BNA Provides Estimates on Contract Costs

(Feb. 26, 2010)  During a recent bargaining session, BNA provided an estimate of how much its healthcare changes would save the company.

BNA estimated that if its proposed 20 percent co-insurance, deductibles, and maximum out-of-pocket had been in effect last year, it would have saved BNA about $700,000. That doesn’t include the spousal surcharge of $450/month for employees whose spouses have access to full health benefits at their own employers.

BNA also provided more figures that confirm that its proposed stipend for Medigap insurance could wind up costing retirees.

BNA has proposed a $150 per month stipend to buy Medigap insurance or Medicare Advantage, which replaces Medicare. The figures show that some Medigap plans could cost more than $400 per month, and even the lower-cost Medigap plans would exceed $150 per month.

The Guild has proposed a $600 per month stipend.

BNA on Feb. 24 withdrew two proposals that would have reduced seniority rights in the event of a RIF. In a unit subject to a RIF, the company had proposed that management would have the right to pick 25 percent of employees in the unit and protect them from the RIF, meaning that higher-seniority employees could have been RlFed instead. It also dropped a proposal to reduce bumping rights for RIFed employees.

In response, the Guild agreed to move the bumping period earlier in the RIF period, instead of during the last two weeks, which is the current practice. The Guild also agreed that a bumping employee could be placed on probation in the new job if the company believed he or she might not be able to do the job – but only after providing training.