AC Transit delays healthcare switch as unions push back

""This is a direct attempt to change a section of a legally binding collective bargaining agreement," a bus driver named Lupe Miller said. "An agreement that was reached through negotiations, compromise, and mutual respect. A contract signed is a promise, not a suggestion. And any effort to change or modify agreed-upon language undermines the integrity of the collective bargaining process itself.""

"The healthcare decision was communicated to members in a letter on December 1. That letter, signed by Leonard Bellow, the agency's labor program administrator, said the agency intended to replace its current insurance carriers effective January 1, 2027. "With rising health care costs contributing to the District's ongoing financial deficit, it is imperative that we pursue fiscally responsible measures to ensure long-term sustainability," Bellow wrote."

AC Transit announced plans to switch health insurance from Kaiser Permanente and Health Net to a CalPERS marketplace, sparking outrage among bus drivers and unions. Members of AFSCME Local 3916 and ATU Local 192 expressed their concerns at a board meeting, arguing that the change violates a legally binding collective bargaining agreement. The contract stipulates that modifications can only occur due to state or federal regulations. The agency's labor program administrator cited rising healthcare costs as a reason for the change, which is set to take effect on January 1, 2027.

Read at The Oaklandside