American Red Cross (NEPA Region) Bargaining Report: December 17, 2010

A tentative agreement between CWA Local 13500 and the NEPA Region was reached early Friday morning.

The new agreement will provide wage increases that out-pace the wage increases for other workers in the area. The negotiated wage increases over the life of the contract are: 2.5% in July 2011 and 2.5% in July 2012. The 2011 increase will be applied to everyone’s base wage, including those who are currently above the maximum rate for their job classification.

Additionally, everyone on the payroll, including those currently in probationary status, will receive a one-time bonus of $750.00 (Part-Timers and Per Diems will receive a pro-rated amount) if the contract is accepted (ratified) by January 16, 2011.

The issue that held up our negotiation for so long was the Union negotiators’ resistance to the introduction of a health care premium sharing method that would have required Union-represented employees to pay amounts equal to those currently paid by NEPA’s non-represented employees. Up until our meeting on December 16, 2010, The NEPA Region was insisting that Union-represented employees immediate transition to this new premium sharing methodology beginning with plan-year 2011.

Under the terms of the previous Union contract, covered employees’ premium payments were “capped” at 20% of the premium, regardless of the selected plan (EPO or PPO) or participation category (employee-only, employee + Spouse/Domestic Partner, etc.).

While not adversely impacting those who select the “Employee-only” category of coverage under either the PPO or EPO plans, the method of premium sharing proposed by the NEPA Region would have increased the CWA-represented employee’s contribution for Family Coverage under the EPO Plan by over a $100.00 per month.

Several informal meetings over the past couple of months resulted in NEPA negotiators agreeing to permit a phased-in introduction of the new premium sharing method, and to include a CWA representative in discussions over a redesign of the American Red Cross health care offerings beginning in 2012.

The new Agreement between CWA and the NEPA Region includes this “phased-in” introduction of the premium sharing method over the life of the new contract. The full impact of this transition has been held off until plan year 2013. And, it includes a provision allowing CWA for the first time to review and provide input into ARC’s health care plan designs.

A copy of the entire package of modifications and improvements, along with a list of Highlights, will be mailed to everyone’s home during the week beginning December 20th. Local 13500 is attempting to schedule an explanation meeting and ratification vote for Sunday, January 9, 2010. A confirmation of the meeting date, time and location will be included in the package mailed to your homes.

A complete copy of the Tentative Agreement will be posted on Monday, December 20, 2010 at: district13.cwa-union.org. Look for it under: “Bargaining” “American Red Cross.”