 10 years later. In 1985-86, the county, union and the New York State PERB jointly received a grant from the FMCS to develop and improve the effectiveness of the existing committee through process training, full-time facilitation, and adoption of consensus decision-making. The county-wide committee has joint co-chairs and 10 members each from labor and management. There are also four departmental committees at the county's largest agencies: mental health services, social services, the residential health care facility, and Ulster County Community College. Over the last 10 years, the committees have addressed many issues of mutual concern, including cost containment, training needs, scheduling of work (including implementation of flexitime), fair administration of a furlough program, safety and security concerns of employees.

The cooperative relationship has had a salutary effect on collective bargaining: While the 1992 agreement took 24 months to reach, the 1995 contract took only "a few days." The parties attributed this to the trust, communications, and problem-solving skills that had developed in the cooperative process.

State of New Jersey

State Judiciary
Issues: JOINT COMMITTEE, CONSOLIDATING UNITS, APPROACHING LEGISLATIVE BODIES
Management: Mark Rosenbaum, Administrator of Labor and Employee Relations, New Jersey Administrative Office of the Courts (609)633-6540
Labor: John Loos, Legislative and Political Liaison, Communications Workers of America (609)392-2771

This example describes a joint labor and management response to a sweeping reorganization of the judiciary in New Jersey. Over a five year period (1992-97), a workforce of 6,500 employees were to be shifted from county to state employment and approximately 75 bargaining units across 21 counties represented by different unions would be drastically reduced. The restructuring was complicated by the fact that the judiciary had historically not considered itself to be bound by civil service and collective bargaining laws. A joint labor-management committee was formed under the sponsorship of the Chief Justice to work on the personnel and labor relations implications of the consolidation. Members received substantial process training. A basic guideline was that no employee should be significantly harmed or experience a significant "windfall" from the reorganization. It was recognized that commitment from top leadership was crucial, as well as vesting decision-making authority in the people who participate in the process.

The results of the committee process were significant: The parties agreed on a proposed statute and a side letter of agreement to establish the framework for labor relations in the judiciary (which became subject to PERC jurisdiction without a statutory amendment that might have raised questions about the separation of powers). The parties presented the proposed act and letter of agreement to the legislature together, and the legislature adopted the bill "without a comma changed." The letter of agreement also protects employees' compensation and benefits, and provides for their fair treatment, upon conversion to state service.

Five joint committees continue to address issues such as work force planning and job design, rationalization of health care coverage (including cost containment) and salary disparities. Testimony provided to the Task Force noted the creative power available when labor and management come together in a problem-solving mode.

AT&T Credit

Issues: TEAMWORK, COMPETENCY-BASED PAY
Contact: Ann Henry, Vice President, Organizational Design & Development, AT&T Capital Corporation (201)397-4114

Note: This program was described to the Task Force at it's July 10-11, 1995 Washington, DC hearing, arranged with the assistance of the Work in America Institute to examine significant private sector examples.

A panel of team members and leaders described employee involvement at AT&T Credit, a clerical and professional group of employees specializing in leasing at the AT&T Capital Corporation, a nonunion company. The company, which won the NJ Quality Achievement Award in 1993, provides customer financing to support the sales and leasing of AT&T products. It is 86 percent owned by AT&T after a public stock offering, in which employees (called "members") received stock options equivalent to 10 percent of salary.

Credit work once done outside by a bank was brought in-house because the company had found that they couldn't serve their customers adequately. It was determined that in-house workers would provide more personalized service and more accountability to customers. This improvement was due to the members themselves, who felt they should be empowered because they are closest to the customer. They also wanted "end-to-end accountability" for the life of the lease. Likewise, customers wanted faster turnaround on decisions.

There are presently 13 self-managed teams of 20 to 25 members each. The team culture is embedded in the company, although individuals are given recognition in addition to team incentives. Team members are selected through a team interview process, and performance evaluation involves peer appraisal. The company has competency-based pay and training.

SOUTHEAST REGION SUMMARIES

Charlotte, North Carolina

Note: For additional detail on the following summary, see Snapshot: Charlotte, N.C.

New Pay System: Broad-Banding
Issues: PAY FOR PERFORMANCE, BROAD-BANDING CLASSIFICATION, EMPLOYEE TEAMS, EMPLOYEE INVOLVEMENT, ROLE OF PERSONNEL PROFESSIONALS
Contact: Karen McCotter, Performance Management Manager, Department of Human Resources (704)336-4508; Joan Perez, Consulting Services Manager, Department of Human Resources (704)336-6005

Charlotte's implementation of a broad-banding pay system was designed and implemented in 1993, with active input by an employee advisory committee representing all major departments (other than police and fire). The employee advisory committee served as the link to others by providing progress updates and sharing suggestions from those not on the committee. Employees now are grouped into six, broad pay bands, replacing five separate pay plans (including up to 25 pay ranges and nine steps each). The effort involved a cultural shift from pay entitlement to pay for performance and for adding value to the organization. Tools for managing pay were placed in the hands of departmental managers, thereby enhancing decentralized decision-making and resulting in a 25 percent decrease in the size of the HR department without a reduction in service levels.

Managers now have flexibility to reward performance without substantially increased resources. Salary costs are controlled because the projected cost of previous step increases and a possible across-the-board increase have been replaced with an overall merit increase based on a percent target for the year. In terms of improved management, performance-based pay has increased communications between supervisors and workers, strengthened performance measures and more closely linked employee performance and the goals of government. Efficiencies resulted because layers of management, which had been put in place to reward employees, could be eliminated in favor of more direct, performance-based rewards. Employees learn new skills and can assume broader or more complex duties.

Police and Fire Departments
Issues: PAY AND PERFORMANCE SYSTEMS, EMPLOYEE INVOLVEMENT, TEAM INVOLVEMENT IN TRAINING, CLASSIFICATION, PUBLIC SAFETY, EVALUATION SYSTEMS, ROLE OF PERSONNEL PROFESSIONALS
Management: Chief Jack Boger, Charlotte Police Department (704)336-2971; Chief Luther Fincher, Charlotte Fire Department (704)336-2492
Employees: Sergeant Jackie Maxwell, Charlotte Police Department (704) 336-3691; Art Brown, Administrative Officer, Charlotte Fire Department (704)336-3852

Teams comprising members of the City of Charlotte Police and Fire Departments, with human resources staff serving as consultants, have been developing new pay and performance systems and measures. Police and fire employees had been exempted from the broad-banding pay reforms made applicable to other jobs in the city in 1993 (see following summary). Recent merger of the city and county police forces also drove the restructuring of police compensation. The change process involved formation of a team of employees for each service representing different ranks and assignments, including civilians. Selection was by the respective chief, and included those knowledgeable about the pay system and other volunteers. The departments cooperated in market analysis (e.g., comparisons with salary data from other cities of comparable size), and periodically discussed progress and shared proposed solutions. The pay plans that emerged involved simplification of steps, elimination of across-the-board increases and closer ties to performance.

