June 2003 News

SWIB MEETING - MAY 12,2004

I will have information sheets on the State of Wisconsin Investment Board (SWIB) members as soon as they are available for all SEA Board members. Now SWIB has a complete Board with the appointment of the local government member appointed just prior to this meeting, as reported in my article in the SEA May Newsletter.
Dave Mills gave the good news/bad news report to the Board. The good news was that SWIB was ahead of the benchmarks for April; however, the bad news was bonds and stocks were falling.

SWIB Performance Year to Date:
                         March 3l, 2004     April 30, 2004     Benchmarks
Fixed Fund         +3.1%                     +0.7%                 +0.4%
Variable Fund     +2.8%                    +0.6%                 +0.4%
Fixed                  $60.47 Billion          $59.02 Billion
Variable              5.85 Billion                5.72 Billion

Domestic stocks were down in April and international stocks were holding.
This SWIB meeting was held in their new Board Meeting room on the second floor of the SWIB Building. All of their audio and visual equipment is built in, so nothing has to be set up for any of their future meetings including any power-point presentations.

Ken Johnson reported on the new "IT" initiative to provide better data management from the Mellon Bank in New York. They need a new vendor to implement the new Eagle System over a 12 month period. The new system will provide weekly or daily reporting of the market information.

Keith Johnson reported on the legal action SWIB is taking to control CEO pay
packages and stock options as a corporation investor to the corporation Board of Directors and sending letters to the SEC to change their regulations on the low price trading in the
stock markets.

On May 25,2004, the Director Search Committee announced the two names of the finalists for the new Executive Director of SWIB. They will be interviewing both Dave Mills, the interim Director since December, and Donald L. McDonald, former Executive Vice President and Chief Investment Officer of a Hartford, Connecticut Asset Management Company, on Thursday, May 27,2004 before making their final decision. Also note news article
provided to all SEA Board members dated May 26,2004.

Melvin B, Sensenbrenner,
SEA Retirement & Health
Insurance Representative

GOOD NEWS FLASH!!!

June 2, 2004

The Investment Board makes a selection of the new Executive Director
and they have selected Dave Mills.

ETF GROUP INSURANCE BOARD MEETING - JUNE 8, 2004

The Group Insurance Board was brought up to date on the ICI state plan and the
local government ICI plans. Both of these plans have increased the funding level of each
plan because of the reduced claims and the increased market investments, so the Board
voted to continue the same premium level for this next year.

The Board reviewed the scope statement for the proposed rule to include local
government health plans in the same premium contribution tiered system that they have
proposed for state employees. Currently, the local government employers are required
to contribute an amount between 50% and 105% of the lowest cost qualified plan towards
the health insurance premiums for the employees.

The most complex issue covered by the Actuary was the analysis of the new Medicare
Drug Program for retirees. The law is very complicated, and the decision will be made by
the Group Insurance Board which of the three options will be best economically for retirees
of state and local governments and whether the employees will be required to sign up for
Medicare Part "D" prior to January 1,2006.

Whatever the savings on drugs from Medicare that we get, it will reduce the cost of
our current monthly health plan. Section Presidents and State Officers will have copies of
the material discussed by the Actuary.

The next Group Insurance Board Meeting will be held on August 24,2004.

Melvin B. Sensenbrenner,
SEA Retirement & Health
Insurance Representative

Legislative Report June 2004

Top 10 Signs That the State's New 3-Tier Health Program (and Pharmacy Benefit Manager) is Not Working
10. Annual breast exam conducted at Hooters.
9. Directions to your Doctor's office include, "Take a left when you enter the trailer park...."
8. Tongue depressors taste faintly of Fudgesicle.
7. Only proctologist in the plan is "Gus" from Roto-Rooter.
6. Only item listed under Preventative Care coverage is "an apple a day."
5. Your "Primary Care Physician" is wearing the pants you gave to Goodwill last month.
4. "Patient responsible for 200% of out-of-network charges" is not a typo.

