While the mayor and City Council continue to argue over $200,000, a new labor contract with city workers may point the way to saving $2 million a year.
Randy Hannan of Mayor Virg Bernero’s staff said that the city has come to an agreement with Teamsters Local 214 on a new contract. This unit, one of the smaller ones in the city work force, has agreed to concessions on health benefits.
Among the changes, a three-tiered prescription drug coverage system and, brace for it, actual premium payments from members.
While it’s standard for private-sector insurance plans to require premium payments from workers, such fees have been a huge hurdle to clear at City Hall. (Back in 2007, the city’s own Elected Officers Compensation Commission rejected a bid by the mayor to have elected officials pay 5 percent in health-care premiums, for example.)
Hannan said that if all the city’s bargaining units agreed to the health insurance provisions accepted by 214, the city would save $2 million per year in health costs.
For some perspective, $2 million a year is more than what the city usually budgets for plowing the snow off the streets.
There is a real chance for some community consensus here. I don’t believe Lansing taxpayers want city workers treated unfairly. But as city resources are pinched, it makes sense for the city and its employees to forge health-care benefits that are more market-oriented. Individual premiums are not unusual or onerous.
In exchange for these concessions, the city frees up money to provide key services. And services are provided by people ... translation: jobs.
And improved city services mean better relations between residents and city government. That can create more fertile ground when the city has to come to taxpayers for investments in the future (a consolidate police and courts center, for example).
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