Two More Labor Unions Agree to Scaled Back Pension, Health Benefits
On Monday, two labor unions reached tentative agreements with Gov. Arnold Schwarzenegger (R) to roll back a previous expansion of pension benefits and increase pension contributions for all employees by 5%, the Sacramento Business Journal reports.
The Union of American Physicians and Dentists and the International Union of Operating Engineers agreed to the tentative contracts, which also include one day of unpaid personal leave per month (Robertson, Sacramento Business Journal, 6/29).
In addition, IUOE members agreed to contribute 0.5% of their salaries to prefund retiree health benefits starting in July 2012 (Goldmacher, "PolitiCal," Los Angeles Times, 6/28). The tentative IUOE contract also calls for new employees to work 25 years instead of the current 20 to qualify for full retiree health benefits.
UAPD did not agree to the health benefit changes (Capitol Weekly, 6/28).
Union members and the Legislature still must ratify the tentative agreements.
Last week, four otherÂ unions unions tentatively agreed to scaled back pension benefits. Schwarzenegger administration officials said California could save $2.2 billion if all 21 state worker bargaining unions agree to similar pension rollbacks.
SEIU Local 1000, which represents 95,000 state workers, resumed its pension negotiations on Monday (Ortiz, Sacramento Bee, 6/29).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.