The loonie I have in my pocket today is 1.48 per cent less valuable than it was this time last year. Such is the reality of inflation. Fortunately for me, as part of the CUPE 391 union, I don’t need to worry: my wage increases each year in order to factor in inflation.
This is generally referred to as a Cost of Living Adjustment (COLA) and is often written into collective agreements for unions. The COLA clause makes sense: if you’re working the same job, providing the same value to your employer, you should be paid the same real wage (factoring inflation).
SFSS’s upcoming referendum concerns essentially that — the students act as the employer, while our health and dental provider, Desjardins, is dealing with inflation and asking for something like a COLA clause.
If you’re not familiar with the referendum, let me explain. It asks two questions. The first concerns offering an Enhanced Plan, which is $255 (includes a 10 per cent increase in basic dental, 10 per cent increase in prescription drugs, etc.) alongside the current Basic Plan at the price students currently pay ($198).
Well, obviously, we’re all in favour of freedom of choice. The tricky thing here is that if/when this first question passes, everyone will automatically be switched to the Enhanced Plan as a default. It will then be up to us to revert back to the Basic Plan if we want to.
The second question is where the COLA-esque clause is proposed. It asks if we are okay with the prices of our respective health and/or dental plans rising by a maximum of five per cent per year for the indefinite future, starting in the 2015-2016 school year.
When the Health and Dental Plan launched in 2008, we paid $198. Today, we still pay $198. Something had to give, and it did. Our plans have actually been scaled back three times, so our current plan covers less than it did in 2008. Now, while inflation historically hovers around two per cent, this yearly increase is also said to cover the projected increase in claims that Desjardins has to pay for.
If you’re okay with COLA clauses, then you should be okay with paying the two per cent inflation tax each year for your health and/or dental plan. When it comes to paying the other possible three per cent, it depends on whether or not you trust the intentions and the increased claims projections made by Desjardins.
If you choose not to pass this second question, our respective health and/or dental plans, whether they be Basic or Enhanced, will most likely be scaled back yet again in the near future.
We have to make due with what we have in this plan. At the end of the day, price increases are a result of our inflationary economic system. We’re angry when we see coffee costing us a dime more than last year, but it’s all relative. The referendum asks us to address this. Either you want to pay a little more to receive the same, or pay the same and receive a little less.
The choice is up to you, the members of the SFSS (all 25,000+ SFU undergraduates). We can vote from March 25 to 28 with ballots being sent to our SFU Connect emails. And, if you’re going to complain about the results, just make sure you’ve voted in the first place.
