The union representing 41 full-time and 29 part-time employees at Heritage Living Center in Park Rapids voted overwhelmingly Monday to reject their employer's latest contract offer.
According to Joanne Derby, business agent for Minnesota Teamsters Public and Law Enforcement Employees' Union Local 320, an intent to strike notice was filed Wednesday.
Thursday afternoon, Kurt Hansen, Heritage Living Center administrator, said he had not received notice from the state Bureau of Mediation Services, but had heard about the vote from the union.
"It is our intent to get back to the bargaining table next week," Hansen said, adding the employee vote was taken after only one mediation session.
Once the strike notice is filed, state law requires a 10-day cooling-off period.
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Increasing out-of-pocket costs for health insurance coverage mean the employees' wages have shrunk the past few years, Derby said.
Before the last contract offer, the union had filed a grievance against Hubbard County for allegedly violating the prior labor agreement, which called for employees' single coverage costs to be paid in full.
The county's contribution was cut from $461 to $384 a month for single coverage while the county was paying $419 of the cost for other employees.
The matter has been scheduled for arbitration, but has not yet been heard.
Now, Derby said, the county's latest wage proposal delays a wage increase of 25 cents an hour until April 1, "which, in essence, will pay for the back pay on the health insurance."
The union had asked for the wage increase to start Jan. 1.
Currently, the union members' average rate of pay is $9.64 an hour. Derby said in the last few years, the employees have given up pay increases and benefits, including dependent coverage and personal leave, to maintain their health benefits.
In addition, she said one reason insurance is such a big issue for this group is that county employees, who work 32 hours or more, are mandated to be included in the health insurance plan. They can't opt out even if they could be insured under a spouse's policy, Derby said.
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Finally, Derby points out that Heritage received about $65,000 when the Legislature allocated money in the 2005 session to help boost wages for nursing home employees statewide.
Rather than apportioning the distribution among employees equitably, members of the union she represents were targeted to receive the least on a per-member basis, Derby said.
The existing contract expired June 30, 2005, and the parties have been negotiating a contract that would expire Sept. 30, 2006.
Employees represented by the Teamsters Union include activity, maintenance, housekeeping, dietary, laundry and certified nurses aides and universal workers.
Heritage Living Center is a county-owned long-term care facility, managed by Ecumen, a not-for-profit Lutheran Church affiliated organization based in St. Paul.
