Staff reports - September 24, 2008
iBerkshires/Berkshire News Network
PITTSFIELD — Negotiations for the city's 17 bargaining units to join the state's insurance plan broke down Tuesday over how to share the potential savings.
In a statement, union leaders expressed disappointment in the city's decision to abandon plans to enroll in the Group Insurance Commission and save the city and its employees an estimated $5 million in annual health care costs.
"We are extremely disappointed in the city's actions," said Scott Eldridge, president of the 596-member United Educators of Pittsfield and vice chairman of the committee of public employees formed to negotiate with city officials, in the statement. "The city has walked away from millions of dollars in annual savings. Money that could and should be spent on our public schools, roads and bridges, and other vital services."
However, Mayor James M. Ruberto told The Berkshire Eagle that the negotiations were about competitive benefits, "not splitting the pot."
"We had a chance to save city taxpayers $2.7 million, but the unions turned down an opportunity for all of us to save money," Ruberto to The Eagle.
The city and unions have until Oct. 1 to hammer out an agreement that would allow the switch from Blue Cross Blue Shield next fiscal year.
The state opened enrollment in the GIC to towns and cities last year to help with rising health insurance rates as part of Gov. Deval Patrick's Municipal Partnership Act. The GIC covers nearly 300,000 state employees, including the state college system.
North Adams' seven bargaining units have been clamoring to switch from Blue Cross Blue Shield to GIC, citing lower premiums and savings in the millions for the city. City councilors and Mayor John Barrett III said any decision would have to wait until next year — and after the proposal has been more thoroughly reviewed.
Barrett was concerned how the city's retirees would fare under the plan — sticking point for Pittsfield as well.
Union negotiators had proposed a 50/50 split of the proposed savings to support the increased costs to retirees; the city countered with a 70/30 split in Pittsfield's favor but would have reduced workers' share of the premiums to 15 percent.
Both sides said they were willing to go back to the bargaining table.
Information for this article was provided by the Berkshire News Network, Radio Stations WNAW/WUPE, news partners of iBerkshires.
Below is the statement from the public employee committee created to bargain with the city:
UNIONS DISAPPOINTED WITH CITY’S DECISION TO WALK AWAY FROM MILLIONS OF DOLLARS IN HEALTH CARE SAVINGS
PITTSFIELD – Union leaders today expressed disappointment in the city’s decision to abandon plans to enroll municipal employees in the state’s health insurance system – which has the potential to save the City of Pittsfield and its employees an estimated $5 million in annual health care costs.
Negotiations between city officials and union leaders over whether Pittsfield employees should enroll in the Group Insurance Commission broke off earlier today when the two sides split on the issue of health care for retirees.
“We are extremely disappointed in the city’s actions,” said Scott Eldridge, president of the 596-member United Educators of Pittsfield and vice chairman of the committee of public employees formed to negotiate the GIC option with city officials. “The city has walked away from millions of dollars in annual savings – Money that could and should be spent on our public schools, roads and bridges, and other vital services.
“What is most disappointing is that the city took the position that the savings should be split evenly between the employees and the city,” Eldridge added. “We made an offer that did that, which the city rejected and then followed up with a proposal to keep nearly 70% of the savings at the expense of the retirees.”
City officials and representatives from the city’s 17 public employee unions and a retiree representative began meeting in August to discuss the option of enrolling city employees in the Group Insurance Commission, which provides benefits to more than 294,000 employees statewide. Negotiations ended today after city officials rejected the latest proposal presented by the public employees unions.
The public employee committee’s most recent proposal would have maintained retiree benefits without any additional premium costs. The plan put forth by city officials required retirees to pay up to $420 more a year in insurance premiums and significantly more in co-payments and deductibles.
“It is our hope that representatives for the city will return to the table and resume negotiations for joining the GIC,” said Pamela Delmolino, who is chair of the public employees committee and president of the Pittsfield Federation of School Employees, Local 1315, School Secretaries Union. “This is a worthwhile pursuit, but we can’t strike a deal at the expense of our retirees, who are our most vulnerable citizens.”
Union leaders representing 1,500 Pittsfield municipal employees formally voted in August to establish a public employee committee, an important step toward coalition bargaining. A law, signed by Governor Deval Patrick last year, allows local unions and their communities to jointly determine whether membership in the GIC would best serve employees and reduce health insurance costs.
Research done by a Boston-based health care consulting firm and the Pittsfield City Council Ad-Hoc Health Insurance Committee estimates that there was a potential $5.2 to $5.6 million annual savings by enrolling city employees in the Group Insurance Commission.
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