1,100 UAW members at Blue Cross Blue Shield of Michigan strike
Lansing — About 1,100 Blue Cross Blue Shield of Michigan employees represented by the United Auto Workers walked off the job Wednesday after failing to come to an agreement on a new contract for unionized employees across the state.
Blue Cross employees on strike include those who work in call center jobs and claims processing.
Several UAW workers who are part of the technical office professional division picketed outside the BCBSM building in downtown Lansing early Wednesday morning about two blocks from the state Capitol and expected lawmakers to join them later in the day. UAW members also were striking outside of Blue Cross' downtown Detroit headquarters.
"These people are the heart and soul of Blue Cross Blue Shield," said Steve Dawes, director of UAW Region 1D. "They are the ones who take care of the people when they are in the most important time of need in their life."
The UAW strike of Blue Cross came two days before the auto workers union could begin striking the Detroit Three automakers. All three of the UAW's contracts with Stellantis NV, General Motors Co. and Ford Motor Co. expire at 11:59 p.m. Thursday.
The Blue Cross workers were protesting the outsourcing of jobs such as call center employees, unfair labor practices and wage disparity, Dawes said. Their contract expired at 12:01 a.m. Wednesday.
The UAW also has demanded that Blue Cross abolish a multi-tiered pay system that requires junior employees to work for 22 years before reaching the same pay as more senior colleagues.
“When the CEO of this corporation makes well above $15 million a year and it takes a new hire here 22 years to reach top rate, we have a serious problem with this company,” Dawes said.
Daniel Loepp, the longtime CEO of Blue Cross Blue Shield of Michigan, was paid $15.6 million in total compensation in 2021 on a base salary of $1.6 million, according to Crain's Detroit Business.
In a statement, Blue Cross said the strike would result in "longer wait times" for over-the-phone customer service.
"BCBSM has a contingency plan in place to address operations," company spokeswoman Helen Stojic said in an email.
The UAW local that represents Blue Cross employees has been reduced from as many as 5,000 workers to 1,300 over years of outsourcing the work, said Tina Gates, president of UAW Local 1781.
"Over the years, we have lost so much work. They've taken our work and given it to outside contractors," Gates said Wednesday as she and others picketed outside one of the Blue Cross Blue Shield buildings in downtown Detroit. "At one point we were over 4,000, 5,000 people (in the union) across the state. Now we have 1,300 people. So we're tired of bleeding. We're tired of them taking our work."
Lena Avery works on pricing and processing claims at Blue Cross. She's has worked for the company 21 years and it is her first strike. She said she has "mixed emotions" as she and her colleagues face the uncertainty that comes with a work stoppage.
"I'm happy for the fight that we're trying to have, but I'm also worried," Avery said. "Are we ever coming back?"
UAW members at Blue Care Network are separate from Blue Cross Blue Shield of Michigan. Their contract expires Dec. 15, Dawes said.
In a letter to UAW members provided to The Detroit News, the union said it had reached a "tipping point" with Blue Cross Blue Shield of Michigan on stagnant wages and retiree healthcare benefits. The letter argued the decision to strike was not taken lightly.
"In the days and weeks ahead, it is vital that we remain supportive and united," the letter said. "We must stand shoulder to shoulder, ready to take action, and remind BCBSM that our strength lies in our solidarity. Together, our voices will be heard, and our actions will shape the future."
UAW local unions on strike include Local 1781, Local 2500, Local 2145 and Local 2256.
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