Hamilton Southeastern Schools and the Hamilton Southeastern Education Association (HSEA) are heading into mediation this week after the two sides were unable to reach a new teacher contract agreement by the state’s legal deadline.

Teachers overwhelmingly rejected a contract proposal from the school district in a membership vote. With no settlement reached before the statutory cutoff, a state-appointed mediator will now step in, as required under Indiana law.

Position of Both Sides

The school district says it is facing budget constraints that limit how much it can offer in salary increases or benefit contributions. District officials argue that their proposal reflects current financial realities and maintains fiscal responsibility.

HSEA leaders, however, say the district’s offer would effectively move teachers backward. According to the union, the proposed contract would increase teacher health insurance premiums while offering no pay raise, resulting in teachers taking home less money than they do under the current contract.

How the Mediation Process Works

Indiana’s collective bargaining rules for public schools outline a structured process once negotiations reach an impasse.

1. Mediation Begins
A mediator assigned through the Indiana Education Employment Relations Board (IEERB) will meet with both parties in an effort to guide them toward a voluntary agreement. Mediation sessions are confidential, and the mediator cannot impose a solution.

2. Mid-December Deadline
The parties have until mid-December to reach a deal. Any agreement must be ratified by union members and then approved by the HSE School Board.

3. Fact-Finding and “Last Best Offers”
If mediation does not produce an agreement, the process moves to fact-finding:

• Each side submits a “last best offer,” outlining final contract terms.

• A fact-finder reviews financial data, budgets, and comparable district contracts.

• The fact-finder then issues a report evaluating which proposal is more financially appropriate.

4. Possible Imposed Contract
If the sides still cannot reach agreement after the fact-finder’s report, IEERB can impose a contract. By law, the imposed terms must come from one of the final offers—IEERB cannot create a new proposal on its own.

This step is uncommon but exists to ensure every Indiana school district has an approved contract in place.

What’s at Stake

While salary and insurance contributions appear to be central issues, the mediation process offers both sides a final opportunity to craft their own agreement before the state takes a more active role in determining the outcome.