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June 2, 2009 in City
City offers unions grim alternatives
City and union leaders talk a lot about cooperation and communication these days.
But as time inches closer to deciding how to cut $7 million from Spokane’s 2010 budget, employee unions are being presented with a harsh choice already familiar to those in the private sector: Cut pay or face layoffs.
Last week, the City Council unanimously signed off on Mayor Mary Verner’s strategy to deal with the shortfall, which must be resolved by year’s end. It includes use of “revenue enhancements” – which could include increases in business license fees – plus use of a city reserve fund, cuts not related to layoffs and concessions from unions.
At a council meeting Thursday, Chief Financial Officer Gavin Cooley showed an outline of how the $7 million would be saved. Half would come from concessions from employees. To do that, unions must give up pay or benefits they won in recent contract negotiations. City officials warn that if the unions don’t agree to some concessions, layoffs are likely, if not imminent.
Human Resources Director Dave Chandler told council members that talks with some unions indicate it could be tough to reduce or eliminate pay increases scheduled for next year or cut benefits.
Public safety bargaining units have told officials that they believe “there won’t be the political stamina to cut positions,” Chandler said.
But Council President Joe Shogan said employees should realize the city’s options are limited: “It could be you’re facing (the loss of) money or people,” Shogan said.
Greg Borg, president of Local 29, the Spokane Firefighters Union, said he takes the city at its word that layoffs are possible. Even so, he said, the union plans to stand by its contract. Instead of contract concessions, Borg said the union will offer ideas that could save the city more than $1 million. Those include changes in firefighters’ medical insurance.
The firefighters’ union lost 51 of its 326 members during budget cuts five years ago, Borg said. Recent hires have brought membership back to 301.
Verner has argued that all employees – members of unions or not – participate in cuts. She said by starting serious budgeting work and negotiations months in advance of crafting a final budget in December, she’s hopeful that job cuts can be avoided.
For a bargaining unit to not negotiate or to reject concessions “would mean that that unit would be abandoning our commitment to continue providing the same level of service to our citizens,” Verner said.
MAC faces angry crowd 
smarg on June 02 at 5:37 a.m.
Wow, a sensible solution to a problem faced by many government employees: cut salaries equivalent to the private sector. If only California would consider the same thing, I’d still be living there.
spokanada on June 02 at 7:38 a.m.
As a small business owner I really look forward to an increase in business licenses. The ironic part of this article about the city trying to save money is the link at the bottom of the page for an article about Playfair and how the city will sell it for a loss.
In my business I try to sell assets for a profit. Why doesn’t the city?
schleufer on June 02 at 8:16 a.m.
one place to start saving money would be to stop back pay for people like that cop who shot shonto pete. a drunk cop running through the streets at nite spraying lead through this neighborhood just dont deserve tens of thousands in back pay. that is the first thing that needs to go.
liarsinnews on June 02 at 8:22 a.m.
If a person is honest with one`s self, seems to me, Verner is in over her head and lacks the leadership to be our Mayor.
George_Sands on June 02 at 8:40 a.m.
Just as the private sector is taking a lot of hits, so should the public one.
Some of the City employee salaries like the Council Administrative assistant (who got a free vacation to D.C. with members of the council) are drawing a salary of over $100,000 and that is without a college degree. Ms. Webster’s salary is also over $100K.
A total re-alignment and scrub of all City employees is way past due.
Ms. Verner is correct that all of us must share the economic downturn. City employees should not be imune to that either. The city should also consider inducements to retirement to shed some of the dead wood. I have my list and the city should have theirs too.
jonathanb on June 02 at 11:44 a.m.
Mr. Sands,
If you are referrying to Dorothy Webster, she is the Administrative Services director, not the “Council Administrative assistant” and her duties vary considerably from the City Council assistants.
cryssT on June 02 at 6:42 p.m.
one fairly painless way to save money is for ALL employees to take 1/2 day off without pay each payday. factor that in first and then see how much more needs to be cut.
George_Sands on June 04 at 4:26 p.m.
Mr Brunt,
I was speaking of TWO different people and TWO different positions. Everyone know who Webster is, its just that no one in the City Government knows what she does. There was a Public Disclosure request several years back which exposed that some of those people spend more than 1 hour a day on personal calls. Right when they get to work and just before they leave.
Perhaps you could confirm their salaries are in the above $100K range?
It would be nice if the S-R would do a report regarding who on the City’s payroll is making above $80K and their academic backgrounds and employment positions.
The only thing better than being employed by the city of Spokane is to be one of Phil Harris’s sons.