City unions nix health payment

Most workers would be ecstatic about paying a mere 5 percent of their monthly health care premiums. Frankly, many would be thrilled with 30 percent. But not L.A. city workers. Three out of four bargaining units within the Engineers and Architects Association refused to ratify an agreement that would have required its members to contribute a measly 5 percent, which is like nothing. And the engineers and architects group, which covers many more jobs than just engineers and architects, was considered among the most reasonable of the city unions. From the LAT:

The defeat followed a campaign by a coalition of six city unions, including the powerful Service Employees International Union Local 721, to torpedo the deal. Those groups called the concessions dangerous and said the proposed contract would have set a precedent for other city workers.

As part of the mayor's proposal, the number of furlough days for union members would be reduced from 26 to 10. In return, the co-pay for unions would have increased from $10 per doctor visit to $20. The refusal to contribute a shade more - laughably more next to the private sector - speaks volumes about the unwillingness of city unions to consider even modest benefit reforms. And the health care component doesn't even begin to address the out-of-control pension costs that eventually could leave the city insolvent, with little choice but to file for bankruptcy protection (although not before massive budget cuts).

This is hugely dispiriting news.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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