Contract? What contract?

Eau Claire Leader Telegram: Julian Emerson: 11/9/2007 Union workers to pay for insurance win through cuts. Arbitrator: City violated contract

City of Eau Claire labor and trades employees will receive health insurance coverage under a previous plan that includes cheaper co-payments, but the deal could come with a price.

A state arbitrator on Thursday ruled the city violated health insurance provisions of its contract with Local 284 workers by increasing co-pays and implementing a mandatory illness prevention plan as part of contract changes that began July 1.

However, the bargaining group's victory has a down side. To pay the added $400,000 to continue previous health insurance coverage, employees will face continued workweek reductions - a 20 percent pay cut - and other cost-cutting measures that could include additional layoffs.

"We're really looking at continued reduced workweeks and layoffs. That's the unfortunate part of this," City Council President Dave Adler said.

Local 284 representatives don't believe that's fair and will seek back pay for workers' reduced workweeks, said Steve Day, an American Federation of State, County and Municipal Employees Wisconsin Council 40 staff member who represents the bargaining unit.

"The city's back pay liability in that matter is potentially huge," Day said.