In late June, the new MOU for 2010 through 2012 will go into effect. Stewards and staff members from the Local 2960 have been busy answering as many questions and concerns as possible from the members in all of our departments. However, we discovered that many of you are asking the same things. We wanted to make an effort to answer as many of those frequently asked questions as possible and made the information accessible to everyone involved. If you still have unanswered questions, feel free to ask away at the bottom of the post. (Questions will be moderated and sent to the most appropriate staff member or steward for an answer.)

Q: What date does the new contract go into effect?

A: July 12th, 2010.

Q: I have vacation time scheduled before the new MOU goes into effect. Can I use furlough days for this vacation, or do I have to wait until the new goes into effect.

A: The 48 hours (6 days) of mandatory furlough time will not take effect until the start of the fiscal year for 2010. This means that furlough time taken prior to this date will not “count” toward the goal of 48 hours per fiscal year. However, city managers have extended the “voluntary furlough program” through the remainder of this budget year, which means that the opportunity may be there. Consult with your management staff if you would like to pursue this option.

Q: Can I use my furlough hours in partial days instead of full shifts?

A: This depends largely on the area in which you work, but for the most part, this should be fine. There is nothing in the upcoming MOU that requires an employee to take a full day off of work. Our advice is to involve the union stewards in conversations with the managers in your area as early in the process as possible. We are all looking for solutions that will minimize the impact of the furlough time on our employees. If it works for your managers and it works for you… it works for us.

Q: Will people be allowed to carry over more than the maximum vacation time or for the next two years? What will happen in 2012 when our vacation banks have an extended amount of time in them? Will the vacation buyout for people retiring in the next two years be allowed to exceed the current 450 hour maximum?

A: Because we conceded our ability to buy back our vacation time for the next two years, the current cap of vacation time hours has been extended through the duration of the 2010-2012 MOU. There will be no cap of vacation hours accumulated within this two year period of time. When this benefit is restored in 2012, the existing vacation buy back rules should resume.

For those lucky enough to be retiring within this two year period of time, the City of Phoenix will be required to buy back any existing hours owed, regardless of the previous cap.

Q: When is the last vacation buyback period, and what are the requirements for me to sell my vacation back to the City?

A: The last opportunity to cash in your vacation time will occur in the last pay period in May. In order to cash out vacation time, you must have already used at least 40 hours of either comp time or vacation. A maximum of 40 hours of vacation may be sold back to the city.

Q: Will the accumulation of comp time hours be effected by our new contract?

A: No. The only foreseeable effect on your comp time banks will be the inability to sell off accumulated comp time annually. The buy back period for this benefit was in December which falls after the start of our fiscal year. (The vacation buy back periods and comp time buy back periods are different.) Comp time accumulated in excess of the 200 hour maximum will automatically be converted into cash, just like it always has been. And, of course, you may still use comp time hours as paid vacation hours just like before.

Q: Other units were able to negotiate for significantly less than 48 hours in furlough time. How did that work?

A: The other units in question were able to concede other benefits that equaled out to 3.2% of their total benefits and wages owed to them by the city. Other units, for example, were  able to give back higher amounts of their deferred compensation or a higher percentage of their wages to make up the difference.

Q: Could we have given back our tuition reimbursement funding instead?

A: We tried. City personnel were not willing to negotiate this point with any of the bargaining units, feeling that an educated workforce would be worth more to the citizens of Phoenix in the long run. It wouldn’t have made that big of a difference anyway; it was only worth approximately $800,000.

Q: What about funding for uniform allowances?

A: Again, we tried. The issue at hand was that uniform allowances did not amount to a dollar savings that made it worth our while to consider the option. There are not a lot of employees in the Local 2960 who receive this benefit to begin with. These employees would likely have still been required to wear job-specific attire to work every day. This would have been an additional out of pocket expense in an already strained paycheck.

Q: Why was there only one option presented to us for ratification? Other units seemed to have more flexibility in choosing the options that worked for them.

A: Of the seven collective bargaining units that negotiated with the City of Phoenix officials, exactly one had a ballot that allowed its members to pick and choose from a set of concession options.To the leadership within the Local 2960, the fact that they needed to do this suggests that they had not been in touch with their constituents prior to the barganing process this year.

