2011

Posted by Bob on August 4, 2011 under Daily Blogs | Be the First to Comment

The Board of Mayor and Burgesses (“BMB”) unanimously authorized the execution of a new collection bargaining agreement (“CBA”) between the Borough and the Visiting Nurses Association (“VNA”) collective bargaining unit (“CBU”) on Tuesday, August 2, 2011. The VNA CBU had previously voted to approved the tentative agreement. The CBA, which can be viewed here, runs retroactively from July 1, 2011; through June 30, 2014 (pdf version is available here). A summary of the fiscal analysis completed by Borough Comptroller Wayne McAllister can be viewed here (the pdf version of the fiscal analysis summary is available here). The main components of the CBA are as follows:

Wages:

Members of the CBU will received increases in general wages and beeper rates (“on-call” compensation) for the following years at the following rates:

2011-2012: Two and 15/100ths (2.15%) percent;
2012-2013: Two and 15/100ths (2.15%) percent; and
2013-2014: Two and 20/100ths (2.20%) percent.

The total increase in cost for the three (3) year period for wages and beeper rates is FORTY SIX THOUSAND FIVE HUNDRED FORTY SIX and 76/100THS ($46,546.76) DOLLARS ($45,503.64 for general wage increases and $1,043.12 for beeper rate increases.

Health Care:

The Borough achieved significant cost savings as a result of changes to health benefit packages offered to the members of the CBU. Two choices are offered to members: the traditional preferred provider organization or “PPO”; and the high deductible health plan or “HDHP”, which for the plan offered is a health savings account or “HSA”. Highlights of the changes for each plan are as follows:

PPO

Beginning January 1, 2012, the premium cost share for members in enrolled in the PPO plan will increase from eight (8%) percent to nine (9%) percent. Premium cost shares for members will increase to ten (10%) percent and eleven and 50/100ths (11.5%) percent respectively on July 1, 2012; and July 1, 2013.

HDHP or HSA

The Borough and the VNA CBU agreed to significant changes to members’ HSA plans that will result in savings. Beginning January 1, 2012, the premium cost share for members enrolled in the HSA will increase from zero (0%) percent to two (2%) percent. Premium cost shares for members will increase to four (4%) percent and six (6%) percent respectively July 1, 2012; and July 1, 2013.

More importantly, members enrolled in the HSA will increase the deductible paid toward their respective plan in the following manner over the life of the agreement (plans are managed on the basis of calendar years rather than fiscal years):

Beginning January 1, 2012: members will continue to pay twenty five (25%) percent of their deductible;
Beginning January 1, 2013: members will increase their portion of the deductible to thirty five (35%) percent; and
Beginning January 1, 2014: members will increase their portion of the deductible to fifty (50%) percent.

In addition, the Borough and the VNA CBU reached agreement to increase costs for plan designs (“co-pays”) for a variety of medical services over the three (3) year period as referenced on page thirteen (13) of the CBA.

The changes to the health benefits contained in the CBA represent significant savings to the Borough over the three (3) year period. If no changes were made to the existing plan, the Borough would have incurred additional expenses (based on projected inflationary increases in health care costs) of approximately FIFTY SIX THOUSAND THREE HUNDRED NINETY THREE and 33/100THS ($56,393.67) DOLLARS. Essentially that means, if the Borough did nothing on wages and kept the same health benefit plan, the cost of the overall agreement would increase by said amount, FIFTY SIX THOUSAND THREE HUNDRED NINETY THREE and 33/100THS ($56,393.67) DOLLARS. Instead, health benefits will cost approximately FORTY ONE THOUSAND TWO HUNDRED SIXTY EIGHT and 86/100THS ($41,268.86) DOLLARS, representing a savings of FIFTEEN THOUSAND ONE HUNDRED TWENTY FOUR and 81/100THS ($15,124.81) DOLLARS in health care costs over the three (3) years period.

Pensions

No changes were made to the pension as an agreement was reached in a previous extension to provide defined contribution pension plans to new members of the CBU.

Our administration would like to thank the members of the VNA CBU, particularly the representatives on the negotiating team, for respectful and productive sessions. Naugatuck’s visiting nurses provide exceptional service to their patients under often difficult circumstances. I am sure that those many residents who receive services from the VNA can attest to our nurses’ collective professionalism and compassion.

We would also like to thank Borough labor counsel Nick Grello, insurance broker Rob Fitzpatrick and Comptroller Wayne McAllister for their sound advice and diligence during the negotiations. The agreement, which combines modest pay increases with significant health care savings, represents another step toward a more sustainable local government.