Mass. Municipal Assc. is after Collective bargaining for health insurance

Dear Member,

For the last several months, efforts by the Massachusetts Municipal Association to pass legislation giving municipalities the ability to make unilateral changes to municipal health insurance without collective bargaining have been stalled. But several events have occurred recently that make it likely there will be attempts to again have the Legislature consider this issue.

•While the governor has sought level funding for education and local aid in FY11, legislative leaders have indicated that in order to balance the budget, they may have to cut local aid and/or Chapter 70. Local aid has already been cut substantially during the past two years. Further cuts will have an impact on public education as well as other local services.
•As a result of declining revenues, the state is facing a budget deficit of almost $3 billion for FY11. This means that in order to keep current funding levels for the next fiscal year, the state must find $3 billion in additional revenues. As the recession continues, the state struggles financially.
•The Municipalities and Regional Government Committee reported out a Municipal Relief bill (H 1971) on Tuesday, February 23. While the bill does not include the changes being pushed by the MMA, it is possible that MMA’s legislative supporters will add their health insurance proposal to either the Municipal Relief bill or the FY11 budget.

Because of the recession, the shortfall and the threat that local aid and Chapter 70 will be cut, the pressure to provide more revenues for cities and towns is enormous. Health insurance costs are continuing to put a very real strain on local budgets.

At this time, the exact provisions of any MMA proposal remain unclear. During the past year, there have been several versions – but the central piece of all MMA proposals involves taking away collective bargaining over plan design. The MMA, Stand for Children and others claim they can solve the problem by:

· Giving local officials alone the ability to determine plan design without collectively bargaining.

· Not permitting employees to negotiate what would be done with any of the savings.

· Allowing the effects on employees from changes in health plan design to be subject only to impact bargaining. (After 60 days, the town or city would just implement its proposal.)

MTA is fighting to make sure that any change in municipal health insurance includes collective bargaining and gives a voice to retirees in decisions about their health insurance.

What’s Next?

The Municipal Relief bill could be considered by the Legislature this month. The House will consider its FY11 budget at the end of April or the beginning of May. The Senate will vote on its budget at the end of May.

The MMA’s message is: “Just give us the tools to set plan design and we can cut costs quickly” without collective bargaining. It is deceptively simple, but will gain support not only in the Legislature but in communities across the state because local officials need help in finding funds for local services, including education.

Legislators Need to Hear From You

Your right to have a voice in decisions about health insurance is at stake. All legislators need to hear that they do not have to take away collective bargaining in order to reduce the cost of health insurance. Let them know that you understand that health insurance costs are skyrocketing and that as a result of the recession, local aid has been cut. Tell them you are willing to work with them to reduce costs, but it needs to be done fairly and you need a voice at the table to make it work.

Please contact your legislators by going to http://www.capwiz.com/nea/ma/issues/alert/?alertid=14753661&type=ST to send e-mails or by calling their representatives and senators at 617-722-2000. Below are talking points for your use in fending off this threat to our collective bargaining rights.

The following is a basic message for members to use in discussions with legislators:

As you consider ways for cities and towns to save money, I urge you to vote against any legislation that takes away our ability to collectively bargain over health insurance.

Please make sure that retirees have a seat at the table when health insurance for the community is decided.

In addition, I urge you to support measures that provide new revenues for municipalities so communities can prevent cuts to education, public safety and other vital services.

Lou