Current and former
municipal employees crowded into Monday night’s City Council meeting as the
council took up a vote to allow City Manager Thomas Ambrosino to negotiate
changes to the city’s group health insurance policies.
Most of those employees
did not leave happily or quietly as the council voted 8-2 to grant Ambrosino
that authority to negotiate the changes. Councillors Roy Avellaneda and Yamir
Rodriguez voted against the order, while Councillor Calvin T. Brown was not
present at the meeting.
The city’s current group
health plan is governed by a three-year agreement with the Public Employee
Committee (PEC) that expires on June 30 of this year.
“During the months of
November through March, I did attempt to negotiate with the PEC a new
multi-year agreement that would provide some cost savings to the group health
plan,” Ambrosino stated in a letter to the council. “Unfortunately, I have not
been able to reach agreement with the unions.”
General Laws, Ambrosino stated, in the absence of a new agreement, the old PEC
agreement will remain in effect indefinitely. Without City Council action,
Ambrosino said he cannot put any health care cost savings in place.
The action approved by the
City Council allows the city to take advantage of recent state legislation that
allows municipalities to implement cost saving plan design changes on its own
if no agreement can be reached with the PEC as long as the city agrees to share
a percentage of its first year cost savings with the unions.
With the newly granted
authority by the council, the City Manager said he will negotiate reasonable
design changes to the city’s group health policies, likely by imposing
deductibles in line with deductibles paid for health insurance by state
Ambrosino said even with
any changes, Chelsea will always have health insurance at least as good as that
provided to Massachusetts public employees.
However, a letter to the
City Council submitted by the Chelsea Public Employees Committee outlined over
two dozen reasons why members believe the adoption of the changes to the group
health insurance should not be adopted.
“The PEC strongly believes
that the adoption of Sections 21-23 is inappropriate and premature for multiple
reasons: the Self-Insurance Trust Fund is running about a $2 million surplus;
the PEC has agreed to apply any surplus to reduce future health insurance
costs; City Manager Thomas Ambrosino wants the sickest families among City
employees and retirees to pay $1 million more on an annual basis currently paid
by the City; the PEC and City Manager Thomas Ambrosino agree that no changes to
employee/retiree health insurance are needed until FY2022; Ambrosino has failed
to bargain in good faith for a successor PEC agreement; a grievance, including
an alleged unfair labor practice, are pending at this time; and Sections 21-23
will effectively disable bargaining on health insurance,” the letter summarizes.
City Council President
Damali Vidot noted that her husband works for the Department of Public Works
and that any changes in health insurance would directly affect her. However,
she said the changes are necessary to allow Ambrosino to negotiate with city
“We hire the Town Manager
to negotiate with the unions, and I’m not comfortable when he does not have all
the tools needed for the negotiations,” said Vidot.
Vidot she said she hopes
Ambrosino can go back to the unions with the new negotiating tools and find
common ground with the unions. In addition to wanting the best for city
employees, Vidot said the council has a fiscal responsibility for the entire
The council president also
said that there has been some miscommunication on the issue, especially when it
comes to retirees. Vidot said changes to group health insurance plans would
only affect a very few retirees who do not qualify for Medicare.
District 1 Councillor
Robert Bishop said he agreed that the City Manager should have all the tools
available as he negotiates with the city’s union.
As the vote took place, many in the audience shouted and voiced their
displeasure, with several people stating the council should be ashamed of their
vote. The meeting came to a brief halt as the crowd noisily filed out of the
council meeting, with several audience members individually appealing to
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