Local Union 802 - Madison
Members of Local 802, many of you have recently attended scheduled meetings with each of our signatory employers to learn about the funding needed for the 802 health fund plan. If you were not able to attend one of the meetings, members were informed that the health fund needed a minimum of $.35 cents to maintain the current level of benefits with no reductions. Members were also informed the wage allocation breakdown would be discussed at the regular 802 meeting on Thursday May 18, 2023, and that the members would decide at that meeting what options they would like to see on the allocation ballot which would be voted on May 25 th . At last weeks meeting the members decided on the following options:
Option 1. $1.31, 802 Health and Welfare, $.37 802 Pension, $.32 on the check increase.
Option 2. $1.31, 802 Health and Welfare, $.25 802 Pension, $.44 on the check increase.
Members of 802, you should know that the decision on what to put on the allocation ballot was made solely by the members that attended the meeting and discussed at the meeting. The ballot options were put forth by 802 members. District Council 7 Leadership/staff did not advocate for or against any of the options discussed, all that was stated was that the minimum contribution of $.35 was needed. Many members believe that the majority of their negotiated wage increases disproportionately are allocated to benefits. The chart below is a ten year look back of yearly wage increases and how they were allocated. As you can see most wage increases were on the check, only $.75 cents or 5% over ten years was allocated to 802 health insurance. If you attended the meetings, you heard that medical inflation is a steady 7% a year, so we are not keeping up with medical inflation costs.
We were asked by members attending the shop meetings for information on the 802 health funds investment and asset allocations, included on this page is the report received on Wednesday May 17th from the 802 investment consultant from U.SBank which details the current investment portfolio and investment strategy utilized by the fund. (See Link on 802 landing page)
We have also included the information shared with members that details the suggested contribution rates by the 802 health fund plan consultant over the past 5 years, which shows the actions taken by both fund trustees and 802 members. During several of those years plan reserve levels were extremely healthy with between 18-20 months of plan reserves, it is only recently that reserve levels have dropped to a level that the trustees have become concerned about and the future reserve projections if no action is taken.
802 members have been very clear that they would like to see some benefit improvements and have chosen to contribute more to lower monthly hour requirements and have the 100% dollar bank amounts over the monthly premium reinstated; by choosing to contribute the amount they have this year members will see their benefits improved.
Again, the allocation vote is scheduled for Thursday May 25th, voting is open from 6 a.m. until 5 pm at the Fitchburg Hall Located at 5375 King James Way Fitchburg, WI.
Contribution Allocation Recommendations and Actions
Review the Health Fund Contribution Allocation Recommendation and Actions for IUPAT DC7 Local 802
Health and Welfare Fund Market Review
Review the Health & Welfare document for IUPAT DC7 Local 802