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Vol 2, Issue 19

By Joe DiNicola, President, SEIU Local 503, OPEU

Oct 5, 2006

SEIU Local 503, OPEU members step up for dignity and respect on the job wherever we work. It takes confidence and determination to know that we are in the right fight at the right time. Every working family deserves the opportunity to build a better life. We work together because that is our greatest strength.

In this issue of President Joe's Journal , members at a private non-profit agency in Portland celebrate a victory on health care in a “contract re-opener.” Last year, State and Higher Ed members won the fight at the bargaining table to protect health benefits. Now it’s open enrollment and time to review insurance options for workers and family members. Also, a retiree shares her first-hand account of a day in court in another of the cases to protect PERS pension benefits.

In this issue: Open Enrollment Time for DAS / OUS CODA Members Celebrate Victory • PERS Members Go to Court — Again • eNews Flash: DAS Coalition Bargaining Teams Meet

Open Enrollment Time for DAS / OUS

During 2005 Department of Administrative Services (DAS) and Oregon University System (OUS) contract negotiations, members stood up to protect health benefits. From Astoria to Ashland, Lebanon to La Grande and The Dalles to John Day, members said their number one priority was affordable health care. We stood together at the bargaining table, at the legislature and in worksites all over the state and our efforts paid off. Today, Oregon is one of only three states where workers maintain fully-paid premiums and we continue to hold the line on health care costs with no monthly out-of-pocket premium expense.

Now it's time for open enrollment in health insurance plans for DAS and OUS members. The Public Employee Benefits Board (PEBB) will provide information packets and forms this month. Unlike two years ago, you do not need to fill out a form unless you want to change your insurance coverage. If you don't make a selection, you keep the same plan you have now. However, every member should take some time to review the materials in the enrollment packet.

While all insurance plan options offered by PEBB have the same basic design, there are always some differences between insurance carriers. A full description of plan details and co-payments are included in your Open Enrollment packet.

There are a number of factors that go into your selection of a doctor or health insurance carrier. Make your choices carefully. There’s nothing more important than your health and the health of your family.

CODA Members Celebrate Victory

SEIU Local 503, OPEU members at Comprehensive Options for Drug Abuse (CODA) in Portland have settled the 2006 health insurance re-opener with great results. This settlement follows a long struggle to show management “When you take one of us on, you take all of us on.” Under terms of the current contract, management asked to meet to discuss increased insurance premiums and to bargain who would pay for the increase. The re-opener was settled and CODA management agreed pay the entire increase in health insurance premiums again this year.

CODA, a non-profit agency, is Portland and SW Washington's largest and most comprehensive drug and alcohol abuse treatment and prevention organization. Eighty SEIU Local 503, OPEU members work at CODA and provide substance abuse treatment services. CODA workers are committed to helping people to help themselves, their families and the community.

During the 2002 - 2005 contract, workers experienced cutbacks in assigned hours with no decrease in workload. As a result, members continued to work more than 40 hours per week but were paid for only 34 or 36 hours. They worked the unpaid hours because they are dedicated to help their clients succeed. Morale was low and management clearly did not respect front-line workers.

2005–2008 contract negotiations were a turning point for CODA workers. Members sent a clear message they were united and finally got the respect that they had long deserved. They showed up in big numbers at bargaining sessions and worksite meetings. Members wore buttons and circulated a bargaining petition to management. More than 90% of the workers signed the petition!

Bargaining was heated and members stood strong. When the dust settled, we signed a three-year contract with wage increases. Members also put new life into the Labor/Management Committee and it has successfully dealt with many worksite issues and concerns. During the last year, members have addressed over-crowding, established a wellness committee, and improved morale.

With the 2006 re-opener settled, workers know they have changed the relationship with their employer. The HR Director told Kate Chesney, Local President, that she knew the workers were united under "very strong union leadership."

SEIU Local 503, OPEU CODA members stood strong together. The strength and solidarity showed during contract bargaining has had a lasting impact on CODA management's view of the members. That solidarity resulted in real improvements in wages, benefits and working conditions. Great job CODA members!

PERS Members Go to Court - Again

Two weeks ago, I reported on oral arguments the Robertson and Henderson cases in Federal 9th Circuit Court in Portland. Robertson deals with the unlawful diversion of PERS members pension contributions to “IAP” accounts. Members believe that employers should deposit those contributions in PERS accounts just like they originally promised. Henderson deals with the violation of a 1978 federal court order when the PERS Board implemented new actuarial tables for PERS retirees. While new tables may be justified, they must be implemented lawfully.

September 28, our attorneys were back in court. This time, Multnomah County Court Judge Henry Kantor heard arguments in the Arken and Robinson cases. Both cases deal with the PERS Board’s illegal attempt to bill retirees for so-called "overpayments." These "overpayments" have never been adjudicated by any court. Instead, the retiree billings are the result of an agreement between employers and PERS Board members. Our attorneys argue that the PERS Board had no authority to enter into that agreement and that retirees should be able to rely on the pension benefits they were promised at the time they retired.