Before any member of the Local 2960 began to speak with city personnel, we surveyed our members for their opinions of which issues were most important to them. The survey results allowed us to go into the negotiation with a specific direction in mind. Your feedback to us told us that wages and longevity pay ranked among the highest priority and we sought to protect as much of those benefits as possible during our negotiations. Negotiating for protections in longevity pay could not take place fairly without negotiation for merit increases as well. (We didn’t wish to unfairly protect our senior employees and expose our junior members who are still subject to merit increases.) Knowing that we needed to protect these three things, we constructed our concession package to the city accordingly.

Turnout for our surveys was only about 10% of the total overall membership of the Union. So if you feel under represented, and you did not return a survey this year, you have only yourselves to blame. We will be looking into ways to make sure that your opinions can be heard more clearly when we enter negotiations for 2012, including the possibility of submitting your survey online in addition to by mail or in person.

Q: What was the concession package worth in dollar amounts?

A: First, we would like to stress that, unlike some of the other bargaining units, we did not blindly give back money to the city. Every dollar conceded was accompanied by a specific goal in mind. “Want us to take a pay cut? Fine, save this department from being eliminated.”

Overall, the negotiated package conceded 3.2% of the total overall expenditure of the city on Unit III employees back to the general fund in order to balance the city budget for the next two years. These concessions were necessary in order to save approximately 170 jobs that would have otherwise been eliminated to make ends meet.

In actual dollar amounts, the package was close to $6 million. The 1% wage reduction was worth about $1.5 million. The majority of the money conceded came from the 48 hours of furlough time, which was worth $3.5 million dollars. Vacation buyback, linguistic pay and the .01% deferred compensation cut made up the $1 million dollar difference.

The current budget situation brought forth an unprecedented necessity to concede our hard earned dollars and benefits; in the history of the Local 2960, we have never taken this deep of a cut in wages or benefits. We hope never to have to do this again.

Q: Did we gain anything at all in these negotiations?

A: Absolutely. 170 people will still be receiving a paycheck tomorrow. Many of these people had received notices from the City informing them that their positions had been eliminated prior to our negotiations. They then came back to work with notices in hand saying that they no longer needed to worry about the loss of income or benefits.

The groups of employees that were directly effected by the efforts of or negotiation team will be featured on this web site as soon as possible. They include a group of full time and part time employees who supply 6,000 meals per day to city residents.  75% of an entire department of fire inspectors were spared the chopping block. Employees of numerous libraries and community centers still have jobs thanks to negotiations done at the Local 2960’s table.

Q: That’s great for them, but my job was never in danger. How do I personally benefit from the concessions?

A: Still not convinced, huh? What about the possibility of working a half a day every other Friday for the next two years?

Time away from work is as much of a benefit as a uniform allowance or a merit increase. Instead of taking a larger cut in your wages, you now have the option to just relax for a few extra hours a month. Furlough time may represent the loss of income to some, but it can also mean more time at home with loved ones. You can also choose to carry forward the savings by scheduling time off in the mornings instead of taking your little ones to day care. Ever want to make your son or daughters tee ball games more frequently? How about doing a little more volunteer work? All of this is possible with the necessity of taking off furlough hours to save the city money. We encourage you to make this work in your favor!

Q: Taking furlough time will effect the gross amount of money I am earning for this year, and will effect the amount of money that I have available for my retirement. Is it possible to write a check back to the general fund instead of taking furlough time?

A: Yes, it will be possible to do this. However, the amount that you will need to give back to the general fund includes the daily cost of your health and insurance benefits as well as your hourly salary. We estimate that this should be about 120% to 125% of your hourly rate. If this is an option you would like to pursue, contact the union hall for the procedure.

Q: We are taking a 1% reduction in our wages for the next two fiscal years. How will this be calculated?

A: You should see a 1% reduction in your wage rate for what ever step you are in in your current pay plan. Keep in mind, however, that merit increases based on your years of service are still in tact, as well as the longevity pay that you accumulate if you are already at the top of your pay scale.

Q: What is a “sunset clause” and why is it important?

