Mayfield Heights Has New Deals with Employee Unions

Mayor Gregory Costabile signed new three-year contracts with unions representing the city hall office workers and police patrolmen, dispatchers, sergeant and lieutenant.

"One thing that I'm proud of is that with these labor negotiations we've had is that they've really been harmonious. The employees are well represented and they understand the state of the city," Costabile said.

He said language still has to be worked out in the contracts with fire and service unions, but all employees will receive 2.5 percent raises in 2012, 2013 and 2014.

However, employee contributions to health care costs will go up – from the 6 percent to 6.5 percent range currently paid to 9 percent, effective June 1. That will increase to 10 percent in 2014.

"I'm happy with this and I really think we were able to find a compromise," Costabile said.

Finance Director Robert Tribby said the new contracts would cost the city about $310,000 in additional wages and benefits in 2012, $317,000 in 2013 and $325,000 in 2014. The employee concession on health care costs will save the city a total of about $225,000 over three years, based on projected premium increase of 10 percent in each of the next two years.

Costabile said that the city has saved money by having employees switch over from traditional preferred provider organization (PPO) coverage to a health savings account (HSA). Costs per family are $29,612 annually for the PPO and $22,490 for the HSA, with employees contributing $2,665 and $2,024, respectively.

Costs for single coverage are $10,907 for the PPO and $8,921 under the HSA.

Costabile said 89 of the city's 120 full-time employees opted for the HSA, which saves the city money that can be used elsewhere.

"We were able to increase their wages because in turn the city will have a greater poll of money toward those expenses," he said. "We would really have had a significant increase in premiums, were it not for that move."

Costabile credited the city's health care committee with showing employees the benefit of the HSA and convincing more to switch plans.

"That's as high as 74 percent. Prior to our educational talks that we've had, I think we had about 40-some percent," he said.

He also was proud that contract talks were finished earlier than in past years.

"In the old days, they were not complete until after the summer – August or even September," Costabile said.