City Council passes early retirement as union leaders make 'hard concessions'; workers must approve pact

The Los Angeles City Council voted unanimously today to resurrect a plan to give early retirement to 2,400 employees, and reversed plans for imposing layoffs and furloughs on six of its civilian employee unions.

Negotiators for the city said they had persuaded the Coalition of L.A. City Unions to give up $78 million in “hard concessions” and convince its 22,000 members to contribute an extra .37% of their paychecks toward the city’s pension fund, covering more of the early retirement cost.

City Administrative Officer Miguel Santana, the city’s top financial adviser, described the concessions as “solid.” But he also said the city’s $405-million budget shortfall is so big that some employees — most likely members of a separate union, the Engineers and Architects’ Assn. — would experience an unspecified number of layoffs and continue to experience furloughs.

“Nobody likes furloughs,” Santana told the council. “It’s not a way to manage any organization. But it’s a necessary thing to do when you’re facing this kind of crisis.”

Santana said he would not describe the $78 million in union concessions until after the coalition’s members have ratified the new agreement.

Mayor Antonio Villaraigosa, who had promised to veto the previous early retirement proposal, is “extraordinarily satisfied with the results” of today’s vote, said mayoral spokesman Matt Szabo. In addition to the concessions, the city avoided having to award $27 million in raises that would have gone into effect immediately if layoffs had been approved, Szabo said.

“We have $100 million that we didn’t have before,” he said.

Labor leaders praised the council for extending talks throughout the week. “It was just hard to find $78 million ... but we figured it out in the end, all of us," said Bob Schoonover, president of Service Employees International Union Local 721. “It was a highly charged situation for everybody.  Nobody, no matter who they are, wanted to see the city go broke or services to be affected.”

Santana had urged the council to secure a 1.9% increase in retirement contributions from the coalition. The agreement approved today would bring the total to 1.07% — the amount identified by the city’s actuary as the amount needed to cover the departure of 2,227 employees up to five years ahead of schedule with full retirement benefits.

The coalition also agreed that the workers who leave would contribute an additional 1% of their pensions toward the cost of the early retirement plan.

Pension officials said that the added contribution from the workforce would generate an additional $141 million over the 15-year life of the retirement plan.

A union ratification vote will occur within three weeks, officials said. If the coalition’s 22,000 members support the deal, the council then would need to cast a second vote. After that, early retirement could become the target of a lawsuit by the Engineers and Architects’ Assn., which has repeatedly threatened to sue over the plan but did not attend today’s meeting.
Councilwoman Janice Hahn thanked the employee unions for engaging in late-night negotiations and developing a compromise plan. “What happened this week was you were able to keep L.A. working, and that’s what’s important,” she said.

Added Council President Eric Garcetti: “We are a family again.”

That declaration drew some grousing from blogger and former Los Angeles Daily News editor Ron Kaye, who criticized the council for failing to immediately release the details of the plan. “What you left out of this deal is the people. We’re part of the family too,” he said, adding: “We don’t know what the deal is; we’re excluded.”

Despite the upbeat message from council members, the city’s negotiators still need to secure $129 million in concessions from its police officers’ union, which has been asked to accept an overall 14% cut to their compensation — salaries, benefits, overtime pay and bonuses. One scenario under review would require  officers to take 18 days of furloughs, even as Villaraigosa pushed ahead with his plan for hiring 1,000 police officers.

That option was raised last week by Santana, in a report that delivered a series of dire warnings about the budget. Santana told the council that it could not afford to follow through with a plan to shield the coalition’s members from furloughs and layoffs over the next two years. The coalition won that concession after its members agreed to delay pay raises until July 2011.

The city began forcing members of the Engineers and Architects Assn. to take furloughs on July 1. Roughly two-thirds of the employees in City Controller Wendy Greuel’s office must take unpaid days off, according to the personnel department. Nearly 80% of the workers in the planning department must do the same.

So far, neither the mayor’s office nor the council have been forced to take unpaid days off.

-- David Zahniser and Phil Willon at L.A. City Hall

Comments

[Ken]

Los Angeles is fiscally doomed. In about ten years L.A.'s civil service self-absorbed conglomerate will have imploded. El Puerco de Los Angeles no puede volar!

