Public Employee Press

Court halts bidding on new health-care program contract


City unions obtained a court order to halt Mayor Michael R. Bloomberg's plan to seek a new contract for the city's health care program, which labor officials worry could result in fundamental changes in benefits.

"We are all for helping the city save on health-care spending," DC 37 Executive Director Lillian Roberts said.

"But we needed to go court quickly because the city presented us with its plan at the eleventh hour and seemed prepared to impose changes unilaterally. When the city seeks major changes in its health-care program, it is contractually obligated to allow us to evaluate its plan very thoroughly."

Threat to health benefits

In July, with a subsequent extension to Sept. 16, the Municipal Labor Committee got a court order requiring the city to negotiate with the unions before putting its health- care program up for bid. The MLC represents city unions on health-care issues.

The city is supposed to solicit bids for new health-care contracts periodically, but hasn't done so for two decades. The Bloomberg administration's request for proposals (RFP) unilaterally built in givebacks in the city's $6.3 billion health benefit program.

The 1,000-page RFP assumes that 300,000 employees and retirees will contribute to the premiums of the health plans, and it would require certain individuals to participate in wellness programs, such as smoking cessation and exercise.

Outrage

Union leaders were also outraged that Bloomberg is linking the RFP to the bargaining process and claiming that Detroit's bankruptcy is a warning of what could happen in New York City if it does not cut workers' health and pension benefits.

"This is an important victory," said Roberts. "We refused to sit by passively while the administration neglected to sit down with the unions to discuss its plan thoroughly before sending out its RFP."

—G.N.H.