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The skyrocketing cost of health care is increasing conflict between employers and unions, and as costs continue to rise, the tensions likely will too.

Over the next year, health-care costs are expected to rise more than 10 percent, according to a survey of insurers by Aon Consulting Worldwide. That's the smallest increase the consulting firm has seen in the past six years.

As a result of such soaring costs, employers have been turning to their employees to defray the expense. Locally, Qwest Communications International Inc. is turning to members of its largest union to contribute to their monthly premiums for the first time, and the defense contractor Raytheon Co. is involved in a federal lawsuit regarding health costs for early retirees.

James Watson, a union representative of Raytheon workers and other employees of defense contractors throughout the state, said in recent years paying for medical expenses has become the key issue during negotiations between employers and workers.

"The majority of labor disputes are around the issues of health care," he said.

In past negotiations, when a company was profitable — as defense contractors have been — it didn't ask employees for additional contributions to their health plans, Watson said.

While workers got used to having their company paying for all or most of their monthly premiums as part of a standard benefits package, in recent years that hasn't been the case, said James McBrearty, an associate professor of economics and industrial relations at the University of Arizona who specializes in labor relations.

Health care used to seem a manageable expense, McBrearty said, but "employers started saying, 'We can't afford to pay all the premiums.'"

Since then, employees found the added cost of health care cutting into their standard of living, he said.

"That is what set up the clash between the two," McBrearty said.

Last month, contract negotiations between Qwest and its largest union, the Communications Workers of America, stretched past the expiration of their previous contract.

Health care was a sticking point in those negotiations, according to Qwest and union officials.

"We've known for a long time that health care was going to be a lead issue and I think we were all quite open about that," said Qwest spokesman Bob Toevs.

Denver-based Qwest struck a tentative agreement Aug. 18 with CWA members getting wage increases of slightly more than 9 percent compounded over three years, Toevs said. But for the first time, those members would have to make a small contribution to their monthly health-care premiums, he said.

The Communications Workers of America represents about 20,000 Qwest employees in 13 states. There are about 400 union members working for Qwest in Southern Arizona.

The agreement still needs to be approved by CWA members working for Qwest, said local union representative Shad Ercanbrack. CWA members have never voted down a tentative contract with Qwest, but Ercanbrack said many members aren't happy with the agreement, in part because of the increase in health-care costs as well as other language in the contract.

"If any contract has a chance of being voted down, this would be the one," Ercanbrack said.

Another health-care cost dispute involves Raytheon Co., the parent of Tucson-based Raytheon Missile Systems, and some of its early retirees.

On Aug. 19, Raytheon appealed a federal judge's ruling that it must reinstate health benefits to a group of early retirees in Tucson.

The appeal may also put on hold the judge's recent decision that Raytheon must reimburse retirees for health-insurance premiums they have had to pay since their benefits were dropped.

The suit — filed in January 2006 by four members of the International Association of Machinists Local 933 on behalf of the chapter's early retirees — alleges Raytheon violated a collective-bargaining agreement by beginning to charge for medical coverage that the company had agreed to provide in the contract.

The AFL-CIO-affiliated union represents Raytheon's hourly employees.

Watson, who's the directing business representative for the Machinists Local 933, said the lawsuit and appeal could set a precedent for workers across the country.

The issue is important because for some workers it can come down to whether or not they can put food on the table or provide their children with health care, Watson said.

Dealing with the cost of health care for retirees will continue to be an issue as workers get older and retire but still rely on their employer for benefits. That's until Medicare kicks in when they turn 65, McBrearty said.

Some companies have been turning to preventive care that focuses on getting employees to quit smoking or encouraging them to increase exercise, McBrearty said.

The idea is to reduce costs in the long run, because it's the chronic illnesses that make up the bulk of medical expenses, McBrearty said.

But with health-care costs continuing to rise, it's not likely the issue will be resolved anytime soon, he said.

"This is going to be a contentious issue for the foreseeable future and it's going to take a lot of creativity from employers and employees to come up with solutions," McBrearty said.