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October 27, 2011 in City
State wants employees to pay more for health care
OLYMPIA – Gov. Chris Gregoire wants state employees to pay more for their health insurance, and is asking union leaders to reopen labor contracts. Their initial response: Not unless businesses give up some tax breaks.
In a letter to the unions, Office of Financial Management Director Marty Brown cites the projected imbalance of $1.4 billion between state revenues and scheduled state expenses in General Fund programs as the reason.
“Due to the continuing decline in revenue, the state is requesting that the coalition of unions agree to reopen the 2011-’13 health care benefits agreement in order to negotiate a reduction in the employer premium contribution,” Brown says in the letter.
The letter surfaced a day before Gregoire is scheduled to unveil her proposals to close the budget gap and provide some money for reserves. The Legislature returns for a special session on the budget on Nov. 28.
Brown acknowledges that unions have made concessions in their current contract, which was approved by the Legislature earlier this year. “However, because of the seemingly unrelenting pressure that the Great Recession has had on revenues and increased caseloads, state employees may be called upon yet again to sacrifice.”
The unions can refuse. The Washington Federation of State Employees, which represents about two-thirds of the union workers, signaled it is unwilling to reopen the contract.
“Before there’s any talk of taking more from the state workforce, (Gregoire) must convene a meeting of corporate entities and ask them to take a 3 percent cut in any tax break they are receiving from the taxpayers,” Greg Devereux, the union’s executive director, said in a message posted Wednesday afternoon on the union’s website.
If the businesses agree to those cuts, “we will be happy to come back to the table,” Devereux said in a later interview. If not, “we have no interest in going back.”
Under state law, the unions must agree to contract talks if the governor declares a financial emergency. But a spokeswoman for Gregoire emphasized this was a request. If the unions agree to reopen the contract, they would still have the right to negotiate any cuts.
The contracts were negotiated by Gregoire’s office and approved this year by the Legislature. State negotiators at one point requested to change the split on health insurance costs from about 88 percent for the state and 12 percent for the employee to 74 percent for the state and 26 percent for the employee.
But the state was also seeking lower wage costs. The final agreement on the split was 85 percent and 15 percent, and workers also agreed to a 3 percent cut in hours and a corresponding reduction in pay. Those contracts were part of the budget bill the Legislature approved in May.
Unions joined with other progressive groups last spring urging the Legislature to avoid an “all-cuts” budget by ending some tax exemptions. For the most part, the Legislature refused.
Jason Mercier, a budget analyst for the Washington Policy Center, said a split in medical insurance costs that’s closer to what workers in private industry pay would be 75 percent for the state and 25 percent for workers. That would save the state an estimated $30 million a year, based on preliminary figures.
A 2002 law limits the Legislature to passing or rejecting labor contracts after they’ve been negotiated by the governor’s office. Mercier contends that law should be repealed to prevent collective bargaining by state unions and give the Legislature more control over setting wages and benefits.
Supermajority for taxes unconstitutional, judge rules 
oneanddone on October 27 at 5:01 a.m.
Pay more for health insurance? You mean like everyone else? But then why did the state agree to the terms in the first place. One thing’s for sure, the moronic state negotiators should be looking for a new job.
wobble506 on October 27 at 6:08 a.m.
no wonder the states going broke. How about a 50/50 split?
Tell em to take it or find a new job, and hire non-unoin new people to fill the striking union workers slot? I bet a lot of unemployed people would jump at that!
Scoutster on October 27 at 7:52 a.m.
It would be a huge strategic error for the unions to Tea Party these negotiations and bull headedly refuse to open the contracts regardless of what business does. Look around.
Long-term it’s nuts to attempt equivalency between union terms and business taxes. They will continue to calcify their shell, isolating themselves from the rest of us.
I don’t understand how union folks can be so tone deaf.
terryalan on October 27 at 7:57 a.m.
Tell you what…when ALL of the state legislators take a commensurate cut every time we state employees get nicked I might cooperate. At this point I would be willing to vote to strike if we bite any more of the costs.
