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Munson may cut free health coverage for employees
(by Joseph Koziol Jr. - June 16, 2010)
Munson may cut free health coverage for employees
By JOSEPH KOZIOL JR.
A proposal to have Munson Township employees pay a portion of their health-care costs drew some objections last week.
As Township Trustees prepared to discuss compensation for employees, Trustee Todd Ray raised the idea that the township should not continue to pay 100 percent of their health-care costs. "It's time we do something to start shifting the costs to employees," he said. "Paying 100 percent is not the real world."
Mr. Ray asked that the shift be made this year with a 3 percent contribution, followed by 3 percent each year thereafter. "It's not a big hit, but it brings us to a sharing of that cost," he said.
Mr. Ray said employees where he works are seeing a 17 percent increase in health-care costs this year. It comes after workers received no pay increase in the previous year and a 1 percent increase this year, he said.
He said it's not unusual in the private sector to see similar costs passed onto employees without their input in the matter.
Trustee Irene McMullen agreed, saying employee contributions are fairly common in other Ohio townships and private corporations. "One hundred percent is highly unusual," she said of the employer's responsibility.
She said that relieving employees of any participation in those costs could lead them to not fully understand what those costs are. "I think we should have some type of cost sharing," she said.
Trustee Andy Bushman said he was not prepared to make such a decision. "I think we need to do more homework," he said.
He said there may be other options for savings that should be explored before passing the costs onto employees.
Mr. Ray said it's unimportant how or when the township begins to have employees contribute, but it is important that the township begin to move in that direction.
Township Road Superintendent James Teichman said the township spends approximately $100,000 a year on health-care costs, and the savings would amount to $3,000.
He said employees do not have trouble understanding the costs associated with health care. He said they all understand how important that protection is, because a serious illness can create financial hardships, possibly even bankruptcy.
Although other townships and the private sector may be changing, it does not mean Munson should, Mr. Teichman said. "Why do we have to be somebody else? We've got a unique situation here."
He said that means that employees take pride in their work, giving more effort to the township. He said that is evidenced by how equipment is maintained. He said the township's 25-year-old backhoe is in better shape than some surrounding townships' similar equipment that is only 10 years old. Workers have done an exemplary job and done it without overtime, he said. "It's what makes people stick together and take pride in their work."
Mr. Teichman said trustees are likely to see a drop in morale if they begin taking away benefits. "That's not a threat, that's just common sense," he said.
The proposal is "way out of line," he said. "Once you start stripping away, you will start to suffer," he said.
Mr. Ray said, while he heard what Mr. Teichman said, he believes the township still could make the adjustment and get a full day's work from employees. "It's an incredible luxury to get 100 percent," he said.
Mr. Teichman said in the past he has often told employees that while their raises may be minimal, they still got a good benefit with their health care. He said the proposal now is like a "sharp stick in the eye."
Mr. Teichman said insurance companies, like oil companies, have become increasingly greedy and soak employers with double-digit cost increases. He said they play a "game," offering a lower-cost policy the first year, only to dramatically increase it the second year. "That's not right in this country, and we're just caught in the squeeze," he said.
Judy Toth, office manager, said trustees should only make the move if there is a compelling reason to change. She said those compelling reasons should be an abuse of the service or a financial hardship for the township. "I don't see a compelling reason," she said.
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