June 26, 2007

Don’t accept a pay cut!

'Push week' update: Governor's team increases wage proposal $250 per year

MAPE's Negotiations Team began meeting with the governor’s team Monday morning as “push week” got underway. However by the time the "first day" ended after 1 a.m. Tuesday, wage and health-care proposals from the governor's team were nearly identical to those proposed last week.

The governor's team proposes a $750 per year lump sum each year and progression steps only the second year of the contract. This is a paltry $250 per member per year increase each year of the two-year contract by the governor’s team.

MAPE's negotiators reduced the cost of their proposals by $34 million as they presented the governor's team with two comprehensive packages pulling together unresolved issues.

The governor’s team proposes huge health-care cost shifts that could mean an estimated $1,300 in additional out-of-pocket drug and medical costs for family coverage. This would increase nearly all copays and deductibles.

Since the last MAPE contract was negotiated, the unions have convinced the governor's team how to save $5 million on prescription drugs by leveraging the state's buying power through one single pharmacy benefit manager. The unions continue to provide innovative health-care leadership this negotiation cycle as well. The governor's team proposes to penalize members with higher copays if they refuse to agree to a health assessment and coaching. MAPE is asking the governor's team to shift its focus to wellness -- maintaining and enhancing members' health.

"We need to put the emphasis on wellness and the cost reduction will be there down the road," said MAPE Executive Director Jim Monroe.

For example, MAPE has pioneered a quit-smoking study in cooperation with University of Minnesota researchers. During the last 18 months, hundreds of union members have voluntarily quit smoking in exchange for receiving free assistance.

"There's no need to re-invent the wheel here," Monroe said.

State employees deserve a wage increase to cover inflation, not a pay cut!

	MAPE Negotiations Team	Governor's Team
wages	1st year: 7.5 percent. 2nd year: 7.4 percent. Progression steps: both years.	1st year: $750 lump sum. 2nd year: $750 lump sum. Progression steps: second year only.
health care	Status quo for costs picked up by union members and their families. Hold clinics accountable. Keep plan administrative costs under adequate control. Give wellness programs a chance to reduce costs before shifting burden to employees.	Increase maximum drug out of pocket limits. Increase maximum nondrug out of pocket limits. Increase deductibles for all services except drugs and preventive care. Health-care assessment requirement and coaching for members to obtain $5 reduction in copays. Emergency room copays doubled. Increases in inpatient admissions. Increases in outpatient surgery copay. Additional 10 percent after deductible cost to member for MRI/CT scans. Increase of 5 percent to members for services not subject to copay.