The so-called "Cadillac tax" on premium health insurance is no longer an issue, says union president Steve Beatty.
Steve Beatty (File photo)BRIDGEWATER -- Bridgewater-Raritan Education Association President Steve Beatty hopes news that Congress has passed a bill to push the "Cadillac tax" on premium health insurance back to at least 2020 will break the impasse in contract negotiations between the union and Bridgewater-Raritan Regional School District.
The two sides will hold a mediation session on Wednesday at 7 p.m. at the Wade Building in Bridgewater. The meeting will be proceeded by a rally at which Marie Blistan, vice president of the New Jersey Teacher's Association, is expected to speak.
"We need to settle this," said Beatty, whose union has been without a contact since June. "The singular issue the board had is over the so-called 'Cadillac tax,' which has been pushed back to 2020.
"Now that becomes a mute point. We're hopeful that the board understands that. We're hopeful to get a deal done tomorrow."
Beatty said if a new contact agreement isn't in place by Thursday, he will ask teachers to stop participating in any extra-curricular activities that they're not paid for. Those activities include Advance Placement review sessions and certain clubs, among other things.
"It's not a step we take lightly," said Beatty. "No one wants to have an impact on the students. But we need to put some pressure on the board."
A call to the district superintendent's office seeking comment was not returned.
According to a December press release on the district's website, the Bridgewater-Raritan Board of Education had proposed salary increases of 3.25-, 2.9- and 2.9-percent for the three years of the proposed contact.
But the board maintained it couldn't afford that if 94 percent of the education association members currently enrolled in Aetna Freedom10 remain in that health insurance plan, it was stated in the release.
Aetna Freedom10 is considered a "Cadillac" health insurance plan - or exceptionally expensive plan - under the Affordable Care Act. Beatty said it could result in a 40 percent tax penalty - or more than $1 million - for the district.
Beatty said he's hoping that the two sides can use the board's most recent proposal as a framework for renewed negotiations on Wednesday instead of starting all over again.
Dave Hutchinson may be reached at dhutchinson@njadvancemedia.com. Follow him on Twitter @DHutch_SL. Find NJ.com on Facebook.