The police performance management system shifted from a "procedures orientation" to an "outcome orientation," with particular emphasis on customer service. The evaluation system attempts to build objectivity and eliminate inconsistencies while also measuring outcomes such as whether the response provided was appropriate to the nature of the call. The police appraisal system is more flexible to accommodate the changing nature of the work and the increasing move to community policing. The fire department has increased liaison with community groups, schools and churches about fire prevention and safety issues.

Team members shared information and consulted frequently with rank and file, and conducted needed training in the new systems. They provide orientation on the new systems to new employees, taking on a function previously performed by the human resources department. The process had direct ties to the community. For example, the committees were empowered to speak directly to the City Council. Both workers and the public have benefitted from the increased morale, competence, and empowerment of employees and the shifting focus to customer service.

Solid Waste Collection
Issues: COST INFORMATION, BENCHMARKING
Contact: Wayman Pearson, Director, Solid Waste Services (704)336-3410; David Cooke, Director, Business Support Services (704)336-6252

This example described how solid waste services were considered for bid. Initially, it was realized that a change needed to be made in the way garbage was collected: economics forced a change from a back-yard pickup to curb-side. When cost savings by city personnel were demonstrated, the work was kept in-house. The projected savings from employee input is more than $1 million.

Hampton, Virginia

Note: For additional detail on the following summary, see Chapter 1 of this report.

Issues: SELF-DIRECTED WORK TEAMS, TRAINING, MARKET-BASED COMPENSATION, GAIN-SHARING, COST MEASURES, QUALITY MEASURES
Contact: Tharon Greene, Director, Department of Human Resources (804)727-6437

About a decade ago this small city, with 1,300 full-time positions, faced dwindling resources and competition from neighboring cities. Hampton responded to these competitive pressures by developing a mission and a statement of organizational values that stress responsiveness to citizens, quality, integrity, teamwork, professionalism and innovation. Assistant city managers were re-focused from line tasks to strategic issues. Training in business techniques, such as bench-marking, was provided to enable employees to make comparisons with other jurisdictions. Employees were regrouped into self-directed work teams and taught teaming skills. Sound performance goals were developed, concentrating on "results, not activities." Ad hoc problem-solving teams supplement the permanent work team structure; employees even built the golf course after private bids proved too high.

Hampton noted that it shares with Charlotte a focus on customer service, a changed role for human resources, considerable decentralization of management, and revamped compensation, performance and incentive systems. (Also, the Charlotte city manager started the program in Hampton at an earlier stage.) Pay is market driven. Under an incentive program for innovation and productivity improvements departments share 10 percent of their annual savings with employees who make cost-saving suggestions.

State of South Carolina

Note: For additional detail on the following summary, see Chapter 1 of this report.

Department of Motor Vehicles
Issues: TEAMWORK, TOTAL QUALITY MANAGEMENT, CUSTOMER SERVICE, APPROACH TO LEGISLATIVE BODY, POLICY IMPACT
Management: Gregorie Frampton, Executive Administrator, Department of Revenue and Taxation (803)737-9830
Employees: Terry Brazell, Leslie Spratlin, Ike McFarlan (803)737-1782

Members of the quality service team of the Division of Motor Vehicles, state Department of Revenue and Taxation in Columbia, S.C., described how they addressed customer service problems in response to concerns expressed by the legislature. After receiving training in the quality process, a team of rank-and-file workers, district managers, and two facilitators gathered data on customer complaints, wants and needs. The most frequent customer complaints concerned long lines, the frequent need to make repeat visits because of inadequatedocumentation and unclear letters received by customers. The team made approximately 90 recommendations for improving service to the public; 10 required legislative action, and as of June 1995, eight had been enacted.

About nine quality teams are functioning now. They are managed by a special management team where the project is located. The DMV quality team was the first employee group to make a presentation to the Ways and Means subcommittee of the legislature. In addition to statutory changes to remove a number of service improvements, one result was a $600,000 appropriation for total quality management and training.

State Quality Network Association
Issues: QUALITY, BENCHMARKING
Contact: Phyllis Mayes, Assistant Executive Director, South Carolina Budget and Control Board (803)737-9389

The South Carolina State Quality Network Association is a group of about 40 agency leaders responsible for some 40,000 employees. The network meets regularly and shares resources regarding quality improvements. This is part of an effort by the ASQC to promote information sharing on service quality improvements. When the state legislature moved to mandate a program, the network was able to tell the legislature what was already going on, producing publications that set forth progress reports on member agency initiatives, a strategic plan for future efforts, and encouragement of further involvement of employees at all levels. (Currently, suggestions for improvement average 69 per employee per year.) There is a continuing effort to encourage innovations from the bottom up in order to deal with the problem presented by frequent political changes in top leadership. Future efforts intended include examining the efficacy of entire systems, such as tax collection; eliminating duplication of efforts, and bolstering recognition and rewards.

South Carolina Executive Institute
Issues: MANAGEMENT TRAINING
Contact: Phil Grose, Director, South Carolina Executive Institute (803)737-0844

The South Carolina Executive Institute is administered under the state Budget and Control Board in Columbia as a "virtual organization." It has no buildings and little bureaucracy. Instead, it draws upon the talents of faculties and the physical facilities of educational organizations within the state to provide leadership development programs. In operation since 1991, it has trained some 145 executives from 46 state agencies, two non-state governmental units, and 11 non-governmental and corporate organizations. It is based on the premise that training senior leaders fosters a productive and positive work climate that promotes service improvements.

Charleston, South Carolina

Department of Parks
Issues: TOTAL QUALITY MANAGEMENT, BUDGETING, SELF-MANAGED TEAMS
Contact: Danny Burbage, Superintendent, Department of Parks (803)724-7416

Five employees described how TQM has become a way of life in this 176-worker department. Restructuring of the work, along with training, has given individuals more responsibility. For example, an 18-year employee, the operations coordinator of the janitorial crew, not only handles the budget in his area but has also acquired the ability to judge the political sensitivity of complaints. As another example, opportunities have opened up for a former $4.50-an-hour day laborer and former waitress, who has advanced by dint of initiative and training to the post of environmental inspector: showing an eye for design, she has planted trees and done landscaping. Given other opportunities to learn, she acquired a commercial driver's license and now can operate equipment, and has moved up in pay.

There has been a deliberate reduction in supervisory positions as workers have been given more and more responsibility. Workers show flexibility in their skills and utilization. They make suggestions and get involved in all processes including budget and equipment purchases, such as writing specifications for lawn mowers.

Note: For additional detail on the following two summaries, see Chapter 1 of this report.

