The writer, an Omaha lawyer, is the outside labor counsel for the Omaha city government.
The opposition to the labor contract negotiations with Omaha’s firefighters has become entangled with the politics of the current mayoral recall.
The so-called solutions of tearing up contracts, laying off public safety workers and bankrupting pension plans are offered only for political gain. They are not serious solutions to the city’s challenges.
While the opponents are entitled to their own opinions, they are not entitled to their own facts. It is time to set the record straight.
>> This administration is the first to get substantial concessions from the city unions in more than 30 years.
Police and firefighters received steady wage increases and-or benefit enhancements from the 1970s until 2010. The Suttle administration has, for the first time, negotiated concessions from these unions.
The police contract froze wages for two years, placed the pension plan on solid footing and ended spiking and other expensive pension practices permitted by past agreements. The city and the firefighters union had tentatively agreed to substantial wage and benefit concessions, pension adjustments similar to those in the police contract as well as staffing cuts and concessions. These “givebacks” would save the city about $7 million.
Without majority support on the City Council, negotiations stalled. The firefighters union filed with the Commission of Industrial Relations (CIR) for an order regarding 2010 wages and benefits, as allowed by state law.
>> The city cannot “tear up” the union contracts, threaten to lay off workers or stop contributing to employee pension plans.
Saying that the mayor should “tear up” a contract is a good sound bite, but it is unlawful at best and bad-faith bargaining at worst. The city cannot ignore its promises to employees or its legal obligation to contribute equally to pension plans without facing a myriad of lawsuits with substantial financial liability to the taxpayers.
Besides, do we want to be a city that bargains in bad faith with its employees? What union will ever negotiate meaningfully or accept concessions from a city that threatens it and reneges on its commitments? None! Such “solutions” are a recipe for disastrous labor relations between the city and its workers.
>> The city cannot force the union to accept its terms.
We are engaged in collective bargaining. The union tries to negotiate the best deal it can for its members, and we try to do the same for the city. Whatever the parties agree to must be approved by both the City Council and the union membership. Otherwise, the CIR will set wages and benefits.
In the private sector, employers and unions can negotiate to an impasse and employees may strike to achieve their bargaining demands. In Nebraska, public employees cannot strike. That is why the law allows recourse to the CIR. It is to prevent the disruption caused by strikes.
Does anyone seriously believe that a system allowing firefighters, police officers and teachers to strike is good for the city? It is a bad idea that would wreak havoc on public order.
>> Doing nothing is more expensive than negotiating a contract.
Unfortunately, the issue of the fire contract is tied up in the recall and short-term political considerations. The recent CIR decision shows the lack of foresight in doing nothing.
Where the city had negotiated wage freezes, the CIR ordered wage increases. Absent a contract, there will be no fix to the pension plan. Underfunding will continue, and we, as a city, will be forced to pay even more and risk the plan’s solvency. This will cost the city millions of dollars.
Calling those who seek better wages and benefits for themselves and their families “greedy” and “bullies” is not helpful to the bargaining process. Anger and outrage are not a bargaining strategy. Dealing in good faith with Omaha’s employees as a respected partner in our city’s future is the best strategy.
If we listen to those who, for selfish political gain, ignore the law and misstate the facts, we face years of labor unrest, expensive lawsuits, insolvent pension plans and higher costs. Listening to those who tell us only what we want to hear impedes our progress as a great city.
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