(BUFFALO, NEW YORK) – It’s not every day that you hear about an employer approaching representatives of its Union-Represented Workforce to ask that negotiations begin six months before a current contract runs out, but that’s exactly what happened at BlueCross BlueShield of Western New York (BCBSWNY) when the Health Care Insurer approached representatives of the Office & Professional Employees International Union (OPEIU) Local 153 here in Buffalo.

As a result of what can only be described as a stellar Labor-Management relationship, it was just announced that the 450 OPEIU-represented Office and Clerical Workers employed at BCBSWNY’s Downtown Buffalo Waterfront Headquarters have ratified a new three-agreement by a final tally of 186-to-39, and are set to enjoy a contract that calls for a 7% wage increase over the next three years, as well as other improvements.

“(BCBSWNY Management) ‘requested early negotiations with the hope of getting a successor agreement,’’” OPEIU Local 153 Business Representative Mark Jurenovich told WNYLaborToday.com Monday (November 12th) during an interview on the new contract.  “(BCBSWNY Management) are ‘good people. Their people in Human Resources ‘are good to work with.’  They were ‘very professional’ (during negotiations).  I have ‘no’ complaints.”

Negotiations on the new contract, which runs through April 2022, initially began in September 2017 when BCBSWNY Representatives reached out to the OPEIU, Jurenovich said.  The new contract was reached on November 1st and was subsequently ratified by the OPEIU Membership.

“It is a ‘well-established concept’ that the parties’ ‘day to day’ relationship will often ‘set the table’ for the tone and tenor of upcoming negotiations for a successor agreement.  That was ‘certainly true here,’” Jurenovich said.  “The fact BlueCross BlueShield ‘values’ their Employees ‘to this degree, and considers them as true partners in their mission to provide a quality product for its many subscribers in Western New York, made it possible to reach this new agreement.’”

According to OPEIU, the new deal calls for: An overall 7% wage increase (1.75% in year one, 2.5% in year two and 2.5% in year three); No changes in the Workers’ Health Care Plan (“There is no increase in their contributions,” Jurenovich said); A Dental Plan whose cap was raised from $1,000 to $1,750 before OPEIU Members are responsible for costs; and an Early Retirement Incentive is being offered to as many as 50 Workers.  “The company is reaching out to eligible Members to see if they are interested,” Jurenovich said.

BCBSWNY is the only health insurance provider in the region with a Unionized Workforce and has a 62-year history with OPEIU.  The Buffalo AFL-CIO Central Labor Council honored BCBWNY for its commitment to Organized Labor in December 2017.

Labor Relations between OPEIU and BCBSWNY remain at a high point, with trust, respect and mutually aligned goals reflected in the decision to proceed with a new contract more than five months prior to the expiration of the current Collective Bargaining Agreement, Union and management officials agreed.

The announcement came five years after BCBSWNY CEO Anderson’s arrival at the company, and his pledge to focus on Employee engagement and leveraging Labor Relations to grow the health plan’s business relationships. 

“The Employees represented by OPEIU, Local 153 are ‘Brand Ambassadors’ for BlueCross BlueShield of Western New York.  ‘They are on our front line in good-paying, high-benefit jobs’ in our Customer Service and Administrative areas,” BCBSWNY CEO’s David Anderson said. “I’m ‘pleased’ that Labor provided this opportunity and that our management team ‘has achieved a remarkable milestone’ for our company’s Labor Relations.”

BCBSWNY, which is a division of HealthNow New York Incorporated, is the Western New York Region’s largest health insurer, with 1,900 Employees and 800,000 members.   

The company opened its headquarters on Buffalo’s waterfront – which was built under a Project Labor Agreement (PLA) that employed Skilled Trades from all 17 Member Unions of the Buffalo Building Trades and Construction Council - in August 2007.  

The site is the largest LEED-certified building in Western New York and the $110 million project incorporated one of the most extensive brownfield remediation in New York State.  

It brings more than 1,900 people to the heart of Buffalo each day and has an estimated annual economic impact of $4 billion.

Meanwhile, OPEIU’s Jurenovich told Your On-Line Labor Newspaper that BCBSWNY plans to hire new Workers to replace those who decide to take the Early Retirement Incentive that’s currently being offered.  In September, BCBSWNY hired 28 new Employees in its Office and Clerical Departments, he said.  “They’ve ‘been busy,’” he added of BCBSWNY.