For the last ten years or more private sector employees have been forced to forgo raises, accept pay cuts and reductions in health insurance benefits. As employers try to remain competitive in the face of fierce competition and a record tax burden employees have been forced to work longer hours for less.
Private pensions have been frozen, eliminated or greatly reduced. Social Security benefits have been cut to such a degree that most people under 50 won't even receive what they contributed.
Every industry has been affected except one: Government
State, County and City employees enjoy pay and benefits that no private industry can afford to pay. That pay and benefit structure has destroyed the ability of government to invest in infrastructure and development and has led to record levels of taxation that reduce economic growth.
That reduction in growth further reduces governments ability to invest in the future. Ohio's job growth is zero in a booming world economy. What happens during the next recession.?
Over the last few years Lakewood's $6 million reserve has been spent in an effort to maintain the pay and benefit package of City employees.
Now what?
It will require a substantial tax increase to maintain City employee pay and benefits. Such an increase will give this City some of the highest taxes in the country. Can we afford such an increase? Or is it time to confront the City work force with economic reality?
Mayoral Candidates - Is It Time to Cut Employee Compensation
Moderator: Jim O'Bryan
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Bill Call
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Stan Austin
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Gary Rice
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Bill:
I know that you and I've debated this general topic before, but I just thought I'd point out a few things for the benefit of the general public.
As you are aware, before retirement, I was on the exec board of a public employees' union (teaching) During that time, the subject of health care and benefits came up every time in negotiations.
I seem to recall that teachers in my district paid more and more out-of-pocket with each negotiation, again adjusting to the reality of the times, and the amounts arrived at through the collective bargaining process.
Due to very specific laws, I believe that most cities and public schools must negotiate with their employees. Failure to do so, by some headstrong administration, could result in some very expensive unfair labor practice lawsuits.
Now people may argue that benefits like accrued sick time, medical leave, extent of hospitalization coverage, etc...should all be reduced in the public sector, but two factors come into play:
The first would be the need for a community to remain competitive in attracting and retaining quality employees. Were Lakewood to unilaterally get hard-nosed, and succeed in reducing the cost of benefits through collective bargaining in their community, then they would lose the ability to compete, as other cities would then look more attractive to employees.
I recall when the school district in which I worked fell a bit behind similar communities on the salary scale. On that point alone, a number of teachers jumped ship to other districts where they would make thousands more for the same job.
The second point would be that cost containment would seem to be in the best interest of both management and workers. If there is an expense bleeding the coffers, it must be addressed.
Having abolished slavery in the 1860's, we need to recognize that the American worker needs a liveable wage, a decent retirement, and an acceptable medical plan for theirselves and their families.
Are there people who abuse the system? If so, then let's address those individuals on a case-by-case basis, while at the same time, constantly reviewing more effective cost containment practices that will continue to respect the employees in our community.
I understand your concerns Bill, I only hope that they could be addressed in as workable a way as possible for all concerned.
I know that you and I've debated this general topic before, but I just thought I'd point out a few things for the benefit of the general public.
As you are aware, before retirement, I was on the exec board of a public employees' union (teaching) During that time, the subject of health care and benefits came up every time in negotiations.
I seem to recall that teachers in my district paid more and more out-of-pocket with each negotiation, again adjusting to the reality of the times, and the amounts arrived at through the collective bargaining process.
Due to very specific laws, I believe that most cities and public schools must negotiate with their employees. Failure to do so, by some headstrong administration, could result in some very expensive unfair labor practice lawsuits.
Now people may argue that benefits like accrued sick time, medical leave, extent of hospitalization coverage, etc...should all be reduced in the public sector, but two factors come into play:
The first would be the need for a community to remain competitive in attracting and retaining quality employees. Were Lakewood to unilaterally get hard-nosed, and succeed in reducing the cost of benefits through collective bargaining in their community, then they would lose the ability to compete, as other cities would then look more attractive to employees.
I recall when the school district in which I worked fell a bit behind similar communities on the salary scale. On that point alone, a number of teachers jumped ship to other districts where they would make thousands more for the same job.
The second point would be that cost containment would seem to be in the best interest of both management and workers. If there is an expense bleeding the coffers, it must be addressed.
Having abolished slavery in the 1860's, we need to recognize that the American worker needs a liveable wage, a decent retirement, and an acceptable medical plan for theirselves and their families.
Are there people who abuse the system? If so, then let's address those individuals on a case-by-case basis, while at the same time, constantly reviewing more effective cost containment practices that will continue to respect the employees in our community.
I understand your concerns Bill, I only hope that they could be addressed in as workable a way as possible for all concerned.
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sharon kinsella
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Bill Call
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I don't know what this country is coming to if you can't beat a dead horse.Stan Austin wrote:Wow Bill!!!!! How refreshing! A brand new topic! I don't think I've ever seen you post on this subject before and how originally presented.
Stan
FYI: I think the Mayor is doing a good job is this area. On a scale of 1 to 10 I would give him a 6. The recent raises granted to City employees are not execessive; they are just more than can be afforded given the small growth (decline) in City revenue. Those raises tend to crowd out the ability of the City to invest in fixed assets. He has also convinced the employees to pay slightly more for H&W which is not an easy thing to do.
Is it enough? No.
On the other hand it is up to the challengers to convince the voters that they can do better.