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Strike Disagreement
Due to Health Insurance
Posted 10-27-2005
For the first time in my
10 years as commissioner, we are experiencing a strike by some county
workers. The Children's Bureau caseworkers and clerical staff, as well
as clerical workers from the Mental Health / Mental Retardation Program,
which are represented by Teamsters Local 205, walked out on October 12.
Because of the sensitive nature of negotiations, though none are
happening now, I do not want to address any particular details of our
impasse. But I think it is important for the public to know that the
disagreement centers on our position that employees begin to make a
contribution towards the cost of the health insurance that the county
provides at taxpayers' expense.
This issue is one that
affects all working Americans in one way or another. Most people working
in the private sector have, for a number of years, contributed toward
the cost of their health insurance. As usual the public sector has moved
along more slowly, but Westmoreland County is certainly not the first
government body to seek an employee contribution. Our neighbors in
Armstrong County have had their employees make a health care
contribution for the past several years. Other counties are following a
similar path as health care costs continue to outpace the rate of
inflation.
Right now, Westmoreland
County spends approximately $13 million annually on health care. The
county is self-insured, and we introduced competition among insurance
carriers several years ago to make sure we are spending taxpayer dollars
as wisely as possible. But the cost of medical claims continues to
increase. This phenomenon is not unique to Westmoreland County. In fact,
even corporate giants like General Motors have asked their unions for
help in offsetting the cost of health insurance, and the United Auto
Workers recently agreed to do so.
The problem for employers
in the United States, in both the private and public sectors, is that
health insurance is still attached to employment. The rest of the
industrialized world has years ago moved away from this concept. The
cost of health insurance has put American businesses at a disadvantage
with their foreign competitors. American auto manufacturers have stated
that health care costs add as much as $1,500 to the price of every car
compared to cars manufactured in countries where health care is not a
part of employee benefits. I know one local company that moved some
manufacturing work to Germany even though the hourly wage of the German
workers was $2 per hour more than what the company was paying here. The
company claimed one factor in its decision was that in Germany it would
not be paying for those workers' health insurance. So the overall cost
to the manufacturer was not as high moving the work to Germany.
Since Westmoreland County
has been purchasing health insurance for employees, taxpayers have paid
the entire premium, and the only responsibility employees have had is a
small co-pay on prescriptions and doctor visits. That structure was
common in most governmental entities. But as governments have seen
health care costs rise dramatically in the past 15 years, many have
moved toward having their employees share some of that burden. It has
been a bumpy ride for all ,as change, particularly in the public sector,
is often a slow and painful process. But it has happened in governments
like Armstrong County where workers performing similar functions do not
earn as much as they do in Westmoreland County.
We recognize many of our
employees do not earn tremendous wages. But neither do the overwhelming
majority of the people paying for us to be here. Even people on Medicare
have to pay an increasing amount for Medicare supplements. How do we in
good conscience ask you the taxpayers, who are assuming more of the
burden for your own health care coverage, to continue to pay so that
county employees have it for free?
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