Having served as Local 3782’s Negotiations Chair for more than twenty years, I ask that you give careful consideration to your vote on the contract extension proposal, which was mailed to all union staff for ratification. The economic climate this year is much different than it has been in any previous negotiations. Both public employee and private sector unions throughout the nation have been hit hard by managements that want to eliminate their rights, reduce benefits and offer no increase in salary. Even when unions are willing to concede on salary issues, they have still had to fight to preserve their rights and benefits. If the contract extension proposal is turned down by the Union membership, we will be going into negotiations under very difficult circumstances and everything in the contract will be subject to change.
Historically The Arc of Monmouth comes into each negotiations with proposals to modify or eliminate rights and increase employee contributions on health care. In 2008 they came in with a salary proposal that would have based raises on the amount of annual increase in their DDD funding each year minus half a percent. Naturally we did not find their salary proposal acceptable in 2008. So we were able to negotiate a 3-year contract with respectable 3% raises that were not contingent on DDD funding amounts. In retrospect we were very fortunate. The housing crisis and economic downturn had not yet come to light while we were negotiating in early 2008. (The Lehmann Brothers collapse occurred in September 2008.) As you may be aware, DDD has not increased funding for several years now and are projected again to give no increase in funding for the next fiscal year.
The Union leadership has had periodic communications with Arc management regarding the agency’s fiscal difficulties during the last few years. I recently received an update from Mary Scott, Executive Director, who reported that Residential is in an $88,000 deficity for this fiscal year; Adult Services lost $51,000 due to DDD imposing penalties for program vacancies for the last several years; and the current transportation deficit for bus service to ATC’s and WOC is $136,257. In addition DDD is now implementing previously proposed rules penalizing provider agencies for both residential and day program vacancies. And WOC may once again be in danger of having their DVRS funding cut.
If negotiations occurs, you should consider some of the items that may be subject to change or elimination. The employee contribution for health care coverage is very vulnerable. We presently pay a very low single digit percentage of the health insurance policy costs, and our contributions are capped. If the percentage of costs becomes higher than the annual cap figure, we never pay more than the cap figure. In 2008 management wanted to eliminate caps. We held onto them, but in a very different economic atmosphere. The $0 mail order prescription option for employees hired before 2004 is another item that management has sought to eliminate in the past several negotiations, as zero copay plans have not been offered by insurance companies for some time. At a time when the employer is in a financial deficit, it would be difficult if not impossible for any Union to negotiate a salary increase without sacrificing cost benefits such as employer paid health insurance, pension matching and time off.
I urge every member to carefully consider the overall picture. Please feel free to contact me or any member of the Union Executive Board if you have questions. And please take the time to vote! We hope to receive a 100% vote return so that every member’s voice will be heard.