[philosophicalcop]

I'm not sure I get this, but it seems to me that the coalition unions out there now get no furloughs, but the firefighters might GET furloughed.

Does that make sense?

[Bernard C]

Let me get this straight...No payraises but no furloughs for CIVILIANS but paycuts and furloughs for PUBLIC SAFETY. How in the world is this justified??? Strong unions are one thing but to put SEIU above public safety is insanity.

[Susana]

Mr Ron Kaye makes a valid point when complaining about lack of communication. It's ridiculous that city employees have to get their infomartion from the news instead of internally.

[dont get it]

"So far, neither the mayor’s office nor the council have been forced to take unpaid days off."

How is that a "shared Sacrifice" as the mayor says is needed?? The Mayor has also backfilled and created positions in his own office during this time of "fiscal emergency"

RECALL THE MAYOR!!!!!

[city worker again]

How much is this ERIP going to cost the City vs the so-called $78 million in "hard concessions" if you are paying people to retire?

[Tommy D]

Don't expect jobs to return to California. Companies like Telmar Networks, Terumo Medical, Creel Printing and Stasis Engineering have left the state for good. Hewlett Packard, JC Penny, the Automobile Club of Southern California and other large corporations are moving thousands of jobs to Nevada, Texas and Tennessee. Even the entertainment business is moving operations (production/filming) out of the state. California employment will be in a downward spiral for many years to come.

[Warren Todd]

Ladies and Gentlemen, you have just seen the ultimate in corruption and theft by Mayor Villaraigosa and the entire City Council. If you read between the lines of this deal, you can easily see that they are saying they intend to continue to steal from the city to appease SEIU and the Mayor and City Council are quite clearly telling the public, "There isn't a d*mn thing you can do about it."

[Carlos A Nunez]

Local 721 has 22,000 some members. The more numbers the more power. We run the city. Who is going to clean filthy restrooms everyday?? You? Who is going to pick up trash and litter everyday?? You? Who is going to maintain your public facilities, mow your local public parks lawn?? Who is going to pick up broken beer bottles and cyringes?? You? Who is going to have to deal with the immense population on homeless people around the city?? You?? I think not!!
Double Dark Chocolate Covered Kudos to us ( local 721 ), the City of Los Angeles and Recreation and Parks employees!! We run this city!! All of you are Welcome and Thank you for not overlooking us and our services!!

[Warren Todd]

Ladies and Gentlemen, you have just seen the ultimate in corruption and theft by Mayor Villaraigosa and the entire City Council. If you read between the lines of this deal, you can easily see that they are saying they intend to continue to steal from the city to appease SEIU and the Mayor and City Council are quite clearly telling the public, "There isn't a d*mn thing you can do about it."

[Carlos A Nunez]

Local 721 has 22,000 some members. The more numbers the more power. We run the city. Who is going to clean filthy restrooms everyday?? You? Who is going to pick up trash and litter everyday?? You? Who is going to maintain your public facilities, mow your local public parks lawn?? Who is going to pick up broken beer bottles and cyringes?? You? Who is going to have to deal with the immense population on homeless people around the city?? You?? I think not!!
Double Dark Chocolate Covered Kudos to us ( local 721 ), the City of Los Angeles and Recreation and Parks employees!! We run this city!! All of you are Welcome and Thank you for not overlooking us and our services!!

[Danny]

This deal is clearly illegal. An actuarial study is required before implementing it, but the city couldn't get an actuarial study over 15 years because the actuary determined that costs must be recovered in 5 years. Also, as the League of Woman Voters pointed out, any change in the retirement benefits must balance increased contributions with increased benefits for each employee. If either this or the furloughs of Engineers and Architects gets struck down, the city will face a huge fiscal crisis.

[Mr. Reid]

Here we go again! I guess we should have sent another pretty reporter down to the Mayor's Ofc. We would have saved the citizens of L.A. a few million. Just a suggetion to our Brothers of Fire, Police, Engineers, & Architects! I seriously hate our new union.721. 347 had pride, respect, and loyalty. I'm with you guy's in the fight!!!

[wtf]

Shared Sacrifice?? so far only EAA has sacrificed!! and now the city will come back to pick on EAA once again because for some reason it is scared to touch SEIU..I wonder why??

