New BGBB Contracts
Maintain Old Benefits
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Page 4
Even though insurance companies
will be charging much higher rates,
benefits provided to state employes
by the Bargaining Unit Benefit Board
(BUBB) will remain the same or be
slightly improved for the 12 months
beginning Aug. 1, 1981.
By unanimous vote, BUBB Board
members chose to continue in
surance coverage at present levels
w ith the eight companies who
presently provide benefits to BUBB.
“ While the cost of contracts
between BUBB and the insurers will,
be higher than last year, the Board is
doing everything possible to maxi
mize the State's contributions to the
program,” said BUBB Chairman
Chuck Mendenhall. “The Board could
have voted to reduce benefits in order
to hold down costs, but they decided
not to, because they know employes
want to maintain their present benefit
levels."
BUBB Administrator Cindy Parrish
added that staying with the same
insurance companies—rather than
putting the program up for bids from
any interested company—will pro
vide long-term savings for employes.
“ When an insurance program like
ours goes to bid each year, the
insurance industry views you as a
group that cannot be counted on for
contract renewal,” she said. “This
contract continuity results in lower
costs for the program and higher
returns for the insurance companies."
Parrish also pointed out that should
BUBB ever feel it necessary to ask for
By contrast, the State Employees
Benefit Board (SEBB), which pro
vides insurance to another group of
state employes, only received a bid
from one company this year. Sources
in the insurance industry say this is
largely due to their policy of asking
for industry-wide bids each year.
These sources say that one reason
companies are reluctant to bid on
insurance programs that do not
maintain their, continuity, is that
responding to bid requests from
groups the size of BUBB and SEBB
costs approximately $40,000.
Improved benefits will be received
by state employes enrolled in BUBB’s
Oregon Dental Service (ODS),
Selectcare, Kaiser Foundation and
Klamath Medical Services Bureau
(KMSB) programs.
Coverage on basic dental services
will increase from 80 percent to 90
percent for all employes who are
enrolled in ODS and who visited the
dentist prior to Aug.' 1, 1981.
Employes who are enrolled in the
Kaiser Foundation will have the
option to add dependent dental
coverage under the new contract and
employes enrolled in KMSB will have
the option to increase dependent
dental coverage from present levels.
Employes enrolled in Selectcare
will have a percentage of their
prescription drugs paid for under the
new contract.
Coverage will remain the same for
employes enrolled in Capitol Health
Care (CHC), Continental National
in d u stry-w id e bids, it is m uch m ore
Assurance
likely to receive bids from a wide
range of companies because it has
maintained this program continuity.
nance of Oregon, Inc. (HMO) and
Physicians Association of Clackamas
County (PACC).
(CN A).
H ealth
M ainte
W alkout. . .
continued from page 1
Labor Relations Division admini
strator, told the Oregonian, that "as
far as the State is concerned, there
will be no contract after the existing
one expires June 30.”
“We will start from zero," he said.
“This means the State and the union
(OPEU) will have to rehash every
benefit contained in the old contract.
And the State will not give back some
of those benefits because it needs to
save money."
The May 28 walkout was preceded
by a show of support from over 100
OPEU members who crowded into
the small room where mediation was
in process. Approximately 80 mem
bers packed the room four rows deep
behind the OPEU side of the
negotiating table.
Members who could not get into the
room stood by outside windows on
the union side of the room and
pressed placards against the win
dows.
The State refused to negotiate with
the large number of employes in the
room, saying that it was against fire
codes to have so many people in the
room. Hearing these objections,
some employes immediately called to
reserve an auditorium within walking
distance. Talks resumed within an
hour, but lasted for less than an hour
before OPEU walked out.
The revised economic package that
OPEU offered the State calls for a
$100 salary increase for all employes
in the first year of the new contract. In
the second year of the contract,
employes would receive quarterly
cost of living adjustments (COLA).
These COLAs would be a maximum
of three percent each quarter and a
minimum of 10 percent for the year.
In adition, OPEU asked for selec
tive salary adjustm ents to ta lin g
between $5 million and $6 million
dollars. This is a major compromise
from OPEU’s original position.
Originally, OPEU asked the State
for $100, plus a five percent wage
increase for all employes in the first
year of the new contract. For the
second year, OPEU proposed an
uncapped COLA that would pay a
minimum of eight percent.
Selective salary adjustments in this
first proposal totaled approximately
$25 million.
The factfinding process will be a
long one.
A fact finder must be agreed upon
by both OPEU and the State by June
8. It is then up to the fact finder to
schedule the factfinding hearing—
probably the end of June.
The hearing itself should take
approximately a week. Thirty days
after the hearing, the fact finder is
required to issue recommendations
for settlement on all proposals that
were presented in the factfinding
hearing.
Dale estimated that approximately
40 proposals will be reviewed in the
hearing and that it will take the
fact finder the full 30 days to issue a
report.