NEW JERSEY STATE WORKERS
FACTS ABOUT THE TENTATIVE CONTRACT
What were our Bargaining Goals for the 2007 Contract
and what was our Plan to achieve them?
Do you remember that about 6 months ago we were distributing bargaining surveys and asking our members to set the priorities for the 2007 Contract?
 | We said that we were going into negotiations early because we wanted to try to bargain a Contract before the Budget so that we weren’t tied up in all the politics of the Budget. |
| We said that we wanted to NEGOTIATE the terms of our Contract and not have them Legislated. (“Negotiate! Don’t Legislate!”) |
| We said that we believed the Governor was motivated to get a contract early and that it would work for us. |
What were the priorities we set for the Contract itself?
| We wanted to negotiate a raise every year of the Contract. |
| We wanted to protect the pension plan, make sure contributions were made to it, make sure that it was invested properly, and make sure that we kept the benefits. |
| We wanted to protect our healthcare benefits. |
We have negotiated a Contract for our Members that does the following:
| Protects us during a highly political budget process. |
| Gives us a raise every year of the Contract with no wage freezes for the first time in 15 years, and provides at least 20% more money in pocket than the 2003 Contract. |
| Puts at least $1 billion dollars into the Pension Plan every year and protects the pension investment and pension benefits. |
| Provides for continued excellent healthcare at a very low cost. |
| Improves language in some very significant areas. |
| Has no takebacks of holidays or leave days. |
Facts About Healthcare in the New Contract
What's the story with this new health plan?
There will be a new health plan - a PPO that will begin in January 2008. This plan will have the same benefits as NJ Plus. That includes the same hospital, lab, tests, surgery, deductibles, in patient, out patient, mental health, chiropractic, nursing home. Exactly the same as what we have now.
So what's the difference between this plan and NJPlus?
1) There will be a broader network in New Jersey and a network in every other state in the country. There will be in network doctors, including specialists, and in network hospitals, labs, and clinics in every state in the country. Out of network will be unrestricted. You can go anywhere you want, to any doctor out of network and the State will pay 70% of the cost after the deductible ($250).
2) You will not have to go to a primary care physician to get a referral. You can go to any doctor in the network by making a direct appointment.
3) There will be a $15 co-pay instead of a $10 co-pay. If you go to the Emergency Room, the copay will be $50 instead of $25 unless you are admitted, in which case there will be no co-pay.
What's the name of the PPO?
It doesn’t have a name because it hasn't been created yet. The State is self-insured and has its health plans administered by contractors (Horizon, Prudential, Aetna, etc.) We designed the plan jointly with the State and now the State will bid out the network. It will be a plan that will only be for public workers - just like NJ Plus. We don't know the name of it, but we know what it has to have in it and we will check the bid to make sure everything is included. This is what we did when we created NJPlus.
I have the Traditional Plan, I heard its being eliminated - is that true?
Yes. It is being eliminated for ACTIVE employees once the PPO is created. If you are retired and have the Traditional Plan you can keep it. If you have 25 years of service before July 1, 2007 and you want the Traditional Plan when you retire, you can have it.
How much will I pay for my Traditional Plan coverage on July 1 until January 2008 when the PPO is created?
You will pay 1.5% of pay for your health coverage. Everyone will pay 1.5% of pay for coverage no matter what plan they have and what coverage. We negotiated higher percentage wages in exchange for that and it is the fairest way to contribute toward healthcare.
I've got an HMO. Can I keep my HMO?
Yes. You can stay in the HMO and you will pay 1.5% of pay. You will not pay the 5% of the premium.
My spouse has coverage. Do I still have to pay the 1.5%?
No. If you can certify that you have health coverage elsewhere, the 1.5% will be waived.
What about the prescription drug plan?
Under the new contract we will continue to pay $3 for a generic at the pharmacy, $10 for a brand name at the pharmacy, $5 for a 90 day mail order generic, $15 for a 90 day mail order brand name. But be careful. If you get a prescription for a brand name when there is a generic available, you will have to pay $25 - but if you can't take the generic for a medical reason (like you are allergic to the fillers or something) you can get the brand name for the $10.
What about Retiree Medical? Do we still have it?
Yes. Retiree medical is secure and the conditions under which you get your retiree medical plan are still determined by whatever contract provisions were in effect when you got your 25 years of service. So if when you reached 25 years of service there was a traditional plan, you can still have the traditional plan.
Facts about the Economic Settlement
Wages:
July 2007 – 3%
July 2008 – 3%
July 2009 – 3.5%
July 2010 – 3.5%
All of the increases go into base wages. There are no wage freezes.
Special Clerical provisions:
The Administrative/Clerical salary scale (yellow contract book) is slightly lower than the salary scales for professionals and supervisors (green, tan and orange contract books). The Clerical salary scale will be raised to the other scales. This will give clerical workers over $200 more over the course of the contract.
If you earn less than $37,000 a year, you will receive a bonus at the time of each wage increase that will amount to the difference between the across the board raise for $37,000 and what you got as your wage in crease. In the first 2 years of the contract, 3% of $37,000 is $1110 and so if you get less than that as an across the board raise, you will get the difference as a bonus. During the last two years of the contract, 3.5% of $37,000 is $1295 and so if you get less than that you will get the difference as a bonus.