A: The “sunset” clause is a statement in our MOU that guarantees that the concessions that we have made this year will be restored in two fiscal years when we negotiate our 2012-2014 contract. This means that at a bare minimum, our benefits will be restored to our current levels by July of 2012.

When the time comes in two years, we expect to gain much more than we lost in this round of negotiations. Our ability to do this will depend on your continued support and feedback. We will continue to negotiate diligently to ensure that our union brothers and sisters get the wages and benefits that we so rightly deserve.

The final count was 85% in favor of the package and 15% opposed.

Approximately 40% of the 1008 registered union members showed up to cast their vote on Friday. It was easily the biggest turnout for a contract ratification that the Local has ever had.

The changes that were made will begin to take effect on July 1st, 2010, which is the start of the fiscal year for the City of Phoenix.

The concessions as they were listed in the ballot proposal will be incorporated into the new Memorandum of Understanding for 2010-2012. We will have a copy of that MOU for download on the website as soon as it is written and verified by the Executive Board and our Local staff members.

Our task was not easy this year. We were asked to risk people’s jobs, absorb lost benefits and take cuts in our paychecks. And yet, as I personally watched people having to wedge their ballots into the box toward the end of the day, I noticed a funny thing. People were still managing to smile. Handshakes and hugs were passed out freely. Our brothers and sisters within the union stood firm together.

This election has provided many stories of triumph and successes across all of our departments. In the upcoming weeks while we prepare the final version of the new MOU, I hope to share the ones that I overheard with you all within these pages.

I also know that there are still lots of questions out there. Our stewards are equipped with many of the answers, and the time to start getting organized for the upcoming changes is now.

Also, feel free to general questions here, but please make them constructive. (Negative comments will be deleted; the time for negotiation is officially over.) You are most likely not alone with some of your concerns. It is the mission of the Local 2960 to do the best we can in helping you find the answers.

Note: There is a print link embedded within this post, please visit this post to print it.

Our negotiations team was not happy about agreeing to concessions, but unfortunately the City didn’t leave us a choice. If we didn’t come to an agreement with the City voluntarily then the City Council would determine what happens. In these rough economic times and with the City’s focus on saving money, they would take the concessions from whatever brought the quickest money – wage cuts, delayed merit increases or suspending longevity. The City Council can only give a one year contract so we would be back at the negotiations table next year. If the economy took a downturn or the City lost state shared revenues the City might ask for more in concessions. We tried to minimize the loss to our members with the concessions chosen. At least with a furlough day there is some benefit to the employee since they get a day off. No one is losing their merit raise or longevity pay. We also did not agree to raise the health insurance from the employee paying 20% to 25% as some other units have considered.

By settling the contract before the City Council approves the budget on March 2nd we were able to save jobs that would have been lost had we not made concessions. Those positions would be eliminated on April 5th.

By agreeing to concessions and not having them imposed on us, we are guaranteed that all wages and benefits cut or suspended will be restored on June 30, 2012. We also have language that if the economy improves a raise may be possible.

Never in my twenty-five years as President of this local has the City of Phoenix ever asked for concessions. These are challenging times. Arizona is not the only state having financial problems. Employees in other states have been faced with everything from 5% pay cuts, 35 hour work weeks and eliminating paid personal days and holidays in Ohio to 5.2% pay cuts, 8 furlough days and eliminating uniform allowances in Tulsa. Hawaii employees are paying a higher portion of their health insurance and working a four day work week. California employees are taking 104 to 156 hours of furlough time annually. Las Vegas employees took an 8% pay cut over the next two years. I am furnishing this information to you to show that we are not alone in this problem. I hope no one is selfish enough to say “Who cares what other cities are doing?”

Unfortunately, with the number of unit members we have lost over the past couple of years and faced losing this year we could not idly sit by and do nothing. Remember, the job we are saving may be yours or your co-worker’s which would affect you on a daily basis.

As always on behalf of the Executive Board, we thank you for your support.

