02/21/97

ATHENS, Ohio -- Ohio University negotiators today told their Local 1699 counterparts that the university would continue the current health benefit package while exploring new options.

The university also offered the same 2 percent base wage increase linked to the historical cost to the university of health care benefits that other employee groups received earlier. Further discussions on wage increases are scheduled for next week.

A major issue in the negotiations has been the university's concern over projected increases to insurance costs. In mid-January, Columbus-based health benefits consultant William M. Mercer Inc. estimated a 37 percent increase in employee health care costs this fiscal year and next. Early in January, the university hired the outside consultant to double-check figures and suggest possible changes in health care benefits after it's own accountants projected a 30 percent increase.

The steep hike was attributed primarily to large medical claims and a change in employee demographics as older employees retire and younger employees with young dependents take their place. "The university has offered to continue the union's current benefit package because it is hard to make appropriate adjustments when all of the facts are not known," said Terry Conry, assistant director of University Human Resources. "The president of Local 1699 serves on the university's Benefits Advisory Committee. That committee is currently working on the cost projections and possible plan design options. Once the facts and options are known, substantive discussion on benefits can take place.

"The university and union have resolved a number of issues and tentatively agreed to a majority of the articles in the agreement under discussion," Conry said. "We have addressed many of the concerns that the union brought to the bargaining table. We are continuing to meet each day and are working amicably toward resolving remaining issues."

The existing agreement provides for the parties to use the services of a federal mediator to help resolve issues. The university and union have asked a federal mediator to attend several bargaining sessions next week.

"Ohio University is committed to working with AFSCME to complete a new agreement by our March 1 deadline," Conry said. "We expect to have a new agreement in place at that time."

AFSCME represents about 600 service and maintenance employees at Ohio University.