[wtf]

what a joke the city council is..could not even stand up to SEUI..caved in once again.. good luck to EAA, they will once again be picked on to make the sacrifice

[David in Tarzana]

Furlough beat cops but not some desk jockey in the mayor's office? Good job city council! Shut a fire station one day a week, but keep the mayor's legal advisor on the payroll? City council, you've done your mommas proud! God help us all.

[David in Tarzana]

Furlough beat cops but not some desk jockey in the mayor's office? Good job city council! Shut a fire station one day a week, but keep the mayor's legal advisor on the payroll? City council, you've done your mommas proud! God help us all.

[Mr. Reid]

The Sanitation Dept. would save millions of dollars if we could open Lopez Canyon Landfill.It closed because of Councilman Alacon,(who wanted Votes) who is also a cousin of a retired high ranking Sanitation Employee. Go Figure! The City of L.A. is spending millions,dumping trash,and recycables@ private facilities.Sanitation could generate more money if proposed, and open. But it is never discussed..Why??

[Mr. Reid]

The Sanitation Dept. would save millions of dollars if we could open Lopez Canyon Landfill.It closed because of Councilman Alacon,(who wanted Votes) who is also a cousin of a retired high ranking Sanitation Employee. Go Figure! The City of L.A. is spending millions,dumping trash,and recycables@ private facilities.Sanitation could generate more money if proposed, and open. But it is never discussed..Why??

[Watch Dog of Goverment]

Answer: NO BACKBONE!
Question: What does neither the council nor the mayor possess?

Why doesn't the city council, already the highest paid in the U.S. at almost $180 thousand annually, plus staff, plus free cars and gas, take a pay cut like many of us have had to do. Where is the shared sacrifice?

[Confused]

@ Susana

I agree, having to check the news to know your own fate is ridiculous!

And I do agree public safety needs to take a cut, they eat up 41% of the budget!! Either stop hiring or make them take furloughs!! Providing public safety is not pulling up behind 2 police cars and having a chat way after the person you wrote a ticket is gone...i see that way too much and that indicates to me that we have too many cops on the street collecting unnecessary overtime as we try to bring on more. What is Antonio's true agenda bringing in all these cops?

[nunya]

You all should know that the entire Crime Lab (E.A.A) is under mandatory furlough. Good luck getting someone to respond, in a timely manner, if you fall victim to a crime. "Shared Sacrifies" my &#%

[nick]

First, I work for the city. I am going to pay so someone else can have more ie: early retirement? What a joke! You want me to contribute more to the pension fund or not take a raise? Fine with me. If the city is in finical trouble then like any buisness cuts may be needed! The problem with this whole plan is that it takes the long term city workers and forces them to pay so someone else can get $1000 per year of service and 5 year credit towards time or age. The current retirment plan is based on math formulations that do not take into account for early retirement.

Second, the police will have to make consessions also. You have to remamber that the money for lapd comes from the city general budget. And their opperating costs make up a little of 50% of the general budget.
Everyone suffers with this plan. It is only good for the few who want to retire and get some perks. If you want someone to blame blame the union leaders who are close to retirement. I just can't figure out why they keep pushing for this early retirement!? LOL.

[Angeleno]

I am amazed at the leaders of our city. They should let city workers go just as every other organization has had to do in these difficult times. The people who should be let go first are those that contribute least to city dwellers such as myself. Fire fighters and police men and women should be hurt the least. I receive so little in city services, I am sure I will not feel the difference if half the city workers were let go.

[Ron]

Early retirement for 2400 people, getting a 5 service credit and cash bonuses. What a joke !! Furlough 22,000 SEIU members, no raises, and we immediately start saving this city money. SEIU is too potent though, The City Coucil and Mayor are too weak to butt heads with them. SEIU is a major campaign donor to the council members and the Mayor !!

[Orestes]

The Mayor used to work for SEIU. SEIU's recent attempt to take over EAA failed despite the Mayor's promise to shield SEIU from furloughs. Now, in a deal that robs SEIU members slowly instead of quickly, the Mayor and his SEIU masters are poised to further squeeze EAA.

I wonder why City managers were ordered to pay all accumulated overtime before July 1 lest it revert to the General Fund? It might have reduced the need for furloughs, etc.

[robert in Los Angeles]

The deal is characteristically another battle of wits between the City Council and the union negotiators, and the Council side, being unarmed in that battle, appear to have tossed in all they could without adding a complimentary bottle of champagne to the employee side here.

