Special Town Meeting narrowly supports home-rule petition on insurance

November 12, 2010

From left, Town Clerk Janet Vellante, counter Jim Ware, Moderator Bob Eubank, and counter Pat Jennings confer on the number of yes and no votes on Article 5. (Photo by Lisa Aciukewicz)

In the closest vote of the evening, Harvard’s Special Town Meeting (STM) authorized the Board of Selectmen to ask the state legislature for the power to choose the insurance plans that cover town employees without having to negotiate with employee unions over the decision. The measure passed 138 to 117, in the only vote that required a count to be sure of the result.

A number of towns and cities are passing similar measures, in an effort to pressure state lawmakers into reviving a bill that would grant all municipalities this power, according to Selectwoman Marie Sobalvarro, who spoke in support of the article. The Finance Committee also supported the article, saying in its recommendation, “[T]he proposed legislation would allow the town to unilaterally create and change coverages, co-pays, deductibles, etc. The commonwealth has this ability, and so should the cities and towns.”

That unilateral ability to make changes was exactly what sparked opposition from town employees and others who spoke against the article. Bromfield teacher and longtime resident Sharlene Tuttle said that passage of the article would “send a negative message to town employees,” a point reemphasized by other speakers, including police officers Kim Murphy and Greg Newman.

Both supporters and opponents of the article recognized that the four town unions—representing teachers, police, dispatchers, and public works employees—had cooperated with town boards in renegotiating health insurance coverage last spring. That process involved numerous meetings between October 2009 and March 2010. Sobalvarro noted, “We are tremendously grateful” for the cooperation.

Arlene Sullivan, who was a teacher representative at those negotiations, pointed out, “The employees did their share, and did it within the parameters of collective bargaining.” She objected to changing the way of making insurance decisions “just a few months into a three-year contract.” [Editor’s note: The term of the teachers’ contract is actually one year.]

Several residents who work in the private sector described how employers handle health insurance there. Helen Demakes argued, “This is not a personal issue … in the private sector, it is unheard of for employees to pick the insurance plan.”

School Committee member Piali De noted that, as the owner of a business, it is her prerogative to decide what insurance plan to offer. “But I must factor in the desire to be competitive with other employers, to remain attractive to employees,” she said. And Paul Green said that employers often change health insurance providers because that is the best opportunity to bargain for lower premiums.

George McKenna of the Finance Committee summed up that group’s position, saying, “I’d like to bring some common sense to this … Health costs are budget busters for towns.” He argued that the town needs the power to select an insurance plan “to be more competitive.”

Although the measure passed, it will not have any effect on insurance for town employees unless the state grants the selectmen’s petition.

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