After the investigation of the request for assistance, the Panel directed the parties to: (1) mediation-arbitration with the undersigned; and (2) submit to the Panel and each other documentary evidence, if any, in support of their respective proposals on the issues at impasse, which concerned pay increases for the 1997-98 school year (SY), and certain education requirements affecting teacher pay schedules, prior to the proceeding. Accordingly, on January 6, 1998, the parties submitted their documentary evidence, and on January 28, 1998, the undersigned met with the parties at the Panel’s offices in Washington, D.C.⁽¹⁾ At the outset, mediation efforts were made to assist them in resolving voluntarily the two issues at impasse; as a result, they resolved their dispute over education requirements. An arbitration hearing was conducted which provided the parties with a full opportunity to present further arguments in support of their positions on the pay issue.

    The parties disagree over what the pay increase should be for teachers and TAs in SY 1997-98.

    The Union proposes an increase of 7.5 percent for SY 1997-98. The increase is warranted for a number of reasons. First, the unique nature of the FSSS requires special efforts by its staff. Some of the unique characteristics are: (1) relatively small student enrollment which limits the opportunity for both salary enhancement through such extra-curricular activities as coaching, and higher level positions; (2) the low income of many in the student population (75 percent receive free lunches); and (3) a 49-percent student mobility rate due to Fort Stewart’s rapid deployment mission. Second, there is money within the FSSS budget to fund a 7.5-percent increase based upon: (1) a historical review of dollars which became available during the fourth quarters of fiscal years (FY) 1994 through 1997; (2) current funds available due to vacancies in three positions; and (3) an excess of budgeted dollars for payment of substitute teachers. Third, 10 U.S.C. § 2164 (2)(c) provides for the Secretary of Defense to consider "compensation" of employees at comparable State of Georgia school districts in determining appropriate pay for FSSS professional employees and TAs. Compensation is a term that is broader than pay and, as such, benefits paid to employees in the three comparable Georgia school districts (Atlanta City, Decatur City, and Liberty County) should also be considered in an evaluation of pay comparability. Fourth, other DDESS school systems have recently received pay raises higher than 3 percent; for example, Camp Lejeune teachers with 10 or more years of service received a 5- percent increase in SY 1997-98, and Fort Benning and Robins AFB employees received a 6-percent increase in SY 1996-97. Fifth, since SY 1994, State of Georgia teachers’ salaries have increased a total of 23 percent, while those of FSSS teachers have increased by only 12.8 percent. Sixth, 41 percent of teachers live outside Liberty County where FSSS is located, which adds to their commuting costs. Finally, while the parties have submitted virtually the same comparability data, their respective interpretations are vastly different; there is no question, however, that a review of the data shows that FSSS professional employees and TAs deserve a 7.5-percent pay increase.

    Under the Employer’s proposal, teachers and TAs would receive a 3-percent increase.⁽³⁾ Such an increase is reasonable and fiscally responsible because salaries are already comparable absent any increase at all. It determines salary increases based on what it takes to attract and retain a competent workforce. In this regard, FSSS has a low 6-percent turnover rate and many applicants for all but the most specialized available positions. The salaries of Atlanta City and FSSS teachers differ for this reason, as well as the substantial difference in the cost of living between the two areas. Still, contrary to the Union’s assertion, comparability with the three selected school districts in Georgia already exists. Comparing benefit packages of these State school systems with that of FSSS is not useful without full knowledge of employee/employer contributions as well as the impact of longevity on benefits funding, etc. As for comparability with other DDESS school systems, recent Panel decisions and voluntary settlements on salary increases have been more in line with management’s proposed increase.

    Having reviewed the evidence and arguments presented, I shall order the Employer to grant FSSS teachers and TAs a 3-percent across-the-board increase and their appropriate step increase, retroactive to August 1, 1997 (the start of SY 97-98). Although step increases were not discussed during the mediation-arbitration proceeding, each party offered wording which referred to such increases in the proposals initially brought to the Panel, and historically they have been granted. Including them as part of my order should prevent any potential confusion from arising. The effective date of the increases was agreed to by the parties earlier in their MOU concerning pay increases for SY 96-97. The across-the-board percentage increase, however, is the real issue in dispute. In my view, an increase greater than 3 percent is not needed to maintain pay comparability with the three State school districts. In this regard, while the parties interpret and emphasize the same comparability data differently, certain facts are undisputed. For example, it is undisputed that the total salary increases granted teachers in Georgia over the past four years is 11 percent greater than the total granted to FSSS teachers. But it is also undisputed that the greater increases granted to State teachers represented a gubernatorial effort to raise salaries which had been well below the national average. Other data that was discussed considerably concerned the Employer’s ability to pay for the Union’s proposed 7.5-percent increase. While the Union argued persuasively that, in prior years, sufficient savings were generated to fund such an increase, management effectively countered that the rules have changed for FY 98 and that any savings generated from non-pay categories could no longer be used to supplement the 8.7 million dollars allocated for FSSS salaries. The resolution of this issue, however, turns on what is a fair and reasonable across-the-board percentage increase and not on management’s ability to pay for a larger increase. In this regard, the record reveals that with a 3-percent increase, the entry level salary for an FSSS teacher at the T-5 pay lane would be $31,500, which would exceed the amount paid to similarly-situated teachers at Decatur City schools, Liberty County schools, and Fort Benning schools. At the T-6 pay lane with 12 years of service, a teacher’s salary would be $48,110, which is comparable to or higher than what is paid to similarly-situated teachers at schools in Decatur City, Liberty County, Fort Benning and Robins AFB. Even though there may be disparities at other pay lanes and service steps, I believe that a 3-percent raise across the board is fair.

    On a final note, this decision in no way minimizes the commitment and effort of the FSSS teachers to effectively educate the youngsters in their charge. Rather, it evidences the Union’s failure to demonstrate that a 7.5-percent pay increase is warranted.