Health care premium co-pay is standard in the workplace

Even if Warren city government weren’t imploding financially, even if police and firefighters weren’t being laid off and even if private sector job losses weren’t an indicator of a bleak future, we would still take strong exception to city employees being given a pass on health care premiums.

It is inconceivable that in this day and age, workers are not required to pay a percentage of the premiums for their health insurance provided by the city — read that, the taxpayers. Premium co-payments have been standard in the private sector for many years, and recently have been cropping up in a growing number of public sector operating budgets.

The omission in Warren is especially glaring because the administration of Mayor Michael O’Brien is working mightily to offset a $1.6 million budget deficit projected by Auditor David Griffing three months ago.

Indeed, the city expects that its health-insurance bill will rise by $1 million this year — a 21.5 percent increase over 2008.

In January, 20 police officers, 11 firefighters and eight other city employees were laid off, but that was not enough to erase the red ink in Warren’s operating budget. Thus, on June 4, the administration announced that 16 additional city employees — five more police officers and 11 workers in the operations department, were sent layoff notices. The operations department is responsible for roads and parks.

The new layoffs will take effect June 21, unless the city and the unions reach agreement on concessions from workers.

No-brainer

Agreeing on health care premium co-payments is a no-brainer. While the savings would not put the budget in the black, they would make a dent in the spending, and, more importantly, send a message to the taxpayers that government employees do get it — with regard to the current national and global economic crisis.

While sacrifices are demanded of all workers, whether in the private or public sectors, those who have enjoyed stable wages and higher-than-average benefits must be cognizant of the fact that pay freezes and even givebacks, cuts in benefits and pension suspensions are becoming common place.

Without concessions by the forces, the city had no alternative but to cut jobs. It is unfair to suggest that the mayor and council are putting the community at risk because of the cuts in safety forces. What options do they have when they are confronting a load of red ink?

It’s time for public employees everywhere to wake up to reality. Tax revenues are declining daily, private sector job losses are, more likely than not, permanent, and cities like Warren with a growing elderly population are hamstrung when it comes to generating more money.

The additional cuts in the budget are necessary because more job losses in the private sector came about at the end of 2008 and into early this year at places like the Severstal steel mill.

There is no silver lining. Cuts in spending must be made — or layoffs will be unavoidable.