With a proposed 3 percent tax hike on the table for 2019, Luzerne County Councilman Stephen A. Urban has urged county Manager C. David Pedri to increase health insurance contributions paid by non-union workers.
Pedri had included a $280,000 rise in health care costs as one of the reasons he is requesting higher real estate taxes. Next year’s health insurance expenses are pegged at $11.55 million in the proposed budget.
Non-union employees have been paying 10 percent toward health care since 2014.
Describing the unchanging percentage as one of his “pet peeves,” Urban said the manager should exercise his power to “ratchet it up a percent or two.” The insurance contribution has increased to 12 and 15 percent in some union contracts, he said.
“I think you need to show the managers that you’re going to do it with them too,” Urban told Pedri during last week’s budget presentation. “I think you need to do a little cost containment.”
Pedri: Not yet
In a follow-up interview Friday, Pedri said he will consider a percentage increase in the future, but not for 2019.
For starters, he said all employee payments toward health care will increase next year because the percentage amounts are based on the actual cost, which is rising.
Depending on the type of plan selected, employees at 10 percent currently pay these amounts every two weeks: single, $27.84; employee/spouse, $77.95; employee/child, $55.68; employee/children, $69.60; and family, $86.30.
In 2019, the payments will be: single, $28.61; employee/spouse, $80.11; employee/child, $57.22; employee/children, $71.53; and family, $88.70.
“All Luzerne County employees are paying more toward health care than they have in the past,” Pedri said.
Pedri also maintained the financial gains of a percentage increase would not be major because only 325 out of 1,560 employees are non-union. He also noted this group also includes executive assistants and other workers who are not managers.
The manager also said he wants to see if council is amenable to granting his funding request to provide merit-based raises for non-union workers under his supervision.
Personnel costs are set to rise $483,000 in his proposed budget due to raises for both union and some non-union workers, he said.
The portion of the allocation for non-union raises is $165,726, he said. Pedri said he did not include raises in his proposed budget for non-union employees in court branches or the district attorney and controller’s offices, but the heads of these departments can seek such funding during their budget sessions before council.
Council had provided funding for Pedri to provide raises of up to 2 percent for as many as 180 non-union employees in 2018. He ended up approving raises ranging from 0.8 percent to 6 percent for 152 workers based on performance reviews and longevity.
If the 2019 allocation is granted, Pedri said he would provide raises of up to 3 percent, though some would receive less or nothing depending on performance.
“You don’t just show up to work and get a raise,” he told council last week.
Raises for non-union workers play a role in the health contribution decision, Pedri said, because unionized employees almost always receive annual pay increases through their negotiated collective bargaining agreements.
Union health care
Five union contracts approved for approximately 570 employees this year contain health care contributions above 10 percent because all were already at or above that percentage, according to county records:
• In three of those contracts, unionized workers in Children and Youth, Mental Health and Developmental Services and the Agency on Aging who were hired before the contract’s ratification pay 10 percent but will switch to 12 percent from 2019 through 2021. New employees will pay 15 percent.
At 12 percent, the contribution every two weeks runs from $33 to $104 depending on the type of coverage. Those payments are set to increase from $34 to $106 in 2019.
• The new contract for AFSCME court-related workers kept the same contribution — 12 percent for employees hired before May 1, 2013, and 15 percent for those hired after that date.
• AFSCME residual union workers hired after Jan. 1, 2014, will continue contributing 15 percent. Employees hired before that date have been paying 10 percent but will convert to 12 percent in 2019.
In another contract awarded through binding arbitration in December, unionized detectives switched from a $100 monthly contribution to 10 percent in 2018. They must start paying 12 percent in 2019.
