July 07, 2009
Union grieves cheaper insurance
Unable to persuade the teachers union to modify an expensive health insurance plan costing nearly $25,000 for a family policy, the Greater Johnstown School District has switched insurance policies, provoking a union grievance.
The change was made July 1, the day after the union's contract expired. At issue is whether the district's action violates the Triborough doctrine of the state's Taylor Law that says public employers cannot unilaterally alter "terms and conditions of employment" while negotiating a successor agreement. (For background on the Taylor Law, see here.)
The school district argues the new health insurance policy offers teachers comparable benefits while saving the school district $584,000 a year. As the Daily Gazette reports: The district's health insurance costs had jumped more than $729,000 from last year, with cost increases driven by a 20 percent spike in the indemnity plan.
The new plan would cost district taxpayers and employees about $17,820 for a family of four for the school year. An indemnity family plan would cost $24,897. The national average family plan in 2008 cost $12,680, according to the Kaiser Family Foundation annual survey of health benefits.
On June 4 the district warned the Johnstown Teachers Association it would drop the plan without the union's consent by July 1, unless ordered not to by a "higher authority." (snip)District officials argue the new plan's similar coverage at less cost plus a commitment to pay medical copays for some former indemnity users will allow the unilateral switch to stand.
The union disagrees and calls the move a clear violation of its contract. The Johnstown Teachers Association has filed a grievance with the Public Employment Relations Board.
Two other Fulton County districts have similar Blue Cross Blue Shield indemnity plans through the Fulmont Health Trust Group, according to the Daily Gazette. In Gloversville, where the teachers union refused to modify the plan, the district has cut 57 teaching and staff positions. The Broadalbin-Perth Central School District, after eliminating 21 positions, is negotiating with its teachers union to restore four to six teaching jobs.
The Greater Johnstown School District teacher contract for July 1, 2005 to June 30, 2008 is available on www.SeeThroughNY.net . The district is listed as the Johnstown City School District.
According to that contract, teachers pay 15 percent of health insurance premiums for themselves and their families. Reducing the total cost of a family plan by $7,077 would save an individual teacher $1,060 a year. Despite that, the union has refused to agree to the lower cost plan.
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