The cops and the fire fighters will not be happy. Like the DWP deal allowed by Tony with those heavy duty raises included, he set the bargaining standard for the next round of negotiations.

There was a question asked of a a Sacramento lawmaker by a news person, "When do you think the unions will be making the decisions and running Sacramento?"

He answered, "They already do." That's now come to L.A.- but only the favored unions. Engineers and Architects are on the outs for not getting with the program in campaign contributions.

Was there any more slobbery words of praise that the Council failed to use today as they made their phoney "voice vote" on the issue? I think it was Jan Perry was the one that was in a hurry to get all posed to take a photo of the "important day in City history," and Garcetti reminded that a vote should be taken first.

Showboats and empty suits, forgetting their oath of office to be loyal to the CITY and its people, not to the UNIONS.

If they want to cut cops and fire AND keep Villaraigosa's hiring of cops intact, then they seriously need some tests of mental competency. These comments should pass muster as my first posting on this story was dumped- talk about bias.

Prison letters get censored less.

As a replacement for my earlier rejected post

[Pat]

What great news...we are going to furlough police officers but we will keep civilian emplyees. At the very least the police officers will take a 14 % pay cut while the service employees get early retirement and no cost of living increase. Well, don't expect timely responses to your 911 calls, but at least the people will be there to answer your complaints at city hall about the long response times.

[captain grumpy]

Isnt it odd that the people who will pay extra are the workers and NOT the union bosses that still will pull in more pay than any of the workers. Good ol cummunism.

[WTH]

Brothers & sisters of Fire, Police & Engineers & Architects...We are getting royally screwed!

[googoosh]

City workers are the hardest working people and they deserve the best. Today's decision by city Council was the best example of cooperation and understanding between the city officials and the worker's Union. I believe that our union leaders did a great job in the past two days to get to this fantastic agreement. On the other hand,the non-coalition union (EAA) is trying very hard to kill this deal and they should know that they won't get anywhere.

[Robert]

EVERYONE BOO BOO BOO EVERY COUNCIL MEMBER AND THE MAYOR WHERE EVER YOU SEE THEM. LAPD Officers are ready to boo the mayor and who ever shows up tomorrow at Hollenbeck Station opening. Cops are sick and tired of getting disrespected by this bunch of political losers. They are the most incompetent group of morons in the history of Los Angeles. Boo boo them just like they did at the Laker Parade, the Mayor was booed at Dodger Stadium and now everyone boo boo him to let him know we are pissed.

[Squeezed]

Feels like I'm in a third world country where (City) government graft and corruption is the norm and accepted way of doing business. What happened to America's "justice for all?" It seems that it's applicable to all except this certain EAA group.

[anonymous]

This deal does not address the $75 million (and growing) shortfall in general fund revenue this year. Where is that $75 million going to come from?

SEIU has only delayed their cost of living increases a few years, so quit saying they're "giving up" cost of living increases. They're not. Points to their leadership for playing their cards well...so far.

And, uh, then there is that $800 million shortfall for 2010; you think anyone is going to be protected from furloughs and layoffs when they get to solving that one? Maybe even the Mayor and Council offices will have to help out.

[outrage]

EAA, Police & Fire need to unite! The ones who actually run this city, protect it and serve the people somehow always end up getting left behind!

The city council and the mayor get public support by bragging about all the work WE do and then when times get tough, they leave us in the dust for the unions that PAY for their campaigns (SEIU)!

Where is the sacrifice from the city council, the mayor, the "coalition"???

Citizens of L.A.! wake up! stop believing everything the council and the mayor tell you!

[no sense]

For those who don't know the details:

When EAA employees (about 8000) take furloughs and are laid off:
the city must pay more for infrastructure construction due to contract delays
the city loses money from collecting permit fees
criminals stay free longer because forensic results take longer to process
airports are impacted
the harbor/port is impacted

..and yet the council and the mayor think its better for these employees to sacrifice their work so that 22,000 "coalition" members can have a sweet deal and their own campaign funds will keep rolling in

[Astonished]

SEIU/Coalition members: They are not giving you all the facts. The truth is, if you are dumb enough to buy into this scheme all of you will be paying 7% of your salary into the pension plan for 15 years to pay for 2400 proposed eary retirements, plus you will have to give up your paid holidays, your overtime and raises for TWO Years. And that still wont guarantee exemption from layoffs or furloughs! In the mean time, Your fearless leader, Julie the Butcher will not be participating in your sacrifices! She works for the mayor, NOT YOU and will be collecting her full salary, benefits and perks, right along with all of the council members, the mayor and his cronies and all 51 of the Deputy Mayors. If you guys buy into this you deserve what you get!

