MY union files lawsuit against my employer the City of Omaha

[Omaha Steve]

http://www.omaha.com/index.php?u_pg=1636&u_sid=2287921

Published Tuesday
November 28, 2006

Rehiring so many Omaha city workers hinders full-timers, a suit says

BY KAREN SLOAN


WORLD-HERALD STAFF WRITER

Omaha is sending paychecks to 110 workers who retired from city jobs and then went back to work for the city.

A union that represents municipal workers wants more of those retirees to stay home.

The Nebraska Public Employees Local 251 filed a lawsuit this month over Omaha's hiring of retired workers for part-time and seasonal work.

Bill Love, president of Local 251, said the practice reduces advancement opportunities for full-time workers and cuts down on the number of workers paying into the pension system.

The lawsuit could prompt action from Omaha City Councilman Dan Welch, who would like to put more limits on the hiring of retired city employees.

Under the system, which was detailed in a World-Herald story in March, retirees collect their city pension and get paid for working part time for the city.

City administrators say this results in more experienced employees and saves money because part-timers don't get benefits. Union leaders note, however, that the practice adds financial stress to an already underfunded pension system.

The trend of hiring retired city employees is especially prevalent in administrative departments such as finance and planning.

"It denies other people promotional opportunities," Love said.

Local 251 represents about 800 workers, including clerks, heavy equipment operators and library and parks employees. The city has a total work force of more than 3,000 people, including 669 part-time and seasonal workers.

The union is asking a Douglas County District Court judge to interpret a city ordinance that dictates that no more than 20 percent of Omaha's part-time and seasonal employees may be city retirees receiving pensions.

How the 20 percent is calculated is at the heart of dispute between the city and the union.

The union's lawsuit contends that the 20 percent limit should apply to each department. The city believes that the 20 percent should be calculated by adding together all part-time and seasonal employees over the course of a year.

Under the union's interpretation, the city would be required to reduce the number of retired employees.

Some departments have a high percentage of retired city workers. For instance, nine of the Planning Department's 14 part-time employees are retirees. In the Finance Department, all eight part-timers are retired city employees.

The city has much lower percentages of city retirees in some larger departments. For instance, the Parks Department has only 24 retirees among its 370 part-time and seasonal workers. That department hires many summer workers, including lifeguards for city pools and ushers for Rosenblatt Stadium.

"The union believes that the city is misapplying the ordinance," said Thomas Dowd, the attorney representing the union. "If the intent of the ordinance was to look at the city as a whole, it would have said that."

City Finance Director Carol Ebdon said retirees now make up about 16 percent of the city's part-time and seasonal workforce. That percentage is lower during the summer months when there are more part-time employees, Ebdon said.

Human Resources Director Tom Marfisi said it makes sense for the city to give jobs to people who have experience working for the city. "If we lose this lawsuit, we'll just have to hire less-qualified people," Marfisi said.

Retired public works employees who operate snowplows already know the routes, Marfisi said. Additionally, they work only when it snows, unlike full-time employees, he said.

Marfisi also said part-time and seasonal workers do not receive benefits, which can account for 25 percent to 30 percent of a full-time employee's compensation.

While the city saves some money, Local 251 is concerned that its pension fund may suffer. Part-time and seasonal employees do not pay into the pension system, which is already facing a $85.4 million shortfall.

With highly paid management positions being filled by retirees, less money is flowing into the system, Love said.

City retirement benefits are more generous than most private businesses, many of which are eliminating their pensions.

Aaron Hanson, president of the Omaha Police Union, said he is not concerned with the city hiring retired employees for the Police Department.

More than half the Police Department's 50 part-time workers are retired.

Hanson said nearly all of them perform clerical and administrative tasks and do not compete with full-time officers for patrol and investigation jobs.

Councilman Welch said he has been trying for six months to write an ordinance that would further restrict the hiring of retired city workers. He said he has been unable to come up with a plan that Mayor Mike Fahey would endorse.

Welch said he would like to limit the length of time a management-level retiree could come back to work for the city.

One example is retired City Comptroller Allen Herink, who left his position a year ago but is working part time as an accountant in the Finance Department.

He makes $43.89 an hour in addition to his $68,763 annual pension. The maximum salary he could receive this year is about $73,000, if he works 32 hours a week.

"One of the concerns I have is with employee morale as well as with the possibility of advancement for the employees," Welch said. "I also have concern about how the hiring of retirees affects the pension system."

Fahey is comfortable with the way the system works, said his chief of staff, Paul Landow.

"He sees this as a major win for the taxpayers," Landow said. "It's a smart, appropriate way to do business."

Retired but back on the job The City of Omaha now has 669 part-time and seasonal employees. Of those, 110 employees, or 16 percent, are retired city workers. The list shows the total number of part-time and seasonal workers by department and the number and percentage of those workers who are city retirees:

Mayor's Office: 12 workers, two retired (17%)

City Council staff: four workers, three retired (75%)

City clerk's staff: two workers, both retired (100%)

Law Department: one worker, not retired (0%)

Human Resources Department: three workers, two retired (67%)

Finance Department: eight workers, all retired (100%)

Planning Department: 14 workers, nine retired (64%)

Police Department: 50 workers, 36 retired (72%)

Fire Department: three workers, one retired (33%)

Public Works Department: 61 workers, 14 retired (23%)

Parks Department: 370 workers, 24 retired (6%)

City libraries: 140 workers, nine retired (6%)

Convention and visitors bureau: one person, not retired (0%)

[Omaha Steve]

1. Kick

For all the labor newbies learning about the DU from this post!