St. Paul teachers propose mediation in health-insurer dispute

The union representing St. Paul’s teachers has countered a district threat to sue it over a potential multimillion-dollar health-insurance dispute by offering to take the issue into mediation.

Meg Luger-Nikolai, an attorney representing the St. Paul Federation of Educators (SPFE), proposed Wednesday that the two sides meet no later than Aug. 30.

This spring, SPFE and Teamsters Local 320 voted to switch from the district’s current insurer, HealthPartners, to the state-run Public Employees Insurance Program (PEIP). But the move would come in the middle of a two-year contract with HealthPartners, triggering a $4 million penalty for the district.

Last week, the union offered to delay the move to January 2021 if the district boosted individual and family benefits to reflect the savings members could have received next year. SPFE said its proposed compromise would total about $1.5 million; the district said it actually would cost about $3.6 million.

On Friday, the district accused the unions of bad-faith bargaining, and threatened to sue them for “any and all damages” if they proceeded with plans to switch insurers in January.

The proposal to work with an independent mediator was offered late Wednesday afternoon, and the district did not yet have a formal reply.

“District leadership and the Board of Education are thoroughly reviewing the information we’ve received and are considering all our options,” Kevin Burns, the district’s communications director, said Wednesday.

SPFE President Nick Faber said in a news release Wednesday: “It would have been easier, and faster, for us to respond to the district by filing a claim in court over their refusal to follow the law and facilitate our members’ enrollment in PEIP. Instead, we remain committed to working with district leaders to find a meaningful solution to this issue that best serves our students and our members.”

The union has requested that district reply no later than Friday.

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