February 22, 2011

Press Release – Bargaining Update

The Board of Education and a joint committee from the Petoskey Education Association (PEA), representing the teaching staff, and the Petoskey Educational Support Personnel Association (PESPA), representing the secretarial and custodial staff, met again on February 22, 2011 in another attempt to reach a successor agreement to the labor contracts which expired on August 31, 2010. This is the thirteenth formal meeting since bargaining commenced in June, 2010.

At this session, the Board made formal revised proposals to both the PEA and PESPA. The Board recognized the stated position of both associations that preservation of their MESSA health care benefit package was of top importance to them. The Board crafted a two-year proposal that maintained MESSA coverage, but asked for concessions on health insurance, moving from a $10 prescription co-pay to a $10 generic / $20 name-brand co-pay, and also moving to a $100 per person / $200 per family deductible. Additionally, the proposed MESSA plan would include $10 office visit co-pays. All other portions of the health care package, including vision, dental, life insurance, and long-term disability coverage would remain at current levels. Finally, the Board proposed that while they would pay the full premiums on this package for the current year, for subsequent years the Board would not pay any insurance premium increases. Such increases would be paid for by the association members through a payroll deduction.

Under this plan, the Board estimates its monthly per person cost for insurance would be the following:

PEA PESPA

Single Subscriber $653.58 $665.71

Two-person $1,341.99 $1,354.12

Full Family $1,479.68 $1,491.81

Additionally, the Board proposed that members who did not need or request insurance coverage would be provided a cash in lieu of health insurance monthly payment of $552.23, which is the amount equal to the health insurance only portion of the above single-subscriber premiums. These members would receive the vision, dental, life insurance, and long-term disability insurance, at a monthly cost to the Board of $96.22 for PEA members, and $115.45 for PESPA members. Similar to the full insurance proposal above, the Board proposed that while they would pay these amounts for the current year, the Board would not pay any premium increases for subsequent years. Finally, the Board removed its proposal for a freeze on step increases from their original proposal. No other salary increases were included.

The Board believes their health insurance proposal is more expensive than last year by approximately $11,185. However, due to the requirements of current collective bargaining laws, the Board has been paying the premiums on the health care plan that was in existence when the contract expired. As these premiums are 12% higher than last school year, the Board believes that its new proposal would result in monthly savings of $27,230 for the remainder of the school year. Based on the new proposal, the Board believes that had its proposed plan been in place at the beginning of the year, the Districts costs for the current year would be lower by $326,760.