Police Department
Issues: TEAMWORK, COMMUNITY INVOLVEMENT
Contact: Captain Rod Hamilton, Charleston Police Department (803)720-2459

When the current mayor was elected in 1975, the city work force in general was underpaid and police were the lowest paid in the area. They had low educational standards, poor training, and no affirmative action. Now, more than 15 members of the force have advanced degrees, the majority are college educated, and the 330-member force is now the highest paid in state. They believe strongly in the team concept, and everyone is considered part of the solution to the problems of the community. They have a very low turnover, which reflects the level of pay, benefits, morale, job satisfaction, and the sense of teamwork and family. Education is encouraged for all city workers, who received released time for classes and extra pay for degrees. Like other parts of the city, police work in teams and participate in decision-making on the job. Four geographic teams of six officers each hold weekly meetings, anticipate scheduling problems and trade manpower. They work together on matters such as special plans for epidemics of purse snatching and other crimes, and use quality circles for tactical planning. Ideas are solicited from the bottom up. With increased autonomy and initiative, squads are given freedom and power to solve problems as they see fit. Problems are moved to lower levels, using the skills of individuals on the teams. A system of meaningful rewards has been developed, such as days off for "good" arrests (i.e., performed in a quality manner).

In terms of service to the community, the force holds meetings in the community to help develop plans. They have assigned officers to work with the public housing agency to reduce crime by screening applications and assisting with evictions. Their liaison with homeless shelters has reduced panhandling and increased resources available for daily meals. In cooperation with neighborhoods, they have selected certain problem locations and effectively designated them an entire beat as required.

In sum, they gauge success not by the bare number of arrests but by assessing the feeling of security in the community.

Rock Hill, South Carolina

Horticulture Department
Issues: TEAMWORK, SHARING OF FINANCIAL INFORMATION, TRAINING
Management: Latrelle McAllister, Personnel Supervisor, City of Rock Hill (803)329-5575
Employees: Michael Kropp, Grounds Maintenance Superintendent (803)329-5336; Calvin McCullough, Horticulturist (803)329-5540

Rock Hill is a South Carolina city of some 42,000 located about 20 miles south of Charlotte, N.C. Like others, it has found itself in competition with surrounding communities for population. Landscaping is one tool by which the city instills pride in citizens. All city employees have had customer service training, including teaming. In a significant restructuring of work to give employees ownership of their jobs, the Horticulture Department moved to a site- specific rather than functional division of labor. Previously the workers were divided into four crews: litter, mowing, mowing the ballpark, and shrubs and flowers. They would move from site to site and not have a particular attachment to any park or area. By giving teams of two workers, a crew leader and a crew worker, responsibility for the full range of jobs at particular sites (there are about 100 sites), productivity has been enhanced. Workers have a collective interest in getting the work done because they can leave for the day when all of the teams have finished their tasks. Savings come also from decreased travel time between sites, better communications among teams and between employees and management. Teams can swap equipment if needed to fill in for equipment that is out of service, and can combine on certain jobs if there is too much work for one group to finish. Quality control is also in workers' hands.

Armed with financial information from supervisors, employees determine operating and capital budgets, how to work more cost-effectively and make better procurement decisions. An employee-inspired preventive maintenance program, for example, resulted in savings of $40,000. Other savings resulted when group leaders developed a plan to "disincentivize" the use of sick leave, and typical sick day usage dropped from 20 to about three annually. Training is a key factor in the success of the system. New workers receive 50 hours of horticultural training, 32 hours in customer service; crew leaders get three hours in performance management training.

SOUTHWEST REGION SUMMARIES

Los Angeles, California

Note: For additional detail on the following summary, see Chapter 1 of this report.

Bureau of Sanitation and Department of General Services
Issues: JOINT TEAMS, COST REDUCTION, CROSS-DEPARTMENT COMMUNICATION, RESPONSES TO PROSPECTS OF PRIVATIZATION, PREVENTIVE MAINTENANCE
Management: Marilyn McGuire, Division Head, Solid Resources Collection Division (213)485-4902
Labor: Dave Trowbridge, General Manager, SEIU Local 347 (213)482-6660

This is a story of service improvements and efficiencies brought about by labor-management cooperation as well as department-to-department and worker-to-worker cooperation. The city has 720,000 customers whose trash is collected twice a week. Since 1983, the city had been working with the union to reduce costs and develop plans for conversion to a more automated system. In November 1993, the mayor began to implement a competitiveness process in six areas in the city. Pursuant to a city council resolution, a task force of employees and managers was created to assess service costs so that cost improvements could be found in solid waste. This "joint team for work standards" (JTWS) developed a mission statement, targeted goals, set standards for the new "automated" method of collection, and began to analyze how to control overtime. It soon became clear that a major point of attack to reduce overtime would be through vehicle maintenance. However, this approach was problematic because the work is performed by another department, the Bureau of Fleet Services.

The team's work, and subsequent employee involvement through district-based process action teams (PATs), brought worker input into areas that traditionally have been reserved to management, and has brought about true shared decision-making. It also was decided to develop closer working relationships with the public through the creation of customer focus groups. The team committed to a 25 percent cost reduction over three years, reducing overtime and non-productive time. Working with the mechanics, they actually improved reliable availability from 74 percent to 93 percent after about a year, far exceeding the goal of 85 percent. They hope, and expect, to reach 100 percent through additional training, as mechanics now train drivers in avoiding mechanical problems. With respect to another stated goal, the overtime hours have declined over the period 1993-1995 from 17,000 to 9,100. Key elements in the success of the process were the development of trust between workers and management and among workers; and the memoranda of understanding negotiated in 1994 providing for job security: no one was laid off or terminated or suffered loss of pay as result of contracting out or efficiencies achieved through cooperation. (Some supervisors were reassigned -- for example, by being placed out in the field. Some reduction in management through attrition is expected.) The PATs will be addressing the issue of bonuses or other section or team-based incentives, and a related team concept for goal measurement.

Joint Labor-Management Benefit Committee
Issues: JOINT LABOR-MANAGEMENT COMMITTEE, HEALTH CARE BENEFIT COST CONTAINMENT
Management: Ray Allen, Assistant General Manager, Department of Personnel (213)847-9746; Henry Hurd, Director, Employee Benefits (213)485-2048
Labor: Michelle Buehler, Administrative Assistance, SEIU Local 347 (213)482-6660; Jeanette Ross, Chairperson of Joint Labor-Management Benefits Committee, Engineers and Architects Association (213)620-6920

Los Angeles' Joint Labor-Management Benefit Committee was created in 1989 and formally authorized by City Council legislation in 1990 for the purpose of attempting to reduce the cost of benefits. The 10 members are evenly divided between union and management representatives. A jointly selected consultant assists the committee, and joint labor-management teams have been used to examine certain issues. Development of a flexible benefit plan was the first labor-management committee effort. While health insurance benefits were difficult to address as any changes were viewed as a take-away, employees'' pay checks were not affected by any of the changes: a 7 percent to 8 percent savings in health care costs was achieved by changing the health care delivery system. The committee gained significant assistance from human resource professionals serving as neutral advisers and facilitators.

