Bay City union leaders say city is demanding 5 percent in wage cuts

BAY CITY — Bay City union leaders say they are growing increasingly frustrated as contract negotiations continue in an effort to help cut a $1.66 million budget deficit from the city’s general fund.
At the heart of the issue is the belief by many union leaders that city management is changing the rules in the middle of negotiations.
The latest change, union leaders claim, is the direction that 5 percent of the 10.8-percent in cuts that unions must make to avoid layoffs, must come directly from base wages.
“They want 5 percent of our base wage, permanently …” said Kurt Wagner, president of the firefighters union. “That goes against everything (City Manager Robert Belleman) said in January. It was never said ‘We need 5 percent in pay cuts and 5.8 percent elsewhere.’”
The city commission must have a balanced budget by July 1 and the approval is hinging on getting cuts from all eight city unions, plus non-union employees.
The issue of salary cuts came to light further last week when Bay City commissioners directed staff to layoff five police officers if the police union can’t make concessions. Officials with Fraternal Order of Police Lodge 103, which oversees patrol and special duty officers, said they are willing to negotiate, but not on their salaries.
“It was never said that it had to be wages (that were cut),” said Cpl. Patrick Lochinski, president of the patrol union. “We believe we’ve met the 10.8-percent cuts and wages are not part of that.”
The patrol union is considering filing an unfair practice lawsuit against the city for its actions during negotiations, Lochinski wrote in a press release.
The firefighters union has been negotiating with the help of a mediator. Wagner said the union could go to arbitration if contract issues are not settled later this month.
But Belleman says unions have known all along what the city is trying to achieve.
“There is only confusion because they don’t want to give it,” he said. “I think it’s more of a ploy or distraction.”
Belleman, who has offered to take a 5 percent pay cut himself, said he had a meeting recently with City Hall employees, including most union leaders, where he was told that the unions would follow his lead.
“They all agreed that if I laid something on the table, they would follow,” he said. “And I put a 5 percent wage reduction on the table.”
Representatives from the city’s police unions were not at that meeting, Belleman said.
Union leaders have indicated they’d be willing to cut some parts of their contract with the understanding that those things would be restored in future contracts.
But Belleman said the goal is to get 5 percent of the reductions to be permanent, rather than temporary.
“It’s no longer about solving the budget issues as it is about cutting our wage,” said Kevin Rice, president of United Utility Workers Union of America Local 541.
Rice said his union has offered more than $377,000 in concessions by cutting some fringe benefits. He declined to detail what those are. Some unions have fringe benefits like food and clothing allowances.
He also added that his members have not had a pay increase since 2007.
“I can’t believe they won’t accept the concessions we’ve offered,” Rice said “The idea of cutting wages and laying people off is just a Band-Aid approach. Where is the innovative thinking and long-term planning?”
But some unions don’t have fringe benefits to bargain with. Patty Martindale, a steward for Teamsters Local 241 non-supervisory, said her union only has wages and health-care benefits.
While she said it’s been confusing on what exactly  management wants, she expects to see wages cut.
“It’s going to hurt, but if we can save a job, let’s save a job,” she said.
Commission President Christopher Shannon, 1st Ward, said he’s optimistic that concessions will be made. No unions have finalized contracts yet, but city officials have said some are close and negotiations continue this month.
But, if concessions are not reached, layoffs will be made.
“My decision will be made for me and the rest of the commissions’ decision will be made by what the rest of the unions decide to do,” Shannon said. “There is no alternative.
“Put your money where your mouth is this time around. (The unions) have been criticizing management and the commission for years. Here’s your opportunity to make those tough decisions.”
BY THE NUMBERS
Bay City’s eight unions and non-union employees must cut more than $3.19 million collectively from their contracts — only about $1.2 million of that will affect the general fund. The rest will supplement a variety of other city budgets, such as water, sewer and electric. The following is a look at how much each union must cut:
• Fraternal Order of Police Lodge 103: $441,842
• International Association of Firefighters 116: $448,098
• Police Officers Labor Council - Command Officers: $106,961
• Teamsters 214, non-supervisory: $141,459
• Teamsters 214, supervisory: $107,818
• Utility Workers Union of America Local 482: $378,219
• Utility Workers Union of America Local 541: $377,704
• Utility Workers Union of America Local 542: $976,852

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