Union Fights Switch

MacIver News Service | January 25, 2011

[Waukesha, Wisc…] Wisconsin school districts are saving millions of dollars by switching health insurance providers away from WEA Trust, but the teachers union is not making it easy.

WEA Trust is affiliated with the Wisconsin Education Association Council (WEAC), the union representing some 98,000 employees within Wisconsin schools. The MacIver News Service has learned some districts across the state have discovered they can provide equal coverage at a lower cost through soliciting bids from other companies in the health insurance marketplace.

For example, this year Campbellsport School District switched to the Wisconsin Counties Association’s plan and will save $100,000.  The Slinger School District switched to United Healthcare and saved $200,000.  Waukesha switched from WEA Trust as well and indicates it will save $2 million. 

“United has a larger pool and can provide the same coverage at a much lower price,” said Todd Gray, Waukesha Superintendent.

This trend has caught the attention of the WEAC, and their locals are fighting to stop it.  In Campbellsport, the Master Agreement between the union and the district allows the school board to switch insurance providers as long as the coverage is identical.  The union there claims the district violated that agreement and filed a grievance and a prohibited practice complaint against the district.

“Since becoming effective July 1, 2010, the change in health insurance carriers has been almost seamless, without any loss in the level of benefits,” Dan Olson, Campbellsport Superintendent, said.

The school board decided to take up the grievance at an August meeting, and publicly posted the item on August 3 to comply with open meetings law.  At that meeting, the board decided to take up the grievance in open session.

“In these tough economic times the residents of the Campbellsport School District deserve to know how their tax dollars are being spent, including the efforts the District is taking to save approximately $100,000.00 in costs,” said Jay Miller, Board of Education President.

In the past, similar situations were held in closed session, and the union expected the same in 2010.  The union says it wanted to present specific examples of employee health-related situations, which it cannot do in open session since that information is private.  The board suggested withholding the specific names to protect their privacy, but the union declined.

On September 22, the union filed a prohibited practice complaint with the Wisconsin Employment Relations Commission, related to the open session meeting.

That had a hearing before an administrative law judge on December 15, but it could be months before a decision in the case is rendered.  If it is decided the grievance should have been handled in closed session, then the school board will have to take up the issue again.

The district expects the grievance will eventual go to arbitration, where the burden of proof will be on the union.

Olson said, “They’re going to have to prove the coverage is not equal.”

Olson told the MacIver News Service that other districts are also considering switching away from WEA Trust, but are hesitant.

“I’ve heard from other district administrators who are waiting to see what happens with us,” he said.