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A plan pending before the Milwaukee County Board of Supervisors would eliminate the furlough days required of many union-represented county employees and instead save more money by imposing wage and benefit concessions. These concessions were already passed in the 2010 and 2011 budgets under then County Executive Scott Walker but are currently blocked by collective bargaining agreements. The county, however, could impose them unilaterally if and when Gov. Walker’s Budget Repair Bill takes effect.

The plan was created by the county’s Employee Benefits Workgroup, a panel composed of county fiscal analysts, county board staff members, representatives from the county’s Office of Corporation Counsel and its labor relations department.

county courthouse (photo by Adrian Palomo)

The panel recommended the county board pass legislation imposing the concessions – but they wouldn’t take effect until the Budget Repair bill clears legal hurdles or is passed by the state Legislature a second time. The bill, by nullifying large sections of the bargaining agreements, would allow the county to impose the concessions.

The board’s Finance & Audit and Personnel committees both passed the workgroup’s plan with unanimous votes in April. When it went before the full county board on April 21, however, supervisors voted 11-7 to send it back to the committees for further consideration.

Supervisor John Weishan, who proposed delaying action on the concessions, said, “I have some very severe reservations about moving forward with this type of action before things have been cleared at the state level.”

The panel has recommended moving forward on the concessions “as soon as humanly possible.”

Mark Grady, acting deputy corporation counsel, told the Personnel Committee in April, “Every month that you wait on some of these initiatives, there’s a substantial cost.”

Concessions

The concessions would include a change in the way overtime pay is calculated for union-represented county employees. Currently, overtime kicks in after an employee has worked more than eight hours in a day. Under the new system, which Grady said would comply with federal law, overtime would only begin after employees have worked 40 hours in a week.

Another concession is a redesign of the county health plan. It includes higher deductibles, higher co-pays, less coverage for out-of-network visits and higher out-of-pocket maximums.

The plan would also impose a one-year pay freeze and commit the county to imposing the higher pension contribution (6 percent for 2011) required by the budget repair bill.

For county employees not represented by a union, who account for about 15 percent of the county workforce, the only change would be an increase in their pension contribution; the new overtime rules, redesigned health plan and pay freeze already apply to these employees.

AFSCME has not been able to negotiate a contract with the county since 2008, but legally its old rules apply for now, giving it the power to block concessions. But under the state Budget Repair Bill, those old rules would be invalidated and only current union contracts would have any force (until they expire) as is the case, for instance, with the Milwaukee teachers’ union.

By far the largest union representing county employees, the American Federation of State, County and Municipal Employees District Council 48, which represents about 65 percent of the county workforce, has accepted none of the concessions. It’s these employees who, under the 2011 county budget, are required to take 26 furlough days this year.

Smaller unions representing county employees, including the International Association of Machinists and Aerospace Workers District 10, the Technicians, Engineers and Architects of Milwaukee County and the Federation of Nurses and Health Professionals, have already accepted some of the concessions.

Estimated savings

County analysts estimate that imposing the concessions and higher pension contributions on AFSCME and other employees would save about $6 million in the second half of 2011 and $10.5 million in 2012. The analysis assumes the Budget Repair Bill will take effect in mid-2011; the state Supreme Court is scheduled to hear oral arguments on June 6 in the case blocking its implementation.

Furloughs remaining in the second half of 2011 are expected to generate savings of about $3.9 million. The plan says these could be rescinded given the larger savings from the concessions (of $6 million for that year). That would leave about $2.1 million in 2011 to help offset cuts in state aid to the county included in Walker’s proposed 2011-13 budget.

A memo from the workgroup notes, however, that changes to furloughs are “subject to any action by the new county executive,” Chris Abele. A comment from his office wasn’t available on Monday.

The county board’s Finance & Committee will again consider the plan on Thursday. The Personnel Committee is scheduled to take it up on Friday.

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