JEFFERSON TWP— It appears it is back to square one in the contract dispute between the South Butler School District and the teachers union.

An arbitrator in the labor dispute has chosen an option previously rejected by both sides. Now, everyone must vote again.

After the 185 teachers in the district walked out of the classroom from Oct. 23 to Nov. 17, state law required negotiations to go to an arbitrator. That arbitrator was to choose between the final offer of the district, the final offer of the South Butler Education Association, and the fact-finder report.

The fact-finder report, which was prepared in May by a neutral third-party, chose positions roughly in the middle of what both sides proposed.

"Notwithstanding Fact-Finder (Marc) Winter's thorough effort to provide a balanced recommendation to the parties, the association rejected the report," Robert Gifford, arbitrator, wrote in his decision, dated Monday.

The school board rejected it June 4.

Tom King, district solicitor and the district's representative in arbitration, said today Gifford indicated he thought the fact-finder had done a good job during a hearing late last month.

There were 29 issues for the arbitrator to decide, and he chose the fact-finder's suggestions for 27 of those, including salaries. Regarding health insurance, the arbitrator chose the teachers' proposal. That proposal includes increasing monthly premiums, but details were not available.

Teachers currently pay $10 per month for individual health care coverage and $20 per month for a family.

Under the fact-finder's report, the teachers would receive a salary increase of 4.3 percent in each year between 2008-09 and 2012-13, except the current year. This year, the teachers would receive an increase of 4.4 percent.

King said the school board is reviewing the decision. He did not know if the board would be prepared to vote on it Wednesday night.

A spokesman for the teachers did not immediately return a phone call this morning.

Both sides must now vote on the arbitrator's decision.

If the report is rejected by either side, it's back to the bargaining table.

A no vote by either side also gives the teachers the right to go on strike for a second time this school year.