CONTRACT
“We went from a self-insurance HMO to a HSA model. It’s beneficial in the first year because (deductibles) are fully paid. You still have to pay for your 20 percent co-pays,” said Mark Moriarty, Dearborn Municipal Employees Local Union President. “Starting in the second year, the ($2,000/$4,000) deductibles stay the same, but the HSA funding from the City goes to $1,000 for individuals and $2,000 for families. They were self-insured, which has its benefits, but, in the near past it was not a good funding model for them. When the rates were low, and there wasn’t a lot of change, the City could budget for it, but after COVID … the costs shot way up. This is more reliable and the City can budget for it, plus, you can carryover your HSA bank from the year before and you get that when you leave the City. One of the main things we did get was automatic promotions for the Office Assistants (OAs), who make up most of our unit. Promotion from an OA1 to an OA2 is automatic after 18 months. Before, if you wanted to get a promotion, you had to apply at another department unless there was an opening in your department or you applied for a promotion review. Promotions from OA2 to OA3 are now automatic after two years. Any Employees in a classification of 2 for longer than two years were advanced to the next highest equivalent or step increment at contract ratification. We said, ‘Let’s make this automatic because everyone is going to leave because they can’t get a promotion.’ For the length of this contract, we set it up so this continues forward as a progression to advancing their careers here. We also have a Me Too clause inserted in our contract regarding (bargaining agreements with) other units in the City. Unlike any other (department), they did offer us an early retirement for Employees with 25 or more years of service, as of June 30, 2022, who are at least 50 years old – instead of waiting until they’re 55 years old.”
“There was a delay settling the contract because we did have to go to mediation. We also filed for fact-finding with the state, so it was not an easy negotiation for this team,” said MAPE Assistant Executive Director Jerald James. “The contract was originally voted down, yet ratified by a narrow margin on the second vote. The extra time needed to settle this agreement yielded beneficial results for both sides by finding a solution for spiking health care costs and Employee advancement and retention.”
Contract Duration: 2-year agreement ratified Nov. 15, 2022 and effective 7-1-22 to 6-30-24.
Wage Increases:
2% increase effective July 1, 2022.
2% increase effective July 1, 2023.
- Additionally, all Employees who were in a Level 2 position for longer than two years were advanced to the next highest equivalent or step increment upon contract ratification.
Office Assistant Promotions: Office Assistant (OA) promotions are now automatic. Previously, OAs had to apply to a higher paying job classification in another department for promotion if there were no openings in their department or they applied for a promotion review. Now OA1’s have natural progression to OA2 after 18 months. OA2’s are promoted to OA3’s after two years. An OA1 paid $36,600 in 2022 receives another 2% wage increase on July 1, 2023 ($37,300), plus a promotion after 18 months to OA2, boosting pay to $41,800. OA2’s who are promoted to OA3 would receive an additional $1,700 annually on top of the 2% yearly raises.
Health Care: The Employer changed plans from a self-insurance HMO to a Health Spending Account (HSA) model. Previously, Employees had co-insurance on each individual service up to $1,000 for individuals and $2,000 for families, but since the pandemic, self-insurance premiums have increased significantly. During the first year of the contract, the Employer is fully funding increased deductibles by adding $2,000 for individuals and $4,000 for families to their HSAs. Employees are only responsible for 20 percent co-pays on medical services and prescriptions. In the second year, individual deductibles remain at $2,000 and $4,000, however, the Employer contributes $1,000 to HSAs for singles and $2,000 for families. After deductibles are met, Employees pay 20 percent co-pays. Unused HSA funds carryover yearly and can be used after termination.
Fringe Benefits: A Me Too clause was added to match advancements received in other City bargaining agreements. Longevity Pay was limited to Employees with 10 years seniority by July 31, 2022.
Retirement Benefits: Existing Employees with 25 or more years of service as of June 30, 2022, who are at least 50 years old, were given the option of early retirement. Previously, Employees had to wait until age 55 to retire.
Bargaining Team: MAPE Assistant Executive Director Jerald James with Local Union President Mark Moriarty, Vice President Alex Serowoky, Treasurer Abby Mascarello and Secretary Kim Markey.
