Breakaway Islip Town union cut out of fund

The Town of Islip and a breakaway union are under pressure to come up with a new contract for 370 blue-collar town employees after an arbitration ruling denied the workers access to their former union's welfare fund.

An award by arbitrator Martin Scheinman means blue-collar workers represented by the United Public Service Employees Union will not be allowed to participate in a supplemental health benefit fund co-managed by the town and Teamsters Local 237.

Until last fall, the Teamsters represented all the town's blue- and white-collar employees for more than three decades. In April 2010, both the blue-collar unit and white-collar workers ratified a contract negotiated by Local 237, but four months later -- before the contract took effect -- the blue-collar employees voted to be represented by the UPSEU. Islip's white-collar unit stayed with the Teamsters.

The welfare fund, which covers dental, optical and death benefits and some co-pay reimbursements, was a cornerstone of the April 2010 pact. It had accumulated a seven-figure surplus and, as part of contract negotiations, it was agreed the town would suspend its payments to the fund -- about $560,000 a year -- and use the money to fund workers' bonuses and raises.

The three town and three Teamster fund trustees deadlocked on whether the blue-collar union could have access to the money after those workers left Local 237. Scheinman ruled last month they couldn't.

"It's a shame for the employees who have suffered a loss, but I'm proud that for our members we continue to represent them with honesty and integrity," Long Island director for Local 237, John Burns, said.

Town officials admit the ruling puts them in a bind: they have no way to fund raises for the blue-collar employees.

"The fund was the key mechanism to achieving a settlement agreement," labor-relations director Robert Finnegan said.

The average blue-collar worker in Islip is paid about $45,000 a year and has not received a raise -- nor had a contract -- since December 2007.

The average white-collar worker is paid about $42,000 yearly and received a 2 percent raise in January 2010, will get two 1.25 percent raises this year and incremental raises totaling 2.75 percent in 2012 and 3 percent in 2013. They also received two $800 bonus payments, one last year and one this year, the town confirmed.

"Obviously, we need to come to some kind of settlement but there is no extra money in these difficult times to replace the Teamster benefit money," Supervisor Phil Nolan said. "We'll have to be creative and hopefully UPSEU will work cooperatively to reach a settlement that protects the taxpayer and yields a contract."

Kevin Boyle, UPSEU president, said he was "optimistic" a contract would be reached soon "that addresses the needs of the employees and taxpayers."