TWU Activists Tie HIP-GHI Merger to Contract Talks; Adds to Need for Concessions?

Several Transport Workers Union Local 100 members used a public hearing on the Metropolitan Transportation Authority Capital Programs Aug. 13 to air gripes about the pending for-profit conversion of the two primary health-insurance firms for city workers and other issues affecting transit workers.

The Chief-Leader/Pat Arnow 'CAN'T HAVE IT BOTH WAYS': New York City Transit Cleaner Marvin Holland tells Metropolitan Transportation Authority board members, 'We can't blame workers' health-care costs for the fare hikes and then do nothing as GHI and HIP merge into this for-profit company.'

Predicts MTA's Costs Will Rise

Station Agent Marty Goodman, who is also an organizer with the Coalition Against Privatization, explained to MTA officials at the authority's midtown headquarters that the Health Insurance Plan of Greater New York (HIP) and Group Health Incorporated (GHI) are merging into a new company called Emblem Health, which is asking the state to allow it to convert from non-profit to for-profit status.

"Its pending conversion to a for-profit corporation means increased costs that will line the pockets of the corporate health-care vultures," he said. "Deputy Mayor [Ed] Skyler says it will cost the city $400 million per year, impacting city as well as state MTA funding. Privatization would mean unprecedented MTA health outlays. As board members, it is your duty to oppose it."

Cleaner Marvin Holland, another member of the coalition, said that the MTA was asking for labor givebacks to reduce its deficit partly because of rising health-care costs across the nation.

"The MTA can't have it both ways," Mr. Holland said. "We can't blame workers' health-care costs [as] one of the reasons for the fare hikes and then turn around and do nothing as GHI and HIP merge into this for-profit company."

He noted that the state would get a $1-billion pay-out under the conversion, but that the long-term financial effects could be detrimental and result in reduced coverage for MTA and other public workers.

"We would like the new company to do some impact studies," he said. "Perhaps the MTA could do an impact study on how this is going to affect health-care costs in the future."

Key Element of Last Pact

During contract negotiations in 2005 that led to a three-day strike, the MTA asked that workers pay 1.5 percent of their earnings toward health care, a detail that was eventually imposed on Local 100 through arbitration.

John Ferretti, a Conductor on the 1 line, said that the MTA's plan to reduce its deficit unfairly put the burden on workers.

"When they talk about shared sacrifice, they well up with tears," he said of the MTA board. "Their bond-holders aren't going to share the sacrifice, are they? We're going to share the sacrifice."

Specifically, he said that in addition to the MTA asking for givebacks from Local 100 when its contract expires in January, it was planning to broadband titles within New York City Transit's Rapid Transit Operations Division.

"Broadbanding, for those who haven't heard of the term before, is a way you get workers from different departments to do jobs out of their title," said Mr. Ferretti. "What that means is you have Train Operators and Conductors cleaning the terminals, cleaning the crew rooms. They're already doing it. It is a violation of our contract."