In the Matter of Impasse in Negotiations between TOWN OF WARSAW and INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 264 (WARSAW HIGHWAY DEPARTMENT). PERB Case M2006-282. Edward A. Schmidt, Fact Finder

Schmidt, Edward A.

English

In the Matter of Impasse in Negotiations between TOWN OF WARSAW and INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 264 (WARSAW HIGHWAY DEPARTMENT). PERB Case M2006-282. Edward A. Schmidt, Fact Finder.warsaw2006_282.pdf: 169 downloads, before Oct. 1, 2020

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Warsaw, Town of and International Brotherhood of Teamsters Local 264

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Fact Finding Reports - NYS PERB New York State Public Employment Relations Board (PERB) 
November 2007 
Warsaw, Town of and International Brotherhood of Teamsters 
Local 264 
Edward A. Schmidt 
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Warsaw, Town of and International Brotherhood of Teamsters Local 264 
Abstract 
In the Matter of Impasse in Negotiations between TOWN OF WARSAW and INTERNATIONAL 
BROTHERHOOD OF TEAMSTERS LOCAL 264 (WARSAW HIGHWAY DEPARTMENT). PERB Case 
M2006-282. Edward A. Schmidt, Fact Finder. 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/perbfact/14 
               STATE OF NEW YORK 
                  PUBLIC EMPLOYMENT RELATIONS BOARD 
 
              FACT FINDER’S REPORT 
 
     CASE NO. M2006-282 
 
        
 
 
IN THE MATTER OF AN IMPASSE IN NEGOTIATIONS 
   
between 
 
 
TOWN OF WARSAW 
 
                         and 
 
 
INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 264 
  
                       (WARSAW HIGHWAY DEPARTMENT) 
 
 
 
BEFORE: Edward A. Schmidt, Fact Finder 
 
 
APPEARANCES: 
FOR THE TOWN: 
   
 Ronald E. Smith, Supervisor 
                         
                        
 
FOR THE UNION: 
 
 Glen Miller, Business Agent 
                         
                     
 
 
 
 
 
 1
BACKGROUND: 
 
A meeting was held with the parties on August 15, 2007 in order to pinpoint the items to 
be sent to Fact-Finding. The undersigned (Fact Finder) noticed that the parties were very 
close on several items and suggested trying to mediate the open issues. All issues except 
for one were agreed to by the parties. The items agreed to included wages, personal leave, 
pay for motor operators, and the duration of the contract. The only open item was health 
insurance. After a lengthy discussion during which Union Representative, Glenn Miller, 
explained the advantages of the Union proposal, the Representatives for the Town Board 
tentatively agreed and to take the proposal to the full Board at the next meeting for their 
input and/or approval. Subsequently, the Town Board voted down the proposal and sent it 
back to Fact-Finding. The parties requested another meeting with the Fact Finder and a 
meeting was held on October 10, 2007 in the Town Hall. Supervisor Ronald Smith 
indicated that the Town Board felt the Union proposal was too costly. After a rather 
lengthy discussion, the Board Representatives caucused and upon returning made a 
counter-offer to the Union.  
The Board proposal called for members of the bargaining unit to contribute toward the 
cost of health insurance. 
At the suggestion of the Fact Finder, the parties decided to submit the new proposal to its 
constituencies for approval, but in the meantime, they would prepare briefs on the Health 
Issue in the event the new proposal was turned down. The Union subsequently informed 
the Fact Finder that its members voted the issue down.  
Briefs were received by the Fact Finder by October 23, 2007. 
 
BRIEF SUMMARY OF THE UNION POSITION: 
The Union has acquiesced in agreeing to switch from the Supreme Plan to the Select 
Plan.  The Union contends that its proposal to switch to the Select Plan would amount to 
a Town savings of $9,037.68 in 2008; $8,783.16 in 2009 and $10,098.36 in 2010. These 
savings do not include non-bargaining unit employees who also enjoy the Teamsters 
Health Insurance. If one were to include them, the savings would increase significantly. 
The Supreme Plan currently in effect is far more costly as demonstrated above.  
 
 2
The Union contends that these savings alone should be an incentive to continue health 
insurance paid in full for the life of the contract and asks that the Fact Finder uphold its 
position.  
 
BRIEF SUMMARY OF THE TOWN POSITION: 
 
The health coverage would be changed to the Select Plan. Additional coverage for co-
pays would be reimbursed as follows: the Town will pay the difference of co-pays 
between the Supreme Plan and the Select Plan. The Bargaining Unit members will pay 
$300.00 for single coverage, $500.00 for two- person coverage and $600.00 for family 
coverage. 
Unit members would start contributing in 2009 of a four year contract. 
The Town contends that this should be acceptable to the Union Bargaining Members and 
asks that the Fact Finder accept its position on Health Insurance. 
 
 
DISCUSSION/ANALYSIS/ OPINION: 
 
It is noted that the Town did not cry inability to pay. It would appear that the Town is 
interested in adopting the concept of employees contributing toward the high cost of 
health insurance. Contributing a flat sum of money rather than a percent of health costs is 
advantageous to the employee. The sum is locked in for the duration of the contract and 
is not affected by Insurance Companies possibly raising health insurance premiums each 
year of a four year contract. Having said that, it is also obvious that this flat sum 
contribution is resisted by employees who have had the benefit of fully paid health 
insurance over the years.  
 
There is no question that there is a growing tide in all fields, whether it be in the private 
sector or in the public sector, for the employee to contribute toward the constantly 
increasing health insurance premiums. 
 
 3
It was noted in discussions that the highway department employees have the ability to 
more than make up what these new contributions toward health care would cost them by 
availing themselves of the overtime opportunities afforded them especially during the 
snowy winter months. It is noted that they would not suffer a net loss of income by their 
contributing toward health care costs since they have these overtime opportunities. The 
employees counter that their contribution could still be regarded as money lost. 
 
It is the belief of the Fact Finder that the new concept of now having to contribute toward 
health care costs as called for by the Town proposal in its present form is not too 
burdensome when one considers the full cost of health insurance in comparison to what 
each employee is expecting to contribute.  The Union’s arguments have much merit, but 
the Fact Finder believes that the Town is entitled to a modicum of relief in premiums for 
health care costs and as such makes the following recommendation: 
 
RECOMMENMDATION: 
 
The Fact Finder recommends the Town proposal on Health Insurance as presented to the 
Fact Finder as follows: 
1. Health Coverage will be changed from the Supreme Plan to the Select Plan. 
2. The Town will pay the difference of co-pays between the Supreme Plan and 
the Select Plan for medical and prescription only. 
3. Bargaining Unit Members will pay an annual contribution of $300.00 for 
single coverage; $500.00 for two person coverage and $600.00 for Family 
Coverage starting on January 1, 2009. 
 
                                                                                         Respectfully submitted, 
 
 
                                                                                         
 
                                                                             Edward A. Schmidt, Fact Finder 
 
 4


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