June 28, 2007

'Push week' update 3: Slight movement in wages, but massive health-care hikes remain

There has been slight movement in negotiations for wages for a new two-year contract for MAPE members, but the governor's team still refused to budge from massive health-care increases it is proposing. The governor's team increased its across-the-board (ATB) proposal Wednesday to MAPE members to 1 percent each year, and late in the day raised that offer to 1.5 percent the first year and 1.25 percent the second year. The governor's team proposed a 1.75 percent ATB each year Thursday morning.

Don’t accept a pay cut! State employees deserve a wage increase to cover inflation, not a pay cut!

The governor's proposed wage increases don't cover the massive health-care increases that are being proposed.

MAPE's negotiators have reduced the cost of their proposals by approximately $66 million. They have presented the governor's team with five comprehensive packages pulling together unresolved issues. The governor's team has increased the cost of its proposals by approximately $14 million.

The huge gap between the cost of health-care proposals still remains. The governor’s team proposes massive health-care cost shifts that could mean an estimated $1,300 in additional out-of-pocket drug and medical costs for family coverage. This would increase nearly all copays and deductibles.

One area MAPE is looking for health-care plan savings is the pharmacy benefit manager, a concept that was pioneered and led to implementation by MAPE and AFSCME as a result of the last contract. This could mean an estimated $5 million in savings.

	MAPE Negotiations Team	Governor's Team
wages	Across-the-board (ATB): 1st year: 6.5 percent. 2nd year: 6.25 percent. Progression steps: both years. Add progression step to top of range second year.	Across-the-board (ATB): 1st year: 1.75 percent. 2nd year: 1.75 percent. Progression steps: both years.
health care	Status quo for costs picked up by union members and their families. Hold clinics accountable. Keep plan administrative costs under adequate control. Give wellness programs a chance to reduce costs before shifting burden to employees.	Increase maximum drug out of pocket limits. Increase maximum nondrug out of pocket limits. Increase deductibles for all services except drugs and preventive care. Health-care assessment requirement and coaching for members to obtain $5 reduction in copays. Emergency room copays doubled. Increases in inpatient admissions. Increases in outpatient surgery copay. Additional 10 percent after deductible cost to member for MRI/CT scans. Increase of 5 percent to members for services not subject to copay.