After more than a year of negotiations, the Town of Tonawanda has reached an agreement with its Hourly Employees Association.
Charles Naughton, director of labor relations, said he felt the arrangement involved plenty of concessions that made it fair to both sides.
The employees received 2.75 percent raises for the years 2009, 2010 and 2011, with added benefits that bump the total up to approximately 3 percent each year. But Naughton said that amount is within the limits set forth by the Town Board and lower than the totals granted by West Seneca, Amherst and Erie County.
In exchange, the employees agreed to a change from a preferred provider organization healthcare plan to a point of service healthcare plan, saving the town 4 percent on its costs. The town also now requires new employees to contribute 20 percent to their health insurance plan for four years and 10 percent for each year after.
That’s a big change from the town’s former system, in which employees paid a fixed amount instead of a fixed percentage. Naughton said as healthcare costs continued to climb, the former system left the town holding a disproportionate share of healthcare costs. He’s confident the new system will provide a more equitable solution for dealing with rising costs in the long term.
Retirement was another issue handled by the agreement. Town employees now have to retire directly from the town to qualify for retirement benefits. Previously employees only had to work for the town for 10 years at any period to be eligible for town retirement. Employees are now also required to continue to pay into their healthcare after retirement.
The Town Board adopted the resolution unanimously.
Contact reporter Daniel Pye at 693-1000, ext. 158.
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