Negotiate this with the City's Unions?

The issue of the City of Huntington maintaining a self-insured employee health insurance program:

The City will take the projected expenditures for the 2008 self-insured employees health insurance program, 5.6 million dollars, and use those funds to up-grade all salaries and wages for all city employees, except department heads, who work at the pleasure of the Mayor, the Mayor and City Council members. In turn, the employee unions' members agree to pay monthly premiums for a group health insurance policy written, and bid upon, by local health insurance companies, and administered by whomever the unions choose. The level of benefits would be determined by a vote of the unions.

In short, the employees get raises and use some of that money to pay their own monthly premiums for the group health insurance. Of course, I don't have enough information to do the math, but the addition of $5,600,000. to the City's personnel expense line-item for salaries and wages should allow for a living wage for all workers covered under the new union contracts with the City.

The City of Huntington's employee pension plans:

Effective on June 1, 2008, all new-hires would be offered participation in a 401-K employees' retirement program. Contributions would be fully made by all employees hired after that date. All employees presently covered under the current pension plans would remain in those plans. However, the City of Huntington would cover the current unfunded-liability amount and keep pension plans properly funded. The unfunded liability will have to be covered by a creative financing plan that must be explored. Although it will take time, eventually the old pension plan will end, as attrition occurs. What do you think?
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