[ANTONIO RAMOS]

ALL CIVIL SERVICE EMPLOYEES HAVE A RIGHT TO FAIR AND JUST TREATMENT, in good times and in fat economies NOBODY wants to "waste" their time in civil service of any type....NOW, we are being targeted as being overpaid and underworked!? what hypocrisy! most of your civil servants are just above the poverty line! Please stop assuming that ONLY Cops and firefighters matter, they DO, but all Civil servants matter also, Yes, we do keep the city and county running. Thank You for Reading.

[City worker]

Unbelieveable! We have been in a deep hiring freeze for the past 2 years, but it has not stoped the Mayor to fully staff his office. Not only that, but he fired 2 key staff members and replaced them immediately after. Key staff is paid triple digit salaries!
What's more upsetting? Is that the Mayor's office and the City Council get vehicles to drive to work which tax payers and city workers pay for too. How is it still possible that this expense has not ceased to end??

[city employee]

the unions killed GM and chrysler (and pretty much the rest of american industry as well), and now it looks like they are going to do the same to the city of LA. i never like to see this happen, but now it is happening to my employer! the public should be outraged, they will pay the real price for this mess, those of us who work for the city can always find a job somewhere else and it looks like we will have to when the city goes belly up. i know one thing for sure, when i leave i am taking my retirement money with me, i have no confidence LACERS will remain solvent by the time i am ready to retire. if sally choi and the accountants say the money isn't there, how will the money somehow magically be there?

[Ivy717]

LET'S START BY GETTING THE MAYOR OUT OF OFFICE! For those Council folks that will be looking for re-election, they need to think again. The Mayor's folks and the Council offices aren't taking the shared sacrifice. Nor are the Airport or Harbor Departments. Just because they make their own money shouldn't mean they are not affected by this financial nightmare. DWP is a creature in and off itself. Those departments that are not funded by General Fund money shouldn't be touched. There are departments that operate by Grant funds not General Funds. They are being hit and that's not the way it should be.

More importantly, we need to shave from the top, not the bottom up. The coalition is only in this for their interest not the interest of ALL they represent. I don't see them reducing the fees they are charging their members during this economic downturn. In fact if indeed the COLA is approved they will be taking more from their members. Every payraise a member gets the Union does too.

You want more cops on the street, for what? The ones you have are corrupt! The people that work in the city-especially the Clerical ones need to be compensated much higher than they are. However, they are the most underpaid! Let them walk out and protest for 2 or 3 days. The City would cease to run as you know it.

FIND A BETTER WAY!!!

[Rose]

All the negative comments sound like they are from people of the "me" generation. If you choose to enter private industry without union representation, that's up to you. Just because you may not have it, doesn't mean union members shouldn't.
"We" are a Coalition of Los Angeles City Unions.
Are you part of a union?
No ?
Like the old saying goes, " A union is only as good as it's members".
We pay dues, and they are working for us. We pay taxes, and they are working for us.
Congratulations for their combined efforts thus far !
As far as getting info from the media, we may be working at the time and unable to get the information internally and at the very instant of change.

[City worker]

I can't believe all you people are crying about city workers who fought hard with thier unions for their jobs....you would do the same thing if your job was on the line..so shut up...join a union and if not come and try to get a job with the City of LA the best job you can get...only if your smart enough...you have to study for an exam..get through an interview..compete with hundreds of others and you just might make it...work your a#% off ,. 20 years and then you can talk...so shut up and get a real job ..The Cityof LA Rules P.S. If we had more clean safe parks..we would not need 10,000 more cops...we would have alot less gangs
and crime...only 7000 would do.....MORE PARKS less crime

[Police & Fire]

Police and Fire will get no furloughs. They will layoff last 300 officers hired and freeze the hiring process ( not back filling another 300-400). About 1000 officer reduction in a year period.

In the end there will be some layoffs of some city employees, but not public safety.