Foshay Middle School

Note: For additional detail on the following summary, see Chapter 1 of this report.

Issue: LABOR-MANAGEMENT-COMMUNITY PARTNERSHIP, SITE-BASED MANAGEMENT
Management: Howard Lappin, Principal, Foshay Middle School (213)735-0241
Labor: Wayne Stevens, Chapter Chair, United Teachers of Los Angeles (213)735-0241

Foshay is a middle school with 2,900 students, two-thirds Hispanic and one-third African-American. There is an 80 percent student turnover rate, and 95 percent of the children are in the Chapter One program. With a history of low student test scores and the threat of loss of funds, a school-based management program was instituted to improve the performance of the students and the school. Through the cooperative program, teachers and parents developed ownership of the change process, including the hiring of teachers. (Similarly, it was noted, when the time comes to select a new principal, teachers will be involved in the selection process with the support of the union and the community.) The principal helped by obtaining the grants that provided the necessary funds to improve the technology of the school and supplement the learning process.

The school-based management program and a labor-management partnership helped to change the culture of the school. Witnesses noted that for this process to work, union and management leaders must be partners and trust each other. The collective bargaining agreement allowed teachers to waive parts of the contract so that the school-based management program could be implemented. In addition, to a now-effective learning environment through a program to maintain order and enhance the classroom experience, test scores are now near the state average, rising from near the bottom dropouts and suspensions are drastically reduced.

State of California

Joint Labor-Management Child Care Committee
Issues: JOINT LABOR-MANAGEMENT COMMITTEE
Management: Patricia Pavone, Chief of Benefits and Training Division, Department of Personnel Administration and Chair of Child Care Committee (916)324-9371
Labor: Linda Morrison, Statewide Affirmative Action Coordinator, California State Employees Association (916)326-4271

The Child Care Committee was established in 1984 and had 22 members. The CSEA and two other unions approached management with the proposal to establish child care centers in government office buildings. The three unions spent a year researching the issue and developing the proposal. There was strong support for child care centers as a CSEA survey found that the lack of chid care was one of the top concerns of its members. Initially, $1 million was provided, and 21 child care centers were established serving approximately 1,000 children of state employees. Benefits of the child care centers included reduced use of leave to care for children, improved employee morale, and less personnel turnover. The Committee went out of business in 1993 when its funding was not continued. The established day care centers continue to operate on a break even basis. There is concern they are not being widely used by lower-wage employees because they can't afford the fees.

Albuquerque, New Mexico

Jefferson Middle School
Issues: WIN-WIN BARGAINING, SITE-BASED MANAGEMENT, JOINT LEADERSHIP TEAMS, COMMUNITY INVOLVEMENT
Management: Julie Ambrogi, Principal, Jefferson Middle School (505)268-2334; Michael Houser, Director, Employee Relations, Albuquerque Public Schools (505)842-3524
Labor: Don Whatley, President, Albuquerque Teachers Federation (505)262-2657

Labor-management cooperation activity started at this 55-year old school in 1986. The parties received training from FMCS on win-win bargaining principles, which also helped them resolve grievances. In their partnership agreement, the parties focused on common interests and used contract negotiations to address restructuring issues and to establish a Joint Restructuring Leadership Team (JRLT) at the district level. (The union had received and shared information on restructuring through the use of labor-management cooperation from AFT headquarters staff.) The contract also established the role of parents in the school-based management process. A School Restructuring Council, with broad-based representation of parents, teachers and administrators, addresses the needs of students, considering issues that impact the instructional program. The Council has authority over the discretionary accounts of the budget ($2.1 million) and can move funds around. It provides a means for dialogue between parents and teachers. Task forces are used to address certain issues, perform outreach work to constituent groups, and conduct surveys. Keeping constituent groups informed, especially parents, about the issues discussed by the Council is critical to its success.

Phoenix, Arizona

Note: For additional detail on the following summary, see Chapter 1 of this report.

Fire Department
Issues: TEAMS, GRIEVANCE REDUCTION, IMPROVED BARGAINING, JOINT PLANNING
Management: Assistant Chief Robert Cantwell, Phoenix Fire Department (602)262-1645
Labor: Pat Cantelme, President, IAFF Local 493 (602)997-1231

IAFF Local 493, formed in 1936, represents about 1,400 members who provide fire and emergency medical services for Phoenix residents. Until 1978, the relationship between the union and management was very contentious and adversarial. At that time, a new fire chief and union president took office and focused their relationship on improving customer service. Their relationship was a key ingredient to the success of this cooperative effort and was critical to getting it started. Arbitration has not been used in 10 years.

In 1984, the parties received "Relationships By Objectives" training from FMCS. RBO is separate from the collective bargaining process. It creates a way to place issues on the agenda and provides a focal point from which to start discussions and may indirectly influence the collective bargaining process. Since 1978, the parties have used the department-funded annual retreats at Flagstaff, Arizona, to develop their annual plan. Labor-management teams focus on carrying out the action plan issues of the annual plan and receive training, if needed. Quarterly labor-management meetings are held to track the progress of the action plans. The process of developing annual plans has become institutionalized and would continue if there was a personnel turnover. The focus of the parties has been on improving the delivery of services to its customers both external (citizens) and internal.

Hobbs, New Mexico

Fire Department
Issues: EMPLOYEE PARTICIPATION
Management: Chief Michael Gray, Hobbs Fire Department; Fran Mosher, Personnel Director, City of Hobbs (505)397-9228
Employees: Larry Wood, Emergency Medical Service Specialist, Hobbs Fire Department (505)397-9308; Captain Michael Ravenelle, Hobbs Fire Department (505)397-9308

The city manager requires that department heads set goals and develop action plans. A participatory approach is used to accomplish this, and a culture has been developed that encourages employees to raise ideas and to accept responsibility for finding solutions. For example, employees were given responsibility for developing a fire hydrant maintenance plan. Accountability is pushed to the lowest organizational level. Among the complications encountered to these developments have been resistance by middle management and the difficulty of compensating employees for accepting more responsibility.

