Wage Freezes and More Equitable Employee Health-Care Contributions Included in ContractGovernor Andrew Cuomo and Council 82, the labor union representing New York State's law enforcement officers, have reached an historic contract agreement.
The agreement includes wage freezes through the 2013-2014 fiscal year, elimination of so-called 'step increases,' more equitable employee health care contributions, and major reforms to health care benefits and overtime.
"I applaud Council 82 and its leadership for understanding the problems of the state, and realizing that through shared sacrifice, we can get New York on the road to recovery," Governor Cuomo said.
"This is a model the other unions negotiating with the state can follow. If similar contract terms were adopted by New York's other public employee unions, the state could achieve the $450 million in savings needed to avoid the 9,800 layoffs projected in the enacted budget. I also want to thank and commend our lead negotiators Todd Snyder and Joe Bress for their tireless work on behalf of the people of the state."
"This is a responsible agreement that is in the best interest of our members, the State of New York, and the taxpayers. It brings a long overdue contract to completion. It demonstrates the Cuomo Administration's commitment to working with its labor partners and its commitment to these employees and their important work.," said Jim Lyman, Executive Director of Council 82.
"Council 82 looks forward to continuing the good working relationship that we've developed with the Governor and his staff and supporting him in his efforts to restore our state government and making it work for the people again."
Highlights of the agreement include wage modifications: zero wage increases for fiscal years 2011/2012, 2012/2013, and 2013/2014, and eliminating performance advances or "step increases".
The agreement includes wage freezes through the 2013-2014 fiscal year, elimination of so-called 'step increases,' more equitable employee health care contributions, and major reforms to health care benefits and overtime.
"I applaud Council 82 and its leadership for understanding the problems of the state, and realizing that through shared sacrifice, we can get New York on the road to recovery," Governor Cuomo said.
"This is a model the other unions negotiating with the state can follow. If similar contract terms were adopted by New York's other public employee unions, the state could achieve the $450 million in savings needed to avoid the 9,800 layoffs projected in the enacted budget. I also want to thank and commend our lead negotiators Todd Snyder and Joe Bress for their tireless work on behalf of the people of the state."
"This is a responsible agreement that is in the best interest of our members, the State of New York, and the taxpayers. It brings a long overdue contract to completion. It demonstrates the Cuomo Administration's commitment to working with its labor partners and its commitment to these employees and their important work.," said Jim Lyman, Executive Director of Council 82.
"Council 82 looks forward to continuing the good working relationship that we've developed with the Governor and his staff and supporting him in his efforts to restore our state government and making it work for the people again."
Highlights of the agreement include wage modifications: zero wage increases for fiscal years 2011/2012, 2012/2013, and 2013/2014, and eliminating performance advances or "step increases".
Health Insurance Premium Contribution
In order to align state employee health care costs with other states and the private sector, the agreement will increase the employee contribution for health care premiums. Individual members' share of health care expenses will increase from 10 percent to 20 percent.
Employees electing family coverage will pay 35 percent of the share of dependent health care costs, an increase from 25 percent. If adopted system-wide, these changes would save $178 million in the first year with increasing recurring savings in future years.
Health Care Benefit Redesign
The agreement also includes a redesign of the state employee health care benefits. If the reforms agreed to by Council 82 are adopted system-wide, these changes would save $196 million in the first year, including hospital coverage savings of $51 million, medical coverage savings of $58 million annually, and prescription drugs coverage savings of $87 million annually, with increasing savings in future years.
Examples include: Employees will be encouraged to use outpatient hospital services. A co-pay will be charged for in-patient services; Co-pays will be introduced for in-network emergency room visits, radiological and lab work and other hospital service; Medical visit co-pays will be increased but there will be no deductible for in-network services; Employees will be encouraged to use less expensive mail order prescription drug refills.
Reform Sick Leave Credit
Reduce amount of unused sick leave which can be credited toward reducing health care insurance premiums in retirement. System-wide savings would amount to approximately $45 million annually
Overtime Reform
Overtime compensation would be reformed to exclude sick days from accrual of time worked for purposes of qualifying for overtime compensation. System-wide this reform would save $11 million in the first year.
Retroactive Wage Settlement Identical to CSEA and PEF
Council 82 has been without a contract since 2005 and is currently in arbitration with the State. The agreement settles the arbitration by providing Council 82 members with a wage agreement identical to that received by CSEA and PEF for the same prior period. The one-time cost to the state of $48 million was reserved for this purpose in the enacted budget.
The agreement covers the Agency Law Enforcement Services unit of Council 82. The unit includes SUNY police, Park Police, and Department of Environmental Conservation Officers and Forest Rangers and covers 1160 employees.
Negotiations for the state were led by a special team appointed by the Governor comprising Todd R. Snyder, Senior Managing Director of Rothschild Inc. and Co-Head of Rothschild's Restructuring and Reorganization group; and Joseph M. Bress, former head of the Governor's Office of Employee Relations and former Vice President of Labor Relations at Amtrak, under the direction of Howard Glaser, Director of State Operations.
Image source: lenny4albany.com
Image credit: lenny4albany.com
Image credit: lenny4albany.com
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