Plainsboro officials have negotiated a collective bargaining agreement with two unions that represent members of the township’s police force and white collar employees.
During its March 11 meeting, the Township Committee ratified the agreements with the Policemen’s Benevolent Association, Local 319, and the Communication Workers of America, Local 1032, and introduced an ordinance adjusting the salaries accordingly.
According to Township Administrator Bob Sheehan, the new agreements will enable the township to save money through reduced healthcare costs.
The agreement with the PBA, which covers the period of time from January 1, 2008 to December 31, 2010, includes changes to administrative operations regarding how compensatory and vacation time is taken. The PBA represents police personnel with the ranks of patrolman and corporal.
But at the core of the agreement are economic issues including salary and healthcare adjustments. The salary increase for the three years in the contract for the members of the bargaining units is 4 percent for all three years. In exchange, the township will receive some concessions that will reduce healthcare costs.
Currently, there are two plans available to police employees — an HMO plan and a more traditional plan. With regard to the traditional plan, the amount of reimbursement for medical bills has changed. “Currently, we have a situation where employees have a deductible, which we’re increasing,” Sheehan says. “Currently, there is no distinction made between in-network providers and out-of-network providers. In both cases, they are reimbursed 100 percent once they’ve met the deductible.”
However, under the new agreement, once employees reach the deductible, they will be reimbursed 100 percent for in-network visits, but only 80 percent for those that are out-of-network. “Our provider can drive better cost inside the network,” Sheehan says. “We’re trying to encourage people to stay in-network.”
Also under the current situation, there are no co-pays required for prescription medication. However, that is also changing under the new agreement. Prescriptions will require a $20 co-pay, while office visits will require a $10 co-pay. There will also be a $25 co-pay for emergency room visits. Deductibles have also increased from $100 to $300 for single coverage and from $200 to $600 for family coverage.
With regard to salary, Plainsboro officials have also added a step to the salary guide that will save money as it relates to new hires. “Their salary will be frozen in 2009 and 2010,” Sheehan says. “It doesn’t apply to anyone here, but we do have some new hires coming in.”
In 2009, the starting salary for a police officer is $49,”638, and anyone hired during that time as a new employee will keep that salary through 2010.
The township has also saved money as it relates to the agreement drafted with the Communication Workers of America, Sheehan said. This is the first agreement the township has negotiated with the CWA. The agreement covers the years 2006 through 2010. The union organized in 2006, and Sheehan says township officials spent the last three years trying to work on the contract.
In this agreement, there is no step guide, as the union covers a variety of white collar employees, from bookkeepers to EMTs. Instead, here are maximum and minimum salaries established for each position.
The increase in the salary for 2006 and 2007 is 3.5 percent, and the increase for 2008 is 3.25 percent. For 2009 and 2010, the increase is at 4 percent, Sheehan said. “The reason those two years are higher is because in return, they agreed to give up access to the traditional healthcare plan for their members, which is the more expensive of the two plans we have,” Sheehan explained.
As a result, the township expects to save on 20 to 23 employees, who were enrolled in the traditional plan, and who will now switch. Instead, those employees will only have access to the township’s HMO-like plan.
“The difference between the two plans is about $200 per month per employee,” Sheehan said.
The approval of the terms of the contract was done by resolution, and the Township Committee also introduced two separate salary ordinances to implement the changes. The public hearings on those two ordinances are scheduled for Wednesday, March 25.
