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Bargaining with Arconic continues to be difficult and slow. In addition to the freeze in the defined benefit pension plan, the Company is demanding substantial cuts in medical and drug benefits and increases in employee health care contributions.
The current Arconic USW Master Agreement Health Care Plan provides good coverage, but employees pay significant premiums ranging from $1,819 to $2,442 per year. The Plan has had very favorable cost experience over the last four years and claims cost per employee are comparable with employer averages.
Yet, Arconic is insisting on benefit cuts. It wants to increase employee coinsurance (your share of medical bills) from 15% to 20% and increase out-of-pocket maximums (the limit that protects you from large health care expenses) from the current levels of $1,500 single and $3,000 family to $2,000 single and $4,000 family.
It proposes to reduce premiums for single employees, but increase family premiums by $121 per month or 60% over the proposed three-year contract. This is equal to a $0.70 per wage cut for an employee with a family by 2022. See Table on the back for more details.
The Company offers to let you “choose” a medical plan with lower coverage to get lower employee premiums, but of course, this puts you at risk for large out-of-pocket expenses. This is really no choice at all.
Premiums Increases are Just a Backdoor Wage Cut
Health care is important. Over the years, Union members at Arconic (and its predecessor Alcoa) traded lower wage increases for good benefits and health coverage. This health and retirement security enabled the Company to attract and retain skilled trade and craft employees. The Company’s proposed $121 per month increase in the family health care premium will amount to a wage reduction of $0.70 per hour worked.
We Have Enough Skin in the Game Already…
Employers often claim premiums are necessary to give employees “skin in the game,” make them appreciate their health care coverage and make them better consumers. But Arconic –USW members already have enough “skin in the game.” The average Arconic employee paid almost $2,000 in deductibles, copays and coinsurance expenses (before employee premiums) in 2018.
Everyone Deserves Affordable, Quality Health Care
Health care is an important issue. Everyone deserves high-quality, affordable health care benefits. Health care is a small fraction of the production cost of rolled and extruded aluminum.
You work hard. Work in an aluminum rolling mill or extrusion operation is difficult and often dangerous. It takes its toll. It is not like working at Walmart, McDonalds or behind a desk in an office cubicle. You deserve quality health care for you and your family. Your wages shouldn’t be eaten up by premiums. And you shouldn’t face heavy financial strain due to an unexpected hospital admission.