Union, retiree reps urge waiting a week

In a special meeting Tuesday, July 12, the selectmen voted unanimously to have the town manager proceed with discussions aimed at moving Arlington's unions into the Group Insurance Commission (GIC) at a projected savings of $2.9 million.

Union and retiree representatives urged selectmen to delay their vote for a week until more details are known, but the 4-0 vote was recorded, as the town faces a Sept. 1 deadline to complete negotiations on the issue with its unions. Selectmen Dan Dunn is on vacation.

"Why steam-roll through the process?" asked Linda Hanson, a teacher representing the Arlington Education Association. "We were promised a complete analysis ... we don't have that."

Al Tosti, Finance Committee chairman, urged selectmen to "move ahead with all dispatch." He cited the $1 million moved from the health insurance budget this spring, an amount that new provisions requiring GIC participation would cover. "Town voters were very generous," he said, referring to the successful June vote passing a $6.5 million override. He said money saved by joining the GIC could stave off another override for as many as two years beyond the current three-year waiting period.

After the vote, Hanson said selectmen have no role in the negotiations, which involve Town Manager Brian Sullivan and the Public Employee Committee (PEC), representative town and school unions.

A handout labeled a "draft" and dated July 12 from the manager's office projected the impact of the GIC on town health-insurance costs as of next Jan. 1:

Current costs total $21,177,796. Of that, the town pays $16,996,258 and employees and retirees pay $4,181,538.

Renewing insurance would cost $23,295,576. Of that, the town would pay $18,307,527; employees/retires would pay $4,988,049.

Under the GIC, the total would drop to $8,393,226. Of that, the town would pay $4,149,683. Employees and retirees would pay $4,243,543.

These numbers show a projected saving of $4,902,350. Of that, the town would save $4,157,844. Employees and retirees would save $744,506.

The new state budget, which Gov. Patrick signed Monday, July 11, includes provisions for moving unions into the GIC -- something Arlington unions would not accept in local negotiations. To soften that blow to unions statewide, legislators included the return to union members of 25 percent in savings realized under the GIC.

In Arlington's case, the 25-percent savings allocation is expected to add up to $1,225,587. Employees and retirees would get that.

This means a net savings to the town budget of $2,932,257 and net savings for employees and retirees of $1,970,093.

Sullivan said he called the meeting because the town must start the process "immediately." He expects to meet first with the town's insurance advisory committee. He called work on the issue "95 percent done."

Doubting the need to rush was Ken Hughes, a retired police officer who represents the town Retirement Board and retirees. "We don’t have to vote tonight," he said. Let's find out the details. Let's do it the right way."

Board Chair Clarissa Rowe admitted "we don't have all the details," but said the town must move ahead with the process.

The town/union negotiations will be taking place before Sept. 1, when many are on vacation.

This story was first reported Wednesday, July 13, and updated two days later after a reader pointed to an error. The original copy said: Current costs total $21,177,796. Of that, the town pays $6,996,258 and employees and retirees pay $4,181,538. The middle number has been corrected to $16,996,258.