Decision 1045E – Oakland Unified School District

The association must show an impact on the actual health benefits received by employees resulting from the change in health plans in order to meet the burden of showing that the change constitutes a violation of EERA; p. 4.

In cases involving changes in health plans and health plan administrators, the change is negotiable only if it has a material or significant effect or impact on the actual benefits received by employees; p. 3. A change in the cost to employees of the health benefits received is a material and significant impact requiring negotiations.

To excuse a unilateral change due to business necessity, the district must prove that the financial crisis offered no real alternative to the unilateral action and prevented any opportunity for meaningful negotiations; p. 10, proposed decision. Although the district was clearly having financial difficulties, several options, short of unilaterally terminiating the existing health plan, were available to the district. The district also failed to prove that its financial condition allowed no additional time for further negotiations or for completion of the impasse procedures; p. 11, proposed decision.