Unionized Foster City employees have decided to forgo raises over the next three years in favor of increases to their medical benefits, which have lagged behind those of other city workers.
The new three-year deal means 90 Foster City workers represented by the local unit of the American Federation of State, County and Municipal Employees will receive substantially more money every month to put toward health insurance. 

The City Council approved the deal unanimously Monday night. 

It also approved a new compensation plan for 52 nonunion employees, a group ranging from the city manager to video producer, that provides for modest salary increases.

Under the current deal, union employees who opt out of the city health plan receive $365 per month toward health insurance. Those who participate in the city plan receive $570 to $830 per month toward health insurance, depending on the size of their family. 

The new plan, which goes into effect July 1, increases those amounts incrementally over the next three years. 

By July 1, 2012, employees who decline the city plan will get $650 every month, while those who opt in will receive $948 to $1,631 toward the cost of health insurance.


Submitted by Jim Alex