House Bill 5345 update: Collective bargaining works

Lansing firefighter Paul Hufnagel

A Lansing firefighter whose union has helped save the city hundreds of thousands of dollars through collectively bargaining changes in health insurance was among those who told lawmakers Thursday that a proposed state health plan for public employees isn’t necessary.

“Leave it up to the locals to tailor a plan that best suits our needs,” said Bryan Epling, president of the International Association of Fire Fighters, Local #421, Lansing.

During a public hearing Thursday on House Bill 5345, some lawmakers on the House Public Employee Health Care Reform Committee asked about cost savings achieved through collective bargaining. Epling said Lansing fire fighters have agreed to health plan changes that resulted in savings totaling nearly $1 million.

Other municipalities and public employers have also negotiated savings with employees, said Paul Hufnagel, president of the Michigan Professional Fire Fighters Union.

“The days of no premium sharing are few and far between,” he said.

Bryan Epling, president of the International Association of Fire Fighters, Local #421, Lansing.

Dr. Frederick Askari, chair of the University of Michigan’s Committee on the Economic Status of the Faculty, also testified. He described efforts between the university and faculty to control health care costs as “dynamic,” and urged lawmakers to keep decisions about health insurance at the local level.

“Local control has allowed for substantial innovation,” said Askari, who said he was not representing the university administration. He questioned whether House Bill 5345 violated the state constitution, which grants universities autonomy, a point that Rep. Pam Byrnes, chair of the House committee, said is under review.

Brent Knight, president of Lansing Community College, also testified before the House panel. He said he supports the legislation.

Dr. Brent Knight, President, Lansing Community College

“All public employees should have one level of insurance,” Knight said, adding that public employees should have health coverage that is “no better than what private employees have.” He also told lawmakers that he supports a 5 percent wage cut for every public employee in Michigan.

What Knight failed to mention is that the LCC administration chose a higher level of benefits, while college employees bargained a PPO plan with a higher drug card and higher deductible. They don’t have the same benefits he does.

Updated: November 23, 2009

Watch all video from HB 5345 hearings.

Hearing 8 Presentations:

Dr. Frederick Askari, Chair, University of Michigan's
Committee on the Economic Status of the Faculty

Paul Hufnagel, President, Michigan Professional Fire Fighters Union

Bryan Epling, President, International Association of Fire Fighters, Local #421, Lansing

Dr. Brent Knight, President, Lansing Community College