Salt Lake City, Utah

Public Services
Issues: QUALITY FOCUS, TEAMWORK, JOINT LABOR-MANAGEMENT COMMITTEE, IMPROVED BARGAINING, REDUCTION IN GRIEVANCES
Management: Roger Black, Director of Public Services, City of Salt Lake City (801)535-6426
Labor: Gordon Ottley, President, AFSCME Local 1004 (801)532-1009

When Mayor Coridini came into office, she initiated a Quality Service Plan to improve the delivery of city services. The program is city-wide and has been in existence for three years. Its goals are to know who the customers are, educate employees to work in teams, and develop accurate data to justify why services are done in-house. Despite early skepticism, AFSCME was involved in the development of the plan, and union officials received training from AFSCME headquarters staff. Private consultants also advised on the program. Top management and union leadership supported it, while, as is sometimes the case, middle- and lower-level managers were a source of resistance. Witnesses credited the labor-management partnership aspects of the program with managing the elimination of 120 positions wherein only two employees were let go. Working together in the development of the quality program helped develop trust and understanding which, in turn, facilitated more harmonious collective bargaining negotiations. Fewer grievances have been processed. A labor-management committee was established as a result of contract provision.

The quality program has made city services more competitive, and as a result few have been privatized. Custodial services for the airport and city buildings are privatized, but shuttle transportation at the airport, and general sanitation services for the city, both of which had been privatized, are now done by city workers.

MAGMA METALS

Note: This program was described to the Task Force at it's July 10-11, 1995 Washington, DC hearing, arranged with the assistance of the Work in America Institute to examine instructive private sector examples.

High-Performance Work Environment
Issues: JOINT LABOR-MANAGEMENT COMMITTEES, GAIN-SHARING, TEAMS, TRAINING, IMPROVED BARGAINING,
Management: John Champagne, President, Magma Metals (520)385-3593
Labor: Robert Gadiana, Director, United Steel Workers of America, Subdistrict 8 (520)888-8440

The Task Force received testimony on this private sector illustration of a relationship that changed dramatically from confrontation to cooperation. The witnesses pointed out that at Magma, cooperation was possible in mines and smelters where the physical working conditions are extremely arduous. They observed, "Don't say this isn't possible in government, where good working conditions usually prevail."

Magma is the third largest producer of copper in the U.S. The industry has seen a substantial economic recovery in recent years, but both parties realized in 1989 that the company's survival was at stake and depended on the adoption of a new, more cooperative labor-management relationship. A true partnership has supplanted the frequent strikes, high labor costs and low productivity that characterized the parties previous relationship. Ten unions represent workers at Magma, with the USWA being the largest. The sense of crisis contributed to all 10 unions to work together, since all wanted to have a voice in affecting their future. The parties decided to look at what their industry would be like in 1997, and attempted to reach agreement on a creative and innovative way to help the industry and company survive. A joint committee was created to work on building a new relationship, with a commitment to develop trust, integrity and a sense of mutual interdependence. Following that, teams of workers have redesigned work processes, levels of management were reduced, and supervisors now function as team leaders.

A gain-sharing program was initiated in 1991 which split the gains from productivity, cost and safety improvements 60-40 between the company and the workforce. From 1988-1994, labor productivity increased by 86%, production cost have declined by 20¢ per pound, production has increased by 70%, safety has improved, and absenteeism and grievances have gone down dramatically -- a figure cited was 1,000 grievances in 1991, reduced to 19 in 1992. The company has paid out over $40 million in gain-sharing since 1992. Also in 1991, the parties signed an unprecedented, 15-year contract with a seven-year, no-strike clause. The union is represented on the company's board of directors. A group of 140 employees, called "the voice of Magma" and representing all constituencies throughout the 5,000 person workforce, developed the company's initial "charter" or vision for the future in 1993 and meets quarterly to provide leadership to the company. The company has heavily invested in leadership training, which all managers and employees receive.

MIDWEST REGION SUMMARIES

Indianapolis, Indiana

Issues: LABOR-MANAGEMENT PARTNERSHIPS, TECHNOLOGY, COST ANALYSIS, GAINSHARING, COMPETITION, PUBLIC WORKS FLEET SERVICES, TRAINING SAFETY-NET
Management: David Lips, Special Assistant to the Mayor for Policy Development, City of Indianapolis (317)327-5806; Mike Stayton, Director, Department of Public Works (317)327-3725; John McCorkle, Administrator, Fleet Services (317) 327-2741
Labor: Steve Fantauzzo, Executive Director, AFSCME Council 62 (317)632-1432; Dominic Mangine, President, AFSCME Local 3131 (317)327-2756

Note: Indianapolis has a comprehensive city-wide service improvement program underway through labor-management cooperation. For a more detailed account as well as other features of the Indianapolis program, see Snapshot: Indianapolis.

Indianapolis has a comprehensive service improvement and cost savings program. A substantial dimension of this program is a partnership with bargaining units representing city employees. Mayor Goldsmith was elected on a platform of "privatization," but the policy later turned to one of working with employees and their representatives at the same time as the city developed what it terms a process of "marketization" under which some services are put out for bid, with the goal of providing the best cost services, regardless of source. City employees have demonstrated that they are very competitive, as labor and management have learned to work together more cooperatively and cost-effectively. The union initially feared the loss of members' jobs, although it also saw the competition effort as an opportunity to show that the private sector is not inherently more efficient than the public sector. Both labor and management recognized that decisions on competition require a level playing field and costing analyses that are fair to both sides: Without clear measures of comparison, bids by public sector operations may be disadvantaged by such things as assigned overhead costs and bureaucratic requirements. With the assistance of KPMG Peat Marwick, activity-based costing was developed, and employees received training (some city-provided) in financial issues, including how to make bids. No rank and file employees have lost their jobs, yet costs have decreased and services have improved, and some services have been brought in-house.

Union workers won a substantial proportion of the services they bid on, and it was not unusual for union-performed work to come in at 25 percent beneath that bid when the work was actually performed. (Part of the savings are shared with employees. For example, waste collectors recently received a $1,700 payout from this gainsharing.) There have been no layoffs in the unionized force, but there were significant cuts in mid-management jobs. (See Snapshot: Indianapolis for details of the program.)

State of Indiana

State Employee Labor-Management Project
Issues: JOINT LABOR-MANAGEMENT COMMITTEE, TRAINING, EFFECT OF CIVIL SERVICE
Joint Committee: Lee Balliet, Director, State Employee Labor-Management Project (812) 232-6524
Labor: Steve Fantauzzo, AFSCME Council 62 (317)632-1432; Karl Frederickson, Unity Team (AFT-UAW) (317)632-1432

The Indiana State Employee Labor-Management Project was funded initially by an 18-month grant of about $100,000 from FMCS. A state-level, joint labor-management committee wrote the grant proposal that was submitted to FMCS. Thus far, six local committees have been set up: two in prisons, two in mental health facilities, and two departments of family and children services. The local committees have union and management members. Teams meet monthly, with formal bylaws and specific rules to ensure high commitment from members. This process has resulted in changes in how people deal with each other, including the replacement of voting by consensus decision-making.

