Employee recruitment effort causes controversy in California water district
In a bid to improve its employee recruiting and retention rates, the Otay Water District in San Diego County, California, recently approved lifetime healthcare benefits for its union workers.
In exchange for workers contributing 8.75 percent toward their pensions - a hike from the previous 1 percent - the district will eliminate the caps on its contribution to retirement healthcare, according to KNSD-TV. The district will cover healthcare costs for employees and most of their spouses after they leave.
In response to widespread consternation from ratepayers, many of whom attended a recent board meeting to oppose the change, the board offered assurances that they would not have to foot the bill.
"There will not be any rate increases because of the action tonight - the employees are covering that cost," said Mark Watton, general manager of the district, as quoted by the news source.
Voice of San Diego notes that senior district officials proposed the benefit extension with the aim of saving money on an annual basis, although the first savings will not be seen until 2018.
In exchange for workers contributing 8.75 percent toward their pensions - a hike from the previous 1 percent - the district will eliminate the caps on its contribution to retirement healthcare, according to KNSD-TV. The district will cover healthcare costs for employees and most of their spouses after they leave.
In response to widespread consternation from ratepayers, many of whom attended a recent board meeting to oppose the change, the board offered assurances that they would not have to foot the bill.
"There will not be any rate increases because of the action tonight - the employees are covering that cost," said Mark Watton, general manager of the district, as quoted by the news source.
Voice of San Diego notes that senior district officials proposed the benefit extension with the aim of saving money on an annual basis, although the first savings will not be seen until 2018.
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