(Omaha Steve's) City union urged to accept wage freeze for 3 years [View All]

http://www.omaha.com/index.php?u_page=2798&u_sid=10637769

By Maggie O’Brien
WORLD-HERALD STAFF WRITER
Omaha’s largest civilian union is in a showdown with the City Council over proposed pay raises during what’s shaping up to be a tough budget year.

Making reference to the 1966 Clint Eastwood spaghetti western, “The Good, the Bad and the Ugly,” City Councilman and mayor-elect Jim Suttle asked the Omaha City Employees Local 251 to give up 2.75 percent annual pay raises in a proposed union contract that went before the council Tuesday.

“We’re going to go through a whole lot of ugly before we can get back to the good,” said Suttle, who takes office June 8.

Suttle wants the union and the city to return to the bargaining table and “zero out the pay increases” for the years 2009, 2010 and 2011 before coming back before the council July 21.

If the city didn’t give raises to any of its civilian employees, that would save about $1.5 million a year, said City Finance Director Carol Ebdon. However, another civilian union, the Functional Employees Group, negotiated a similar agreement with raises, and the council had previously approved that contract.

The Functional Employees Group has 30 members, while Local 251 has about 600 members.

The city is trying to figure out how to address an $8 million budget shortfall, caused in part by a decline in sales tax revenues amid a tough economic climate.

The council had been set to vote on the contract Tuesday, but instead unanimously voted to delay the issue.

Local 251 President Kevin Brown said he was surprised at the council’s decision. “Negotiations are supposed to be between two parties, not in the media,” he said.

Brown said union members would likely support giving up raises if other city unions did as well. “As long as it’s fair across the board, I think the members would go for something like this because it’s best for the city,” Brown said. “But ultimately, the members have the final say.”
This year, the city experienced its first decline in sales tax revenue in its history. Sales taxes make up nearly half of all revenue the city collects.

Current Mayor Mike Fahey has said cuts in city services are likely as well as possible layoffs to deal with declining revenues. He has said he will meet with Suttle to discuss the situation.

Late last year, Fahey made $6.2 million in cuts to the 2009 budget that affected every city department. No employees lost their jobs, but a police recruit class was delayed.

The council has put off a vote on the Local 251 contract for months. Earlier, councilmen expressed concern about a contract provision that would change some part-time employees’ pay to the lowest grade — regardless of how much money they made or how long they had worked for the city.

On Tuesday, however, the council focused on the proposed pay raises.

“How do you pay for increases when there is no revenue to pay for them?” said Councilman Chuck Sigerson. “This is a bitter pill to swallow, but it’s certainly better than a permanent layoff.”

■ Contact the writer: 444-3100, maggie.obrien@owh.com
“We’re going to go through a whole lot of ugly before we can get back to the good.”
Jim Suttle, city councilman and mayor-elect