Tuesday, October 07, 2008

Blue v. White Collar Compensation

Today I learned in the paper that John Fitzpatrick will get a 6.3% salary increase (from $101,116.34 to $107,527.94) as he becomes assistant city manager. Nothing against John, who is a good guy and valuable member of city staff, but it's interesting to place these kinds of white collar raises in the context of how we handle represented city workers' compensation.

Last year a majority of the common council voted to go to arbitration with the city's unions (except for the police, who had already settled with the city) even though there was a minor difference between what the city was offering and what the unions were asking for. I believe the city was offering the unions 2.75% wage increases for 2008 and 2009 in return for higher health insurance premiums. If I recall correctly, the unions were willing to settle for lower raises in return for keeping the insurance premiums low. The city's offer, if I recall correctly, would have meant lower take-home pay.

The city lost all arbitration hearings except for the one involving the firefighters union. Instead of using city staff to negotiate contracts, the city contracted out for a negotiator. The city ended up spending over $190,000 for this service.

Mr. Fitzpatrick certainly deserves higher compensation for taking on additional work. I don't think anyone would disagree with that. On the other hand, 6.3% administrative raises make it very difficult for the city to credibly ask represented workers to settle for miniscule or no increases in salary or benefits even in these tough economic times. Indeed, I found it ironic, watching Eye on Oshkosh last night, to hear Mr. Rohloff lament that arbitrators don't consider a city's ability to pay as they decide whether to side with the city administration or the unions. Does the city have the ability to pay administrative raises? I guess so.

I think during this year's budget hearings we are going to have to take a serious look at the practice of contracting out for negotiators. I haven't had the time to research how negotiations are conducted in other city's across the valley,but I'd find it hard to believe that spending over $190,000 is common practice.

Oh, and for what it's worth: Green Bay's Mayor makes $76,535 and his chief of staff clocks in at $63,251. By way of comparison, Oshkosh now has a $130,000 CEO and $107,000 assistant.

1 comment:

newoshkosh said...

Tony, when are you going to quit complaining about the manager form of government and do something about it? You have the ability to put forward a resolution to have referendum. Act already. If you think the current form of government is wrong, and that a mayor form is better, then do something about it! Seriously. Everyone who is outspoken about our form of government being bad would rather sit on the sidelines and complain rather than take action. This all talk-no action stuff is getting old.