Westin employees face a difficult situation
According to the company and the union, the new terms would cut union salaries by 20 percent. Employee contributions to health care would increase to 43 percent of the total premium cost.
For those on the Blue Cross & Blue Shield family plan, that means $101.64 a week; for individuals, it’s now $35.79 a week. Originally, union members paid about $44 a week for the family plan and $9.75 a week for the individual plan.
The union says that members would also have to pay a $500 health-care deductible for the first time. “It’s a double-whammy of a pay cut and a health-care increase,” says Lavendier, who said he stands to lose $200 a week in pay.
A 20% pay-cut, insurance contributions tripling, and the implementation of a deductible. There's no doubt that those are some drastic changes in compensation, and I wouldn't blame the Westin's employees if each and every one of them gave their two weeks notice and found a different job. Of course, we're talking about unionized workers, so they feel as if they're entitled to these jobs.
If you think about it, wages are a simple matter of supply and demand. If every one of those workers left their job, could the Westin replace those employees at the reduced pay and benefit rate? I believe they could, which means that's what those jobs are worth. On the other hand, if employees feel that they are worth more than their reduced pay rate, then they could easily find a job paying them what they are worth. The equilibrium would be reached. Of course, this won't happen with union interference and a group of people who feel they are entitled to a job.
They might not have noticed, but millions of people in the United States don't have health insurance, and Rhode Island's unemployment rate is almost 13%. A steady job and insurance for just $35.79 a week? If those employees did leave, I have no doubt their jobs would be filled quickly.




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