Islip's pact with union saves thousands

A new contract between Islip Town and a breakaway union representing the town's 370 blue-collar workers will save Islip hundreds of thousands of dollars a year for several years, with current employees getting pay raises from 2010 to 2013, but nothing for 2008 and 2009.

In a settlement that closely echoes the contract agreed to by the town and Teamsters Local 237 for some 300 white-collar members, blue-collar workers hired after Jan. 1, 2010, will get fewer sick, personal and vacation days, and for the first time will have to pay a portion of their health benefits.

Islip's average blue-collar worker is paid about $45,000 a year and has not received a raise -- or had a contract -- since December 2007. The settlement was ratified by the town's United Public Service Employees Union in a 285-23 vote last week, said president Kevin Boyle.

"I'm pleased the process is completed," Boyle said, noting the town board must vote on the contract at its Aug. 16 meeting.

The UPSEU contract is controversial in one key respect.

The contract settled last year with Local 237 stated the town would stop paying into a union welfare fund in exchange for pay raises for union members until the fund -- which has a surplus of almost $2.5 million -- is whittled down to a one-year reserve. That may take five years, said Teamsters Long Island area director John Burns. The town has said its contributions cost about $560,000 a year. The fund covers dental, optical and death benefits, and some co-pay reimbursements.

The UPSEU agreement, on the other hand, states the town will begin making contributions toward the UPSEU welfare plan next July. Town officials estimate this will save close to $500,000. Effective July 1, 2012, the town will contribute $750 per year per blue-collar employee to the UPSEU benefit plan.

Until last fall, the Teamsters had represented both blue- and white-collar employees in Islip for more than three decades. In April 2010, both groups ratified the contract negotiated by Local 237. But four months later, before the contract took effect, the blue-collar employees voted to switch to the UPSEU. Islip's white-collar unit remained with the Teamsters.

Following the split, the town insisted UPSEU employees should still be covered by the jointly administered Teamster-town welfare fund. In June, it lost in arbitration on that issue. In the meantime, UPSEU has funded the blue-collar workers' welfare fund benefits.

Town labor relations director Rob Finnegan said the new UPSEU contract is "fair" and contains "cost-containment measures that are reasonable for the residents of Islip."

He acknowledged that from July 2012 the town will pay benefits to one union welfare fund it is not paying to the other, but said the white-collar fund is "vastly over-funded" and remains available for white-collar workers' benefits. In fact, fund trustees recently agreed to enhance members' benefits.

"The blue-collar unit are not getting any enhanced benefits that we're aware of," Finnegan said.