A needs assessment survey was done at all sites, receiving a better than 50 percent response rate, to assess matters such as employee views of labor-management issues, workplace problems, and training needs. The intent was to first address local problems, but many issues surfacing in the needs assessment are related to state personnel policies, and parties recognized the need to deal with potential conflicts between the collaborative process and civil service rules.

The project has held a two-day training retreat for 90 committee members, with initial training focused upon process and viewing the project as a new opportunity for dialogue and problem-solving outside the collective bargaining process. It was noted the labor-management cooperative process was not a substitute for collective bargaining and is supportive of it. This was intended to make sure that the joint labor-management committee did not get involved with such issues as individual grievances, but stayed focused on those issues of concern to the majority of persons in the affected unit. Examples of issues discussed including career ladders and the need to heal the traditional rifts between clericals and case workers, and the desirability of providing EMS training to prison guards.

Peoria, Illinois

Note: For details on the following summary, please see Chapter 1 of this report.

Joint Labor-Management Committee to Control Health Care Costs
Issues: HEALTH CARE COST CONTAINMENT, GAINSHARING (OF COST SAVINGS), INVOLVEMENT OF ELECTED OFFICIALS, JOINT LABOR-MANAGEMENT COMMITTEE
Management: Dave Koehler, Executive Director, Peoria Area Labor-Management Committee and Member of Peoria City Council (309)674-7256; Pat Parsons, Director of Personnel and Labor Relations, City of Peoria (309)672-8575
Labor: Jerry Belcher, Vice President, City of Peoria Municipal Employees Association, AFSCME Local 3464 (309)672-8537; Tom Jackson, Treasurer, IAFF Local 50 (309)693-0522

In an attempt to control spiraling health care costs without cutting employee benefits or raising employee costs, the issue of health care benefits was removed from the bargaining table and placed in a joint-labor management committee with representatives from management and the city's eight unions. The program was developed by a planning process involving all stakeholders: covered individuals (workers, retirees, and family members); taxpayers, the city and city officials, the claims payer and the vendors providing services. Unrepresented employees were also consulted, and a professional health care consultant assisted with the process. A primary result of the cooperative effort has been a shift away from adversarial decision-making about health care to one based on cooperatively and jointly owned decisions.

The Committee is composed of 16 members with equal numbers from union and management. The committee sunsets after three years unless renewed. As a result of this cooperative approach, the benefit package was improved and the revised health care plan saved $1.2 million in 1994, its first full year of operation.

Cincinnati, Ohio

Note: For additional detail on the following summary, see Snapshot: Cincinnati, Ohio.

Cincinnati Public Schools
Issues: SCHOOL IMPROVEMENT, PROFESSIONAL DEVELOPMENT, HEALTH CARE COST CONTAINMENT, JOINT COMMITTEES, PEER EVALUATION AND COACHING, RESOURCE ALLOCATION
Management: Monica Curtis, Public Affairs Director, Cincinnati School Board (513)475-7023
Labor: Tom Mooney, President, Cincinnati Federation of Teachers (513)961-2272

This example described how the parties have worked together cooperatively both inside and outside of the collective bargaining process. Issues addressed include the importance of ensuring order in the schools, professionalization of teaching (one of the issues considered most time-consuming) and health care cost containment. The union is deeply involved in matters such as screening, training and removal of teachers, as well as in shaping curriculum. The collaborative process began in 1985 with a program of peer assistance and evaluation in which master or consulting teachers help new or struggling teachers. Other joint efforts in the professionalization area include a negotiated career ladder, a school-based teacher transfer process and a master or lead teacher plan. The Cincinnati experience also involves a three-pronged alliance between unions, area businesses and the school district, dealing with issues such as structural reform of school financing (in Ohio property taxes provide 60 percent of the budget and school systems have their own taxing authority) and sometimes producing joint business-labor support for school board candidacies.

Additional changes came about after the school system reached a crisis point in 1991, when a commission issued a very critical report. "Social promotion" of students was effectively halted and new discipline standards were adopted. In an effort to put needed structures in place, a joint educational initiatives panel, chaired by the local union president and the superintendent, sets policy, while another joint committee addresses issues of teacher supply. The school board since has had three consecutive balanced budgets. Parties are committed to making sure resources stay focused in the classroom. The 1991 report launched other reform initiatives which cut 50 percent-60 percent of central office bureaucracy, and set up curriculum councils in 11 subject areas. Teacher positions also were trimmed, with a heavy reliance on an early retirement plan and provision of out-placement services to ease the displacement. Joint committees address issues such as quality improvement, employee benefits, and health care. In this latter area, eight unions, including teachers, are covered by the city plan and participate in the discussions. A move to a managed care health plan has saved $7 million per year over three years.

Madison, Wisconsin

Note: The following examples come from a citywide program.

City Quality and Productivity Programs
Issues: CONTINUOUS IMPROVEMENT, INVOLVEMENT OF ELECTED OFFICIALS, TOTAL QUALITY MANAGEMENT, COST SAVINGS, INTEGRATION OF SERVICES, JOINT DECISION-MAKING
Management: Paul Soglin, Mayor, City of Madison (608)266-4611; Tom Mosgaller, Director of Organizational Development/Training, City of Madison (608) 266-9037
Labor: Mike Murphy, Steward, AFSCME Local 60 (608)266-4956

Madison's quality improvement efforts began after then-Mayor James F. Sensenbrenner and his staff were exposed to the teaching of W. Edwards Deming in 1983. A pilot project at the motor equipment division made substantial improvements in prioritizing repairs, improving communications with customers, reducing steps in the inventory purchasing process and, ultimately, reducing vehicle down time, all of which saved money and improved service at the same time. Based on the success of the pilot, it was decided to expand the philosophy throughout city government. A range of quality improvement projects, with active involvement by union members, saved the city between $1.1 million to $1.4 million over a four-year period, agency heads estimated. In another example, community neighborhood teams in 10 neighborhoods bring together city workers such as building inspectors, police, health care and community social workers to share information and more effectively meet community needs. The city recently expanded stakeholder involvement in the quality process to include city council members and unions. Next steps include plans to develop an external citizen/taxpayer feedback process and a more sophisticated benchmarking and measurement system. Top union officials now usually attend Mayor's cabinet meetings.