[Rob P]

Thank You! This is great! I get to retire at 55 with a $75,000 per year pension and health care for life! This is like winning a lottery for $1,875,000. Thanks to my union leaders and city officials for getting younger union members to pay for this. And thanks to all the other public employees who will pay for this through furloughs, wages concessions and increased contributions. I Love LA!

[Jack Humphreville]

Is each retiree receiving $130,000?

Is LACERS being dinged between $250 and $354 million?

Both those numbers do not make any sense, especially when you consider that LACERS is already under funded by billions.

The additional contributions by the COCU memebers do not cover the additional $250 to $354 million liability that LACERS is incurring.

But the City says the deal works. But figures never lie, but liars figure.

[EAAMember]

EAA is a failed union.

A labor union can not and does not survive without political support. This basic understanding has escaped Mr. Aquino and EAA leadership.

If you want to succeed, you must play the game. If you don't play the game, get out of the ball park. Looks like EAA will be getting out of the ball park since they were never in the game.

[Supervisorwhandstied]

What if only a fraction of the 2400 retire and the ones who stay are the deadwoods? Answer: Layoffs for the newer and more productive employees. The hard concessions are to layoff police, fire and EAA and furlough their members until the ERIP pays for itself. They'll also probably increase Union dues to contribute for the re-election campaigns. At least layoff non-productive employees who think they can get away with slacking by having tenure. You know who you are and we are watching you. YOU give a bad name to the 95% of hardworking City employees. SEIU worked for the benefit of their Union members and the pockets of the Mayor and Council people. The veto part was for show.

[DOGROB1]

If you consider yourself a" family "everyone takes unpaid days off(everyone) or do you consider yourself a "Body" and cut off your legs and arms and spare the head.We will wait and see what happens next year and there will be a next year.

[outrage]

To EAA member: (ironic?)

"A labor union can not and does not survive without political support. This basic understanding has escaped Mr. Aquino and EAA leadership.

If you want to succeed, you must play the game. "

So what you are saying is EAA should of paid off the city council and mayor too? They should do whatever the corrupt politicians tell them to do?
There is a difference between political support and bribery & extortion

And you're telling me if I want to succeed I don't need to be educated, intelligent, or work hard, or have any morals and values.. I simply need to play politics and join the corruption?

[Spike]

Now that it is apparent that those EAA represented members of the so called City family are in fact the bastard step children, maybe it's time for the bastard step children to step forward and expose upper Mgmt (SEIU represented) and the City Counsel for all the bad decision and political decisions that have cost the City millions of dollars. WE have sat quiet, secure in our jobs, watching, but maybe, just maybe it's time to speak out. Do you fool Times reporters and constituents really think the City's budget shortfall is due to our salaries??? Seriously? Talk about the tip of the iceberg. EAA represented City employees are well paid for a reason, we are not stupid. Let it play out in court. Read the contract.

[Another EAA Member]

To EAA Member:

"If you want to succeed, you must play the game. If you don't play the game, get out of the ball park."

Are you joking? Go live in Mexico or another country with a totally corrupt government if that is what you want. You must be a moron.

Bravo Tony Villar & Council, penalize the educated positions in the city (criminalists, engineers, management & systems analysts) and reward the SEIU toilet scrubbers! And I didn't even mention the cops and firefighters. Jesus Christ, my daughter's fifth grade class could run the city better than Bozo Villar and the Clowncil.

[Cynthia]

Know this,,,the coalition of unions hasn't been at the table to "find a better way for LA" out the goodness of their hearts. They are there because they agreed to a 5yr contract in 2007 that has a reopener clause! This clause entitles the Mayor to come back to them any time the City is in a financial crisis and take back what they will! I guess the only good thing about it is the Mayor allows the coalition to save face by saying the deal was their idea too in order to sell it to their members easily. Don't believe the hype.

The reason EAA and other members are picked on is because they didn't fall for the reopener. I'm EAA and have been sacrificially sharing (furloughs) since July 1st.

[Marco]

Antonio Ramos (poster of "all civil servants matter"), your pay $71,952.48 is hardly close to poverty. Figure collected from LA Daily news City of LA employee Salary Database.

[Jeffery Ramsey]

I am sad for people that are in union 721.
unions used to fight for its people this union is about money not its people its very sad.