8/16/10:

STATE DENIES WFSE/AFSCME’S HEALTH CARE GRIEVANCE; ARBITRATION NEXT

The state’s Labor Relations Office on Friday (Aug. 13) denied the Federation’s health care grievance.

This is the grievance to recoup some $216 million in your surplus health funds diverted by the Legislature in 2008. Because of that diversion, your deductibles, co-pays and other out-of-pocket costs skyrocketed this past January.

LRO Director Diane Leigh ruled the grievance was filed too late and even if it was timely, “no funds were diverted to other portions of the state budget.”

The Federation has 30 days to file for arbitration.

The union will save its counterarguments for arbitration. But it’s safe to say the state missed the point: The union has documented the diversion; and it only became aware of the magnitude of the diversion’s impact this spring—after protracted pushing and prodding to get accurate information from the state.

The Public School Employees/SEIU followed the Federation in filing a grievance as well. All were consolidated and all were denied by the state.

7/28/10: 

The grievance will be heard on August 3.

5/27/10:

WFSE/AFSCME May 27 filed a grievance challening the state's diversion of $216.30 million in surplus health funds that this year added about $1500 to your health costs.

The union grievance alleges the state violated the Health Care Benefits article of its contracts by not contributing its full 88 percent share.  Most other public employers pay 100 percent of premium costs, according to the state's lastest salary survey.

The grievance asks that the 40,000 employees coverered by the union's contracts get at least 12 percent of the recouped amount - or about $26 million plus interest.

Employees pay 12 percent of premium costs.

The $216.30 million surplus in the Public Employees Benefits Board Unrestricted Fund Balance came about because employees didn't file as many claims.  State employees did  what they've been asked to do - take steps to stay healthy to avoid going to the doctor.

But instead of passing that savings along to employees, the Legislature in 2008 deliberately drained the full $216.30 million surplus and used ti for other parts of the budget, the grievance says.

The union alleges this meant the state lowered the premium costs only for the employer, below the 88 percent negotiated in the contract.

"By lowering the funding rate only for the employer, instead of allowing both employees and the employer to benefit from the surplus, the employer reaped the entire benefit of the $216.30 million surplus and improperly diverted the funds to benefit other portions of the state budget," Federation grievance says.

"At the very minimum, 12 percent of the surplus belong(s) to the state workers who helped create the surplus."

The diversion set off a chain of events that added to the economic sacrifices inflicted on state employees.  Out-of-pocket costs - deductibles, co-pays, prescription costs - skyrocketed this past Jan 1.

It took an all-out push by Federation members to win an infusion of $65 million from the  2010 Legislature to avoid another round of out-of-pocket hikes in 2011.

This is not the first time WFSE/AFSCME has filed grievances defending the Health Care Benefis article of its contracts. 

The state and the Federation in 2006 settled grievances on another underfunding episode, winning some $55 million in recouped funds.  That settlement brought lump-sum payments of $756 to all bargaining unit employees in 2007.