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Concessions Help Save Jobs and Keep Vital Services Intact
Updated
On: May 11, 2009 (09:26:00)
By Jameson Cook, Macomb Daily Staff Writer Concessions by township employees have allowed Washington Township to halt all but one of a dozen layoffs slated to take place last week.
Six unions representing township workers approved givebacks that include elimination of post-employment medical care, higher deductibles for health care and stricter overtime rules.
The moves avoid a budget deficit that could have reached $1 million after four years due to declining property tax revenues.
In exchange, the unions are receiving assurances of employment levels for the next three years, four years for those in the fire department.
"I'm very pleased the employees stepped up and did the right thing," Supervisor Dan O'Leary said. "They sent a message to the community they're willing to work with the taxpayers to serve them as well as protect their jobs.
"This deal is tough on everybody, but we protected as many jobs as we could."
Washington Township is among the hardest hit area communities due to the real estate market crash, O'Leary said. He said he hopes the concessions will allow the township to function during the slowdown and thrive when the economy rebounds.
With the concessions, the township reverses laying off four to five firefighters/paramedics, four to six general-fund workers and two water-and-sewer workers, all of which had been approved by the Board of Trustees.
Some residents had expressed concern about the effect of losing firefighters/paramedics on fire safety, insurance rates and ambulance service.
Dennis Milobar, vice president of Local 3299 of the International Association of Firefighters, said retaining the existing staffing level is important to effective operations.
"Our members can continue to provide the high level of fire and advanced life support services that the residents of Washington Township have come to expect and deserve," Milobar said.
He said union members "realized that especially during these difficult economic times we had to do what is right and give concessions."
A representative of the clerical union did not return a telephone call.
The concessions did not stop Building Department cuts because of the dramatic drop in construction activity in the township. The department saw the elimination of one full-time position, the reduction of one post from 40 to 32 hours per week and a third position converted to work as needed.
The township, which has about 60 employees, saved about $260,000 with the concessions and another $140,000 in other reductions for a general fund budget of $2.63 million for fiscal year 2009-10, which began April 1. The township's other primary budgets are water and sewer, $6.1 million, supported by water and sewer rates and tap fees, and fire and ambulance, $4.8 million, funded by a 3 mill tax levy.
In the concession deal, the employees also gained a stipulation that 2 percent of their salary can be funneled into a health savings account— matched by the township — to be used after they leave the township.
The firefighters union and township also reached a tentative agreement on a 4-year labor contract. The firefighters, whose last contract expired March 31, would receive no wage increase the first year but would see 2 percent increases the second-through-fourth years, O'Leary said.
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