Henderson reaches deals with unions

Firefighters, police officers and other union workers in Henderson have agreed to forgo cost-of-living raises for a minimum of two years under new labor agreements that might help stave off layoffs in Nevada's second-largest city.

Members of the city's three largest unions have overwhelmingly ratified the contracts, which were negotiated without the public squabbles that have played out elsewhere in the Las Vegas Valley.

The new agreements will come before the City Council for approval on Tuesday.

Human Resources Director Fred Horvath, who represented the city in the negotiations, said talks with the unions "couldn't have gone better."

"We haven't had any of the rhetoric we've read from other parts of the valley," Horvath said. "I couldn't be happier with our relationships. We have very straight talk about some very difficult issues."

The union concessions are expected to save the city $4.8 million over the next two budget years and more than $13 million through 2015, Horvath said.

The Henderson Police Officers' Association, which represents 340 rank-and-file officers, has agreed to extend its current one-year agreement for three more years with no cost-of-living increases.

The city's 196 union firefighters have approved a two-year contract that eliminates altogether a series of 1.25 percent cost-of-living increases they agreed to defer less than a year ago.

The only city union workers due to receive any sort of cost-of-living raise are the 717 full-time employees represented by Teamsters Local 14. They agreed to a two-year deal that eliminates base-wage increases until the fiscal year starting July 1, 2012, when they are due to receive 1.25 percent raises.

City employees still will be eligible for standard merit-based step increases in their pay.

"When we went to the table, the first thing we wanted to do was prevent any layoffs," said Larry Griffith, secretary-treasurer for Teamsters Local 14. "It's one of two things: You either go to the table and help the city get through a bad time, or you say, 'We're not coming to the table and you can lay off 200 people.' "

Horvath said the city worked hard when times were good to forge an open and cooperative relationship with its unions.

"They believe. They've been partners with us," he said.

That mutual trust "meant everything" as the city and its workers set to work in 2008 to begin dealing with an economic downturn that was then in its infancy.

Since then, Henderson has reduced its full-time staff to 1,863, mostly through a series of buyouts and without resorting to a single involuntary layoff, Horvath said.

For roughly 40 city workers, avoiding a layoff meant accepting a transfer to another job and as much as a 40 percent cut in pay.

The city has 184 vacant positions, including 119 jobs that have been permanently eliminated.

"The city of Henderson gets it. They got it two years ago, and they still get it," Griffith said. "Other cities in this valley don't get it."

Henderson spokeswoman Kathleen Richards said the city's 543 nonunion workers, many of them upper-level supervisors, also have made significant concessions, including the elimination of car and uniform allowances, a loss of one paid holiday, and the end of a city retirement match of up to $6,000 a year.

Horvath said no promises were made to secure the union concessions. Aside from the base-wage increase due to Teamsters workers in 2012, he said, the city is not on the hook for any cost-of-living raises in the coming years. Several unions retained the right to try to reopen their contracts down the road, however, should budget conditions improve.

"We're not going to make a financial commitment ... that we can't keep. That makes, in all due respect, no sense in this environment," Horvath said. "Given what everyone is saying, we're not expecting a big turnaround anytime soon."

Henderson officials did just receive a bit of good economic news: The city saw its consolidated tax revenue tick up in April after 37 straight months of year-over-year declines.

City projections for April called for a 5 percent drop in so-called C-tax money, most of which comes from sales taxes.

Contact reporter Henry Brean at hbrean@reviewjournal.com or 702-383-0350.

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Comments

Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

1. ths Jul. 1, 2010 | 12:20 p.m. Report Abuse

   CLV employee.
   
   You still did not comment on that management is willing to take pay cuts, why are you not?
   
   Just because you accepted the wage increases make you innocent? I think not.

2. DoubleDz Jul. 1, 2010 | 9:04 a.m. Report Abuse

   I wish Teamsters represented Clark County workers! SEIU is a joke, absolutely worthless. Sounds to me like Teamsters represent all their members, not just those with the highest seniority!

3. USCitizenLasVegas Jun. 30, 2010 | 9:56 p.m. Report Abuse

   1.CLV has spent nearly $14 mil from its general Fund to build the Mob Museum. -- Do we need that now in this economy?
   
   2.CLV Mayor wants a new city Hall!@#%.. Does the employees really need it? CLV is going to start paying ~$15mil/year as rent and abandon the old city hall which is fully owned.
   
   3.The CLV finance department comes up with varying numbers (varies by ~$30 mil) each time when they prepare the budget... they are deliberately lying/mis calculating/wrong estimating.
   
   4.How did CLV balance the ~$4 Mil deficit of Fire department without any layoff from fire department?
   
   5.The CLV Management employees- Appointives were not laid off except a couple of them who were black sheep's of their department.
   
   6.Of the 250+ layoffs 90% of it was from the CEA union... CLV did not try to balance the layoffs with Management and CEA employees.
   
   7.there are too many worthless, non-working, lazy and stupid employees who is all safe because of their seniority only tell them to go get a job out in the world...
   
   8.Outrageous ..Greedy and selfish Mayor and council members-- CLV will never come up with them

4. CLV employee Jun. 30, 2010 | 8:28 p.m. Report Abuse

   THS, exactly when did the city "attempt to slow down raises"? In what years? The raises given to CLV employees were the results of negotiations between employees associations and CLV management. The City never attempted to slow down raises. The employees simply accepted the contract given them by CLV management.
   
   Regarding Diversity Training - This training was conducted by an outside company - meaning the City PAID for it. This occured as recently as December 2009, when the economy was solidly in the tank. This also occured in spite of the fact that there are trainers in the City's own HR Dept who can teach the philosophy of diversity. My point is that it is irresponsible for CLV management to have paid for this class when there were already trainers on staff who could have done the training with no additional cost to the city.

5. ths Jun. 30, 2010 | 7:47 p.m. Report Abuse

   CLV employees,
   
   You argue about diversity training which both public and private companies do all over the place.
   
   About years of city attempting to slow down raises but your union would not hear anything of it.
   
   Management in the city is willing to take pay cuts, why not you?

6. CLV employee Jun. 30, 2010 | 6:48 p.m. Report Abuse

   Actually Teufel Hunden, this has nothing to do with the greed of CLV employees. Henderson employees are fortunate enough to have competent management who planned ahead so that massive layoffs and pay reductions would not be required. Incompetent CLV management did not plan ahead and are now asking their employees to accept 16% pay reductions over the next two years; Henderson employees are not getting reductions, and in fact will receive reduced step INCREASES. Please Review Journal, how about an article that contrasts how Henderson management planned ahead, and how CLV management wasted money on things such as 3 day diversity classes for upper management.

7. Teufel Hunden Jun. 30, 2010 | 5:23 p.m. Report Abuse

   Greed isn't as prolific in Henderson as it is in Las Vegas.