April 22, 2005

 

Negotiations Under Way

Parties Wrestle with Health Care Costs

            Negotiations for a successor contract at The Hour started out Tuesday afternoon pretty much as they had in the past.  New York Guild Local Representative for The Hour, Steve Zavatski, led talks for the Guild, accompanied by Unit Chairperson Erik Trautmann, Vice Chairperson Jennifer Connic, and Secretary Sam DiMeo.

            “We’ve come here hopefully to reach agreement on a new contract and do it expeditiously. All of our proposals are important to us,” Steve said. “I know the big issue for the company is its need to address health insurance costs.  Let’s see what both sides can come up with and come to a fair agreement.”

            The company’s outside attorney, John Zandy, speaking for management, noted: “In this last contract, the Guild did very well.  Everyone in the company is paying more for insurance than Guild [members are].  Brett Whitton added that the rates paid by the company for the Anthem POS plan had gone up 71.94% over the life of contract.

Guild proposals outlined at the first bargaining session included:

  • a general wage increase that would be fully applied to the minimums in each year of the contract
  • better union security provisions relating to seniority within the unit
  • improved union jurisdictional language
  • substantial improvements in severance pay
  • revised language concerning merit pay and bonuses
  • benefits for part-time employees
  • increased car expense payments and a raise in the out of coverage area mileage rate
  • more family inclusions and better day(s) off with pay in the bereavement language
  • payment for using personal cell phones for business
  • an increase in the number of sick days to 10 from the current 5, and the option to roll them over for use in the next year
  • accelerated vacation accrual
  • a 401K plan with the employer matching funds
  • a 100% company-paid dental plan
  • a Flexible Spending Account that allows employees to contribute pre-tax money to pay for non-covered medical and dental expenses
  • including the News Editor position in the bargaining unit
  • a four-year contract retroactive to January 1, 2005.

            Zandy presented only one issue: reducing the company’s health-insurance costs. Although it was the company’s only proposal, it packed a lot of punch. Of major concern to Guild-represented employees, and most probably to non-union employees as well, is that it would be the only plan available. The current POS and Plus plans would be eliminated. Some of the chilling provisions of the newly proposed Anthem Basic Care plan that management wants instituted company-wide are:

  • Hospital and surgical benefits would be subject to a $1500.00 deductible per person; a $4500.00 maximum per family.
  • Office visits would rise to $20.00 for a standard office visit and to $30.00 for a specialist visit
  • The price of Rx’s would go to $10-$20-$30, that’s generic, name brand, and non-formulary drugs, respectively.
  • No out-of-network reimbursement money if paid.

            In addition, if the terms of this plan weren’t bad enough, Anthem has notified its subscribers that certain high-end medical tests (e.g., MRI’s) in all Anthem plans will be subject to an additional co-pay.

            After hearing the company’s proposal, Steve told management representatives that, although he can appreciate their health-care-cost woes, this was not a plan our members could even consider.  “This insurance issue is not a problem for one side or the other,” he said.  “It’s a big problem that we (the parties) have to work on together.”  Steve added that he pledged the resources of the Guild and whatever time he needed to devote to the problem in order to find alternatives to deal with this issue in an expeditious manner.  The company pledged its best efforts as well. Whitton also noted that the open enrollment period for choosing a health-care plan begins May 1, and, he claimed the company must have a new agreement with a health insurance provider by June 1.

            Following the discussion of health-care matters, the company caucused. When talks resumed, management informed the Guild that it accepted the union proposals on union jurisdiction, seniority, and merit and bonus pay. Some discussion followed and the meeting adjourned late in the afternoon.

            The next bargaining session is scheduled for April 25. We will continue to update members during the negotiations via newsletter, e-mail and on The Hour page of the Guild’s website that can be viewed at www.nyguild.org.

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4/22/05