From the President’s Desk is a featured column in the semi-annual newsletter from the Local 2960. You may download the rest of the newsletter in the PDF format from here. (Newsletter – Feb 2010 – SE.pdf)

Concessions

• 1% wage reduction
• 6 (six) 8 hour unpaid furlough days (48 hours total) each year
• Bi- annual vacation buyback freeze
• Compensatory time conversion suspended
• Linguistic Pay is reduced by 50%
• “12-hour rule” overtime benefit is suspended
• Employer deferred compensation contribution is suspended (.1%)

All concessions will be restored June 20th, 2012.

The acceptance of any concessions is a difficult undertaking. But, when faced with our brothers and sisters losing their jobs and City Council mandating cutting merit increases, longevity and wages, the board felt that having a say on how these concessions would be enacted was vital.

Contract Ratification

On February 26th, 2010 Unit III members will have an opportunity to ratify the concession package.  A 3.2% total concession package is what has been agreed upon in other units.  An estimated $6.7 million has been saved to restore city services and positions.  The package is explained below and will potentially save 70 jobs in a wide area of services.

This contract must be ratified by Union Members prior to it taking effect on July 1st, 2010.

2% Food tax

On Feb 3^rd 2010 the City of Phoenix Council passed a 2% sales tax on grocery items by a 6 to 3 vote.  The tax is expected to generate $12.5 million for the balance of the fiscal year ending June 30^th, 2010 and $50 million for the next fiscal year.  Unit III is expected to gain over 100 positions in libraries, recreation and senior centers, and civilian police positions.

Furlough Days

Among the hardest decisions that the negotiation team needed to make was the decision to concede  furlough days as opposed to a bigger reduction in wages. However, furlough days are being used to settle budget deficits in organizations around the country. The following is a list of municipalities and the number of furlough days they have scheduled or have already taken.

• Arizona State University- 15 days (2009)
• City of Tucson- 5 days Jan 1, 2010- June 1, 2010 (unsure  # after)
• City of Chicago – 15days- (2009), 24 days- (2010)
• City of Los Angeles- 26 days (2010)
• City of New Jersey- 12 days (2010)
• City of Seattle – 10 days (2010)
• State of California- 18 days (2009), 18 days (2010)
• State of Georgia- 12 days (2010)
• City of Phoenix Unit III- 6 days (2010)

Reasons for settlement

The main reason for the Executive Board to settle with these concessions was the ability to negotiate how the cuts would affect our members (furlough days instead of longevity and merit increases), safeguards that these concessions would automatically be rescinded at the end of the contract (a sunset clause), and the ability to save as many of our fellow brother and sisters’ jobs as possible while protecting longevity and merit increases.  No one is happy to lose money but in these difficult economic times it is a vital role of the union to minimize the impact to our members and to save positions.

Questions

For any questions or concerns, please click here to send an email, or call the Local 2960 Union Hall as (602) 254-3966

To continue the discussion, please leave a comment either here or in the Local 2960 Forum.

If you would like to become a union member, please register online.

As an alternative, please consider posting a comment or question in our new discussion board. Our team of stewards will respond with an answer as soon as possible.

It is likely that the sales tax will save several hundred jobs over the next few months as budget negotiations continue. In Tuesday’s meeting, Mayor Phil Gordon gave the council the option to reverse the decision after hearing from the public after the other 15 budget meetings are concluded at the end of this month.

The notion that the average City of Phoenix employee also makes $100,000 per year was challenged by members of the public and by city employees from various departments. Councilman Sal DiCccio was responsible for this benchmark being placed in the public domain. He repeatedly suggested to various news outlets that “his calculations show the average total cost per worker is more than $100,000.”

The Arizona Republic’s story on budget concerns calculated that the “records show the median annual salary for full-time city workers was $57,000.” Additionally, AFSCME Members as well as other union members who rallied in support of the grocery tax on Tuesday evening expressed exactly what services that they provided for the members of our town.

We make Phoenix happen, one service at a time, one customer at a time. For those that expressed your support of the grocery tax, thank you. We would also like to encourage you to leave a comment about your experience.

By unanimous vote, Natasha Nimmer was reelected to her position as Trustee.

