The Daily Globe - Serving Gogebic, Iron and Ontonagon Counties

Ontonagon village reaches tenative union agreement


December 31, 2019


Ontonagon — The Village of Ontonagon has reached a tentative agreement with the American Federation of State, County and Municipal employees union for a collective bargaining agreement starting Jan. 1.

The sides tentatively agreed to a three year contract which:

—Kept the current plan.

—Added steps to longevity with 25 years at $0.30 and 30 years $0.35

—And increase of 2% in wages for the three year term of the contract.

The contract also eliminates post-employment health insurance by 2025 and establishes health care saving plans for employees with 1% employee contribution and 1% match. Employees may have up to 40 hours of leave time paid into the health care savings plan annually.

The Personnel Committee members, which negotiated the proposal with the union, explained the contract has a maximum financial impact of 9% over three years, with assumptions of health insurance cost increases at 15%. There is also a contract reopener if health insurance costs exceed 15%. It was also explained that health insurance cost increases have not exceeded 10% in the last few years.

It was further explained that elimination of the post-employment health insurance cost sharing eliminates a future liability and the establishment of a health care savings plan, through Municipal Employees’ Retirment System, allows for a pre-tax saving plan that employees can use for health insurance premiums and other medical expenses upon retirement.

The village council Monday unanimously approved the agreement.


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