And don’t give me that ‘I pay your wages’ crap. Guess what? I pay as much of my own wages as you do so get over it.
sean96 on October 27 at 8:07 a.m.
A deal is a deal, why should the unions reopen their contracts? Instead of the “my health care premiums are high so should everyone elses” mentality we should all demand the same coverage that state, federal and elected officals have.
I have no problem everone paying as long it is no more less then the next guy. Their should be no private insurance or healthcare, a rich person’s health is no more important then my families. Of course the “christian” meantality that perminates these boards would not agree. Their’s is “screw the poor the sick and the children, just give me mine”.
mamachief on October 27 at 8:09 a.m.
All state legislators should try and live off minumium wage for at least a year and try to live with either NO insurance or the insurance that the rest of us have to PAY for…bet their tune would change if they had to live like most of us. No vacations, pay check to pay check and forget about the fancy house/cars. Some business are the same…the office I work in pays a monthly rent amount that is almost what I make in a year and the cost of living raise we received is LESS than the minium wage raise. Forget about a merit raise that most of us work towards each year.
empyrius on October 27 at 8:20 a.m.
Government jobs + Unions = Evil!
Bust up that evil “Washington Federation of State Employees” union: we don’t negotiate with terrorists around here!!!!!!
DickAdams on October 27 at 8:31 a.m.
Gregoire, says “reguest” and not a financial emergency? What the heck is she doing, pandering to the unions as usual? And the split of 75% versus 25% in the private sector in the story is digested food through the bull. I`ve paid 50% for years since retiring and guess what? December 31, 2011, my retirement supplemental medical plan with BC & BS even though it costs me $584.00 per month is cancelled. The continual increases were to a point that the payment had reached a point where another increase I would have to drop the plan anyway. For what`s its worth that is what is going on in the private sector and corporations to exist are forced to drop medical plans. Contrary to the lib posters screaming that corporations have record profits, while some do, many, like the large corporation I retired from, the ledger has red ink all over the page, with no possibility of profits in the foreseeable future. BTW, since I retired some plus 25 years ago, the 216,000 retires in the plan have not had a COLA added to their pension plan checks like most public employees receive.
IHike4Fun on October 27 at 8:37 a.m.
When in trouble
When in doubt
Run in circles
Scream and shout.
The_Seer on October 27 at 8:50 a.m.
I invite all the anti-union morons posting on here to move to a country where labor protections don’t exist and unions aren’t part of the landscape. Have fun.
Why should there be a race to the bottom instead of, like unions have advocated for over 100 years, a concerted effort to improve working conditions/compensation for everyone? Why isn’t it envy when private sector workers state union members should have the same working terms as them when it is envy when the 99%ers state the 1% take home an unsustainable level of income?
The reason most of you don’t live lives of drudgery enduring 80 hour work weeks with no benefits, no vacations, no sick leave, no maternity leave, no nothing is because of organized labor. You need to remember that and support unions, not blame them for something they had no control over. In addition, conduct some research concerning wage stagnation for the middle class over the past forty years and discover how that trend neatly coincides with the depletion of organized labor’s power during the same time frame. It’s pretty easy to connect the dots.
The_Seer on October 27 at 8:54 a.m.
If Gregoire were truly a liberal/progressive leader she would be advocating for a single payer state health insurance plan instead of being a Republican Lite and attacking union gains for their workers.
I’m not giving back another dime and the WEA and local education professional unions aren’t going to either. Have some gumption and raise taxes. Blaming the working class for something they didn’t do and then punishing them for something they didn’t do is immoral.
Lewis on October 27 at 9:04 a.m.
my buddy works for DSHS he just got a 10 thousand dollar per year raise, yes they should pay for their own insurance.
Albert on October 27 at 9:06 a.m.
I just read in the national news that ole Jerry Brown is doing the same thing to CA. It appears that his proposals are far and beyond what Chrissie is doing, however, if the “states” don’t cut back, then CA. will be the end results.
