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January 20, 2011

Water company workers protest benefit changes

John K. Manna New Castle News

NEW CASTLE — Local union employees of American Water Co. are protesting changes with their health care benefits.

Members of Local 537, Utility Workers Union of America, set up an informational picket in downtown New Castle yesterday afternoon to protest a premium increase plus additional out-of-pocket costs.

The local represents 40 employees in Lawrence County.

The picket is part of a nationwide action by the union, according to local officers.

A statement from the union said employees are being asked to pay 52 percent more in the first year of a new five-year health insurance plan, “which cuts our benefits drastically and which also requires us to pay thousands of dollars more per year in medical costs over and above the 52 percent premium increase.”

In the second through fifth years, premium increases will be even higher and will be decided by the company on its own. Out-of-pocket expenses also will increase “by thousands of dollars as well.”

Patty Presnar, vice president of Local 537, said employees are working under a benefits contract that expired in August.

“We didn’t agree to this,” she said of the benefit changes.

In a statement issued yesterday, the company said it had “negotiated in good faith” with the union regarding benefits related to health care. “In fact, we met at least 15 times in five months.”

American Water called its proposal fair to the bargaining units, customers and the company.

The benefit package provided to union employees is well aligned with the company’s nonunion medical benefits plan and remains highly competitive compared to other plans offered in the water industry, it said.

“Through no fault of American Water or the union, health care has become more expensive and American Water must adjust its health and wellness offerings. American Water has modified its medical plans for all employees, union and nonunion alike.”

Gary Lobaugh, spokesman for Pennsylvania American Water, said the benefits plan “is currently in effect.” He confirmed the union had not agreed to the plan.

The union said members across the country rejected the company’s concession demands by nearly a 90 percent margin in October.

According to the company, the plan for 2011 includes:

•Coverage for dependent children up to age 26.

•Preventive care benefits such as annual physicals are fully covered.

•Annual out-of-pocket limit is $1,750 for an individual and $3,500 for a family.

The union also is protesting the company’s request for rate increases from customers while at the same time “doling out lucrative pay packages to top executives.”

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