Labor contracts for Oxford Village’s two groups of union employees met with mixed fates at Tuesday night’s council meeting following a two-hour closed session.
Council voted 5-0 to approve a five-year labor agreement with the American Federation of State, County and Municipal Employees, which represents the Department of Public Works? five full-time employees.
However, a motion to approve a proposed labor contract with the Police Officers Labor Council, which represents the village’s four full-time police officers and three full-time dispatchers, failed in a 3-2 vote.
Council members Chris Bishop, Mike Hamilton and Teri Stiles voted no, while Tony Albseni and Tom Benner voted yes.
Apparently, council gave village Manager Joe Young direction to continue negotiating with the police union, but no specifics were discussed in open session.
Because the DPW’s previous contract expired at the end of last June, this new agreement will run from July 1, 2007 until June 30, 2012.
Under their new contract, the five full-time DPW workers will receive an across-the-board pay increase of 2 percent each year.
Compared to the old contract, this one represents a $20,424 cost increase for the village over the next five years.
The biggest change is the new health insurance program which is expected to yield significant savings for the village.
All five full-time DPW employees will be enrolled in High Deductible Health Plans and given Health Savings Accounts (HSA).
High Deductible Health Plans have lower premiums and higher deductibles than traditional insurance plans.
Lower premiums save the village money.
Just putting the DPW union employees on this plan will save the village approximately $10,000, according to Young.
‘Annually, it would save us about $40,000 if everyone was on it,? he said. ‘It’s going to average around $2,000 an employee.?
In all, the village has 21 full-time employees ? 12 union and nine non-union.
‘Part of the program would be to convert all non-union people,? Young noted.
DPW union employees will pay their higher health insurance deductibles out of their new HSAs, which are tax-advantaged medical savings accounts that allow participants to contribute money not subject to federal income tax at the time of deposit.
HSA funds can be used to pay for qualified medical expenses at any time without federal tax liability.
Young said the village plans to contribute $1,200 annually to HSAs covering one-person and $2,200 to those accounts covering two or more people.
Union employees will be able to add their own money to the village’s contribution any time they want.
‘They can add more if they want to avoid tax on it, but they don’t have to,? Young explained. ‘That’s strictly their option.?
To help reduce the village’s health care costs, the new union contract calls for employees to chip in. The DPW’s five full-timers will each have to make annual $120 payments for the next five years.
Despite the changes to the way the union employees? health insurance is funded, Young assured, ‘They’re going to have equivalent coverage (compared to what they had before).?
Village police officers and dispatchers will have to wait a while longer to get a new contract. Their previous labor agreement expired June 30, 2007.
The proposed five-year labor agreement rejected by council called for the four full-time police officers to receive 2 percent pay raises across-the-board each year of the contract. The three full-time dispatchers would have received 1 percent annual increases.
It also proposed the addition of five pay steps based on years of service. Each step equaled one year with the department and came with a 1 percent pay increase.
Compared to the previous one, the rejected police contract would have cost the village an additional $49,658 over the next five years.