Expect union contracts to mimic city agreement

Members of Local 1033 of the Laborers International Union of North America, the city’s largest labor union, with close to 900 public service employees, recently agreed on a new four-year contract. Changes to the contract reflect a struggling economy.

The City of Providence said changes were made to prevent layoffs and maintain job, financial and retirement security for employees (including an 8-percent wage increase over the next 37 months), and are seen as a big step forward in public-employee labor negotiations, according to Mayor David N. Cicilline. With other union contracts coming up, the new deal may serve as a model.

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The changes were numerous. Richard Kerbel, director of administration for the city, said some were improvements for the union, others for the city.

One change that will have an impact on union workers is an increase in health-care cost co-sharing, which will nearly double over the next four years. Individuals’ cosharing will jump to $1,000 per year from $400, while family plans will see an increase to $1,900 from $900. The increase is expected to save the city $1.2 million.

More than 100 crossing guards will receive a cut in pay, going from $18 to $12 per hour, and family health plans no longer will be made available. These and other benefit restructuring will save the city an additional $2 million.

Outdoor union employees who used the controversial 90-degree rule to go home with pay when the thermometer hit 90 will no longer have the option. In addition, contract amendments also affect sick and vacation time.

With many cities feeling the pinch these days, the contract is likely to serve as a model for other cities, said Kerbel.

But cities aren’t the only ones struggling with the economy and the state’s budget woes. Unions are feeling the crunch, too.

Michael Downey, president of Council 94 of the American Federation of State, County & Municipal Employees, which represents 5,000 state and 3,500 municipal employees, said he is familiar with 1033’s new contract, and he is convinced that his group stands to do a lot worse.

“We’re currently sitting on a memorandum of settlement that I’m very much against. Health care premiums are going to increase by 20 percent and whether a person makes $100,000 or $18,000 they’ll pay the same amount for health insurance. You’d have to make at least $60,000 to be able to afford that kind of increase with copays for doctor appointments and medications,” he said.

Downey, who oversees all locals in the council, went on to say he feels that every time the state goes broke it immediately looks to cut things like health care and retirement plans. And in some cases laws have even been changed to make it work, he says.

“Health care is a big issue across the board, and everyone is taking a beating,” he said. “I understand these are tough economic times, but I’m appalled at the way the Carcieri administration is handling the problem. We don’t mind an increase but most can’t handle a drastic increase. There are some part-time or seasonal employees that work 40 weeks a year and are paid about $18,000. They will be expected to pay the same premiums as, for example, the basketball coach at URI, who makes $250,000. The contract agreement for 1033 was ugly, but I’m convinced ours will be even uglier.”

The city’s attempt to save money with the cutbacks could be a sign of the times. Marion Orr, director of Brown University’s Taubman Center for Public Policy, said “Rhode Island has been hit hard with fiscal constraints, so I think this reflects the belt-tightening of city government. Unions negotiate, but they recognize the fiscal situation of the city and are willing to make compromises,” Orr said. He added that it’s possible other towns will follow, but feels optimistic about a turnaround in the state’s economic picture for next year.

The issue of health care is on everyone’s mind and some feel it will come up in contract negotiations until the problem is solved. Rachel Miller, of Jobs with Justice in Providence, said “health care benefits are so tied to employment. This is an indication of how ‘broke’ our health care system is, and it needs to be fixed. Affordable health care should be made available to all union and non-union employees and until that happens, health care will remain an issue on contracts.”

Downey said he has been involved with the union since he was 18 years old. Now 54, he said this is the worse he has ever seen it. •