City employees have already made concessions
To the editor:
This letter is written in hopes of clarifying a number of miscommunicated issues and facts as they relate to the employees of the city of Presque Isle. Earlier this year, the state of Maine cut revenue sharing to municipalities.As a result, the City Council voted that due to the cut and subsequent shortfall, $50,000 would come from employees. The city came to the employees with their request to obtain that money. Whereas their request affected insurance and pensions, the employees suggested various other options and to hold off the discussion on insurance and pensions until the negotiation process where the union contracts expire Dec. 31, 2013. This would be a fair and appropriate manner to handle this. The city did not agree. They instead have taken other measures such as furlough days and reducing hours.
What is most unfortunate is the employees have been villainized throughout this process and been made out as greedy and unwilling to work with the city. This is untrue and unfair. The employees have offered many suggestions, which were mostly discounted. The employees have a long history of making concessions and working with the city.
Some of what needs to be clarified relates to health insurance and pensions. Most employees receive their own coverage paid 100 percent by the city. For dependents, pre-1996 employees contribute 10 percent, post-1996 employees contribute 50 percent. At this time there are nine employees in the pre-1996 category. Many are not far from retirement. This number has reduced drastically over the last five years due to retirements, etc. The vast majority of employees are in the 50 percent category. Through the years there have been numerous attempts by both sides to find a solution to this. For many years the employees settled for reduced wages and gave up other benefits to maintain the health insurance. It is difficult to give precise information on what was “traded” during negotiations going back over almost 20 years’ time.
Regarding MainePERS, also known as Maine State Retirement, some information implied incorrect conclusions. In 1996, MainePERS made changes to their overall plan structure and the city chose not to continue offering this retirement. Over time, with no new members contributing and more retirees, the city’s liability has increased tremendously. It was reported that the city is contributing 56 percent of employees’ wages for those still in MainePERS. The city is in fact sending 56 percent, but it is not that simple. For fire employees the city rate is currently 11.54 percent, police is 10.73 percent, and for the regular plan it is 9.16 percent. Due to no new monies coming into the plan, increased retirements pulling from the plan, and market fluctuations, the city has a large unfunded liability which means their contribution is in the area of 56 percent. It is important to note that this is not a 401k type of retirement and that the employees do not receive dollar for dollar contributions to their “fund.” At the time of their retirement they receive a defined benefit based on a prescribed formula with MainePERS based on the plan they are in.
The employees of the city of Presque Isle are hard working individuals who not only serve the residents of Presque Isle, but the many people who come here every day. The do so in hopes of providing for themselves and their families, that is all they ask. They are not corporate CEO’s getting rich off the taxpayers. They go above and beyond everyday to help us all. From sorting our recyclables, to registering our vehicles, to teaching our children fire safety, these members of our community care for the people they serve.
Traci N. Place,
business agent,
Teamster Local Union
No. 340
