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City union to take labor dispute to state

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By DEENA WINTER / Lincoln Journal Star

Friday, Jul 11, 2008 - 06:01:19 pm CDT

In yet another bit of bad news for the mayor, one of the five unions negotiating contracts with the city has reached a stalemate and decided to take its labor dispute to the state.

The Public Association of Government Employees voted 10 to 1 Thursday to reject the city’s “last best offer” and go to the Nebraska Commission of Industrial Relations.

PAGE represents 456 blue-collar, clerical and technical employees.

Union President Jeff Stump, a heavy equipment operator, said his union has repeatedly accepted less-than-market wages over the last few contracts due to the city’s “budget crisis that comes up every year.”

Consequently, he said, their pay has fallen behind their counterparts in other cities.

The union vote came just hours after the mayor announced he would withdraw his proposed 1-cent property tax increase after learning the city-owned electric utility may seek an up to 12 percent rate increase to deal with a $7.7 million budget shortfall.

The tax increase was the mayor’s way of bridging a municipal budget gap that started at nearly $6 million.

Public employees aren’t allowed to strike in Nebraska, but state law requires their compensation to be comparable to that of peers in other cities, and they can go to the Commission of Industrial Relations to enforce that requirement.

“As long as I’ve been union president, there’s been a budget crisis every year,” said Stump, head of the union for 12 years.

If the city had left its property tax rate alone in the booming 1990s, he said, or just lowered it slightly, “We wouldn’t have this problem now.”

The city property tax rate has dropped from 52 cents per $100 of property value in 1994 to about 29 cents now.

While the population has grown 25 percent since 1990, he said, the number of employees his union represents has decreased nearly 19 percent, from 560 to 456.

Stump said his members’ average cost-of-living raise over the past three years has been 1.8 percent. Some of his employees’ wages lag 30 percent behind peer cities, he said, and his own is 10.5 percent behind.

“We’ve always tried to help because we understood, but we just can’t make ends meet anymore,” he said. “We’re just so far behind.”

However, in addition to those raises, city employees also can get up to 3.5 percent annual merit, or step, pay increases if they have not reached the top of their pay range.

Stump said 60 percent of his union members have “topped out” and are not eligible for merit increases.

Stump said the union is still open to talks with the city.

City officials had little to say about the union’s decision to go to the Commission of Industrial Relations. Mayoral aide Rick Hoppe would only say: “We plan to continue negotiations.”

Mayor Chris Beutler has plugged an average 2.39 percent raise for employees into his proposed budget — which would cost the city more than $3 million — but has said the city will undoubtedly have to pay more than that.

PAGE is one of five unions renegotiating labor contracts.

The largest union, the Lincoln City Employees Association, has a tentative contract in hand. The union represents about 650 middle management, front-line supervisors, skilled technical people and professional employees in virtually every department.

LCEA President Gary Meier, building and grounds superintendent for the city libraries, said the union agreed to a 2.75 percent wage increase, which will be effective in mid-January.

Normally, salary increases are effective when the new fiscal year begins in September. Meier said the alternative would have been a smaller salary increase.

The contract is good for one year.

“We were told the mayor wouldn’t consider anything more,” he said.

The police and firefighters unions are still in negotiations.

“It’s kind of all over the board right now,” said Dave Engler, head of the Lincoln Firefighters Association. “We’re certainly trying to work with the city and keep in mind that there are some budgetary issues. We’ve made some proposals that will certainly help the city stay within their budget.”

The Journal Star was unable to reach leadership of the other union still in negotiations, the Lincoln M Class Employees Association, which represents nearly 100 managers and professionals.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.


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Question wrote on July 11, 2008 12:49 pm:
" What does an average city employee make per year or per hour? "

 Bill wrote on July 11, 2008 1:17 pm:
" Their lucky they got 1.8% thats 1.8% more than I got. They can find another job if they don't like it. There are a boat load of people that would take their job and be very greatful. "

 Huh wrote on July 11, 2008 1:22 pm:
" Good luck. This is Nebraska for ya. Several years ago the State told
me "YOU'LL NEVER GET A JOB." Went to a "caring" "progressive" state and
got a job the first day, they helped go to college, and I climbed the
ladder to success. Came back to take care of the elders and its been,
"we'll clean your clock for every dime ya got." "

 JJ wrote on July 11, 2008 1:24 pm:
" The city is in trouble here. The CIR will rule in favor of the employees no matter what the evidence shows. "

 Dont forget wrote on July 11, 2008 1:37 pm:
" Dont forget that generous 2 for 1 match on their pensions. Does anybody else in Lincoln get that? They need to realize they have it pretty good compared to many people in this city. "

