Healthcare Plan Project

After a difficult bargaining season, your UAW Local 6000 Bargaining Team reached a Tentative Agreement with the Office of State Employer (OSE) late Wednesday evening, October 9, 2024. This included an innovative attempt at resolving the rising costs of healthcare for both the Employer and the Employees. Although the Union does not negotiate healthcare premiums, the Employees are still responsible for 20% of the costs while the Employer is responsible for 80%.

The Civil Service Commission has delegated its authority to negotiate with healthcare providers and insurers over plan selection and design to the Employee Benefits Division (EBD). The International UAW has developed relationships with healthcare providers and insurers as well as expertise in healthcare plan design and negotiation over healthcare costs due in part to its broad representation of a substantial number of both private and public sector employees located in the State of Michigan and its participation in Voluntary Employee Benefit Association (VEBA) that provides healthcare coverage to retirees of the Detroit Three automakers.

A Letter of Understanding was signed which states in part “The parties agree to jointly request a meeting with the Civil Service Commission and Employee Benefits Division to become more familiar with the process by which healthcare premiums are established. The parties further agree to explore possibilities for the Union to provide expertise and utilize their resources with the goal of containing healthcare costs.”

It is the Union’s belief that forging this joint venture is a win-win. Both the Employer and Employee can save from participating in these discussions. Although the rates have already been set for the 2025 fiscal year, we have plenty of time to hopefully impact future rates.

It is our intention to start this process as soon as possible. We will keep you posted on our progress.