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minhhs 02-22-21
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minhhs 02-22-21
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11/4/2021 9:50:21 AM
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Office Of Council
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Health Human Services
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2/22/2021
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generally not as comprehensive, based on public/private sector analysis. Hence,the remainder of the paper will focus on <br /> union represented employees. <br /> The last point I wish to make on timing(and budgeting process) stems around the "City of Lakewood Financial Policies <br /> and Guidelines (Budget pg.18)whereby it states "All funds, except agency funds, are legally required to be budgeted and <br /> appropriated"...and "the legal level of budgetary control has been established by City Council at the fund level for all <br /> funds." Nowhere can I find mention of paid parental leave, or funding of, in the City's 2021 Approved Budget of$156 <br /> Mil. <br /> Pitfalls of Collective Bargaining in the Public Sector <br /> Many studies have been issued on differences between Public and Private Sector Collective Bargaining, with Public <br /> Sector Bargaining frequently referred to as "Political Collective Bargaining"for obvious reasons. <br /> My paper is based on the numerous University of PA, School of Law periodicals... <br /> Let's begin with the fact that collective bargaining in the public sector indirectly affects the level of taxes paid by <br /> taxpayers and the level of services they receive,which inevitably falls back to the City's budget, which is probably the <br /> City's most important political decision. Studies further demonstrate that the closeness of public officials to their <br /> employees, particularly Mayors, makes them more vulnerable to the "financial pitfalls" of the "Political Collective <br /> Bargaining" process. And herein lies a major concern, as I mentioned with Mayor George's "political theatrics" article in <br /> the Sun News("I knew once I became Mayor I wanted to reintroduce this benefit, because it's been a long passion of <br /> mine"). Which, may I remind you of AFSCME Council 8's July, 2019 endorsement of Meghan George for Mayor? <br /> Coincidently, let's look at the AFSCME's website where they state: "The long-term goal is for all workers—union and <br /> non-union, public and private sector—to have access to paid family leave.This is one of the issues AFSCME looks at in <br /> evaluating support for candidates and elected officials." NO surprise.....So,the question I ask the Committee is WHO <br /> comprises the City's bargaining committee and have they weighed in on this ordinance? I would hope at a minimum <br /> that members from the City's Legal, HR and Finance, would be included in these discussions and fully vet this Ordinance <br /> and the impact on not only the eight bargaining units, but also the impact on bargaining within other municipalities. <br /> We have seen the affect that "patterned bargaining" has on communities with similar union representation. <br /> Total Cost Impact and Budgeting Process <br /> Having spent 37 in corporate finance in the private sector for a Fortune 10 Company,the one thing I can emphatically <br /> tell you is that when costs are stated for funding proposals, or bargaining demands,they are generally understated (for <br /> review and ease of approval), leading us to ask"what is the real total cost impact now and in the future"?? <br /> Mayor George stated in the Sun Article that based on the past three years, "If the legislation had been in in place,the <br /> city would have paid between $27K and $36K during that period." Which of course begs the question, in addition to the <br /> applicant's wages during their parental leave, does it account for: overtime pay for job coverage; additional temporary <br /> employees if needed or contractually required;training costs for backup coverage; and additional supplies, equipment, <br /> or materials? And, because employees would no longer have to use their accrued sick time, vacation time, or other paid <br /> time off, would there be a need for additional employees, (full or part-time) added to the rolls due the increases in <br /> absenteeism coverage. Considering the majority of City employees are union represented, what is the contractual <br /> language behind overtime and job coverage for"extended" periods of leave? Let us not forget that even if they are not <br /> union employees, if they are classified "non-exempt" (Fair Labor Standards Act),they too would be paid overtime for all <br /> hours worked greater than 40, scheduled or not. <br /> Therefore,the underlying question is two-fold: WHO is responsible for evaluating the"total cost impact" and what is the <br /> true impact over the duration of the negotiated contracts? <br /> (If interested, I do have a few suggestions to the negotiating team when and if this comes up for negotiations during the <br /> contract renewal phase. One would be to propose to the Unions employees "self-fund" all or a part of their paid time <br /> off by setting up a paid parental leave account similar to health savings accounts (HSA).This would require tax code <br />
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