Clerical Bargaining Unit Agreement Approved

Posted by Bob on September 30, 2011 under Daily Blogs | Be the First to Comment

The Board of Mayor and Burgesses unanimously authorized execution of a new collective bargaining agreement (“CBA”) between the Borough and the United Public Service Employees Union (“UPSEU”) clerical workers at a special meeting held on Thursday, September 29, 2011. The agreement, which covers the period from July 1, 2011 (retroactively) through June 30, 2014, can be viewed here. A summary of the fiscal analysis of the CBA prepared by Borough Comptroller Wayne McAllister can be viewed here in both Microsoft Excel and .pdf format.

The CBA is substantially similar to the agreement reached with the Visiting Nurse Association collective bargaining unit (“CBU”) in August, 2011. A summary of the CBA is as follows:

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”. This CBU represents the first time that an HSA is being instituted to members of the CBA. 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 UPSEU Clerical CBU agreed to offer members an HSA plan that will result in savings. Beginning January 1, 2012, members can elect to enter an HSA plan without a premium cost share. Premium cost shares for members will increase to four (4%) percent and six (6%) percent respectively January 1, 2013; and January 1, 2014.

More importantly, members enrolled in the HSA will gradually 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 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 UPSEU Clerical 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 in Article Seventeen (17) 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 ONE HUNDRED FORTY FOUR THOUSAND TWO HUNDRED FIFTY FIVE and 33/100THS ($144,255.33) 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, ONE HUNDRED FORTY FOUR THOUSAND TWO HUNDRED FIFTY FIVE and 33/100THS ($144,255.33) DOLLARS. Instead, health benefits will cost approximately NINETY THOUSAND FIVE HUNDRED EIGHTY FIVE and 17/100THS ($90,585.17) DOLLARS, representing a savings of FIFTY THREE THOUSAND SIX HUNDRED SEVENTY and 16/100THS ($53,670.16) 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 agreement to provide defined contribution pension plans to new members of the CBU.

Wages:

Members of the CBU will received increases in general wages 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 is ONE HUNDRED FIFTY FIVE THOUSAND NINE HUNDRED NINETY SIX and 41/100THS ($155,996.41) DOLLARS for approximately thirty seven (37) employees.

Other Changes

The Borough and the UPSEU Clerical CBU also agreed to redefine the grade and step schedule outlined in Appendix A of the CBA. The previous agreement had eight steps, but members did not move along the schedule. The new schedule reduces movement to three (3) steps: an initial step for new hires; a main step and a reclassification step when additional, substantive duties are appropriately assigned. In addition, the new CBA contains multiple language revisions that make for a better document.

Our administration would like to thank the members of the UPSEU Clerical CBU, particularly the representatives on the negotiating team, for respectful and productive dialogue. Those involved in the negotiations participated in many meetings and discussed several complex topics that ultimately produced an agreement that benefits the employees as well as Borough taxpayers. The members of the UPSEU Clerical CBU perform numerous duties essential to the operation of Borough government across multiple departments. While their wages are relatively lower than many other Borough employees, UPSEU members continuously demonstrate a tremendous work ethic while providing professional and courteous service to Naugatuck residents and businesses.

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