Madison METRO Transit System
Issues: TOTAL QUALITY MANAGEMENT, TEAMWORK, CONFLICT RESOLUTION, ROUTE AND SCHEDULE DESIGN, SAFETY
Management: Paul Larrouse, General Manager, Madison METRO (608)267-8777
Labor: James Remsik, Steward; Frances Wall, Steward; John Annen, Driver; David Hoeft, Driver; Teamsters Local 695 (608)266-4904

Mechanics, operators, and other workers described quality initiatives, cost savings and teamwork being employed within the transit system. The system was privately owned until 1970 and employees were not considered city employees until 1984. A 1988 grant from the Federal Transit Administration set in motion the development of cooperative labor-management processes. Today, these initiatives include a leadership team, a coordinating committee and functional teams in maintenance, drivers, operations supervisors, and buildings and grounds. These processes have shown impressive results. For example, the drivers' TQM team designed a project to cut down on garage vehicle accidents. Using data-based decision-making -- a key element of the city of Madison's quality process --the team took pictures of problem areas and produced computerized charts identifying numbers, types, timing and locations of accidents between 1993-94, along with the cost per incident and average costs. Contrary to expectations, the team found that the basic cause of accidents was not speed, but the construction of the building and the way it is used. The team came up with three sets of recommendations regarding lighting and painting, training and dispatch. In another example Metro&Plus, the handicap access service provided pursuant to the Americans with Disabilities Act, has received substantial driver and community input on the design and implementation of routes and timing which has improved service quality.

Collective bargaining at Metro was described as fairly traditional, though it was noted that workers are covered by different rules to some extent than other city workers by virtue of the federal employee protections in section 13(c) of the FTA. The parties were about to undergo collaborative bargaining training provided by the Wisconsin Employee Relations Commission, as recommended by the city. Grievance handling under their contract differs from other traditional systems in that the only time requirement is that the grievance be filed within 10 days. It is then sent to a large joint labor-management group that meets once or twice a month to attempt to reach consensus decisions on grievances. The parties have gone to arbitration only once in eight years.

Department of Planning and Development Building Inspection

Note: For additional detail on the following summary, see Chapter 1 of this report.

Issues: TEAMWORK, CUSTOMER FOCUS, REGULATORY REFORM
Management: George Austin, Director, Department of Planning and Development (608)266-4635
Labor: Rolland Kiel, Member (608)266-4554; William Neitzel, Member (608)266-4520; AFSCME Local 60

The Building Inspection unit is part of the Department of Planning and Development. It has 150 employees, most of whom are represented by AFSCME Local 60. Like other city agencies, this department has decided to focus its efforts on the quality of service provided by recognizing the importance of the customer. The department has enhanced the quality and cost effectiveness of the services it provides by developing a clear understanding of the purpose of the service being provided, seeking out and recognizing the range of talents among employees and working hard to try to match talents to the task, while always attempting to achieve "the biggest result" with the least resources.

Concrete results in terms of increased customer service and lowered costs were achieved, for example, in an electrical contractor training project. The original goal of the project was not to save money (although savings did result), but to improve the relationship between contractors and inspectors. Driven by the need to ease adversarial tensions between contractors and inspectors and to accommodate an increasingly diverse workforce and technological changes, inspectors began to work more as teams, not only in the field but in planning their work. The timing of inspections became customer-driven with many adjustments made in scope, content and targets of the contractors' training programs. The department sought significant customer input into the process. Since training is more effective, the contractors reap savings from knowing what to do in the first place, thereby saving on rework. City costs have also decreased since the team process has reduced from four to three the number of inspections needed to complete a project, saving about $30,000 a year. Because the process now emphasizes education, the compliance effort enhances electrical safety, conserves resources, and improves relations with contractors. In addition, the quality of working life for the inspectors has improved in many ways: They now work in a safer environment and thrive on being able to give positive reinforcement to customers (contractors).

City of Madison Police Department
Issues: PUBLIC SAFETY, COST DATA, PRICING SERVICES
Management: Chief Richard Williams, Madison Police Department (608)266-4022
Labor: Sergeant Joe Durkin, President (608)2664003; Captain Mike Masterson, Training Team(608)266-6234; Madison Professional Police Officers Association

Witnesses testified that the changing nature of police work, from paramilitary structures to community policing techniques and philosophy, requires both increased employee input into the work and changes in how people are led. As is often the case in public safety unions, Madison police up to and including the rank of sergeant are in the MPPOA. Higher ranks belong to organizations of supervisors. The president of the union is part of the management team. The department attempts to follow principles of quality leadership: improve work systems, listen to those who do the work, focus on problem-solving, foster risk-taking and teamwork, and, in furtherance of all these objectives, gather good information. Witnesses cited savings achieved for the community through the development of cost data. For example, the department now accurately figures the extra police costs special events entail and requires event organizers to reimburse the city for those costs.

Other joint efforts have examined training and selection, overtime, and staffing. The staffing committee consists of three members designated by the union, three by management, and three "Alder-persons." This group benchmarked with cities inside and outside the state and recommended that the size of the force be increased, given the geographical spread of the community, while not exceeding the average statewide staffing ratio.

Streets and Sanitation Division
Issues: TOTAL QUALITY MANAGEMENT, TEAMS, SAFETY, INFORMATION AND COST DATA
Management: Roger Goodwin, Superintendent, Streets and Sanitation Division (608)266-4680
Labor: Christopher Kelly, President, Laborers International Union Local 236 (608)246-4532

Witnesses noted that the division's operations in the past were characterized as largely top-down management, little data collection, little communications and little intra-governmental cooperation on matters such as equipment sharing. Labor-management relations were described as "respectful, but not overly productive," with most of the communicating occurring during bargaining or through grievances. Under the impetus of the city's overall quality efforts, however, workers and managers during the past eight years have formed teams and conducted 15 major projects. Examples include addressing safety issues to determine why so many back and shoulder injuries occurred during in refuse collection; career development and training; snow removal (a team of employees wrote snow and ice booklets for the public); the drop-off system, and large-item removal. Witnesses pointed out that development of projects requires good information and implementation can produce significant cost savings. For example, a citizen survey regarding brush removal revealed that the public would accept less frequent collection if the date of the monthly pickup was firm and known in advance. Parties testified that issues yet to be addressed include further identifying customer needs, building trust, and changing not only the structure but the culture of the workplace.

University of Wisconsin/City of Madison Partnership
Issues: QUALITY IMPROVEMENT NETWORK
Contacts: John Wiley, Provost, University of Wisconsin at Madison (608)262-1304; Soren Biscard, Director, University's Center of Quality and Productivity (608)263-2654

Task force members had the opportunity to meet informally with members of the Madison Area Quality Improvement Network, a nonprofit organization founded about 10 years ago by a cross-section of community leadership from the city of Madison and Wisconsin state government, the University of Wisconsin-Madison, and the private sector. MAQUIN supports local quality efforts and provide a forum for the exchange of information.

The task force was told that the university/city relationship has been very productive in bringing consciousness of quality to local government. At present, the university's Center for Quality and Productivity is involved with a study of city employees' perceptions of the use of quality management tools in daily work, as well as a needs assessment for external customers. The university also assists private companies in the community; for example, it helped foundry workers to be more effective and assisted another local company in a better design of their product.

