Scott Walker impacts overwhelming, but he’ll try not to make it worse. Watch for a budget process for employees to participate in.
From: Crawley, Katie
Sent: Friday, July 01, 2011 4:09 PM
To: All Email Users
Subject: A Message to City Employees from Mayor SoglinDear City Employees,
As I am sure you are aware, Governor Walker signed the budget bill this past weekend. The bill dramatically changes the way we compensate City employees. While I fundamentally disagree with the approach Governor Walker and the GOP-controlled legislature have taken, we are forced to live with the changes they have made.
Let me begin, however, by thanking you for your hard work, and for your dedication to making Madison the exemplary city that it is. The past four months have been difficult to say the least. The governor and the legislature have “balanced” their budget on the backs of municipalities and public workers. They have sent the message that public employees are in some way responsible for the budget problems the state faces; that public employees enjoy higher wages and better benefits while the rest of the state suffers; and that public employees are in some way cheating the system. I know that nothing could be further from the truth. I fully appreciate all that you do and am grateful for your commitment.
Below are some of the major provisions of the bill. Please know that I will do all that I can to mitigate their adverse impact.
Major provisions of the bill:
Unless a collective bargaining agreement with different provisions is in place at the time the bill becomes law, the following provisions apply to most employees:
The City can pay no more than 88% of the premium for the lowest health insurance plan available to employees. The employee must pay the remainder of the premium. We previously paid up to 105% of the lowest-cost plan. Based on a quick analysis of current rates, this would require employees to pay about $200 more per month for family coverage.
The City can only pay half of an employee’s combined contribution to the Wisconsin Retirement System. The employee must pay the other half, but funds will be taken out pre-tax. The City previously paid the entire combined contribution. It is uncertain when this deduction will begin, however, the Department of Administration is indicating it will be around mid-August.
The City can only collectively bargain over base wages. Any increase in those wages could not exceed the Consumer Price Index (CPI) unless approved by referendum.
Future collective bargaining agreements could only last one year.
Unions would be required to be recertified by a vote of potential members on an annual basis.
The City cannot collect union dues on behalf of the union, and members of a union cannot be required to pay union dues.
Current prohibitions on the right to strike would remain in the law.
Protective service employees are generally exempt from the provisions of the bill, so collective bargaining rights for police and firefighters would remain largely as they are now. Current represented municipal transit, fire and police employees are exempt from WRS and health insurance contribution. However, newly hired represented police and fire employees are required to pay the employee WRS contribution.
The interest arbitration criteria for represented public safety employees have been modified. The arbitrator must give the economic conditions of the locality greater weight than other factors.
The design and selection of health care coverage plans is a prohibited subject of bargaining for public safety employees.
Police and fire chiefs, and other non-represented public safety managers are exempt from the mandatory WRS contributions.
I understand that the above list is quite overwhelming. I am also very aware that some of you have spouses or partners who are also greatly affected by the new changes, potentially doubling the impact. I want to assure you that as I work with city staff on the 2012 Capital and Operating budgets, I will do all I can to protect Madison’s valued employees.
If you have comments or suggestions please let me know. We will also soon be unveiling a new budget process which involves citizen participation . You will be invited to a series of hearings to share your values for the city prior to the development of the budget documents.
Sincerely,
Paul R. Soglin
Mayor