 To JJ wrote on July 11, 2008 1:45 pm:
" JJ, maybe you should look into the facts of your statement. There has been cases before the CIR that determined that the petitioners were actuallay overpaid and they had to take a pay cut. The petitioners once they take it to the CIR must abide by whatever ruling either way. It is usually about 50/50 but depends on the comparable cities that are used for the comparison. "

 ob server wrote on July 11, 2008 1:55 pm:
" These people have the best benefit package in the entire midwest, far above most other employees in Lincoln, and we taxpayers have been paying it for a long time. How about asking THEM to take a hit for US for a change. With a negative city budget and a rise in utilities, we can't afford city employees who have more and still want more and then have a bad attitude about having to work hard. Last time I was in city hall, the clerk was NOT AT ALL happy about helping me. Benefits, and wages, for city employees have to be put into perspective not with other communities but with wages right here in Lincoln. This is an area where the Mayor has to put his foot down for the benefit of the budget and the majority of taxpayers. "

 Dave c wrote on July 11, 2008 1:57 pm:
" Lucky at 1.8%?, Bill either is really misinformed on wage comparisons, or is a self made millionare. City employee's do more for less, as stated employee numbers have decreased, and the city in size and population has increased over the last 14 years. Not to mention the city's mill levee has decreased from about .53 to just at .29. The mayor said it right last week , mismanagement of the budget has put lincoln in this situation. By the way our taxes have not really gone down in the last 14 years, even though city mill levee has gone down, where has the difference went?, i would suspect if the citzens really look at taxes, Lincoln public schools take up 2/3 of your property tax.(64%lps, 18%county, and 14% city). If you don't believe me look it for yourself. "

 Fire them all.... wrote on July 11, 2008 2:12 pm:
" and hire temps.... "

 ron wrote on July 11, 2008 2:21 pm:
" to Bill, JJ, and question, just look at the State website or city website and thank those people for being willing to work for wages that are as low as those are. Most of the people, except for the supervisors etc. could make more money flipping burgers and yet they are there to service you, and I'm sure they take a lot of verbal abuse from most people also "

 John wrote on July 11, 2008 2:22 pm:
" I guess the way I look at it is if other cities are paying more then they are more than welcome to go work for them. I'm sure someone would be willing to take over their job here for that pay.

It sucks not getting raises that will at least stay up with the out of control inflation we have going on but with the economy the way it is right now you're lucky to have a job at all. Scary times ahead. "

 Al wrote on July 11, 2008 2:43 pm:
" It's actually not evidence, it's facts. The CIR is legally bound to rule according to the facts. I don't know why people think so badly of public employees... "

 Hard time understanding wrote on July 11, 2008 3:18 pm:
" If one is not satisfied with his level of pay, what prohibits him from finding a different job? Unions first came into being to guarantee basic human rights to workers. Is that what this particular union is doing? There is an underlying thought by some that one is "entitled" to a certain level pay. No, you are entitled to nothing. If you don't like the amount you earn with the time and effort you expend, then go elsewhere. But don't tell the taxpaying public that you are entitled to anything. You're not. "

 Dave c wrote on July 11, 2008 3:23 pm:
" The city pension plan is pretty comparable.Private sector employee's allow much less. Why? i am not sure?, other than the fact that private sector employee's who are not unionized take what they get. Nebraska is a right to work state. A city employee is hired pretty much the same way a private sector employee is hired, the difference is government employee's have the CIR to go to when they feel they are not being payed what is comparable, meaning like cities in this region with similar working conditions. "

 Thats great but... wrote on July 11, 2008 3:31 pm:
" while the 2 for 1 match is a wonderful benefit to City employees, that does not help those employees in the here and now. The employees are required to do much more (with the increasing reduction of staff) with no compensation and have been doing so for years. The citizens require a certain level of service and the City of Lincoln employees cannot do so with limited staff, limited funds and limited resources. Give them a break would ya. "

 if you only knew wrote on July 11, 2008 3:35 pm:
" I don't believe the union would take this to the CIR if they didn't already know the wages and the comparability of that study. Just because they are "blue collar" workers doesn't mean they don't have brains. They would not spend the money to go to court without knowing they have a good shot at winning. "

 Donnie wrote on July 11, 2008 3:50 pm:
" I know some people that will take their jobs at their current pay scale. I say let em strike, there's plenty of good people that want jobs. "

