Local 17 and the Coalition Responds to Mayor's Proposal July 2010
Local 17 and the Coalition of City Unions recently responded to the Mayor's proposal in cutting $6 million in labor costs from the General Fund Budget
(see letter - PDF).
The Coalition says "no" to any proposal removing the COLA for 2011. Local 17 members are currently under a Collective Bargaining Agreement expiring
December 31, 2011. With saying "no" members are guaranteed a minimum of 2% COLA for 2011.
July 2010 - Brown Bag Meetings
In light of the budget process and the issues with retirement, Local 17 has scheduled brown bag meetings in addition to the monthly chapter meetings. These meetings
will provide updates with the newest information and an opportunity for members to ask questions and express opinions.
Most of these brown bag meetings are scheduled on the following dates and locations:
- Tues., July 20, at SMT Conference Room 3832
(This Brown Bag Meeting is for Local 17 SDOT Members)
-Wed., July 21 - 11-12 noon - SMT 4050/60 (For DPD members only) -
(See Important DPD Fall 2010 Budget Cuts Update)
- Wed., July 21 at SMT 4050/4060 - 12 p.m. to 1 p.m
- Thurs., July 22 - 12 noon- 1 p.m. - SMT 1660 (For DPD members only) -
(See Important DPD Fall 2010 Budget Cuts Update)
Thurs., July 29 - 12 noon- 1 p.m. - SMT 4050/60 - (For DPD members only) -
(See Important DPD Fall 2010 Budget Cuts Update)
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July 19, 2010 - DPD BUDGET UPDATE
DPD gave a proposal to labor on Fri., July16, proposing 3 additional furlough days in 2010, and 26 furlough days in 2011. They said that the additional furlough days would prevent some but not all of the layoffs that they are anticipating will take place in October 2010 in non-general funded positions.
Prior to deciding the next steps, Local 17 has scheduled two meetings this week to discuss DPD's proposal (see flyer): Wed., July 21 from 11:00-Noon in SMT 4050/4060, and Thurs., July 22 from Noon-1:00 in 1660.
Survey Says...
DON'T TOUCH OUR COLA!
In response to the City’s letter asking for formal negotiations to reduce the budget deficit, we immediately put together a survey to hear from all of you.
Thanks to all of you who participated in the Local 17 online survey over the past couple of weeks. With a looming City budget deficit in 2010 and 2011 it is important and
vital to the Local 17 organization to know what direction you want to take during these difficult economic times.
Over 900 members participated in the survey with an overwhelming number saying “NO” to giving up the 2011 COLA. Local 17 has communicated this “NO” to the Mayor. In addition,
we also communicated to the City many of our members’ suggestions on ways to save money. The ideas include, but are not limited to, reducing contracting out and addressing span
of control (top heavy management) in the Departments.
City of Seattle Budget Woes
Local 17 and the Coalition of City Unions received a letter from the City of Seattle Labor Relations asking to enter into formal negotiations “to reduce approximately $6
million of its General Fund labor costs associated with the Unions in the Coalition, and an equivalent amount of labor savings for the non-General Funds.”
(See the letter - PDF).
The letter states: “the savings target is roughly equivalent to the 2% cost-of-living increase that is expected for 2011.” The City is facing over a $50 million deficit for 2011.
Currently, Local 17 members are under Collective Bargaining Agreements expiring December 31, 2011 and therefore, any change to the existing agreements would have to be voted
on by the membership. If members want to adhere to the current Agreement, there is negotiated language that addresses layoffs when there are economic problems or revenue shortfalls.
In response to the proposal, and to reinforce our concerns about the City doing all it can to curb spending, the Coalition of City Unions sent an information request
to better understand how the City is addressing alternative ways to save money.
(See the information request - PDF).
Local 17 is pushing the City to take action on the issues of Span of Control and Contracting Out. At this point we are not clear how much the City’s target reductions
would mitigate member layoffs or where the cost savings would be applied.
