Another large segment of public sector employees in Providence took a step toward the mainstream last week when Local 1033 of the Laborers International Union of North America – representing 900 city workers – and the city agreed to a three-year contract.
It comes on the heels of a similar agreement reached early this summer between the Providence teachers’ union and the city. Like the teachers, the laborers get a wage increase that totals 7.5 percent over the life of the deal.
But most importantly, like the teachers, the laborers have agreed to share in the costs of their health insurance.
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This was the main sticking point during the long and tense negotiating process – the same sticking point that had to be resolved before the city and the teachers struck a deal and the same issue that now has the police and fire unions at odds with the city. Contract talks for those unions have stalled and are in the hands of an arbitrator.
The city’s laborers will contribute 7 percent to their health insurance benefits in the first year, 8.5 percent in the second year and 10 percent in the third.
This represents not only good, but also groundbreaking news for taxpayers in the capital city. The vast majority of city residents work in the private sector and have long become accustomed to sharing in the costs of their health insurance benefits.
In the private sector, survey after survey tells us that employers can no longer afford to foot the bill for health care. As a result, they are looking for plans that may cover – and cost – less. They are also asking workers to make more significant contributions.
The rising cost of health insurance is without question the single biggest deterrent to doing business today. But it isn’t just killing businesses, it is siphoning the economic strength of our cities and towns.
Over the past couple of decades, generous union contracts became the norm for too many Rhode Island municipalities. They were an easy way for elected leaders to curry favor, make friends – secure votes.
But their long-term impact represents a harsh reality. Pension systems in many cities and towns are under-funded. In fact, several Rhode Island cities and towns have hovered on the verge of bankruptcy.
The contract between the city and the laborers is a good one – a deal that enables all parties involved to proclaim victory.
It includes the elimination of a no-layoff clause and establishes an apprenticeship program that allows the city to train new employees at 85 percent pay. It also contains language designed to clarify job descriptions and better defines the responsibilities attached to them.
Management should gain more flexibility in re-positioning workers, while workers should see greater opportunities for merit-based advancement and professional development.
“This groundbreaking agreement makes our work force more professional, more accountable and more affordable,” said Providence Mayor David N. Cicilline.
In a press conference marking the agreement, Cicilline was quick to recognize and thank union leaders who worked to reach the accord, specifically mentioning Armand Sabitoni, Donald Iannazzi and Vicki Virgilio.
The union leadership should be applauded for recognizing that to fight the idea of health insurance co-pays would be futile. It is simply no longer an option for cities and towns to bear the full price of these costly benefits – nor is it fair to continually place those costs squarely on the backs of taxpayers.
The contract agreements reached in the capital city should serve as a model for other communities. Health insurance co-pays are a reality that labor unions need to accept.
