Los Angeles News

LOS ANGELES The City Council is poised to approve three separate labor deals today that would cut its $405 million deficit in half this fiscal year without layoffs or furloughs, according to officials.

New contracts with the Coalition of Los Angeles City Unions and the Los
Angeles Police Protective League are expected to save $105 million and $58
million, respectively, in fiscal year 2009-2010, according to officials.

An Early Retirement Incentive Program aimed at shedding 2,400 civilian
employees from the payroll would save $20 million from the city's general fund, plus another $155 million from the budgets of Los Angeles World Airports and the Port of Los Angeles, according to officials.

The 22,000-member Coalition of Los Angeles City Unions agreed to renegotiate its existing contract with the city to avert plans to cut costs through layoffs and furloughs.

Under the proposed contract, coalition members would work 3.5 fewer hours per pay period through the remainder of this fiscal year. They would also put off collecting two years' worth of pay raises until after 2011, according to officials.

Those who want to voluntarily work a 72-hour schedule would be allowed to do so this fiscal year.

The coalition also agreed to transfer some members to programs and departments whose budgets are separate from that of the city. These include
programs funded with federal and state grants, the Port of Los Angeles, and Los Angeles World Airports -- but not the Department of Water and Power.

Aside from canceling layoffs and furloughs, the city agreed to give coalition members two cash payments averaging about $1,300 each.

The coalition is made up of AFSCME Council 36, LA County Building and Construction Trades Council, Teamsters Local 911, SEIU Local 721, Operating Engineers Local 501, and LIUNA Local 777.

Meanwhile, members of the Los Angeles Police Protective League agreed to forgo salary increases this fiscal year and the next. They also agreed to
allow the majority of overtime and sick leave to be compensated with time off
rather than cash.

The proposed contract also states that police officers hired next year will be paid 20 percent less than the current starting salary.

City Administrative Officer Miguel Santana said the city will save $58 million from the contract this fiscal year, and $104 million next year.
 
Under the ERIP, employees would be allowed to retire up to five years early with full benefits plus $15,000. They can sign up for it starting Monday through Dec. 16, or until the maximum number of participants has been reached.

The program will be offered on a first-come, first-served basis, and will cost the city nothing. Employees who stay on the job agreed to increase their pension contributions by 1.07 percent beginning July 2011 to pay for the  early retirees' incentives.

Employees who take advantage of the ERIP must pay 1 percent of their
retirement benefits into the pension fund.

It was the Coalition of Los Angeles City Unions -- which represents about 75 percent of all the city's civilian employees -- that negotiated the ERIP. Its chairwoman, Cheryl Parisi, estimated the ERIP and the coalition contract combined would save the city $1.17 billion over five years.

The City Council was also expected to discuss today a tentative agreement with the International Brotherhood of Electrical Workers. The meeting was scheduled to be held behind closed doors.

Negotiations between the city and the 3,500-member United Firefighters of Los Angeles City are at impasse. An independent mediator has been called in.

About 6,300 members of the Engineers and Architects Association must
take a total of 26 furlough days this fiscal year because their negotiators
refused to defer their cost-of-living increases, according to city officials.

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