Unions ratify 6 year deal to join GIC
Published on September 24th, 2008
STONEHAM, MA - The town's Board of Selectmen inked a six year deal with Stoneham's municipal unions on Tuesday night that will transfer employees' health coverage over the state's Group Insurance Commission (GIC).
The change in health insurance coverage will reportedly shave an estimated $700,000 off of the town's annual contribution towards health premiums, while still ensuring that Stoneham's workers maintain similar insurance coverage.
The six year pact, signed just in time for the municipality to meet to Oct. 1 deadline for joining the GIC in FY'10, was heralded by both union representatives and town officials alike.
“It's a good deal for both sides and I'm just excited and grateful to the employees for stepping-up and realizing that this is a huge step in trying to correct [the town's] structural deficit,” said Town Administrator David Ragucci on Tuesday night.
“I think it's great. Both parties were clearly at polar opposites and they came together. It's a win-win,” said Selectman Richard Gregorio, who predicted that the town could save as much as $750,000 next year through the change.
According to Stoneham Teachers' Association (STA) President Marlene McArdle, the town's collective bargaining units ratified the six year pact offered by the Selectmen last Thursday.
In order to join the GIC, at least 70 percent of union membership, based upon a weighted vote that reflects the size of each collective bargaining unit, must consent to joining the state program.
Under the agreement, the town will be responsible for 85 percent of employees' annual premiums. Currently, Stoneham's teachers contribute 17 percent towards insurance premiums, while all other municipal unions foot 20 percent of the bill.
According to McArdle, the GIC offers lower premiums than the town's current provider, Tufts Healthcare, but the co-pays under the plans are a little higher.
Employees will have nine different health plan options to chose from under the state program.
“The premiums are less through the GIC. So there is savings to the teachers,” McArdle said. “Now they have to pick a plan that they think would be best for them individually.”
The town did offer two concessions during negotiations.
In particular, town officials consented to paying $500 annually towards Medicare B plans for Stoneham's retirees. Medicare B is a supplemental health offering intended to fill in coverage gaps.
In addition, the town will now revert to coalition bargaining for health benefits. Coalition bargaining allows all the municipality's unions to negotiate health care benefits at the same negotiating table.
Presently, each union meets separately with the town administrator to negotiate health insurance options.
Stoneham officials have long pushed for the town's employees to agree to the change to the GIC, arguing that the change would reign in soaring health insurance expenses.
In July of 2007, Governor Deval Patrick signed a bill that allowed municipalities to join the GIC, which negotiates and provides health benefits for all state workers.
Proponents of the measure argued that local cities and towns could save hundreds of thousands of dollars in health insurance costs, as the GIC's significant pool of participants provides more leverage when negotiating agreements with heath care providers.
Opponents of the legislation, including some high powered labor unions, insisted that the GIC will cost municipal workers more for health coverage, that collective bargaining units would lose their ability to negotiate co-pays and deductibles, and that major insurance providers like Blue Cross Blue Shield do not offer plans under the pool.
Ragucci first convened a Public Employees Committee meeting - where representatives from each union are required to negotiate a shift into the GIC - shortly after the legislation passed allowing municipal workers to join the state program.
However, the town's unions reportedly refused to attend all other gatherings after that initial PEC meeting, arguing that Ragucci should first hammer-out new contracts with them.
Raising the stakes last February, the Selectmen voted to end the $170 trash fee in FY'09, unless the unions agreed to join the GIC by May's Town Meeting. Employees in turn contended that the Selectmen were acting in bad faith by linking the refuse charge to inclusion in the state offering.
The collective bargaining units further claimed that it was unfair to demand the immediate change in health care coverage without employees having a full understanding of the consequences.
According to McArdle and Selectman Chair John DePinto, the impasse over the GIC largely stemmed from a need to educate both sides on the specifics of the program.
“There might have been a pre-conceived notion that this wasn't the right thing to do,” said DePinto. “I think this is going to be good for the employees. They get a lot more to choose from.”
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