Page One

According to Berkeley labor contracts: 

“Salary reductions may be made as a result of an employee’s diminished service value or as part of a general plan to reduce salaries and wages as an economy measure or as part of a general curtailment program.” 

The City of Berkeley is facing a severe budget imbalance for the foreseeable future, with the all-budget deficit projected to rise from about $12 million in 2004-2005 to well over $25 million in 2008. Most of the projected deficits, perhaps 80 percent, are directly attributable to the city’s personnel costs. City residents, especially but not only real property owners, are already taxed far more than their neighbors in surrounding jurisdictions and far more that other Californians. Figures provided by the City Manager’s office indicate that the real property tax and fee burden for Berkeleyans is already more than 10 percent higher than Oakland, more than 36 percent higher than Hayward, and more than 41 percent higher than Emeryville. 

City of Berkeley employees, while they may not get rich on the job, enjoy most of the “cradle-to-grave” benefits that have been the hallmark of the Western European welfare states and, in the United States, that are mostly limited to public employees and tenured professors. This comprehensive employment package includes almost total job security, generous defined-benefit pension plans, regular CPI adjustments, employer-paid family health insurance that extends beyond retirement, liberal disability and workplace injury policies, liberal leave policies, and many other job-related benefits. Meanwhile, huge numbers of Americans, including not a few Berkeley residents, are coping with unemployment, job insecurity, loss of retirement assets, increasing health care costs, and all of the stress and ill effects of economic uncertainty and insecurity. 

There are about 1700 City of Berkeley employees, most of whom, in my opinion, do a reasonably good job. I, along with most other Berkeley residents, am particularly impressed by our policemen and firemen. However, I do feel compelled to note in the context of this article that most of our city employees, even among the highly paid, choose to live elsewhere than in our city.  

There are seven recently-negotiated city labor contracts plus a labor manual for unrepresented city employees, most of these agreements running through 2008. These contracts are extremely generous, so much so that they must have been negotiated in ignorance of the then-impending economic crisis. For one example, in a time of recession and possibly even deflation, there is no rational basis for large CPI upward adjustments. So, despite the fact that I and other residents value our city employees and the services they provide, we believe that these contracts must be changed. We also believe that it is fairest and in everyone’s best interest to have an across-the-board salary increase deferral and/or across-the-board de minimus work furlough rather than terminate any employees, limit employee benefits, further cut city services, or raise taxes to an ever-higher level. 

There has been a lot of loose talk about the city’s labor contracts and the respective powers of the city and the unions to change course at this point in time. I have been told that the city’s hands are tied unless the several city unions voluntarily renegotiate their contracts. I have been told that Berkeley’s well-being would be jeopardized if a harder line were taken with these unions, since the affected employees would either “slow down” or leave. I have been told that the only way to change things is to threaten layoffs. I have, however, seen that the most of our leaders are simply afraid to be viewed as anti-union and to alienate the so-called labor union power base (even though these union members are mostly not Berkeley residents and voters). Instead, our leaders are further jeopardizing the local economy. They are hoping that Berkeley taxpayers, already relatively overtaxed, will disappear the problem and continue to vote for more taxes and suffer more service cuts to pay for these unjustified and unjustifiable labor contracts. 

Based on my review of the plain language of the various labor contracts, I believe that the City Manager has substantial power to implement an across-the-board wage freeze, a general reduction in hours, and similar measures right now. I am not saying that it would be politically easy to do so, only that it is possible and necessary. Other jurisdictions, such as San Francisco, Oakland, Alameda County, and all around the country appear to have accomplished this without too much serious ill effect. I do not believe that our employees will or can pick up and leave, because by doing so they will lose several vesting benefits and there are, in fact, far fewer other employment choices available now that our neighboring jurisdictions have cut back on wages, hours, employees, etc. If some of our workers nevertheless find a better deal and choose to leave city employment, then so be it, we will have to manage. 

Let us take a good hard look at the real world: Japan has never recovered from its economic downturn, the welfare states of Western Europe are steadily crumbling, and the State of California is in a political and fiscal mess. It is truly possible that we are in a very serious long term economic crisis and that things will get worse for the foreseeable future. Given all the other employee benefits enjoyed by our city workers, an across-the-board wage increase deferral or minimal work furlough seems like a small sacrifice in the grand scheme of things. It is time for responsible Berkeley leaders to look at the big picture and say “I’m sorry” to a small special-interest group.  

I have obtained copies of the several city labor contracts and, as a template, have extensively reviewed the Memorandum of Understanding with the Berkeley Police. While it was quite enlightening to look at all of the terms and conditions of the MOU, I was particularly interested in those relating to the role and responsibility of the City Manager and the provisions for salary reductions, furloughs, and layoffs. These provisions are mirrored in all of the labor contracts. In the plain language of the MOUs, the City Manager has extensive power to modify the contracts in a time of emergency. In particular, and despite the loose assertions to the contrary that I have heard, the City Manager appears to have the power not only to implement layoffs but also to implement salary reductions or to curtail salary increases. 

Article 1, Section 1.2.2 of the Memorandum of Understanding with the Berkeley Police Association states: 

“Responsibility for management of the city and direction of its work force is vested in city officials and the city Manager whose powers and duties are specified by law. In order to fulfill this responsibility, it is the exclusive right of city management…to exercise control and discretion over the city’s organization and operations. It is also the exclusive right of the city Manager to…implement a layoff pursuant to Section 57 of this Understanding, determine the method, means and personnel by which the city’s operations are to be conducted and to take all necessary actions to maintain uninterrupted service to the community…provided, however, the Association shall be notified of any proposed changes affecting wages, hours, and other terms and conditions of employment…” 

Article 2, Section 2.11.4 states: 

“Salary reductions may be made as a result of an employee’s diminished service value or as part of a general plan to reduce salaries and wages as an economy measure or as part of a general curtailment program.” 

Article 9, Section 9.57 states: 

“The city Council, city Manager, and the Chief of Police make every reasonable effort to manage and budget the city’s resources effectively and to plan for the delivery of city services in a manner which will avoid the necessity to layoff  

career city employees.” Then, a procedure is set up in the event “…a reduction in the work force for more than thirty (30) calendar days is necessitated by, but not limited to, a material change in duties and organization, adverse working conditions, return of employees from leaves of absence, or shortage of work or funds…” 

Barbara Gilbert, a longtime Berkeley resident and former mayoral aide, is a frequent Daily Planet contributor.