Aldermen to vote on union raises tied to economy

Citing the city’s growing unfunded police and firefighter pension liabilities, Ward 7 Ald. Joe McMenamin said he will probably vote against all union contracts “that pretend that we are somehow continuing to do business as normal.  We just cannot continue as we have been,” McMenamin said. “We really need concessions from our unions. We’ve been extraordinarily generous. “

Bigger raises offered in better timesMany of the current contracts, which were negotiated under Davlin’s administration and during better economic times, called for 3 percent pay increases annually on Oct. 1 and an additional 1 percent annually on April 1.  Even as the city faced the threat of layoffs and a multimillion-dollar budget shortfall in 2009, aldermen signed off on contracts that included the same pay raise structure. At the time, Davlin said it was only fair to keep all employees on the same pay scale.  It wasn’t until spring 2010 that the city approved the first union contract with raises tied to the economy.  Mayor Mike Houston’s administration has continued the practice.

Since March, the approved contracts have generally included raises based on the change in the Consumer Price Index from the prior year, with the minimum increase at 1 percent and the maximum set at 3 percent.  City Budget Director Bill McCarty said that, in general, any contract that calls for raises will negatively affect the city’s budget.  Officials expect revenue to stay flat during the next fiscal year, which begins March 1, making budgeting for new contractual obligations even tougher, McCarty said.

“Our recognition of that fact is why we are working diligently to strike a balance between fair, yet aggressive bargaining with the unions,” McCarty said. “The administration is very clear in its message that the city is in no position to contractually obligate itself to the types of increases that have been prevalent in years past.”

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Two contracts up for approval next week

Next week, aldermen will vote on two tentative four-year agreements – one with International Brotherhood Of Electrical Workers Local 193, which represents two employees in the city’s audio/visual department, and the other with American Federation Of State, County & Municipal Employees Local 3417, which represents 71 public works employees.

The proposed public works contract calls for a 2.3 percent raise retroactive to June 1 of this year, followed by raises based on the CPI formula in June of 2012, 2013 and 2014. The proposal, among other things, changes summer working hours by 30 minutes – from 6 a.m. to 2 p.m. to 6:30 a.m. to 2:30 p.m. — and extends the meal period from 20 minutes to 30 minutes.

The proposed IBEW contract calls for a 1.5 percent increase retroactive to Aug. 1 and then raises based on the CPI formula in August of 2012, 2013 and 2014. The contract also would not allow employees hired on or after Aug. 1 of this year to be eligible for sick leave payout upon retirement.