USW Local 2-232

formerly PACE 7-232

Representing  employees at Briggs & Stratton Corp. and Strattec Security Corp. in Milwaukee, WI

Season's Greetings 

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Membership Meeting 

Sunday January 18, 2009

Frank Monreal's El Matador

9155 W. Bluemound Rd. Milwaukee 

9:30a.m.

Nomination and Election will take place for Recording Secretary to fill the vacancy of Karen Clark, who is retiring January 1, 2009

Nominations will take place for the following positions:

Trustee at Large, Strattec Grievance Rep, Briggs Grievance Rep, 2 Briggs Bargaining Committee Members

   Members are urged to Attend this Meeting.

At Strattec - In May Compcare pushed to insure everyone, in September they want to insure no one

               After aggressively seeking to be the sole HMO offered to Strattec employees while we were negotiating the current contract in May of 2001, Compcare notified Strattec that they would not keep the agreement that had been reached. Compcare notified Strattec on September 28th that they intended to increase rates 24.9% effective November 1, 2001. This increase was in addition to the 26% increase in rates in July. This increase was also in spite of quoting the current rates based on a 1-year commitment to those rates.

               Compcare made it clear that if this increase was accepted, Strattec could expect more similar increases. In effect, Compcare made it clear that they no longer wanted our business. Apparently, they are becoming an insurance company that doesn't want to insure anyone.

               Strattec promptly notified the Union of the problem and the members of the Bargaining Committee were involved in meetings with the president of Compcare and in the process of seeking a plan to replace Compcare.

               At the meeting with Compcare, it was made clear that they did not want to continue insuring Strattec employees. It was however agreed that Compcare would honor rates that had been agreed for the period ending June 30, 2002 until the end of 2001 as long as Strattec agreed to find a different carrier for after December of 2001.

               After researching the options, Strattec contracted with United Health Care, the company that includes the former Prime Care HMO, to administer an EPO (Employer Provider Organization). United Health Care will make its network of health care providers available to the Strattec EPO and they will administer the plan. This means that members will be carrying ID cards for United Health Care and bills will go to United Health Care, but the cost of the medical services will be paid entirely by Strattec.

               The biggest difference will be for members who had used Aurora providers under Compcare. They will need to find new providers from those affiliated with United Health Care. United Health Care does not have an agreement with Aurora.

               Most insurance plans now require that participants receive services from a limited list of providers. This is because the insurance company negotiated special rates and fees with these providers which helps to control cost. By partnering with United Health Care in this EPO, Strattec and our members will benefit from the reduced costs they have negotiated with their providers. United Health Care is also the most financially sound provider in the Milwaukee Market. They are a nation-wide company, the second largest in the nation.

               Strattec received bids and estimates suggesting that the present rates may not be sufficient for the cost they may incur. However, they chose to maintain the premiums presented in the contract until the normal July 1st date. By that time, they will have at least limited experience from the plan to help them evaluate the necessary premium. Based on that experience, the rates will be adjusted July 1st. There will be an open enrollment process then in case the adjustments create reasons for members to change plans. The Union will go over this information prior to the rates being announced to understand the reasoning for any adjustment.

               At the end of 2002 there will be another open enrollment period with another rate adjustment based on considerably more experience.

               This will establish the rates and chosen plans for the year of 2003. From that time forward, enrollments and rate adjustments will be done on an annual basis.

               In order to achieve the best rates for all insurance, it was agreed that United Health will administer all health insurance plans, including the PPO plan formerly administered by MSA.

               Open enrollment will be held November 12th, through November 30th. All members must sign up for coverage during this period or they will have no coverage in 2002.

               Through this difficult situation, Strattec kept the Strattec Bargaining Committee fully involved and made every effort to maintain benefits as described in the contract. Health insurance will continue to be a difficult issue as we go ahead and we are  sure to continue to have disputes about benefit levels and who pays what.