Retirees face financial difficulty and uncertainty because of PERS Board actions. PEG, a retiree member, wrote this first-hand account of SEIU Local 503, OPEU retirees' day in court in the Arken and Robinson cases:

"What an amazing experience, watching Greg Hartman argue the Arken case and then Gene Mechanic argue Robinson . Both men are smart, articulate, well prepared and think fast on their feet. I am so glad they represent us and the PERS Coalition. At the end of the day I left the court room feeling we had been masterfully represented.

"There were around 35 people who showed up to watch and we did pack the visitor's area. In fact there were enough people that Judge Kantor invited the overflow crowd to sit in the jury box.

"In his opening comments the Judge assured everyone that he had studied all the briefs. As the day progressed it was easy to tell from his questions that this was true. Two or three times he jumped ahead of a lawyer's comment, reassuring them that he understood their point. The two cases ran a bit over three hours and Judge Kantor was clearly alert and following respectfully the whole time. This left me feeling that, if he should rule against us, it will be on the merits as he understands them. Since our case is strong, I am very hopeful. Of course we all know that whatever the ruling, it will be appealed as Judge Kantor acknowledged a couple of times.

"It is interesting to note that the judge asked each lawyer what they thought would be the effect if he should happen to rule in favor of one case and against the other. Over the course of the day he asked several questions to clarify the points of similarity and difference between the cases. Both Hartman and Mechanic were clear that a win in either case would create a solution that would remedy both cases.

"In the Arken case the PERS Board legal team kept making the point that PERS has no one else to collect this money from other than the retirees. It was gratifying to here our lawyer point out that this is not a relevant argument. At another point Hartman said the wage claim portion of our case is pretty straightforward and Judge Kantor acknowledged this is true.

"At one point in Mr. Malkin's (attorney for the PERS Board) argument, Judge Kantor asked if the Oregon Supreme Court intended PERS to do what it is now doing, collecting from retirees. At first Mr. Malkin dodged the question, but the judge repeated it. Then he talked about the Board's responsibility to protect the fund. The judge questioned him a third time. At this point Mr. Malkin came back to his argument that somebody has to pay and that the Board only has the retirees to collect from. The judge asked if he should rule in our favor, would the Board then feel they would have to charge this as an administrative expense. Mr. Malkin said no, that the Board might take it out of another COLA – an argument that completely confused me.

"In a later round of questioning, Judge Kantor asked Mr. Gary (attorney for Non-State PERS Employers) "but wasn't it the legislative goal to not take any money away from retirees?" At first Mr Gary said that this is not so. Then he was silent for a bit and then said that this is not a contractual right.

"While presenting original arguments in Robinson, Gene Mechanic said that he had talked with someone in the courtroom today who has already had their monthly benefit reduced by PERS in the bill-back scheme. He brought this up because during Arken arguments there had been a lively discussion that PERS seems to be dragging their feet on starting actual billings. While Greg Hartman suggested that PERS might be allowing time for the judge to rule, Judge Kantor suggested that foot-dragging could indicate they don't know what to do.

"One highlight during the Robinson case came when the judge interrupted our lawyer, Gene Mechanic. He was trying to find a nice way to say that the initial PERS notification to bill-back for the alleged over-crediting wasn't adequate. I didn't hear the actual word that the judge used, but it was clear that he does not give weight/credence to the notices sent out last winter. Many of us wanted to stand up and cheer at that point. Thank you, Joe, for your reminders about keeping appropriate decorum when watching a legal hearing.

"In arguing the Robinson case both sides say the case is straight forward, resting on the plain language of the law. It sounded to me like this will come down to how Judge Kantor reads sections 10 and 14b as they relate to the case. When I was reading the briefs, I truly thought Gene Mechanic's arguments on our behalf were correct and the better arguments.

At the very end Judge Kantor said that he intends to rule on both the Arken and Robinson cases together and will do so soon.”

Thanks PEG. We can hope the courts recognize what legislators and PERS Board members have apparently forgotten: a promise is a promise and a deal is a deal!

eNews Flash:

DAS Coalition Bargaining Teams Meet: All elected DAS bargaining team representatives and alternates are invited to attend work sessions during the month of October. The Dept of Human Services (DHS), Institutions, Dept of Transportation (ODOT), and Specials Coalition sessions are open to all members. Each meeting begins with a review of member surveys, which is always the starting point as we develop our bargaining proposals. Check out your coalition bargaining team schedule and mark your calendars. Remember only members can vote on contract terms, so check with your Organizer, Steward or any Officer to make sure you will be able to make your voice heard.