3. The only expense covered 100% is embalming.
2. With your last HMO, your Prozac did not come in different colors with little m's on them.
1. When you ask for Viagra, you get a Popsicle stick and some duct tape.

(Just thought I’d share this with the members)

RE: Public’s perception of State Employees? Employees seem to be taking quite a bit of the blame for the State’s woes, even though we did not create this mess (hey, we only work here!). As Tim reiterates all of the time, be as professional as you can be. Do your job, but keep the above into perspective. Some times, more than others, we are under the microscope by the public. Phone calls “reporting” state employee conduct are coming into offices in every department, I would NOT even throw a gum wrapper on the ground, since you could be associated with this criminal act. (and you should not litter anyhow). What should we do about this?

Well for starters, maybe we all should quit donating to SECC (charitable causes), or food pantry dives, and then do things such as quit giving our blood to the Red Cross ( a lot of state employees give blood)…maybe that would show the impact that 50,000 employees can have. We need to make sure these organizations get our message. I for one am declaring a 6 month sabbatical for giving back. I will not give my blood, my money or my time to any public or charitable event or cause. I go on record here as to this. (I have given about 13 gallons of blood up to now). Remember the Union Buck thing? This is a bit similar to that, except I think this will impact the public a bit more. Maybe this is not the correct approach, but I am a bit fed up with being labeled by the public (usually though the media) as being “scum”.

Maybe the solution to the state of the state is as former Governor Lee Dreyfus mentioned this past week. Regarding the Taxpayers Bill of Rights (TABOR), Former Gov. Dreyfus said that messing with the state constitution is not he way to go, but maybe it is time to start replacing the legislators who are championing this cause.

TABOR will be discussed in the Assembly on June 9^th (by the time you get this article you should know the results of this caucus). The following is a simplistic summary of TABOR and its ramifications:

Regarding the Fleet Issues: Lately various newspapers have written editorials about the following issues stemming from the attorney General’s use/abuse? of her assigned car:

-------When the state levels the playing field for reimbursement, then it will be an issue. Until then why would any one with any brains elect to pay the state a higher amount of reimbursement for driving their car AND be restricted in its use?

Some 60 percent of employees put on less than 16,000 miles per year altho this is the threshold for receiving an assigned vehicle

-------This figure as I recall was 12,000 miles only about 10 years ago, it has since gone up to 13,000 then to 15,000 and finally to its current 16,000. No one knows where this number came from all of a sudden? It has changed 2 or 3 times in the last 10 years and Administration was not very efficient at informing the employees or the managers of the programs. In fact, a converse theme is that DOA IS real good about letting us know that if we put on more than 2000 miles/month, there is a surcharge (for the extra miles after the 2000^th). This is because

DOA wants those cars to last 5 years and be auctioned off with 75,000 (or so) miles on them. This is because the cars have the best value to the state, the taxpayers and for resale at that time.

DOA has no records for state employees’ use of state vehicles from July 1998 to August 1999.

-------I think this one was addressed as being the period when the computer systems were transitioning the paper record keeping. Each Department down to the section or unit level probably has kept copies of fleet info such as mileage logs, billings, etc. I, in fact, have kept a paper trail of all my info personally, and will share it with anyone. Nevertheless, it is not any employees fault if DOA has missing records.

The Green Bay Press Gazette Editorial from 6/3/2004 stated at the end, “The difference with the state vehicles is that taxpayers and state-service users unknowingly paid the full cost for whatever rules were violated –until Lautenschlager’s drunken-driving arrest pressured the state to take action.”

