'Boston Globe' Guild Members Protest New Health Plan

By: Joe Strupp A group of Newspaper Guild members at The Boston Globe is urging the guild leadership to rework a new health care plan set to take effect in 2010 that includes fee increases of up to 50%.

In a letter to the local guild leadership, 11 Globe staffers laid out their concerns with the plan, which is set to take effect Jan. 1, 2010. It comes as a temporary health plan is instituted today, which includes a choice of four health care providers and fee increases of 30% to 50% depending on the provider.

The new health care plan is part of a guild contract that was approved in July and included $10 million in union concessions, among them a 5.8% pay cut.

"If this plan takes effect, the Globe will eliminate all but catastrophic health care coverage for a large portion of its employees, while charging substantially higher weekly premiums," the letter states in part. "This devastating plan, devised with no input from union members, would leave many of us facing thousands of dollars' worth of medical bills, paying out-of-pocket for prescription drugs, or making financial calculations every time we need to take our children to the doctor's office. It's an outrageous burden to place on employees who have already agreed to cut their salaries and to pay higher premiums for their benefits."

It later adds: "As the union knows all too well, a health care plan this stingy is not good business; it's bad for retention and recruitment, and damaging to the Globe's reputation as a community leader. Two top candidates for prominent jobs in Sports recently told Globe staff members that the expensive health insurance plan was a major consideration when they turned down the opportunity to work at the Globe. And it must be noted that this plan will take effect at a time when New York Times union members have been told that their own, smaller salary cuts will soon be rescinded."

The letter ends stating: " ... please do everything in your power to help Guild members avoid this significant hardship. We are ready to help you however we can. We believe a company this size should do better for its employees. And because Boston Globe and New York Times Company executives have publicly stated that the Globe is on a stronger financial footing, we believe the Globe can do better. We have every hope that it will."

It was sent to guild leaders that include: Vice President Scott Steeves, Treasurer Patrice Sneyd, Recording Secretary Kathy McCabe, and executive committee members Jim Herndon, David Ryan, and Carl Younger.

The letter is in advance of an Oct. 9 date set for the guild's health care committee to vote on the permanent plan.

Steeves is acting as leader of the local in place of President Dan Totten, who is on leave pending an investigation into alleged improper union activities. Steeves did not respond to a request for comment on the letter.

Robert Powers, Globe vice president of communications and public affairs, confirmed that a new health care plan would take effect today with the noted increases, and a permanent plan is set for January.

Powers did not have specifics on the permanent plan's cost increases, but issued a statement on the overall rising fees: "There are several reasons that health care premiums are rising so quickly, not the least of which that year-over-year medical costs increased 18.1%. The Trustees of the Globe/BNG Health Fund have had to make some very
difficult decisions and there are no simple solutions."

The entire letter to the guild leadership is below:

*********************************

Dear Scott, Jim, Patrice, Carl, Kathy and David,

In this year of relentless bad news, nothing has shocked or upset us more than the sudden cuts to our health care coverage announced this month. We are grateful for your hard work, and we want to work with our union leadership to change course away from a plan that will bring deep distress to Globe workers and their families.

If this plan takes effect, the Globe will eliminate all but catastrophic health care coverage for a large portion of its employees, while charging substantially higher weekly premiums. This devastating plan, devised with no input from union members, would leave many of us facing thousands of dollars' worth of medical bills, paying out-of-pocket for prescription drugs, or making financial calculations every time we need to take our children to the doctor's office. It's an outrageous burden to place on employees who have already agreed to cut their salaries and to pay higher premiums for their benefits.

We know you know this. As you work with management, we'd like to share the facts we have researched to make a case for a different way. We've been stunned and saddened to learn how poorly the Globe compares to companies nationwide when it comes to providing health benefits. Here are some facts, based on a report released this month by the Kaiser Family Foundation and the Health Research & Education Trust:

* The average company nationwide contributes 83 percent of the premiums for employees' individual health care plans and 73 percent for family plans. Since the Guild contract was ratified in July, the Globe now contributes only 54 percent of employees' premiums.

* Compared to the average health care plan nationwide, our health plan will cost almost three times as much in annual premiums for individuals and 47 percent more for families beginning on October 1.

* Compared to other high-deductible plans, which tend to have low annual premiums, the Globe's proposed new bare-bones health plan would charge double the national average for families and five times the national average for individuals, based on the rates going into effect October 1. (We haven't been told specific rates for January 1, but we have been led to expect them to be almost as high.)

These would be stunning figures for any major corporation, but they're especially surprising for a company whose mission statement calls for "fair treatment of employees based on respect, accountability and standards of excellence." Both the New York Times and the Boston Globe have well-documented public stances on the need for affordable health care, as well as the need for employers to contribute fairly to their workers' health benefits.

As the union knows all too well, a health care plan this stingy is not good business; it's bad for retention and recruitment, and damaging to the Globe's reputation as a community leader. Two top candidates for prominent jobs in Sports recently told Globe staff members that the expensive health insurance plan was a major consideration when they turned down the opportunity to work at the Globe. And it must be noted that this plan will take effect at a time when New York Times union members have been told that their own, smaller salary cuts will soon be rescinded.

In the weeks leading up to July's contract ratification, Guild members received information about health care that was misleading. In a Q&A for employees distributed on July 17, the company said the health care trustees could "work together with the plan provider, Harvard Pilgrim, on ways to mitigate the increase [in health care costs]." The same Q&A noted that "there is a substantial reserve in the [health care] Fund which will allow the trustees some time to negotiate with Harvard Pilgrim." The implication was that health care costs would not rise substantially after the contract was ratified and that coverage would be preserved. Had members understood the consequences of the company's reduction in health care contributions, and calculated the real loss of income that would represent, many would have voted "no" instead of "yes."

For all of these reasons - moral, ethical, and legal - please do everything in your power to help Guild members avoid this significant hardship. We are ready to help you however we can. We believe a company this size should do better for its employees. And because Boston Globe and New York Times Company executives have publicly stated that the Globe is on a stronger financial footing, we believe the Globe can do better. We have every hope that it will.


Sincerely,

Joanna Weiss
Marcella Bombardieri
Liz Kowalczyk
Stephanie Ebbert
Sam Allis
Andrea Estes
Yvonne Abraham
Scot Lehigh
Jenifer McKim
Dan Wasserman
Ty Burr