Mid-Year 2010 Reductions
There was one occupied position in the Seattle Police Department and three occupied positions in the Department of Planning and Development (DPD) represented by Local 17
that have been abrogated as a part of mid-year 2010 budget reductions. In addition, some members have had their hours reduced. It is anticipated that DPD and the Seattle
Department of Transportation will impose additional layoffs in September and October 2010 to address the mid-year 2010 budget shortfall, and to lessen the impact of the
anticipated 2011 budget shortfall.
An updated economic forecast will be presented by the City Budget Director in August 2010. The Mayor will submit his 2011-2012 budget proposal to City Council in September
2010. A final economic forecast will be done in October 2010 in time for the City Council to make final decisions on the Budget the week of Thanksgiving, November 2010.
Retirement System
Retirement is a subject that is near and dear to many of us as we look forward to enjoying time in the future, some earlier than others. Over the past year with the downturn
in the economy there have been growing concerns over the health of the Seattle City Employees’ Retirement System (SCERS). There have been two issues that have come about in
the past few months that Local 17, with the Coalition of City Unions, has been made aware of.
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City of Seattle News
Read the July 2010 - City Newsletter 
Contract Information
Master Contract 
(Jan. 2008-Dec. 2010)
(Prof/Tech/Sr. Business/Sr. Professional/Admin. Support)
Muni Court Agreement
IT Professional Contract
Seattle Union Contracts (City website)
Furlough Agreement
Tentative Agreement Details
Synopsis
Tentative Agreement
Attachment A-Tentative Agreement list
Attachment B-Calculation
SDOT Letter
Retirement Information
Implementation of Retirement Provision
Your Questions Answered
Full Text from the City of Seattle
Publication
Negotiated Benefits Flyer
The Master Agreement Policy Committee 2007 - 2011
- Dept. of Neighborhoods -
Ed Pottharst
- Dept. of Planning & Development -
Clay Thompson
- Human Services Dept. -
Brenda Sevilla
- Police Dept. -
Judy Sherrell
- Retirement Office -
Jean LeMaster
- Seattle City Light -
Dan O'Sullivan
Allan Yamaguchi
- Seattle Public Utilities -
John Herrick
Ariska Thompson
The IT Professional B's & C's Policy Committee 2007 - 2011
- Executive Services Dept. -
Richard Wyckoff
- Human Services Dept. -
John Alton
- Seattle City Light -
Julie Renick
- Seattle Police Dept. -
John Otterson
ARCHIVES
City of Seattle Newsletters
January 20, 2009
June 2008
Frequently Asked Questions on Lay-offs
Read More
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Mortality Table
The first issue is regarding the mortality table. On a periodic basis the Retirement Board conducts a longevity study to determine the anticipated average length of life for retirees. The results of such a study will indicate whether people are living longer, and thus whether it will cost the system additional money to continue paying their retirement for a longer time than previously anticipated.
At the beginning of this year the City conducted a longevity study and it was determined that retirees were expected to live longer, which has an impact to the retirement system and the payout of benefits. Based on this information the Retirement Board made adjustments to the mortality table, which provided some adjustments to the payout of benefits upon retirement.
For some people, the adjustments would reduce their retirement benefit, and for others it would increase it. Local 17 learned in a meeting on May 5, 2010 from the Executive Director, Cecelia Carter, that employees were being given an option on whether they would want to retire under the old or new mortality table. In order to have this option they would have needed to decide (and possibly retire) by Aug. 31, 2010. Upon learning this, the Coalition sent a Demand to Bargain letter telling the City to cease and desist from implementation, because it is a mandatory subject of bargaining.
In response, the Retirement office changed the effective date for such a choice to December 31, 2010, but did not retract the new benefit table. So then The Coalition sent another letter stating to cease and desist. At this point we do not have a definitive answer as to whether they will implement the new table on January 1, 2011 as the only option. The City has agreed to negotiate the impact of the changes, but has not agreed to negotiate the change itself.
