Letters to the Editor
Protest HIP Pay Bonanza

To the Editor:

Every New York City union member and anyone interested in quality municipal services and fair treatment of workers should be outraged by the disclosure that HIP/Emblemhealth is proposing to give its CEO, Anthony Watson, a $20-million windfall on top of his $4.79-million a year salary and bonus if the state approves conversion of HIP to "for-profit" status.

It doesn't take a Rockefeller or Bloomberg to see that this proposal is just one consequence of changing HIP from a company whose primary purpose is to provide low-cost, high-quality health care into a corporate behemoth dedicated to maximizing profits for executives and shareholders. I'm just a working man, but even I can see that Mr. Watson's money will come from higher premiums and co-pays, reduced benefits and lower-quality services.

So why hasn't the Municipal Labor Committee or even a single union leader demanded that such perks be permitted only if a converted HIP maintains present services and pricing? I can understand why politicians would approve the conversion in exchange for payment of billions into the state treasury from which they can dole out pork for their own benefit. But our union leaders' fiduciary duty is to fight for the city employees HIP was created to benefit.

The anger of those workers, who constitute 90 percent of HIP's customer base, was obvious among the overflow crowd at the "open forum" on the conversion held in February. After that meeting, I wrote to you asking why union leaders were not in the forefront protesting such shenanigans. Now, as our leaders remain silent, the New York Sun headline about the payout only proves the validity of the concerns of the rank and file.

Mr. Watson's outrageous pay package would confirm that his primary concern would be the shareholders of HIP and not the customer/workers for whom it was formed.

My union, Local 372 of DC 37, has 26,000 members who are among the hardest-working yet lowest-paid city employees. We depend on our health benefits, and we are appalled that Mr. Watson, who is already paid more in two days than most of us make in a year, should grab $20 million more under a plan that only benefits him if he puts profits over people.

Members of Local 372 struggle to provide for our families in a world of $4 milk and $4 gas. We don't expect a Jaguar to take us to work (much less two, as the Sun described just one of Mr. Watson's other perks.) But we do expect our union leaders to do their best to stop HIP from being perverted into a treasure chest for executives and politicians.

It's time to start asking the tough questions and demanding accurate and complete answers. Let me be clear: I do not begrudge Mr. Watson fair compensation for devoting his talents to HIP. But I do begrudge any executive who attempts to claim resources that should be rightfully devoted to meeting the just needs of union members.

JESSE TEITLER, Member Local 372, District Council 37

Editor's note: Mr. Teitler is expected to be a candidate for president in Local 372's upcoming election.