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The battle over rising health-care costs in the US is getting testy.
PepsiCo workers in upstate New York are fighting a $50-a-month levy imposed by the company on workers who smoke, The Post has learned.
Roughly 400 workers covered by a Teamsters contract filed a complaint with the National Labor Relations Board last month seeking information surrounding the health plan so they can shop for a better deal.
The union claims that under its contract it is entitled to the information but that PepsiCo has not furnished it. The members are also angry that the beverage and snack giant changed plans without telling them.
“They never told us that they were going to a different plan for employees,” said Bob Firmstone, secretary/treasurer of Teamsters Local 693, adding that he found out about the new sin charge last spring through his members.
Stephen Hicks, union steward in a Pepsi plant in Latham, NY, smokes one to two packs of cigarettes a day and is paying the $50-a-month penalty.
“I can understand the penalty to a degree,” he said. “But we pay enough as it is. I believe if we can get better pricing and benefits, we can toss this plan out.”
Hicks said 15 percent to 20 percent of the workers in the Latham plant smoke.
PepsiCo in February started charging workers in its recently acquired bottling division $50 a month if they smoke. The company will waive the fee if workers participate in a four-to-six week anti-smoking program — whether they quit or not.
The union locals filing the action also serve workers in Binghamton, Syracuse and Utica bottling plants.
The NLRB told The Post it plans to finish its investigation this month and decide whether to issue a complaint.
While there is a national trend to charge smokers more for health care, this is almost always negotiated with unions when worker contracts expire, a national health-benefits lawyer who requested anonymity said.
The Teamsters union maintains that under its 2010 labor pact it has the right to shop for the best health plan, and PepsiCo is not giving it enough information to seek a better deal. PepsiCo says under HIPAA laws, which protect health-care privacy, it cannot furnish the information, Firmstone said.
The health-benefits lawyer said to end the dispute the unions can ask their members to waive their rights.
Nationally, companies are increasing the use of sin penalties to encourage healthier lifestyles and lower health-care costs.
PepsiCo also is charging those with chronic conditions such as diabetes a $50 monthly penalty if they do not take a class on developing healthy eating habits.
A Towers Watson study of 335 businesses showed the use of penalties more than doubled from 2009 to 2011, rising from 8 percent to 19 percent, and is expected to double again by 2012.
A PepsiCo spokesperson said, “Ultimately, the goal is to enable our associates and their families to live healthier lifestyles. For example, if you have a heart condition or diabetes and agree to work with a health coach, the surcharge is waived.”