01/17/2004

TABLE TALK
Negotiators met this week and the State presented PEF with a comprehensive proposal in Health Benefits. As we suspected, the State proposal called for substantial cost shifts as well as diminishment of existing benefits for current employees as well as for future retirees. It also, however, included a few proposals intended to move closer to our needs in the health insurance area.


Although we were pleased that the State was moving this discussion forward, we told the State that several of their health insurance proposals were “deal-breakers” to which PEF would not agree. Whatever else might be in the State’s proposals (PEF is still waiting for a full response to our package proposal of December 4), there was NOTHING the State could offer that would make us accept the State’s demands to:


- Increase the employee/dependent share of the bi-weekly health insurance premium by 5% each;


- Decrease the State’s contribution for retiree health insurance based on years of service (state would continue the current level of contribution only for those employees with 30 or more years of service—everyone else would receive less)


- Establish a network of participating hospitals in the Empire Plan and force members to use these facilities or face a $1,000 deductible for using a non-network hospital.


Other proposals remain on the table, and PEF will continue to work with the State toward an agreement that meets both of our needs. PEF cannot and will not restrict these negotiations to how we can help meet the State’s needs in Health Insurance. The State must present us with a comprehensive proposal that addresses all aspects of the contract. In December we made a full proposal to the State and have repeatedly told them, “It’s your move!”