When elected County Executive, I pledged to never sign a new union contract that did not deal with the strangling cost of retiree health care in a real and meaningful way.  Previous administrations have negotiated union contracts that included free retiree health care for life.  As a result, today, Erie County has an unfunded liability for retiree health care costs totaling $750 million.  This staggering number is simply unaffordable and unfair to taxpayers.

I am happy to report that one year into my administration, Erie County and the union representing county nurses recently agreed on a historic new contract that upholds my pledge.  This new contract impacts nurses working for Erie County’s Health Department, as well as nurses at Erie County Medical Center (ECMC).

Provisions of the new contract include:

• New hires will no longer receive retiree health care
• Current employees will pay 50 percent of their retiree health care costs (nurses within five years of retirement are exempt)
• New hires will pay 15 percent of health insurance costs
• Current employees will pay 15 percent of any increase to health insurance costs
• Elimination of summer hours
• Reduction of two paid holidays
• New hires will receive a 30 minute paid lunch (current employees receive one hour)

This new contract also recognizes the hard work and vital skill set of our county nurses.  As a result, this new contract gives our nurses a much need raise.  County Health Department nurses will get an immediate 10 percent increase in salary (covering the past three years of expired contract), as well as 3 percent increases each of the next three years.  Nurses at ECMC will now receive wages that are competitive with Kaleida Health. 

This new contract is critical for several reasons.  First, it sets the template for future contract negotiations with other county unions.  The new nurses’ contract demonstrates my commitment to deal with retiree health care costs, and I hope the leadership of our other county unions recognize this reality moving forward.  As the nurses’ contract proves, significant changes in retiree health care will be accepted by union employees when they receive a fair increase in wages.   

This new contract is also a significant step forward in the effort to merge ECMC and Kaleida Health.  Future collaborations and an eventual merger proved impossible when such a large difference in wage and benefits existed between nurses at the two organizations.

Finally, this contract is a major victory for our children, grandchildren and unborn generations.  The taxpayer savings generated by this new contract in the short term are small, but they grow significantly in future years as retiree health care costs come due.  If the County is able to negotiate similar contracts with our other unions, we will be able to save $400 million in retiree health care costs. 

As County Executive, I will never sacrifice the long term success of our community for short term gain.  For too long, Erie County has been ill served by shortsighted, political decisions.  We all must demand better.