Apparently the Green Bay Press Editorial staff does not care to find out about the savings each department has with assigned cars which are less expensive to the agencies than pool cars. Given the state’s criteria that the average annual mileage must be 16,000/year (and remember…do not exceed 24,000/year) or there will be a surcharge to the units that pay for the use of the cars. Another Myth is that these cars are free to state employees. The public has not a clue that each department pays DOA for the use of them. DOA fleet is a business. They make money from the agencies using their fleet, just like a rental car agency. I would think the media would be more interested in the fact that the Senate Assistant minority leader from Eau Claire put on almost 69,000 miles on his Harley in 2001 billing the state in excess of $21,000 (I have the article). I understand from what I have read, that the legislature is allowed to claim one round tripper from their district per week to the Capitol and at the .325/mile reimbursement rate. Remember, employees are only getting .22/mile for using their personal vehicle, and only .16/mile if using a motorcycle. Note: Legislative staff only get the .22/mile also. Take a $45,000 annual salary, add about $21,000 for mileage and the $15,000 tax free per diem, and you have certain legislators making about $80,000/year (of which $65,000 is taxable income since the per diem is free and clear.) By the way, while I am on the soapbox: The next time anyone asks you about your “Posh pension or Cadillac health plan”, tell them this:

2) The legislators get a better retirement plan than most state employees do, since they have a higher multiplier.

This is one more example of how the Wisconsin Manufacturers and Commerce through their Chamber of Commerce is also distorting the issues. Do not believe everything you read.

We need all state employees to at least understand the issues in the mainstream. Write to your legislators, congressmen and women, and your local leaders. Write to the opinion page of the newspapers. Call radio stations and get on talk shows when these issues appear.

Watch this column for next month: I plan to give you some insight into the Board positions up for our elections/re-elections in time for the winners of these elections to be installed at September 2004 at our annual meeting. Elections are close at hand for SEA and on the national and state levels. Please participate.

You are the on site Project Leader with four Engineering Specialists with the WI DOT. You are at the job site, under a pressured deadline since you have less staff these days due to the Governor’s layoff program. (Reminder: you only received .22/mile for driving your personal vehicle while the private contractor nearby received .375/mile for driving his private vehicle to the same site) Your task is to raise a 100 foot flagpole, sliding it into a hole ten feet deep. You have two ropes; one is 100 feet long and the other one is 26 feet long---and two shovels and two buckets. How do you accomplish getting the flagpole into the ten foot hole with the equipment at hand???

ANSWER: You (the Project Leader) shout, “Staff,…Get that flagpole up!!!, Now!”

Meeting Begins:

Tim Hanley called meeting to order at 8:40 am. Introductions were made. Changes to the agenda included; Addition of SEA Clothing (Treasurer’s Report), SEA Laptop Computer (New Business).

Approvals:

The March 27, 2004 Board Meeting minutes were reviewed. Sharon Bremser motioned to approve. Bob Pavlik Seconded. Motion carried.

The Correspondence Report was reviewed. There were no questions. Tim Hanley accepted the Correspondence Report.

Bargaining:

‘03-’05 Contract

No bargaining sessions have been held since the last Board Meeting.

Information requested from OSER has been received and will be reviewed. Tim will get in touch with OSER regarding scheduling of future bargaining dates. (We have bargained 9 times to date).

Compensation Committee:

A JOCER hearing was recently held for one unit of WSEU that had reached agreement. George reviewed the details of the contract. He has also asked OSER for additional information regarding this contract. There was discussion regarding follow up letters received from legislators after SEA Day regarding salary surveys and competitive pay. George will follow up with OSER regarding information received.

Grievance Report:

By Mark Klipstein

Note: P-xxx indicates personal grievance

A-xxx indicates an Association grievance

A-307 (filed 5/3/99) —Denied time to take PE exam – Arbitration pending with Bellman. (Date selection)

A-351 (filed 7/19/01) – DOT D4 – RLS exam reimbursement. Consolidated with A-307.

A-352 (filed 6/25/01) – DOT D3 – Initial PE licensing fee reimbursement. Consolidated with A-307.

A-361 (filed 10/30/01) and A-362 (filed 10/31/01) – DOT D1 and D2 – Assignment of scheduled overtime. Arbitration pending.