Reality=no jobs=no tax revenues=no state income. We have now reached the same level of income/standard of living as that of the Great Depression era. Like it or not good friends, when the state & federal govt. is broke, then the toll will be taken from entitlements, wages, and benefits. This is NOT a political statement - just a reality check. Deep down, we all know that the U.S. has imploded and we will NOT recover from this “recession”, i.e. Great Depression II.
jddavis on October 27 at 9:10 a.m.
If the state can’t pay the bills and the unions refuse to concessions, something will have to give. Unfortunately, it will be the union members with the least seniority.
Wasteful spending and a variety of entitlement programs are draining funds that would otherwise cover negotiated contracts with state employees.
mamachief—it’s tough all over. What are you doing to put yourself in position to make higher wages?
DickAdams on October 27 at 9:26 a.m.
Its time to “test” the WEA teachers and get rid of the dead wood that are being carried even though many should be fired for incompetence. Its one of the reasons for many children not doing well. My observation shows me charter schools are doing much better than the less than mediocre public schools today. What ever happened to the three Rs? Heck, many HS graduates can`t pass a simple test, R, R, R. I`m sick and tired of all the whining by some of the cry babies. It didn`t start yesterday, but its been going on as long as I can remember. Go get another job if you don`t like it.
soccermomsusie on October 27 at 9:42 a.m.
SMART ALECKY UNIONS!!!
Socialist Queen Christine wants them to take a cut and instead they point to Our Betters and say, “We will, if they will.” What a bad attitude.
Didn’t the Collectivist Unionists read the paper this morning? Our Betters are being blessed by The Almighty like never before! And some are trying to make it look like a bad thing.
The gap between the Good (wealthy/Heaven) and the Bad (poor/Hell) has never been greater in our history. But these unions want to insult The Lord and ruin his plan by building a place somewhere in the middle. YUCK!!!!
What do they want, a POOR MAN’S POOR MAN’S PURGATORY!??!
Incidentally, don’t forget to vote for our TEA PARTY CANDIDATE - DAVID CONDON FOR MAYOR TODAY! More importantly, send him some cash ASAP! Maybe he could get Keefe to shave for the next commercials if he ups the ante.
HEAR OUR VOICE!!!
bez233 on October 27 at 9:43 a.m.
Well seer, I would rather be an anti union moron then continue to belong to an INTERNATIONAL organization whose only concern is themselves with no intelligence of how many companies have had to shut down and, or flee to other countries to escape the tyranny, extortion, and thuggery of these INTERNATIONAL organizations who I find more of a threat to this country than al-Qaida or they may be one in the same. Plus the numerous jobs lost because they have dictated what will and will not happen - funny these INTERNATIONAL organization don’t own any business. Along with the disgrace they have placed upon our, once, public officials by secretly hiding behind closed doors to make secret deals and threats.
Don’t get me wrong the union has its place but it has stepped over the line of ethics and morals and has compromised this country with its self-righteousness greed.
The_Seer on October 27 at 9:52 a.m.
bez233: Thanks for that post you lifted straight from the Cato Institute’s website!
The only reason unions have resorted to any of the tactics you describe (which you can’t prove are true) is because of the unceasing attack waged upon them by capital. We are fighting for our survival and by any means necessary. You’ll thanks us (or your children will) one day.
soccermomsusie on October 27 at 9:59 a.m.
bez233, I am glad somebody made the Al Kaydee AFL-CIO connection and it wasn’t even me. THANK YOU!!! Incidentally, You never see the two together at the same time.
You should join me and my hubby. We are thinking of relocating to Somalia. It is one of the last free places on earth, totally unencumbered by unions, regulations, taxes or anything. My neighbors tell me it’s a garden spot and have been really encouraging in my possible relocation.
Hey, it is funny that none of the unions own businesses. Funny, as in odd, and funny just as a statement.
KEEP UP THE GREAT WORK - BOTH IN THOUGHT AND DEED! YOU ARE AN INSPIRATION!!!
CONDON!! FUTURE MAYOR!!! TEAPARTY!
HEAR OUR VOICE!!!
DDC on October 27 at 3:28 p.m.
The Unions own plenty of those evil corporations that are outsourcing labor to lands far away (except Somalia…of course). They’re called “retirement accounts” and “pension funds”.
Ironic to be sure.