Council OKs raises of 5 percent for union

The Spokane City Council ratified a labor contract with its largest union Monday that gives more than 1,000 city workers raises of 5 percent through 2010.

In a 5-2 vote, the council overrode objections from members Nancy McLaughlin and Michael Allen, who argued the taxpayers can’t afford increases that are higher than business and industry are paying and outpace projected revenues.

“I wish we could pay better wages all around,” McLaughlin said. “I don’t have any money trees in my backyard.”

But others defended the contract, the result of intense negotiations, saying the city was getting concessions on health care costs and pension expenses.

“Not everybody got everything they wanted,” Council President Joe Shogan said. “If they make a little more than the average, then so be it.”

In a later presentation to the council, Mayor Mary Verner said that despite the difficulties on Wall Street, the city’s financial picture is strong compared to some other communities. It has a relatively conservative and cautious investment strategy, she said.

“There’s something to be said for being plain, old vanilla,” she said of the strategy. “In spite of everything, our city’s in pretty good shape.”

The labor contract is with Local 270 of the Washington State Council of County and City Employees. It provides the employees with 5 percent annual wage increases, but requires them to pay more for medical insurance, which has been going up more rapidly than inflation in recent years. Overall, the package represents an increase in employee costs for those workers of slightly more than 5 percent per year.

Councilman Michael Allen said he thought city employees did good work, but he couldn’t support the contract.

“It comes down to a vote for the taxpayers and a vote for fiscal integrity,” he said.

McLaughlin predicted that if revenue increases at 3.5 percent, as predicted, the raises could outstrip the city’s ability to pay them and lead to layoffs. She said she would have supported a 3 percent raise but 5 percent “is too much at this particular time in our economy.”

Verner said the raises have been factored into the budget.

But other council members said they felt bound to honor the negotiating process.

The city and the union negotiated in good faith and “we don’t have the option to change it,” Councilman Bob Apple said.

In a city that has seen five mayors in eight years, it’s the employees that provide some stability, Councilman Steve Corker said. The contract signals that the city “pays fair wages for great work,” he added.

“More employers should be paying living wages,” he said.