SR Holguin, PC is a union-side labor and employment law firm with nearly four decades of experience representing private sector unions, public sector unions, and multi-employer trust funds. SR Holguin, PC is committed to providing full-service legal representation to each of our clients.
One way in which SR Holguin, PC ensures our clients and their members stay informed is by keeping you updated on recent developments relating to workers’ rights. Today’s updates come following the release of the September 2, 2020 Los Angeles City Council meeting agenda. There is one item in particular that could impact you.
Workers Who Could Be Impacted: Service Employee International Union, Local 721; Los Angeles Professional Managers Association; City Employees Association, Council 36; Los Angeles/Orange Counties Building and Construction Trades Council; Laborers International Union of North America; Engineers and Architects Association; Municipal Construction Inspectors Association; Los Angeles City Attorneys Association; International Union of Operating Engineers, Local 501; Los Angeles City Attorneys Management Association; Fiscal and Policy Professionals Association
As background, a June 22, 2020 Report from City Administrative Officer (CAO) states “[o]n April 20, 2020, the Mayor’s proposed budget for FY 2020/21 was released. In order to balance the budget the Mayor proposed 26 furlough days for most civilian employees. The furlough days are projected to save approximately $150M. Since early May, the CAO has been bargaining with civilian labor organizations regarding an alternative to furloughs. During those bargaining sessions labor proposed a separation incentive plan to provide a non-retirement-related cash incentive to retirement-eligible employees to retire.” Thus, the Separation Incentive Program (SIP) was bargained for.
One of the five key terms of the SIP as outlined in the Report provided “[a] minimum of one thousand three hundred (1,300) eligible employees must successfully enroll in the SIP in order for the SIP to be implemented. If the minimum 1,300 threshold is not met, the SIP will not be implemented.”
Agenda item 42 of the September 2, 2020 Los Angeles City Council meeting calls for the Council to consider “Communication[s] from the City Administrative Officer (CAO) relative to amendments to the Letters of Agreement (LOA) for the Separation Incentive Program (SIP) to remove the 1,300 participant minimum.”
The Fiscal Impact Statement provides “The CAO reports that as of June 22, 2020, $23.2 million were estimated in savings in FY 2020-21 with 1,425 participants. As the participation rate of the current SIP is lower, the savings from the program have been reduced. The actual savings will be determined primarily by the speed in which [Los Angeles City Employees Retirement System (LACERS)] …is able to process retirement applications.”
The recommendation for Council action is to “[a]pprove the eleven amendments, attached to Council file No. 20-0600-S56, to the previously adopted SIP LOAs for the [aforementioned] labor organizations.”
We hope these updates are helpful to you.
SR Holguin, PC