Employee contract to save Jay nearly $50,000 in insurance premiums

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JAY — A change in the town employees’ health insurance in the highway, sewer and Transfer Station departments will save nearly $50,000 in premium reductions over the next nine months, Town Manager Shiloh LaFreniere said.

Under a new Teamsters Union contract, coverage will change from Maine Municipal Association to Allegiant Care. The new health insurance goes into effect on Oct. 1.

The new contract approved by selectpersons on Sept. 5, contingent on the Transfer Station union accepting it, combines three Teamster Union contracts into one pact to represent town employees in the highway, sewer and Transfer Station departments. The Transfer Station employees approved it and the other two departments had previously accepted it. The combined contract covers 11 employees.

This will allow the town more flexibility moving forward, LaFreniere said.

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Among the changes in the two-year agreement is to reduce staff through attrition connected to employees retiring over the next year-and-a-half.

The contract is retroactive to July 1 and expires June 30, 2019.

There is no wage increase in the first year but there is a wage reopener clause to allow for discussion of wages in the second year, LaFreniere said.

There is also a reopener clause for operational changes.

The agreement reduces earned time off and retirement plans for any newly hired employees.

In addition, there is a reduction in the sell-back of earned time off for current employees and the $100 flexible spending account funding is eliminated.

LaFreniere made some anticipated savings to the town budget prior to it being approved by voters on April 25.

The savings in the new contract exceed the anticipated savings, she said.

dperry@sunmediagroup.net

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