The process of developing TQM at the university also was described. There has been an improvement in the time required to process admissions applications: 90 days to two, saving some $60,000 a year. One of the preliminary findings is that it is desirable to combine the quality function with other functions, such as planning and training. This allows more main direct engagement with line functions. If quality efforts permeate the workforce, they are more likely to survive changes at the top.

State of Wisconsin

Department of Industry, Labor, and Human Relations Labor-Management Advisory Council
Issues: EFFECTS ON BARGAINING, SAFETY NET, TECHNOLOGY, POLICY CHANGE, TOP LEADERSHIP COMMITMENT
Management: Eric Baker, Deputy Administrator, Department of Unemployment Compensation (608)266-2284
Labor: Pat Pagel, President, Wisconsin State Employees Union, AFSCME (608)255-9435

The DILHR Labor-Management Advisory Council was established in May 1992 in response to a recommendation by a group of DILHR employees who were asked by the governor how labor relations could be improved within the department. The council, headed by the secretary of the department, has six union-selected and six management representatives who serve one-, two- or three-year terms. The council is charged with recommending policies to foster cooperation and trust in the department. Although its recommendations are advisory, they are adopted byconsensus, and the secretary has implemented all of them to date. The administrator of the workers' compensation division noted that DILHR has been able to establish better service to customers through improved working relationships with employees: Electronic filing for workers' compensation claims has been established, and these costs are dropping. With the introduction of voice mail in the UI offices and the change to weekly claims filing over the phone, the jobs of an estimated 360 employees were at risk (at least 25 local offices were no longer needed). Yet only one worker was laid off as an "at-risk" system, developed by the LMAC and later adopted for every state agency, made it possible to assign workers to needed jobs elsewhere in state government without any modification to civil service laws.

The trust developed in the council process has affected collective bargaining as well. The number of grievances has declined substantially in the last two years, and only two cases have gone to arbitration, all due to the willingness of union and management to "talk out" and settle potential grievances. A member of the negotiating team is on the council and brings to the bargaining process the experience of working together.

Milwaukee, Wisconsin

Note: This testimony was received during the Task Force's June 22-23, 1995 Washington, DC hearing.

Budgeting and Accounting
Issues: TOTAL QUALITY IMPROVEMENT, BUDGET AND ACCOUNTING PRACTICES, BENCHMARKS
Contact: Steve Kreklow, Budget and Management Special Assistant, Department of Administration (414)286-8523

Milwaukee has adopted a performance budget involving economic analysis and fiscal forecasting, strategic planning, performance measurement, and evaluation. Management has been improved through a total quality initiative, wherein management focus has shifted from an internal, short-term perspective to a long-term one with a service goal orientation. Departments are becoming more data conscious. The city has consulted with the University of Wisconsin to develop measurements of impacts. Efforts are being made to get more employee involvement and community involvement in the process, more consistent and widespread participation by the departments, and better assessment of outcomes.

Milwaukee benchmarks with other jurisdictions, such as Multnomah County, Oregon, and the City of Indianapolis, and the states of Oregon and Minnesota, to gauge their successes. The city has privatized some functions, but some have been returned to city operation (e.g., towing). The city holds meetings with union officials at the beginning of the budget process to begin the discussion of operational changes early in the process.

Hennepin County, Minnesota

Note: This testimony was received during the Task Force's July 10-11, 1995 Washington, DC hearing.

Hennepin County
Issues: JOINT LABOR-MANAGEMENT COMMITTEE, HEALTH CARE COST SAVINGS, CIVIL SERVICE, CLASSIFICATION CHANGE
Management: Charles Sprafka, Associate County Administrator for Human Resources, Hennepin County (612)348-5009
Labor: Steve Marincel, Business Representative, AFSCME Council 14 (612)455-0773

The first major joint problem-solving effort by the parties was a joint committee to deal with rising health care costs and other frustrations with the system. Labor and management set up a process to communicate outside collective bargaining, involving at first 11 of 19 bargaining units. Parties engaged in self-education and committed to share information, brought in health experts to talk with both sides, and agreed to use shared decision-making (consensus) in the choice of health care providers.

In terms of results, health care costs dropped 9% between 1986-1990 and there have been no premium increases in the last two years. The quality partnership grew out of this initial success, and less adversarial ways of relating have been reflected in increased trust at the collective bargaining table, and more value for taxpayers. For example, parties have agreed on a voluntary, not mandated basis, to keep courts open longer hours as employees recognized that the public is better served by such a change. Job classifications have been consolidated and the number reduced by 20%. Parties strive for continuous improvement, focus on quality service to the customer, and work together in the design and implementation of the program. Labor and management both agree on the importance of training. The parties said they have just begun to track efforts regarding the specific cost savings of quality partnership

Labor-management cooperation has played a major role in more flexibly administering the personnel system and achieving important changes in traditional areas like classification. The partnership between labor and management has helped Hennepin County resolve workplace issues with focus on effective service delivery.

State of Ohio

Note: For a more detailed account of the following summary, see Snapshot: State of Ohio. Ohio has a very comprehensive statewide program. This testimony was received during the Task Force's October 19-20, 1995, Washington, D.C. hearing.

Issues: TOTAL QUALITY MANAGEMENT, JOINT LABOR-MANAGEMENT COMMITTEES, LEADERSHIP AND QUALITY TRAINING
Management: Steve Wall, Executive Director, Ohio Office of Quality Services (614)644-5154
Labor: Paul Goldberg, Executive Director, Ohio Civil Service Employees Association, AFSCME Local 11 (614)487-9191 ext 6704

When a new Governor of Ohio was elected on a platform of privatization, the Ohio Civil Service Employees Association, an affiliate of AFSCME, sought to assure employment security and gain input into strategic decision-making. The result was a joint program called Quality Services Through Partnership (QStP). QStP operates through a joint statewide steering committee and department level labor-management steering committees in each agency. Communication among participants is accomplished through handouts, agency newsletters and monthly meetings of the Ohio Quality Network, composed of a labor and management official from each State agency. The result has been one of the most recognized and fully structured quality partnerships in state and local government.

QStP is developing a network of facilitators and a capacity for providing training in joint quality improvement processes. It has expanded beyond its original seven pilots to all components of State government, with high commitment from both labor and management. More than 10,000 employees have been jointly trained in problem solving, analysis and team approaches, in classes taught jointly by labor and management officials. More than 100 improvement teams have been created, each starting with an initial charter to make specific changes. The program recognizes that most quality problems are caused by systemic defects and it attempts to confront control and power issues so that the parties do not slip back into old habits.

The quality program has been kept formally separate from collective bargaining, but the processes complement each other as many of the same people participate. Tangible measures of QStP's success included a reduction in the number of client telephone hang-ups in the workers' compensation department from 14,000 per year to none, and consolidation of 73 job training programs into 13, with savings of $13 million. The program has also reduced grievances, although that was not one of its specific objectives.

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