The Trustee Board consists of Natasha Nimmer, Mark Long and Karen Poe. Together, they are responsible for conducting an audit of the financial records for the Local 2960 affiliate of the AFSCME union. Quoting from the union’s main web site,

“The Trustees are thereby charged with the responsibility to see that an audit of all the funds of the affiliate is performed, either by an independent auditor or the Trustees themselves. It is then their duty to report any findings to the membership and to the Executive Board.”

Of course, all three members of our Trustee Board contribute more than just  a yearly audit. Each is a respected union member in good standing for at least one year. They are stewards in their respective departments, handling the day to day negotiations that allow us to provide top notch levels of service to all of our Phoenix communities. They are outstanding outstanding leader, and their efforts are well appreciated.

Mailed separately earlier this week was a packet including your 2010 calendar  and holiday party invitation. I would like the stewards to post their copy of the letter on their union bulletin board at work for everyone to see.

We recently had a representative from AFSCME International hold a training session at our office.  The local is starting an organizing drive to sign up 200 new members by July 2010.  I want to thank the stewards who attended this training session on a Saturday.     Remember – the local gives each member who signs up a new member an organizing bonus.  Just ask your co-workers if they belong to the union – if they don’t, offer them a sign up card.  Only members have a say in our next contract and whether it is ratified or not.

Once again I thank you for your membership in AFSCME Local 2960 and wish everyone a very happy 2010.

1. Increase Wages
2. Increase Deferred Comp
3. Increase Leave Time
4. Increase Longevity
5. Holiday / Vacation Time

If you still have a survey that you have not turned in, please mail it in ASAP, or contact your union representative. As we prepare for negotiations, we will continue to accept your feedback through the end of November. However, the sooner the information is submitted, the sooner we will be able to act.

If you did not receive a survey by mail, it is likely that the Union Hall does not have your correct address on file. If this is the case, please call the Union Office directly to update this information. Additionally, please contact your union steward and he or she can provide you with a copy of the survey to fill out and turn back in.

Your opinion is important to us and has a direct impact on the way that we present ourselves to the City management when we start the negotiation process in January. If you have any questions please let us know?

Tomorrow is my first day as City Manager.  I am deeply honored and proud to help you serve one of the greatest cities in the country.  With Frank Fairbanks’ leadership over the last two decades, it is no wonder we were named All-America City and the best run city in the world during his tenure. Having begun my career with this organization, I have had the opportunity to learn, grow and be mentored by the best.  I thank Frank Fairbanks for that. I also would like to recognize Alton Washington for his many years of serving the public.  Alton truly is a champion of the residents of Phoenix, always focused on providing the best possible service to all of our customers.  I also would like to thank Mayor Phil Gordon and the City Council for their support.  They had a tough decision to make, and I appreciate their vote of confidence in our management team.

We have unprecedented challenges ahead of us as we continue to serve the community.  As you know, the economic downturn still looms as the city’s sales tax revenue decreases. However, I am confident that we will work together to provide solutions to these challenges.

You can expect a few more changes as the city reorganizes its executive management team.  I am pleased to announce that Ed Zuercher will be named as the Assistant City Manager effective immediately.  Attached is the new organization chart outlining some changes in the management team and the reporting structure.  This organization chart is temporary.  We plan to appoint an interim Deputy City Manager in the next few weeks to handle some of the workload. At that point, we will make some additional reassignments of departments. In the meantime, most departments that reported to me or Ed will continue to do so. I appreciate your patience during the transition.

As our community continues to evolve, so does the need for innovative ideas and creative solutions to solve everyday issues. We are asking employees to do more with less and to continue to strive for excellence. I know all of you are up to the task.  In light of this need for continuous improvement, I am pleased to announce a citywide Innovation and Efficiency Task Force that will assist us in the future by identifying specific recommendations for improvements in areas including customer service, alternative delivery methods and revenue enhancements. I have asked Aviation Director Danny Murphy and Public Transit Director Debbie Cotton to co-chair this important initiative.

Once again, I want to thank each and every one of you for the work and service you provide every day.  I love this city and I commit to you that I will work hard along with our Mayor, City Council members, executive management team and you, our dedicated employees. I welcome and encourage your feedback, ideas and suggestions. Your dedication to serving the public sets this city apart, and I look forward to working with you as a team.

-David Cavazos