The in box. Bad bargaining.

Fred

As a recently retired individual who has ten years before Medicare kicks in, the health insurance/two-year COLA freeze is, for me, a false choice. I long ago quit searching for “fair” in life, but I see little logic in comparing my choices with those of someone who is currently employed. If I had known two years ago what lay ahead, I would not have given up my teaching position. But continuing to work a few more years is not a choice I have now.

Many people view the two-year COLA freeze as a rather benign concession, but, for someone at the beginning of his/her retirement, it is very costly. When I calculated the cost, assuming an average life expectancy, I was astounded. I wish that someone would put these figures out there so that retirees could see exactly what it is they are conceding.

– Kathy Wiersema

Kathy,

I’ve resisted comparing what the We Are One coalition has done to our pensions to collective bargaining.

As I have said, it in no way even resembles collective bargaining.

But you raise an important point in your letter having to do with the issue of consideration.

The leaders have claimed that choice for consideration would likely be found constitutional.

That is why the leaders should have said no.

When our local negotiating team bargained our local’s contract the results were generally strong on salary compared to benefits.

This was a strategic decision on our part, stretching over many negotiations and contracts.

We knew that increases in our base salary were used as a basis for compounding all future salary increases. For the most part we knew our salary could not be taken away. Benefits are a form of compensation. But it is compensation that does not compound over time. It is easier for the board to take back benefits than salary.

What the We Are One coalition agreed to was an exchange of compounded cost of living increases for a problematic access to health care. With no corresponding promise of what that health care would look like.

For retirees like you who have years before they qualify for Medicare, this is a bad deal.

Bad bargaining.

– Fred