Actuarial Study Completed
The second issue is the health of the Retirement system overall. Every two years the Retirement Board conducts an actuarial study to determine the health of the system and
what the unfunded liability is. Based on that study, they make recommendations to the Retirement Board on whether any changes need to be made to the funding level in order
to keep the system healthy and adequately funded. There was an actuarial study performed this year and it was presented to the Retirement Board July 7, 2010. In the study the
City learned that there is $1 billion of unfunded liability and in order to reduce the liability there will need to be increases in contributions into the system. The actuary
recommended a total of 25% contribution. Currently there is a total of 16.06% contribution (8.03% from employees and 8.03% from the City). The City has put Local 17 and the
Coalition on notice that the mayor will most likely propose an increase into the retirement system, which would go into effect January 1, 2011. There may also be a proposed
increase for 2012 as well.
See Seattle City Employees' Retirement System (SCERS) Frequently Asked Questions - PDF.
Span of Control
Local 17 has been pushing the City to address the issue in many departments where we believe that they are top heavy with management, and have either multiple layers of management and/or a small ratio of people reporting to several managers. In 2009, during negotiations on details for the 2010 furloughs, the Union pressed the City to agree to review span of control issues through their budgetary process. The City agreed at the time to reduce senior level positions. Signatory parties to that agreement have convened in Labor Management Meetings and there has been an ongoing effort to identify senior level positions that do not make sense, do not meet a reasonable span of control threshold or are not appropriately classified.
In considering the 2011-2012 Budget, Local 17 and the Coalition of City Unions met with the Budget Director, Beth Goldberg, and her staff to point out positions in department organizational charts that indicate an issue of span of control or top-heavy management. The meetings took place over two days with Goldberg and a budget analyst. We engaged in conversation about the organizational charts and Goldberg agreed to consider the ideas put forth by Local 17 and other Coalition members. There would be significant cost savings for the City if they would take this issue seriously and address the span of control.
We are continuously urging the Mayor to follow through on his executive order to direct that departments eliminate 200 senior level positions, and to take the direction we provided to his Budget Director. Not only will it save money, it is part of fundamental fairness that the pain experienced at the City from budget shortfalls be shared equitably.Retirement is a subject that is near and dear to many of us as we look forward to enjoying time in the future, some earlier than others. Over the past year with the downturn in the economy there have been growing concerns over the health of the Seattle City Employees’ Retirement System (SCERS). There have been two issues that have come about in the past few months that Local 17, with the Coalition of City Unions, has been made aware of.
July 2010 - VEBA Vote Results
We want to thank the membership for participating in the VEBA vote this year. This will be in effect January 1, 2011 through December 31, 2011. VEBA allows employees who
are retiring to put their sick-leave cash out into an individual account that can be used for IRS-approved medical expenses. The money goes in and out of the account tax free.
The results are in with the Master Agreement passing with 77.6%, the IT Agreement passing with 84% and the Municipal Court Agreement passing with 100% approval.
ATTENTION CITY OF SEATTLE MEMBERS!
The Local 17 Bargaining Team is NOT in negotiations and has no “proposed concessions” (COLA) to recommend to the members.
Local 17 has received several inquiries regarding a petition that is being circulated in the workplace. The City of Seattle has asked the Coalitions of City Unions,
including Local 17 to participate in negotiations to reduce approximately $6 million of its General Fund labor costs associated with the Unions in the Coalition and
an equivalent amount of labor savings for the non-General Funds.
Local 17 has NOT told the City we would bargain. Our Contract is not open, we are not obligated to bargain with the City. Instead, we are in the process of conducting
a survey of all members to find out what you would like to do with the City’s request. The survey will be online through close of business on July 2, 2011. It is the
vehicle we will use to draft the initial response to the City.
