FCHA discusses union contract
A special meeting of the Fayette County Housing Authority board Friday yielded a discussion of the status of the maintenance union contract but ended without a vote. A packed room of FCHA employees turned out for the meeting, some of whom took the opportunity to question the board about the negotiations. The contract with the 24 maintenance union employees expired on June 30. The lone unresolved issue for the two sides remains the percent of each employee’s annual salary that the FCHA will pay toward an annual pension plan. While the union has offered to contribute 3/4 of a percent in the second and third years of the proposed three-year contract, the FCHA board has asked for a larger voluntary contribution.
Dan Traficante, union steward for FCHA maintenance employees, said he would just like for the contract to get resolved. “Since July, nothing has been resolved. I want to get this over with,” Traficante said.
Jim Claar, a project manager with the FCHA, said some things are “just not adding up.” He questioned why the board is asking for employees to make a contribution to the pension when the union has saved the authority money by having non-union employees on the union health care plan. Claar added that the authority has received an extra $400,000 in federal funds as a result of its high-performer status.
While the two sides have agreed on raises of 40 cents per hour, 35 cents per hour and 40 cents per hour for each year of the three-year contract, the issue that remains unresolved is how much the FCHA will contribute toward each employee’s pension account.
The FCHA contributes 15 percent of each employee’s annual salary. Although a figure of 15.3 percent was mentioned at the meeting, FCHA Executive Director Thomas Harkless said the accurate amount is 15 percent. He said the FCHA had previously contributed 15.3 percent, with .3 percent going toward life insurance, but that has since changed.
FCHA Chairwoman Angela M. Zimmerlink said the discussion to reduce the FCHA’s contribution toward each employee’s pension didn’t just pop up, it, in fact, began years ago. “Every person sitting at this table wants to change the amount,” Zimmerlink said.
Zimmerlink then spoke on behalf of other board members by outlining what some other board members have advocated in terms of changes to the amount the FCHA will contribute annually toward employees’ pensions. Zimmerlink said Nancy Sutton wants to drop the FCHA pension contribution to 12 percent; William (Trip) Radcliffe wants to drop it to 11.5 percent and Zimmerlink wants it to drop to 10 percent.
Zimmerlink said James V. Bitonti said he is OK with the plan the way it is, but would go along with the wishes of the board and drop the amount to 11.5 percent. None of the board members disputed Zimmerlink’s revelations.
Bitonti, whose son is employed by the maintenance employees union, has said he will not vote on a contract, although he has been in executive sessions where the issue has been discussed.
FCHA solicitor Jack Purcell said the State Ethics Act and federal HUD requirements are “sufficiently unclear” on whether or not Bitonti is permitted to vote on a contract that directly affects his son. “The only safe course is to error on the side of caution,” Purcell said. “It’s a matter of interpretation, but in a situation like that, you can’t take a chance and vote. It makes sense that he’s recusing himself.”
Several FCHA employees questioned the board about potential co-pays toward insurance premiums. Zimmerlink said that while having employees pay a co-pay was discussed, that proposal was withdrawn months ago. She said it was never the intention of any FCHA board member to change insurance carriers for non-union employees.
Harkless said he has been informed by the union health trust fund that if the contract issues are not resolved, the non-union employees’ health care plan will be terminated. Harkless said the FCHA is required to provide employees with health insurance, and must pay 100 percent of the premium.
While Bitonti said the cost for providing health insurance for non-union employees would be approximately $273,000 more per year if a change occurs, Zimmerlink said there are numerous figures in the proposals. She said the lowest is an annual cost of $504,000, which compares with the current annual cost of $351,000, making a $153,000 difference.
Zimmerlink said the health insurance cost to the FCHA is a non-issue if the union continues to allow the non-union employees to have such insurance through its trust fund.
Traficante said the FCHA initially asked for a 2 percent pension contribution and the union then agreed to 1.5 percent. He said the figures were again changed, in which the board wanted a 5 percent contribution from employees, and then proposed raises were never renegotiated. “I think you didn’t bargain in good faith,” Traficante said.
A couple of non-union employees spoke out about their low salaries, and questioned why the board hasn’t implemented pay increases at a conclusion of a salary study. Sharma Smarslak, a clerk typist, said she and a fellow employee got a promotion and no salary increase. She said she hasn’t received a raise in the last few years.
Bitonti, who has advocated raising the salaries of some of the lower-paid employees, earlier tabled implementation of the pay increases pending the resolution of the contract.
Zimmerlink said any decisions the board makes regarding the contract affects the non-union employees because of how much money will be available for raises. She added that the contract with the unionized project managers expires next year as well.
Following an hour-long executive session to discuss the contract, Zimmerlink announced that the authority will make a counter proposal to the union. “We are hopeful and optimistic that an agreement will soon be reached,” she said, prior to adjourning the meeting.