P-363 (filed 10/23/01) – DNR (Air) – Dropped by Board at Step 4.

P-364 (filed 11/9/01) – DNR (Air) – Unfair treatment and use of sick leave. Arbitration pending.

A-368 (filed 12/6/01) – DNR SER Air – Reestablish P-364. Arbitration pending.

A-369 (filed 1/2/02) – DNR Water – Add-on as part of year-end leave cash out option. Arbitration pending.

A-372 (filed 2/14/02) – DNR SER Air – Denial of requested training course. Dropped by Board at Step 4.

A-373 (filed 5/21/02) – DOT D3 – Rescind disciplinary action. Arbitration Pending.

A-377 (filed 7/19/02) – DOC Safety and Building – Involuntarily transferred and denied privileges and working conditions similar to employees in Div. Filed at Step 4.

A-378 (filed 8/14/02) – DOT 1 - Not being paid appropriate mileage rate. Filed at Step 4.

A-382 (filed 11/1/02) – DOT 2 – Revision of letter of reprimand. Dropped by Board at Step 4.

A-389 (filed 5/30/03) – DOT D3 – PE Licensing fee reimbursement. Consolidated with A-307.

A-391 (filed 6/13/03) – DNR SE – Denial of work schedule change. Waiting on Step 3 Meeting.

A-394 (filed 8/1/03) – DOT D1 – Discipline Reassignment. Waiting on Step 3 Decision.

A-395 (filed 5/3/03) – DNR NER – PE Exam Reimbursement. Consolidated with A-307.

A-397 (filed 8/22/03) – DNR SER – Harassment and Uniform work rules. Waiting on Step 2 Meeting.

A-398 (filed 10/9/03) – DNR SER – Replace time worked back into leave balance. Waiting on Step 3 Meeting.

A-400 (filed 10/28/03) – DNR Madison Air/Waste – Contractual Layoff Process. Arbitration pending (Fleischli)

A-402 (filed 3/25/04) – DOT-DTID – Discipline without just cause. Step 3 meeting held.

A-403 (filed 3/25/04) – DNR SER Air – Assignment of OT based on seniority. Waiting on Step 1 meeting.

A-404 (filed 4/2/04) – DOT D1 – Removal of letter of reprimand. Step 3 meeting held.

A-405 (filed 4/5/04) – DOT D5 – PE Exam and licensing fee reimbursement. Waiting on Step 3 meeting.

Mark notified the Board that P-363, A-372, and A-382 had been dropped by SEA.

Still waiting for a decision on A-394, additional issues developing regarding $0.30/$0.50 add-on.

Mark and George gave a brief update on A-400.

Step 3 meetings were held for A-402 & A-404, waiting on decisions.

Health and Retirement Report:

By Mel Sensenbrenner

WCOA Annual Conference provided great opportunity to meet with Investment Board. Dave Mills, Interim Director of SWIB has been doing a good job of communicating with various organizations.

Mel briefly reviewed the ETF Benefit Handbook (provided to all Board Members). This is a good resource; see your Section President for more information.

The Governor has made the last appointment to a vacancy on the board. Mel will provide an updated list of SWIB Members to the Board.

SWIB Performance: Variable Fixed

End February 3.9% 3.1%

End March 2.8% 3.0%

End April 0.6% 0.7%

Stay involved a make sure to read Mel’s report in this newsletter for more detailed info on this and other Health and Retirement Issues!

Legislative Report:

By Tim Hanley

Over 80 people officially signed in attendance at the event. The La Crosse Section had the largest turnout for SEA Day. Section Representatives shared experiences from the event.

Tim noted that Larry Legro had testified at a recent legislative hearing regarding fleet issues. Many of the concerns Larry expressed are also topics of bargaining. It was also noted that at the DOCOM, personally assigned state vehicles are called “Mobile Resource Offices”. In many agencies, a supervisor’s signature is needed to sign out a fleet car, and in some instances, a Division Administrator’s permission is required to keep cars overnight (DNR).

