Ever since 1987, there has been a stipulation in the collective bargaining agreement between the Incorporated Village of Mineola and the Local 808 of the International Brotherhood of Teamsters, which requires village employees hired after 1988 to share the cost of health insurance premium increases with the village. However, it has recently been discovered that since that time, no money was ever deducted by the village from the paychecks of union employees.

Section 4 of the most recent collective bargaining agreement, which is effective from June 1, 2003 to May 31, 2007, between the village and Local 808 states that the village will continue to pay full medical insurance premiums only for employees in service as of Dec. 31, 1988. Any new employees will be covered as follows: The village will pay the premium for insurance in the amount equivalent to that in existence as of June 1, 1988 ($4,301.16 per annum for family coverage and $1,877.64 per annum for individual coverage). Thereafter, the village will pay the first 5 percent increase in premium costs each year; thereafter, any further increases will be paid equally by the village and by the employee.

In addition, Section 4 states that the village is authorized to take a payroll deduction relative to premium increases for any such covered employee.

The collective bargaining agreement also states that half-time employees pay 50 percent of the costs of the premium incurred to provide health insurance.

It was discovered that the village continued to pay for the cost of full medical benefits even though the contract dictated otherwise. Mineola Mayor Jack M. Martins said that once the mistake was discovered, it was incumbent on the village to begin taking the proper deductions. Therefore, as of last week, the employee share of health insurance premium, as of the collective bargaining agreement, began being deducted from employee paychecks.

Village attorney John Spellman negotiated the contract back in 1987 but nobody ever implemented it. Each time the contract was renewed, the stipulation about employee contributions to medical carried over.

In essence, according to the contract, for anyone hired after 1988, which now includes the majority of the union employees who work for the village, if the health insurance premium for the prior year increases by 5 percent, the village absorbs the increase. However, the village and the employee percent are supposed to share any amount over five equally. For example, if the premium went up 10 percent, the village would be responsible for 7.5 percent and the employee 2.5 percent. "Over the years, that adds up," Spellman said.

The village attorney said as far as he knew, the stipulation was being enforced. "I was in total shock because in the last round of negotiations, which ended in the most recent contract, one of our counter proposals or demands was that all employees pick up 25 percent of their health insurance," Spellman said. "We ended up leaving everything as it is."

Spellman said at this point, whatever the premium is, the employee should be paying 17 percent. According to Mayor Martins, the difference for this year alone amounts to $150,000. The mayor also stated the employee contribution for a family health insurance plan is just under $2,000 a year; an individual would contribute about $1,100.

The union has filed for the arbitration process. The union includes the village employees in the department of public works, the water department and the village office staff. Some department heads are also members of the union while others are considered confidential employees and are not in the union.

Mayor Martins said the money began being deducted out of the employee paychecks beginning June 1 because the contract is clear. Mayor Martins said he spoke to the employees. "They feel it's unfair to collect it. I told them I don't have an option. I have an obligation to enforce that contract and I am going to do it," he said.

Mayor Martins said his concern is that the employees continue to provide the quality services residents are accustomed to while the issue is being resolved.

The mayor said it is mind boggling why the village never collected the money from the time the contract stipulation went into effect. However, Mayor Martins said that once the oversight was discovered, it is incumbent on the village's elected officials to begin to make the proper deductions to protect the interests of the taxpayers of the village.

The village's failure to collect the partial costs of increases in health insurance premiums was one of the factors that led to longtime village treasurer Richard Dwyer losing his job. The mayor and the board of trustees also voted to replace the village independent audit firm of Rynkar, Vail and Barrett with the firm of Albrecht, Viggiano, Zureck and Company, PC.

Since Spellman negotiated the contract for the village, the board of trustees and the mayor had to hire an outside law firm to handle the arbitration process on the part of the village. The mayor and the board voted to hire the firm of Ryan, Brennan & Donnelly.