UPEC Members Willing to give up PERS to Save Hospital

Wednesday, August 03, 2011

ALTURAS - United Public Employees of California, Local 792 announced today that the Union will agreed to take major concessions at Modoc Medical Center in Alturas.

Under the proposal by Hospital Management, the 90 member hospital bargaining unit would give up their Public Employee Retirement System (PERS) if that is what it takes to keep their hospital from shutting down but the union says the hospital won’t even give them a contract extension in return. 

“Our Union members are willing to give up a huge benefit but want an 18 month extension on their contract”, said Darker. “Members would take at least a 15% cut in their benefit package and think a contract in return is more than reasonable.  This would be the first public employee union to eliminate PERS from their contract in the state of California”, said Darker.

Last week, the union assigned their benefits representatives, at no cost to the hospital, to examine ways to save the hospital money on a future 457 retirement plan The representatives will also look at a variety of hospital insurance plans to see if money can be saved in those areas.

A special election was held in August 2010 where voters approved taxing themselves $197.00 a year to transform Modoc Medical Center from a County hospital to a Hospital District.  The change is projected to take place by October 1st.

The hospital board has given the employee union until August 10 to agree to their demands or more employees will loose their jobs or “something big” will close at the hospital according to CEO Monica Derner.  Union employees are saying that Derner is driving a huge wedge between the employees and management.

Unions across California have been taking cuts to help balance local government budgets but UPEC Business Manager Chris Darker said he hasn’t seen anyone getting out of PERS.

“Our members simply can’t afford to contribute their 7% plus another 6% of the employers share”, Darker said.  In addition, members agreed to pick up the increase in their medical premiums starting August 1st that amounts to about $47.00 a month.

On June 9th the hospital said there might be one layoff and now there is nearly 10 layoffs. Hospital management has been running a media campaign in the local paper blaming the union employees for recent layoffs instead of telling the public the financial shortfall is worse than the $1.5 million administrators predicted on June 9th.

The Union has filed multiple Unfair Labor Practice charges with the Public Employee Relations Board (PERB) in Sacramento against the hospital.  “The hospital feels justified in breaking their agreement.  Administrators state they have great employees but you couldn’t tell that by the way they are handling the problems. All of our members have been loyal to the hospital, some for decades. To now blame the employees for layoffs and the demise of the hospital is despicable”, said Darker.