Section Reports:

Madison — Lynn Judd and Rueben Anthony visited the district to talk about strategic reduction effort. Governor Doyle’s email regarding state employee recognition week was received by the entire district 3 times. Staff received cookies as a special treat for employee recognition week. DNR has concerns about erosion control work not getting done by DBE’s. Managers trying to regionalize local program (No FTE savings will result from it).

Southeast — Management bought and prepared lunch for employees during employee appreciation week Supervisors directed to hand out “Proud to be DOT” buttons to staff. In PDS, a project was expanded to include consultant staff. Consultant not DOT staff will be working OT hrs after 40 hours. Members considering picketing State Office Building.

Green Bay — Management bought and prepared lunch for employees during employee appreciation week. Awards, from CO, given for special projects.

Wisconsin Rapids — Labor/Management meeting held on Monday and the following topics were discussed;

1. D4 has determined recently that District has no personally assigned vehicles and SEA will be looking for an explanation on how this will affect staff, as “Work share” pool vehicles will not allow personal miles. An employee tried to pay for personal miles on a pool vehicle and District apparently has no idea on how to process it.

2. SEA will be looking for an explanation of the process to move D4 maintenance folks to ES Classification.

3. Water testing in office revealed high levels of lead in water. Retesting is underway and bottled water has been provided. Members are waiting for an update on this issue.

4. A Utility Coordinator has retired and SEA is looking for an explanation from management on how this void will be filled. The position was vacant and filled through involuntary reassignment which may have caused this retirement.

The District attempted to hire engineers (not debarred) from “True North” under the “Quest Engineering” name. Central Office put a stop to this.

Process improvements in district are ongoing for PSE process. Results are slow.

D4 got permission to fill Maintenance Supervisor as a critical fill transfer. Only interest was from a PDS supervisor. This would create a vacancy in PDS Supervisor position and management won’t do maintenance supervisor fill unless a critical fill can be made in PDS.

Work Share training will be occurring in D4 next week. Those attending are shocked by requirements for training and bewildered that work-share process requires following a process that In-District projects do not seem to be following.

Rueben Anthony, Deputy Secretary for DOT, came to D4 to do a chat session on Strategic Reduction. DOT still committed to doing reduction through attrition and avoiding layoffs. Many questions were asked. SEA thinks that Rueben should have left the District understanding that an edge is building with State Employees.

Management sponsored a “Soup Line” and salad lunch for employee recognition day. Nice effort by management which was appreciated by employees, but a strange message with the “Soup Line”.

La Crosse —Employees received doughnuts during employee appreciation week. La Crosse Section looking forward to bus trip for next SEA Day. Rueben Anthony cancelled visit for strategic reduction chat session.

Eau Claire — Employees received nothing during employee appreciation week. Rueben Anthony cancelled visit for strategic reduction chat session. Management trying to fill retired PS&E coordinator (ES Adv) position from tech series (WSEU).

Rhinelander – Cookout held for employee appreciation week. Mandatory attendance was required for Strategic Reduction Chat session with Rueben Anthony (Friday 5/21, Afternoon). Rueben Anthony cancelled visit. Opening day of fishing was poor!

Superior — Employees received nothing during employee appreciation week. Rueben Anthony cancelled visit for strategic reduction chat session. (Staff attendance was strongly encouraged).

Central Office — Employees received ice cream (5/4) and cake (5/5) during employee appreciation week. Bureau Meeting was held regarding strategic reduction effort. Management was reminded of contract language.

DNR — Employees received only a “form e-mail” and no food during employee appreciation week. DNR supervisor demoted in SEA (D4).

