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Daycare unionization debate in Minnesota

by Eileen Norcross on December 28, 2011

in Public Finance

A debate has been taking place in Minnesota over whether in-home day care providers should be able to unionize. Unionization of self-employed individuals raises a few questions. With whom do they negotiate? In other words, “How can you be the employer [the business owner] and a union employee?” According to the pro-unionization providers their complaint is not with the parent-client but with the state (and county) and its regulations. A provider may be cited for any number of small infractions such as not having a cover on a trash cash. When cited, in the case of Minnesota, such a blemish doesn’t just stay on the provider’s record, it must be posted on the owner’s front door for two years.

But is unionization the answer?

Daycare providers already have a state association to represent their interests. Few owners have actually been cited under these regulations. And unionization will result in dues that will raise prices for parents, as well as more state involvement in the owner’s business. An effort to stop unionization is also underway.

Since 2005, 15 states have organized childcare providers. The main fiscal outcome of daycare unionization is higher state-provided subsidies.

Washington state child care providers are represented by the SEIU which negotiates with Olympia over subsidy rates for providers as well as health insurance plans.

In 2009, providers in Washington received a state subsidy between $18 and $40 a day, per child, depending on the county. According to the SEIU’s 2009-2011 agreement with the state, both parents and providers are affected. Daycare providers who refuse to join the union for religious reasons must still pay dues. Rates are set for different age groups of children, (e.g. Infants are 15% higher than the Toddler/Preschool rate). After ten hours of childcare any additional hour is equal to one half day of child care.

The agreement also affects all taxpayers in the state. The state pays monthly contributions to provider’s health care plan ($588.8 per month per provider in 2010) for a total of $366,894 per month for all daycare providers. A further $175,000 is set aside by the state for training classes for providers. The result of unionization is not what advocates suggest. Instead flexibility is decreased for owners and clients to come to terms over hours, rates and arrangements while the ever-increasing costs are passed to everyone.

  • http://www.childcareunioninfo.com/ Jennifer

    Great article. Myself and other child care providers from across the MN have been fighting back against the unionization of child care providers and will continue to fight until we win. This does not make sense to unionize small business owners who create their own working conditions and set their own pay and benefits with the parents they contract with. Thanks for posting a link to our website! http://www.childcareunioninfo.com .

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