There is 2% in concessions in this contract – 1.5% in healthcare and .5% in pension. As we go over the Facts About Healthcare and the Facts about Pension, we will discuss these further.
If you are at maximum, it is easy – multiply how much you are making by 3% then multiply that by 3% and then multiply that by 3.5% and multiply that by 3.5%.
Or, you can look at the Wage Scale for 12/23/2006 (what you are earning now) and then look at the Wage Scale for 7/2010, and compare them.
Click here to view 07-10 Salary Schedules
If you are not at maximum, and you are still getting increments, you are going to get these raises in addition to your increments. Increments are worth between 3% and 5% of pay depending upon where you are on the wage scale, but you can guess that they are an average of 4% more for each additional increment.
Or you could also look at the wage scales on www.cwanj.org and that will help you figure it out.
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For math whizzes only! What is the NET value of the contract – after we pay for the concessions? The concessions are the same flat amount – 2% each year. They do not accumulate, but your raises do. Each year you get the money you made, plus the raise from the year(s) before, and then the new raise. Here’s how to figure it out: 1st year of the contract: Original wages + 3% - 2% in concessions = 1% net gain the first year of the contract. 2nd year of the contract: Wages + the first 3% raise + another 3% raise – 2% in concessions = 4% net by the second year of the contract (without compounding the raises). 3rd year of the contract: Wages + the first 3% raise + the second 3% raise + 3.5% raise – 2% in concessions = 7.5% net by the 3rd year of the contract (without compounding the raises). 4th year of the contract: Wages _ the first 3%, the second 3%, the third 3.5% raise + 3.5% - 2% in concessions = 11% net by the 4th year of the contract (without compounding the raises). Once you compound the raises the increases equal 13.6% (1.03 x 1.03 x 1.035 x 1.035=13.65%) The 2% of the concessions come out pre-taxed so they lower the bite of your tax bill. Your take home check will be about 12% higher. Or – if you’re confused – check the salary scales on www.cwanj.org. Find what you will be making each year, print it out and keep it.
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Facts About the Pension in the New Contract
| Governor Corzine will put at least $1 billion into the pension every year. |
| CWA members will contribute an additional ½% of pay to the pension plan, all of which will go to strengthen the plan. |
| Worker hired AFTER July 1, 2007 will have a normal retirement age of 60, instead of 55 years old with 25 years of service. If they retire after age 55 but before age 60, their pension will be reduced by 1% a year. |
| Workers hired AFTER July 1, 2007 who earn more than the Social Security maximum, which is currently $97,200 (which goes up every year) will have their defined benefit pension limited to the Social Security maximum. On the portion of their earnings over the social security maximum, they will still pay 5.5%, but it will be paid into a defined contribution fund and it will be matched by 3% by the employer. |
| The current State Investment Council will be changed so that it has 13 seats, 6 of which will be union designated seats. The Chair of the SIC will have to be elected by the members of the SIC each year. All investments in the pension plan will be disclosed. All members of the investment council will file financial disclosure forms as to where their own investments are. All members of the investment council will reveal political donations to state candidates. Every year, there will be an Annual Report presented at a public meeting that reveals all investments and the condition of the pension plan. The actuary will certify the amount that is supposed to be normal contribution into the pension plan, and what governmental entities (State, County, Local) made their contributions, or if they did not make the appropriate contribution by how much and how much that increases the unfunded liability of the plan. |
| We beat back the plan to change the formula to n/55 (9% cut in benefits) |
| We beat back the plan to change final average pay to highest of 5 years instead of highest of 3 years. |
Other improvements in the Contract
· Essential Employees – Workers can grieve the Essential designation.
· Job Security – Improved the Job Security Side Letter making the State go through a Cost Analysis if they want to privatize a function of our work, displacing any workers. The current language has already stopped 2 privatizations. The additional language gives us earlier notification.
· Displaced Workers Pool – If there is a layoff, workers will be placed in a Displaced Worker Pool for a minimum of 4 months, and can be extended to 6. Workers will be given comparable work and collect current wages and benefits and the State will seek to find them a comparable job.
· DYFS SPRU – Field on call up to $15 a shift, workers called out who are eligible for overtime, get overtime, workers not eligible for overtime (NL)- rate goes from $37 to $42, Supervisors on call goes from $12 to $30. Vacancies in SPRU posted and filled based upon seniority for workers with equal qualifications, SPRU workers’ requests for buddy will not be unreasonably denied, SPRU eligible for SLI and Workers Comp and guaranteed necessary equipment in the field including working cell phones. If you are removed from SPRU you can grieve it.
· DYFS paralegals – paralegal appeals will be resolved within 30 days of ratification and new paralegal title which will allow para legals to be eligible to promote to Litigation Specialist work within 6 months.
· Indemnification – Improved protections if you are sued as part of your job – the Attorney General must represent you.
· SLI – We beat back demand to eliminate Sick Leave Injury.
· Discipline – Maximum suspension goes from 6 months to 45 days.
· Clothing Allowance – Goes up to $675 and $700 the last two years of the Contract and 500 more workers are eligible.
· Holidays/ Leave – No takebacks of any kind of leave time.
Here is an example of an evaluation of the economic impact of changes in wages, health care and pension costs 2007-2011 for an employee earning $50,000 on June 30, 2007:
To review the current New Jersey State Contracts online by bargaining unit, please go to
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