The petition being circulated is not sanctioned by the Bargaining Team or the Local 17 staff. It insinuates bargaining is taking place and that proposals have not
only been put forward by the City, but that the Bargaining team has accepted those proposals! This information is NOT TRUE. These are scare tactics being used by
a small group of people to divide the membership. Now, more than ever, is the time Local 17 members need to work together to formulate a strong, united response to
the City of Seattle. The first step in doing that is take the online survey. It is important that you participate in the survey, and that you encourage your fellow
Local 17 members to do so. The results of the survey will be the driver of that united response, not a petition that does not even have the facts straight!
Demand to Bargain over Retirement
UPDATE - June 25, 2010
The Coalition of City Unions sent a letter to David Bracilano to affirm their position that any changes to the City retirement tables or payouts, such as those indicated in the
June 2010 posting on the Seattle City Employees' Retirement System (SCERS) website regarding a new Mortality Table, is a mandatory subject of bargaining.
Read More
June 14, 2010
In response to the Demand to Bargain letter, the Coalition sent to the City of Seattle, the Retirement Department has posted the following letter on their website.
Changes to the Mortality have been delayed until January 2012. Local 17 and Coalition of City Unions maintains the City may not make any changes to the Retirement
System without bargaining those changes with the Unions. If you have questions, call your Union Representative.
Read More
Budget Update
On Monday, June 14, the Budget Office sent the City Council the Mayor's Budget update. It included the Executive's mid-year reduction strategy. The Local 17 Union
Representatives have committed to get information out to our members as soon as possible. Here is the budget update. If you have questions, please call your Union Representative.
Read More
Budget Update
June 4, 2010
Local 17 and the Coalition of City Unions received a letter from the City of
Seattle Labor Relations - PDF -
asking to enter into formal negotiations “to reduce approximately $6 million of its General Fund labor costs associated with the Unions in the Coalition, and an equivalent
amount of labor savings for the non-General Funds.” The letter states “the savings target is roughly equivalent to the 2% cost of living increase that is expected for 2011.”
Currently, Local 17 members are under Collective Bargaining Agreements expiring December 31, 2011 and therefore, any change to the existing agreements would have to be
voted on by the membership. If members want to adhere to the current Agreement there is negotiated language that addresses layoffs when there are economic problems or
revenue shortfalls.
In response to the proposal, and to reinforce our concerns about City spending, the
Coalition of City Unions sent an information request - PDF -
to better understand how the City is addressing alternative ways to save money. Local 17 continues to push the City on the issues of Span of Control and Contracting Out.
At this point we are not clear how much the City’s target reductions would mitigate member layoffs or where the cost savings would be applied.
We want to make sure our members have all of the information as it comes to Local 17. This is the very beginning of a long summer during tough economic times. Stay
tuned and continue to check the website for ongoing updates.
We will not be taking any steps until we have heard from our membership. We will be sending out a questionnaire requesting your opinions and input within the next couple of weeks.
If you have any questions, contact your Union Representative.
City of Seattle Budget Update
April 2010
IFPTE Local 17 and the Coalition of City Unions met with City of Seattle Acting Budget Director Beth Goldberg and Acting Finance Director Glenn Lee on April 19, 2010 for a
budget update. The purpose of the meeting was to provide the Coalition with 2009 year end financial information, shortfalls in the 2010 Budget and preparation for 2011-2012
Biennium Budget.
A power point presentation - PDF -
was made to the group.
The books have closed on the 2009 Actual numbers. Due to a decrease in sales tax and B&O tax there was a shortfall of $4 million of Actual revenue that was generated versus what was budgeted. In April, the City conducted another forecast for 2010, 2011, and 2012. Based on the 2009 year end information and the 2010 first quarter numbers, the City is looking at a $12 million General Fund deficit for 2010 and a $56 million General Fund deficit for 2011 Budget. The General Fund budget does not include Seattle Public Utilities or Seattle City Light Budgets. When asked if there is a plan to use the rainy day fund or ask employees to furlough in 2011, the City indicated that everything is on the table, but the budget at this point does not take either into consideration.