 Should wrote on July 11, 2008 4:23 pm:
" Funny how it seems goverment is top heavy in employees. When the Mayor makes his cuts, he should start at the top then work his way down. Seems we have a city full of chiefs and not enough indians! Look around notice how nothing is being mowed, pot holes are being left unfilled, light poles aren't being replaced. Of course, it's because of budget woes and the fact that supervisors and managers aren't willing to leave their air conditioned vehicles and offices to do the labor the decreasing laborers. Would think that the city could afford to pay the laborers a fair market value wage, could trim it from the fat of the government. "

 Williams wrote on July 11, 2008 5:01 pm:
" If you want the best employees, you will need to pay higher wages. The City has mis-managed money for decades and the City Employees pay with the hourly wages. Don Wesley and Colleen Seng did horrible jobs with the checkbook. Remember when we were told the new Fire Department Rescue Squads would pull in millions? "

 I NEED A SECOND JOB wrote on July 11, 2008 5:36 pm:
" to meet my obligations.

"consequently their pay has fallen behind other cities."

Feel free to quit your poor-paying city job and move to these other wonderful, high-paying cities and I will take it for 10% less than you currently receive. I NEED A SECOND JOB that badly. "

 Cole wrote on July 11, 2008 6:18 pm:
" Why is it that when you draw your paycheck from the government, people feel completely comfortable publicly passing judgement on the money you make and how you spend your personal income. These people are trying to maximize their take-home pay just like the rest of us. They provide needed services to the rest of us, someone has to do it.

"Well, I didn't get a 1.8% raise last year - why should they?" What's your point? Pay every municipal employee minimum wage with no benefits and hope for the best?
No thank you. The government should have competent people making a competitive wage and if they can get more - great.

Raise my taxes! Do you hear me all you libertarians out there?
Raise my taxes! Fix the sidewalks! Pave the roads! Turn our schools into palaces! Provide health care to everyone! Hire more cops! "

 For the record wrote on July 11, 2008 7:37 pm:
" The 2 for 1 match 401K is figured into their total compensation. If that goes away, then their take home pay goes up. It's totla compensation "

 Valuation Increase wrote on July 11, 2008 7:49 pm:
" We hear too much about how much the city has lowered its levy since the begining of the 1990's. They make it sound like we are all paying less in taxes. However, since the property values have skyrocketed we are all paying a significant increase in taxes, even though the levy has gone down. Therefore, don't make it sound like we have had a decrease in property taxes. We have definitely had an increase. "

 ugh wrote on July 11, 2008 8:55 pm:
" I work for the city and make less money than anyone I know, plus I'm topped out on my pay scale. I'm always looking for another job but know how lucky I am to have one at all. I work damn hard and take pride in my work and it's frustrating to see my colleagues and me accused of being greedy or whatnot. I have a college degree and barely make $12/hr, for those interested. And I know I'm lucky to get it but it's still hard to read people's reactions. "

 How about this wrote on July 11, 2008 9:24 pm:
" So many "taxpayers" complaining about increasing taxes and how their taxes should stay the same or drop...let me ask you this - name one item that has dropped in price the past few years. But you expect government services/spending to drop? HOW???? How in the world do you expect to happen???

Raise the city's share of taxes Mayor Beutler. Lincoln has suffered too long. "

 ch wrote on July 11, 2008 9:27 pm:
" I agree with ugh. I work hard for barley $12 an hour and topped out in my class for the last 3 years. PAGE has given and given while all the other unions have taken. When is it our turn for once. Let management who makes much more than me take a break for a few years and let there employees receive a little more. "

 Top Heavy wrote on July 11, 2008 9:27 pm:
" Goverment is top heavy, management is where cuts need to start. Why not pay a comparable wage to those who are the ones actually doing the work. A lot of city employees who aren't in management have comparable education levels or higher to their supervisors. However, to get into city goverment administration you must be one of the good ol' boys and/or related to someone who makes the hiring decisions. "

 dennis wrote on July 11, 2008 9:38 pm:
" A bunch of ignorant and uninformed opinions out there. Maybe thats why unions were formed. Lets let the court decide if city employees deserve a raise. Anybody looking for a job might want to look at the public schools big,unchecked budget. "

 ses wrote on July 11, 2008 10:24 pm:
" the City is the only entity that has had to trim back and do more with less in the last few years? i think NOT! "

 Bob wrote on July 11, 2008 10:30 pm:
" If you want a better job then go get the education you need for it!
2.75% to 5.3% is not too bad. It is better than being laid off. "

 sick and tired wrote on July 11, 2008 10:35 pm:
" of hearing people complain about city employees and their wages. People are quick to judge those of us who work hard for the pay we receive, and yes it it less than what most make in the private sector. In fact I took my position with the city and actually took a pay cut of close to $6,000/year. I'm not complaining about the pay cut, it was my choice, but like many other people in the private sector, I also work a second job to make ends meet.

