I am writing to address errors that appeared in a New Haven Register article titled “Milford health care workers’ pay is up in the air” (March 7, 2013).
The article incorrectly claimed that a temporary court order that implements changes to labor agreements for union-represented employees at five Connecticut nursing homes deprives the workers of pension and health benefits. It does not. Rather than contribute to a union pension fund, employees represented by the New England Health Care Employees Union, District 1199 (SEIU), will be able to enroll in a 401(k) plan. The nursing homes will match 25 percent of employee contributions, up to 3 percent of their annual salary.
Union-represented employees were previously given completely free health benefits. Now they are being asked to contribute towards the costs. They are not losing their health benefits. The nursing homes are merely providing their union-represented employees the same kind of benefits that apply not only to their non-union employees but to the majority of the U.S. workforce.
Lowered reimbursements have made it difficult for all Connecticut nursing homes. But in our case, the homes were laboring under the far greater burden of union labor agreements that bear no relationship to financial reality. For example, the five nursing homes spent over 225 percent more on pension benefits per resident-day than the statewide average, and had total benefit costs per day that were 24 percent higher than other SEIU facilities in the state.
SEIU District 1199 represents employees at only 28 percent of Connecticut’s nursing homes. Yet it represented employees at 69 percent of the state’s nursing homes that have closed since 2007. Unless the SEIU starts recognizing economic reality, Connecticut will continue to lose nursing homes and the jobs and quality care they provide just when we need them most.
Lisa Crutchfield
Senior Vice President, Labor Relations
HealthBridge Management LLC
Concord, Mass.