City union rejects new retirement program; labor dispute headed to court

[Omaha Steve]

http://journalstar.com/news/local/govt-and-politics/article_301ebe90-9136-11df-9acc-001cc4c03286.html

By DEENA WINTER / Lincoln Journal Star | Posted: Friday, July 16, 2010 6:58 pm

The second largest city employee union recently voted 121-5 to reject the city's demand that it adopt a less generous retirement plan for new hires.

Instead, the union will take the labor dispute to the state Commission of Industrial Relations. Public employees are not allowed to strike in Nebraska, but state law requires their salaries and benefits be comparable to colleagues in similar-size cities. The CIR settles such disputes.

The Public Association of Government Employees (PAGE) -- which represents 460 blue-collar, clerical and technical city employees -- is fighting the mayor's demand that it agree to a new retirement plan.

A year ago, Mayor Chris Beutler and five City Council members vowed at a news conference to end a controversial 2-to-1 retirement match for new hires. Their legal advisors said the benefit couldn't be reduced for current employees.

In April, city negotiators convinced a city union that represents managers to agree to the new retirement plan. Under the Beutler proposal, employees contribute 7 percent of their compensation and the city puts in 9 percent. That pales compared to the plan in which employees contribute 6 percent and the city 12 percent.

Jeff Stump, head of the Public Association of Government Employees, said the union suggested an alternative pension plan for all employees -- not just new ones -- that could have saved the city about a half million dollars for that union alone.

FULL story at link.

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Biggest city union OKs agreement