A lot of people like to chime in on the retirement being 2 to 1, well consider this, there are a lot of people who work for the city that had no retirement benefits BEFORE they took jobs with the city. My retirement match before coming to the city was 0 to 1 because I had to fund my own retirement fund.

To those of you who insist on judging city employees, maybe you should get your facts straight and realize that just because someone works for the city does not mean that they make a higher wage that people in the private sector, and that they do not work hard for their wages. "

 Dee wrote on July 11, 2008 11:29 pm:
" Having been a city employee for fifteen years in the LCEA union i can say that the city is very top heavy. When there are cuts they are always in the lower ranks. Then the person cut is replaced with a higher paying engineer position.

Every year when the contracts were in negotiation the city would cry broke but yet always had money for new vehicles, new departments, new new new. At the same time they cut back on services such as pools, libraries and buses.

I left the city when my "pay raise" was out flanked by two time my insurance premium increase for three years in a row. Not mentioning the massive increase in deductibles, fees and copays.

Anyone who thinks a city job is a walk in the park should apply. "

 Newer city employee wrote on July 12, 2008 7:27 am:
" I have only been with the city for about a year. While it may seem to some that we have these great benefits and are paid extremely well, we are expected to do much more than alot of private sector jobs. I worked private sector all my life until I got this job. I've had much more stress and job expectations simply because it's the city. We have to deal with not only office politics, but the city politics as well. People are so quick to think we are being greedy. That is simply not true. Everyone, I mean everyone, I know wants what they think is fair for them. That's all. On average everyone else doing our jobs is making more than we are. I know many people who make much more money working in the private sector. And as far as "finding another job & being happy" I'm happy with my job. I like my job and what I do. So why shouldn't I just be equal to what other's are. It's not greed, it's just wanting equality. "

 Dale wrote on July 12, 2008 8:44 am:
" Why does a court have to decide whether you get a raise or not? It's a free market society. If you don't like what you are getting paid because you see others getting more than you and you think you are well qualified, apply at the other location. It is what people with real jobs do. Get a clue city workers. "

 Bill wrote on July 12, 2008 10:39 am:
" Ron, Then they should go flip burgers. I'd like their job, their pay, and their bennies. "

 Ted wrote on July 12, 2008 11:08 am:
" These people need to get a clue. Unions are why all the work is being outsourced. It is also why the government has always allowed illegals in this country. Unions are good, but look if you push to hard....the city may just outsource your work or put illegals in your jobs...don't laugh it could happen. "

 City Worker wrote on July 12, 2008 12:17 pm:
" I have worked for the City for over three years. Before that I was in private consulting. I took a $10,000 pay cut when I came to the City, but it was worth it because I didn't have to travel all the time and could be home with my kids. I have a Masters degree in my field and five years of experience. I have collegues that I went to school with who make more than double my salary. This is my second career and I am in my forties, so I am very grateful to have a retirement plan that should allow me to retire when I am 65.
Since I came to the department I am in, which is a very small department of less than 30 people, we have lost three half time positions and two full time. That is more than 10% of our department. All of these have been professional positions, not clerical or support. One of them was a management position that was replaced with the lowest level professional. All of the full time positions lost were professionals with Masters degrees. All of the half time positions were Professionals with Bachelors degrees that were working toward their Masters degrees.
To say the City pays better than private is false. To say the City cuts at the bottom and not the tops is false. To say the City does not expect more and more of employees is false. "

 Connie wrote on July 12, 2008 5:51 pm:
" You always hear how well off city employees are. But in reality they are no different than any other employee and deserve to be compensated equally. As do state employees. The benefits aren't as great as everyone makes them out to be. I am sure there are plenty working in the private sector that have better benefits than the city employees do. Let the courts decide if they deserve a pay raise! Unless you have walked in there shoes you really shouldnt be complaining about them. "

 Richard wrote on July 13, 2008 5:29 pm:
" As I understand it most city employees are hard working and conscientious. I am sure that every department is different but from what I am told by my friends some departments are indeed top heavy. Administrators have lost sight of or possibly have never known what really goes on among those who are actually serving the taxpayers. As others have commented, there are too many bosses and not enough workers. Someone needs to talk with and listen to those who are actually trying to serve the public.Many are afraid to speak because of fear of retaliation. "

 hire temps wrote on July 26, 2008 12:29 am:
" Fire all and hire temps?, who will you call when you can't get out of your driveway on a cold snowy day?, temps? "

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