June 9, 2015, 2015 Proposal
Press Release:June 23, 2015Mayor Jim Gitz
The City Council and I are disappointed that AFSCME chose not to
ratify the Citys contract proposal. We believe that our last offer
gives the employees a contract that is fair and comparable to their
colleagues in other municipalities as well as fiscally responsible
to the residents of Freeport.
We would like to reassure residents that should the union decide
to strike that we have a contingency plan in place to ensure that
no one experiences a loss of vital City services. It is a difficult
time for us as we do not want to be at odds with any of our
employees, but we have to also balance our responsibilities to
other employees and the good people of Freeport who pay their
salaries with their taxes. With this in mind, we will be ready to
hire replacements and contract out the bargaining units work in the
event of a strike. The City appreciates the support and
understanding of the public at this time.
The issues which remain unresolved are few. The main topic which
the union refuses to accept is that the Citys offer includes
changes to both health insurance premiums and the healthcare plan
itself. The City has already adopted the same plan for its
non-bargaining and management employees, and all retirees. The plan
and premiums had not been significantly changed for over ten
years.
After lengthy discussions with the City Council, the Citys
position is simple. It is unfair to ask the taxpayers to pay for a
better insurance plan for City employees than they can afford for
themselves.
Over the past five years there has been a rise in the portion of
healthcare paid by the City from $2.5 million to $3.5 million. The
union employees share is set by percentage, but limited by a dollar
amount cap. This cap was reached years ago, so that now when
healthcare costs rise the full impact is on the taxpayer.
There is an additional impact due to the richness of the
healthcare plan itself. The Citys proposal phases in the new plan
over a two (2) year period of time and makes it the same as the
non-bargaining and management employees, and retirees. Quite
frankly, the proposed plan is still a much better plan than many in
Freeport have and it has been referred to on the City Council floor
as a Cadillac Plan.
The Unions last proposal insisted on premium caps, regardless of
how much the taxpayer might have to absorb if healthcare costs
continue to rise and only offered nominal concessions on the plan
itself.
The City offered a wage increase of 2% for each of the remaining
years of a three (3) year agreement. In addition, recognizing that
there would be a financial impact to the employees with the changes
to the healthcare plan, the City offered a lump sum payment of
$1,800.00 per employee as a signing incentive.
Further, the City increased the amount of money which goes into
their Post Employment Health Plan by an additional % of their
salary per year for all employees with 10 or more years of
service.
The City has not offered a wage increase for the year of the
contract which has already passed because we cant retroactively
implement the insurance plan or premiums and those savings to the
taxpayer can never be realized.
There is some minor additional language regarding how combining
services with another governmental unit to save taxpayer monies
would affect the contract, which the Union has rejected.
We appreciate our residents patience while we try to continue to
work toward an amicable solution, while being mindful stewards of
your tax dollars.
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