15. November 2005 • Murph
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Ann Arbor City Councilmember Greden’s vague warning last week of a costly labor settlement has been explained:
The city of Ann Arbor is facing up to a $4 million tab to settle a grievance filed four years ago by its largest employee union.
The City Council was told of the arbitrator’s decision last week in a closed-door session.
“The math is pretty simple,’’ City Administrator Roger Fraser said this morning. “If you are calculating pain, this hurts a bunch. The question is, ‘How do you handle it?’‘’
Fraser said the arbitrator wasn’t clear on a number of issues, which is why he wasn’t sure how much the final bill would be. He estimated the decision will cost the city between $2 million and $4 million.
. . .
Easthope said the city may have to take it from the city’s general fund reserves, sitting at about $11 million.
The city is already facing up to a $4 million bill to pay for removing dead and dying ash trees on public property. Residents last week rejected a proposed half-mill property tax increase for two years that would have paid for that.
Ouch.
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—Murph. Nov. 15 '05 - 06:55PM #
—Mark Nov. 15 '05 - 08:06PM #
—Dale Nov. 15 '05 - 08:06PM #
—David Boyle Nov. 15 '05 - 08:10PM #
—Parking Structure Dude! Nov. 15 '05 - 09:31PM #
Mark, it’s the AFSCME – “The ruling goes back to union negotiations in 1998, when the city agreed to give one union a bonus as part of a contract settlement. Other unions said they wanted the bonus, too, citing “me too” clauses in their contracts that guarantee them any higher pay or benefits gained by other unions. City officials thought the me-too clauses governed only salaries and not bonuses and other benefits. AFSCME, left out of the original settlement, filed a grievance in December 2001.”
—Murph. Nov. 15 '05 - 09:46PM #
I think you’re being kind of silly.
—Murph. Nov. 15 '05 - 09:51PM #
—Parking Structure Dude! Nov. 15 '05 - 10:03PM #
—Parking Structure Dude! Nov. 15 '05 - 10:10PM #
—Parking Structure Dude! Nov. 15 '05 - 10:34PM #
—Murph. Nov. 16 '05 - 01:50AM #
I’d really like to side with unions. But between the autoworkers and AA’s unions, I’m having to work hard, maybe too hard.
Of course, sticking it to the taxpayers is always a good idea.
—JennyD Nov. 16 '05 - 02:20AM #
—Young Urban Amateur Nov. 16 '05 - 04:03AM #
This is not a “settlement” in which the parties reached a mutual agreement. An arbitrator issued a decision against the City.
The Council was notified of the decision on Thursday 11/10. Those who believe there was a conspiracy to hide the truth (i.e., PSD), or who believe we should have “admitted the settlement earlier” (i.e., YUA), are just plain wrong. Nobody on Council knew of this decision until two days AFTER the ash borer millage failed.
I issued my ominous prediction on arborupdate because I knew this issue was out there, I suspected we’d lose the arbitration, and I was aware of the potential cost. I had no idea the decision would come so quickly.
As Murph said, emergencies happen. That’s life. And that’s what the City’s emergency fund is for.
—Leigh Greden Nov. 16 '05 - 04:18AM #
This is fairly typical contract language when you have multiple unions representing employees in a workplace. It ensures that one unit doesn’t get favored over another. It also ensures that managers, who are typically not unionized, don’t enjoy a benefit that isn’t shared with the rank-and-file.
Don’t blame the unions and the employees for this debaccle – they didn’t approve the bonuses, the City Council did. Blame the City Council and City Administration who either didn’t understand the language or didn’t make the effort to figure out the impact of such a decision.
—John Q Nov. 16 '05 - 03:29PM #
—Young Urban Amateur Nov. 16 '05 - 06:49PM #
—Leah Nov. 16 '05 - 07:54PM #
I think there’s blame to go around now, and then. How many more millions are we going to spend to pay city workers, even as the city says it’s hard up for cash and wants more money from taxpayers?
There’s a pattern here….
—JennyD Nov. 16 '05 - 11:42PM #
—Reality check Nov. 17 '05 - 03:48AM #
Wrong. None of those agreements had anything to do with state law and protecting union employees. Those were deals that were worked out and agreed to by your public officials and public administrators. Please let me know the next time your ready to turn down a payraise or bonus at your workplace. I’ll gladly take that money off your hands.
—John Q. Nov. 17 '05 - 02:30PM #