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 October 13, 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 discussed in prior posts on this site here, and here, 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.
Since the City Council last discussed the item, an October 1, 2020 Report from the CAO was transmitted to the Council. The Report provided “On September 14,2020, the City Council adopted a recommendation to implement 18 furlough days for most civilian employees effective October 11, 2020. These 18 days were a reduction from the original 26 furlough days adopted in the 2020/21 budget. That reduction reflected the Council’s decision to budget $40 Million in the Unallocated Balance to address furlough shortfalls as well as anticipated savings from the City’s Separation Incentive Program (SIP).
Since then, the CAO has continued to bargain with civilian labor organizations regarding additional cost savings to further delay and/or eliminate the need for furloughs. During those bargaining sessions a tentative agreement was reached with the following key terms: • An 8-hour unpaid day for all civilian employees on Tuesday, November 3, 2020. • An 8-hour unpaid day for all civilian employees on Friday April 2, 2021. • Add a one-time paid eight (8) hour floating holiday to FY 2020/21. • Defer the January 2021 payment of excess sick leave to January 2022. We believe that these additional savings, coupled with anticipated SIP savings and prior contribution of [Joint Labor-Management Benefits Committee (JLMBC)] savings, will enable us to defer further furloughs from October 2020 to January 2021. Finally, additional employees have enrolled in the SIP. We will report back no later than January 2021 on updated projections on SIP savings.”
Thus, in the Report, the CAO recommended “that the City Council: 1. Approve the…attached cost savings Letters of Agreement (LOAs) for the [aforementioned] labor organizations…2. Defer the implementation of furloughs until no earlier than January 17, 2021 (Pay Period 16). 3. Reduce the number of furlough days for FY2020/21 to 11 days. 4. Instruct the City Administrative Officer to report back in January with updated projections on savings from the Separation Incentive Program.”
The matter was referred to the City Council’s Budget and Finance Committee. On October 8, 2020, the Committee waived consideration of the matter.
Now, Agenda item 28 of the October 13, 2020 City Council meeting calls for the council to “[approve] the…cost saving LOAs…[defer] the implementation of furloughs until no earlier than January 17, 2021 (Pay Period 16)…[reduce] the number of furlough days for FY 2020-21 to 11 days…[and instruct] the CAO to report back in January with updated projections on savings from the Separation Incentive Program [(SIP)]”
We hope these updates are helpful to you.
SR Holguin, PC