JUTC puts brakes on strike amid talks in health insurance stand-off

The Jamaica Urban Transit Company (JUTC) yesterday headed off a row with workers that would have resulted in industrial action, which was triggered by a decision of Canopy Insurance to impose a further 10 per cent increase in the cost for health premiums.

The insurance provider last April instituted a 10.5 per cent increase in the cost for the health plan jointly paid for by JUTC and its workers and this month proposed a further 10 per cent increase.

University and Allied Workers’ Union (UAWU) First Vice President Clifton Grant said Canopy “unilaterally” blocked workers from using their health cards even as JUTC continued to deduct premiums.

He said this angered workers, some of whom “did not fully engage” on Thursday. He said they are back on the job and have given the undertaking that they will await the outcome of discussions between Canopy and JUTC’s management next week, with a close eye on the direction the insurance company takes in terms of premium adjustments.

‘Unfair to the workers’

“Last year, they got 10.5 per cent increase and came back this year for an additional 10 per cent. We’re saying, ‘No, that is unfair to the workers’. The workers [are] not getting that level of salary adjustment to be able to be absorbing those levels of increase,” Grant told The Gleaner.

He said the premium paid into the plan annually exceeds $120 million.

The UAWU represents 1,200 of the approximately 2,000 JUTC workers, while the Union of Clerical, Administrative and Supervisory Employees represents nearly 600.

The JUTC, in a news release yesterday, said it is actively engaged in discussions with representatives from UAWU and Canopy to address concerns raised by staff regarding the proposed increase in health insurance premiums, which was slated for April 1.

It said arising from a meeting early yesterday, coverage has been restored for one month at the old rates to facilitate further discussions.

Another meeting is scheduled for Monday.

“It is important to note that negotiations between the JUTC, Canopy Insurance and the unions representing staff have been underway since March 8, 2024. The JUTC remains committed to all stakeholders to ensure the well-being and satisfaction of its employees,” the company release said.

Grant said the union looks forward to the discussions and that he is expecting the parties to come “prepared”.

“We have said to them, ‘The workers are not in a position to absorb an additional increase’. We’re hoping that come next week, they will reconsider their position. And if they have to get an increase, the company finds a way to deal with it,” Grant asserted.

At the same time, he said the UAWU is not prepared to make a declaration in terms of its next move.

He said all parties have committed to taking a month to fully discuss the issues and that the UAWU is hoping by that time there will be consensus on the way forward.

kimone.francis@gleanerjm.com