[quote=CA renter] . . . I would also add that the pension contributions ARE a part of an employee’s compensation because the employers/employees take into account the total compensation for their employees during contract negotiations. Other items are increased or decreased based on the different components of employee compensation, including pension contributions.[/quote]
Absolutely true. At a “bargaining table” for a public sector contract, it is not uncommon for the employer to “take away” a benefit for another and the union to agree to it.
For instance:
-new “Cafeteria Plan” (giving employees more choice) in exchange for lowering the employer healthcare contribution;
-“enhanced” retirement benefits (changes in pension formula) in exchange for changing sick and annual leave to “personal leave” and dropping the rate of employee leave accruals;
-2 to 3 more step-increases for “maxed out” employees in crowded career clusters in exchange for reduction or elimination of shift differentials in same career cluster;
-and the addition of vision care and health club/alternative medicine discounts in exchange for charging smokers and obese employees a little higher employee contribution of benefits.
I’m not saying all of this is done but only that the parties can make any agreement in there (which follows the law) that each side agrees to.
Both sides privately “caucus” throughout the sessions to determine the value of the “whole nut” (all the agreed-upon proposals and those still on the table thus far) that they will be paying out or giving up, as the case may be.
