Won't Hike Member Costs
State Unions Balk At Health Demand

By REUVEN BLAU

The two largest state-employee unions have categorically rejected the Spitzer administration's contract proposal to increase employee health-care premiums, co-pays and deductibles, and diminish overall coverage.

GOVERNOR SPITZER: Seeks health give-backs.

"What the state has put forward is onerous and is unacceptable to us," asserted Stephen Madarasz, the chief spokesman for the Civil Service Employees Association.

PEF Feels Likewise

The Public Employees' Federation has also refused a similar offer. "We were very clear that it was unacceptable," said PEF spokeswoman Darcy Wells.

She noted that the state unions during the last round of negotiations agreed to pay increased co-pays on various medical visits and drug costs. "We look at it this way," she remarked. "We've already bitten the bullet; changes in past negotiations have resulted in single-digit inflation in health-care costs."

That last deal included hikes in members' health-care costs that involved raises in basic medical deductibles, co-pays for hospital outpatient visits, doctor's office visits, outpatient surgical procedures, and diagnostic services. There were also additional co-pay increases for some brand-name drugs on a "preferred list" and generic drugs.

A spokesman for the Governor's Office of Employee Relations declined to comment on the current talks. "We don't discuss specific proposals or what we are doing in negotiations," said Craig Dickerson.

Making Progress?

By all accounts, the contract negotiations with CSEA and PEF have progressed over the past several weeks. The state contracts expired April 1. Traditionally, the unions start negotiating new deals months before their accords expire, but that process was initially delayed by the change in administrations.

"Earlier on we were disappointed that they weren't moving, but that's water under the bridge because we are back at the table," Mr. Madarasz said.

The issue of health care has long been a contentious matter, with the state looking to limit the increases in its costs. But state and city unions have long fought against having their members pay for any portion of their health care, as is commonly the case in the private sector.

"We have a health-care system that really needs reform," Mr. Madarasz acknowledged. "But making employees pay doesn't solve the issue of trying to reform health care."

Can Least Afford Hit

He noted that CSEA members are the lowest-paid among state employees, which would compound the impact of any health-care concession. The CSEA represents 77,000 workers in state agencies.

CSEA chief negotiator Ross Hanna suspended negotiations for one month to give the Spitzer administration time to revise its "unacceptable health insurance demands," according to the union's Web site. "CSEA strongly voiced its anger and suggested to the state that they rethink their position and develop something realistic," the contract update added.

PEF's next bargaining meeting is scheduled for Sept. 5, and it has also listed details of each negotiation session on its Web site. Usually the CSEA has been the first to negotiate a new deal, setting the wage pattern for the state's other unions.

The health-care issue was a major factor in Transport Workers Union Local 100's last contract, which was awarded by an arbitrator last December after similar terms were narrowly rejected by members. That award required workers to contribute 1.5 percent of their total earnings toward their health-care premiums.

Opened the Door

Many labor leaders at the time predicted it would open the door for state and city negotiators to seek similar health-care concessions from their members, despite the unions long contending that the issue is a nonstarter.

CSEA and PEF officials, however, said the TWU deal wasn't a factor in their current talks. "Sometimes contracts set a precedent, sometimes they don't," Mr. Madarasz observed. "Are there things that you take from other contracts? Sure. But I don't see that as a significant factor."

During this round of bargaining, PEF is seeking to negotiate an increase in location pay for employees assigned to the downstate area. Presently, individuals who work in the five boroughs or in Nassau, Suffolk, Rockland, and Westchester counties receive an additional $1,302 annual downstate adjustment. State workers in Dutchess, Orange and Putnam counties get an additional $651 mid-Hudson adjustment.

PEF is the state's second-largest state-employee union, representing 54,000 mostly white-collar workers. Roughly 20,000 of its members are assigned to downstate regions.

The state's health-care proposals, however, could delay a new deal. "It will hold things up if they don't come up with an alternative," Ms. Wells said. "Our members pay upwards of 25 percent of their premiums."

The CSEA urged state negotiators to rethink their offer. "CSEA bluntly told the state that its health insurance proposals would wipe out any pay increases for our members," the union said.