Gracedale AFSCME Contract Highlights

Yesterday, I told you that Gracedale union workers were being paid 2.5 times their regular pay for overtime. Several of you pointed out that I had it wrong, and I did. I've since learned that this rate was only being paid for overtime worked on holidays. So my report was misleading. I apologize to everyone I led astray.

Below you will Human Resources Director Pat Siemiontkowski's memo to Northampton County Council concerning this new contract. It details the union's concessions.

Highlights from Pat Siemiontkowski Regarding the Proposed AFSCME Contract

Attached please find the recently negotiated Collective Bargaining Agreement between Northampton County, Pennsylvania and Council 13, District Council 88, Local 1435 of the American Federation of State, County and Municipal Employees (AFSCME Gracedale).

The County and AFSCME Negotiating Teams worked cooperatively over the pst several months to reach an agreement designed to realize cost savings over the next four years and to provide Premier with new tools that it is hoped can be used to improve the operation of Gracedale Nursing Home.

Terms of particular note in this proposed four year contract which was recently ratified by the union membership include the following:

1) 30 minute unpaid lunch period (the prior contract provided for a paid lunch period);

2) the ability of management to offer shifts of varying duration (the prior contract provided only for 8 hour shifts);

3) the elimination of the Presidents’ Day holiday;

4) the payment of double time to employees working on a holiday rather than double time and a half;

5) the ability for full-time employees to cash out a limited amount of vacation time each calendar year (this will save the County the cost of replacing the absent employee with another worked at the rate of time and a half);

6) the reduction of sick leave accrual from 96 hours a year to 60 hours a year;

7) the elimination of sick leave incentives;

8) the ability of management to designate the work period for purposes of paying overtime as either a 40 hour system or an eight and eighty system (previously all employees were on the eight and eighty system);

9) overtime savings resulting from the new 7 ½ hour work day, the 37 ½ hour work week and the 75 hour work period;

10) the conversion, through attrition, of all NA II positions to NA I positions;

11) a wage freeze in 2012 and 3% wage increases (COLAS) in 2013, 2014 and 2015.

12) increases in employee healthcare contributions for 2013, 2014 and 2015 as follows:

Employee Employee plus 1 Family

2012 1.50% 1.60% 1.75%

2013 2.25% 2.50% 2.75%

2014 3.0% 3.25% 3.50%

2015 3.75% 4.0% 4.25%

13) healthcare cost containment effective January 1, 2013 to include spousal coordination f benefits and the County’s ability to make changes to the 2014 health plan design based upon its projection of an increase in health care costs because of the implementation of the Affordable Care Act.

14) the inclusion of a successor clause in the contract.

The County projects the savings achieved to be approximately 2 to 2.5 million dollars annually. The Union believes the savings will be greater and will exceed 3 million dollars annually.

Upon your receipt of the attached contract, I am requesting that it be placed on the agenda and presented to the Personnel Committee and to County Council for review and approval at the August 15 and August 16 meetings, respectively.

Please distribute this e-mail and the attached contract to all members of County Council.