School district sues union over health plan

Erica Johnson

Tuesday, July 24, 2001 | 10:12 a.m.

The Clark County School District has sued the union that covers school bus drivers, custodians, secretaries and other support workers to force it to continue health insurance for more than 150 retirees and 35 dependents.

As of Monday the Education Support Employees Association had agreed to continue to cover the retirees until arbitration, which is expected to take place Aug. 15.

The insurance, which is funded by the school district, has historically provided health coverage to all nonlicensed employees and their dependents.

Bobby Mancuso, president of the ESEA executive board, said the union planned to drop the retirees July 31 because of budget cuts, but never went through with plan.

Mancuso estimated the company would save about $500,000 per year by dropping the 150 retirees.

The complaint, filed Friday, names Mancuso and each board member and trustee, saying they share joint responsibility in cutting off the retirees without bargaining with them.

C.W. Hoffman, the school district's attorney, said in the complaint that the union is obligated to bargain with the district over insurance benefits for its support staff employees under the current collective bargaining agreement.

At the time of retirement, Hoffman said, employees had an option to continue the insurance or join the public employees benefit program. Retirees must choose within 30 days of retirement.

Hoffman said that if no notice is given, the retiree is deemed to have selected the option to cancel the coverage or not join the public employees benefits program.

According to the complaint, "for those who had the choice upon retirement and opted not to join the public employees' benefits program in favor of continuing with the trust's coverage, they have forever lost the opportunity to participate in the state's program.'

But Mancuso said the school district has ulterior motives.

"Everything that the district is doing has one meaning -- to get the members on an HMO-based Sierra plan," he said. "That's what this arbitration is all about.'

Mancuso said the ESEA has found alternate insurance for some retirees through the National Education Association Members benefits.

He said the ESEA will next week send literature to the retirees in the mail, explaining that they will be covered for an unspecified amount of time.