In order to make up the deficit the City is planning on mid-year reductions. We expect to have more information on what those cuts will look like late May or early June 2010. If there are layoffs, indications are the earliest employees would be laid off is July 6, 2010. Departments must have their 2011–2012 proposed budgets to the Mayor’s office in July.
The Coalition asked about the health of the retirement system and the status of the actuarial and longevity studies that are currently being conducted. The actuarial study is due back in May or June. The longevity study has been completed. Together these two studies, as well as other market factors, will be used by the Board to make a recommendation about raising the contribution levels of both the City and City employees to the Retirement Fund. Currently both the City and City Employees contribute 8.03% to the fund. The projection in the power point presentation is that contributions will need to be raised 1% in 2011 and an additional 1% for 2012. If that projection is accurate, the first 1% effective date would be January of 2011.
While we continue to face significant budget issues, there was a sliver of good news signaling there were possibilities we are looking to come out of the recession. Sales and B & O tax revenues were up slightly the first quarter of the year. It will be a much slower growth than other recessions, but there is some change on the horizon.
As we continue to learn more information we will keep you up to date. Please check back to the Local 17 website periodically for updated information.
News - Local 17 Meets with Mayor McGinn
On December 18, 2009 the Coalition of City Unions met with
Mayor McGinn
for the first time prior to his taking office. In the meeting the Coalition raised several concerns regarding the Budget, Philosophy of working with Labor, Contracting Out
and Span of Control.
This was the first real opportunity to get to know the new mayor. He told us that he is committed to working with the unions who represent City of Seattle employees.
The Mayor is new to the City, without experience leading a large, mostly represented workforce. He acknowledged that he has a steep learning curve. Our discussion
was primarily large picture and was just the beginning of many conversations in the future.
The Coalition sent a
letter - PDF -
to the Mayor on January 21, 2010 highlighting the commitments he made in the meeting, and reiterated the concerns we shared in the meeting.
In response to the letter the Mayor set up another meeting with the Coalition on February 24, 2010. His Finance Director,
Beth Goldberg,
provided a basic overview of the concerns with the General Fund. She pointed out that since many one-time tools were used for 2010 (i.e. furloughs and rainy day fund)
some of those tools are not available to be used again as the recession continues. We asked if the Mayor plans to propose furloughs to the Coalition and the response
was that everything is being taken into consideration. Unfortunately there was not enough time at the meeting to discuss what is being done about contracting out or
span of control. The Coalition is in the process of setting up meetings to follow-up on those items.
On March 11, 2010 the Coalition participated in a conference call with the Mayor’s Office, including Beth Goldberg, where we learned that the Mayor’s Office was going to
present some information to the media that day. They would not share specifics of what the information was. At 3 p.m. the City released a slideshow presentation about
their budget projections. A couple of the new items of concern we were unaware of were the Seattle Department of Transportation and possible increases in the Retirement
Fund. The Union Representatives assigned to SDOT are working with the Department to learn the magnitude of the potential problem and what are the plans to address the shortfall.
With regards to Retirement there is currently an actuarial study being performed. While there are concerns about the funds, the release of the possibility of an increase by
the City and members is premature. We hope to have the actuarial study back by June 2010. At that point we will know more information about the unfunded liability and the
possibility of any increase in retirement contributions. If increases were to occur they would not happen until January 2011.
When Does the Contract Expire?
On December 5, 2008 members voted to put a 2% cap on any increase of retirement contributions if the pension system reaches an unfunded liability of greater than 30 years,
and if the actuary, a recommendation from the retirement board, and the City Council voted to increase the contribution rate. That same vote extended the contract one
additional year. All three Local 17 contracts will expire December 31, 2011. In the beginning of 2011 we will be looking to put together our bargaining team to
negotiate the new contract.
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