Health care cuts? Lots of luck

The Service Employees International Union Local 721 is up and arms over a smaller city union working out a deal that addresses the rising cost of healthcare benefits. The SEIU warns that the proposed pact by the Engineers and Architects Association is part of a larger effort to "divide and conquer" the civilian employee groups. From the LAT:

Under the proposed pact, workers in the engineers' union would pay $20 per doctor visit, up from $10. Its workers would no longer receive $15 per month to enhance their life insurance and disability insurance. And union employees would pay 5% of their monthly healthcare premiums, according to city officials.

Considering that city employees are entitled to health coverage for life, these modest changes wouldn't seem like a big deal. But as the Times notes, they do illustrate the challenges faced by city officials as they try to rein in employee benefit costs. Pension reform could be even tougher.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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