Labor Relations

Negotiations Recap for April 23, 2012

This recap details the fifth session for renewal of the collective bargaining agreement between the UW and UAW.

UW Benefits Presentation

UW Benefits and representatives from Parker, Smith & Feek, the insurance brokerage firm involved with GAIP, presented a detailed cost analysis in response to UAW’s health insurance proposal.

The report established that if implemented, UAW’s proposal would cost the UW approximately $9.4 million. This total does not account for the roughly $2 million extra that the UW must pay to simply maintain the existing ASE benefits package, as it faces a 16.9 percent increase in premiums.

UAW Response

UAW voiced its opinion that the cost estimate surrounding transgender coverage seemed too high.

UW Benefits responded that the calculations were based on information that the insurer had received from the Q Center previously.

UW Benefits pointed out that because the Q Center delivered its presentation on transgender coverage issues before the healthcare bargaining sessions, it has only just received the updated information from the presentation. UW Benefits expressed regret that the presentation date did not align with its presence, but offered to provide the Q Center’s latest numbers to the insurer so that new costs can be calculated.

Further Dialogue

UAW requested details on how payroll load rates are calculated.

UW Benefits explained that UW Financial Accounting calculates the rates for fringe benefits to be charged to budgets during the upcoming year, which must be approved by the federal government prior to implementation.

UW Benefits offered to arrange for representatives to speak with UAW to address further details, which UAW accepted.

UAW noted differences in the pattern of claims, the number of appointees, and the number of children covered between this plan year and past years.

UW Benefits agreed to research these points and provide UAW with an answer at an upcoming bargaining session.

The next UW/UAW bargaining session is scheduled for April 25.