State Agencies — Secretary and Division Administrators gave out ice cream during employee appreciation week. A DOCOM wide Union/Labor meeting with Secretary Nettles was held. Several bargaining units were present. Topics included degradation of state staff, environment, and SEA Day Newsletter. The harshest discussion centered on plan review. Science Professionals contract allows for state to pay add-on to staff. They pleaded with management to give add-on out of “fairness”. They were told “no” because of budgetary issues.

SEA Office Website:

List of Officers (Sections) needs to be updated. Bargaining updates will be posted. Sharon asked for electronic copy of minutes in singular column format.

Check out the website at www.wisea.org or contact SEA at wisea@wisea.org

Communication Manager:

Tim contacted Cara Carper, (who previously interviewed with the Board) regarding accepting a position. She is interested and terms were discussed. Tim will proceed and draft a simple agreement for Atty Haus’ review. The Board agreed she should start work in June.

Financial & Membership Reports:

Tom Miller submitted the April Membership Report for review. Tom explained some correction that was being made on this month’s report. Leroy, Sharon, and Bob had questions. Tom Miller motioned to accept the April Membership Report. Leroy Stublaski seconded. Motion carried.

Tom Miller submitted the April Treasurers’ report for review. Tom Miller motioned to accept the April Treasurers’ Report. Rick Tumaniec seconded. Motion carried.

The budget status handed out for review. There were no questions.

Tom Miller reviewed the vouchers submitted for payment at this Board Meeting.

Board Meeting Vouchers

03-268 => 03-280 $1420.25

M-94 => M-105 $1950.00

$3370.25

Tom Miller motioned to pay the Board Meeting Vouchers. Nichole Lysne seconded. Motion carried.

Tom Miller reviewed special meeting vouchers submitted for payment at this Board Meeting.

03-281 => 03-284 $245.03

SM-21 $243.72

$488.75

Tom Miller motioned to pay the Special Meeting Vouchers. Nichole Lysne seconded. Motion carried.

Tom noted that during the treasurer transition period the January Membership Dues Return check was not sent to the sections. This was corrected after the discovery was made.

There was discussion concerning the value of clothing given away as prizes at last year’s Annual Meeting in Green Bay. The dollar value is higher than what Green Bay had recorded. Bob Pavlik will work with Tom to settle this discrepancy.

Tom also informed the Board that over $200 worth of SEA clothing that was stored in former Treasurer, Nile Ostenso’s garage, was damaged by vermin. The Board directed Tom to destroy that clothing.

Tom also reminded the Board that all clothing orders need to go through the Treasurer.

Tom Miller motioned for approval to spend up to $50 to purchase auto-stamps for use in his bookkeeping. Nichole Lysne seconded. Motion carried.

Tom stated he had discovered a La Crosse member that has erroneously had $75.00 taken out in dues, bi-monthly, for about 1 year. He contacted the member, the agency, and reimburse the member.

Nichole Lysne motioned to reimburse Nile Ostenso $49.04 for a Black & Decker tote cart and other small totes that he used and Tom Miller is now using for Treasury business. Rick Tumaniec seconded. Nichole amended the motion to have John Bolka check the minutes to ascertain this reimbursement was not previously made. Tumaniec accepted the amendment. Motion carried.

New Business:

Elections are coming up for SEA Statewide Office. Tim will be the Committee. He will put a note into the Newsletter.

John Bolka asked if the old unused SEA laptop should be disposed of. Last time it was turned on, half the display was not functioning. Sharon will look at it at the next Board Meeting. Future discussion will be held on disposal of the unit.

Will Dorsey contacted Tim about scheduling another meeting (6/3/04) concerning signing and sealing of plans. George added discussion regarding design/build.

SEA Annual Meeting

The SEA Annual Meeting, hosted by the Superior Section, will be held September 24-25, in Duluth Minnesota. Superior Section will update the Board on this at the June Meeting.

Tim adjourned the meeting at 2:10 pm.

Upcoming meetings scheduled for June 26 (Eau Claire), July 31 and August 28.