Wednesday, November 30, 2011

Collective Bargaining Weakens Cities: Public unions on the local level have too much power—even deep blue Massachusetts is starting to rein them in

Click here to read the article. By ROBERT M. COSTRELL. WSJ, 11-23-11. Mr. Costrell, a professor of education reform and economics at the University of Arkansas, served as chief economist for the Commonwealth of Massachusetts from 2003-2006 and education adviser to Gov. Mitt Romney from 2005-2006. Excerpts:
"After a seven-year effort dating to the Romney administration, the Democratic-controlled legislature finally passed a law aimed at bringing local costs in line with state costs—and it was signed by Gov. Deval Patrick. Previously, localities could not change the copayment, deductible or any details of any bargaining unit's health plan without the approval of every local union. As a result localities were paying, on average, 37% more for health insurance than state and private employers."

"In Cleveland, for example, the collectively bargained contribution by teachers is $75 per month for family health coverage, a fraction of a state employee's $205 monthly contribution. Ohio state employees face an out-of-pocket maximum of $3,000 per family for in-network coverage, including a deductible of $400 and a co-insurance rate of 20%. For Cleveland teachers, the out-of-pocket maximum is zero—there's no deductible and no co-insurance. These provisions are written into Cleveland's union contract. They will be very difficult to remove."

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