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HomeMy WebLinkAboutCAO-006-09Staff Report # 3 dry? « I,eoding the Way REPORT CHIEF ADMINISTRATIVE OFFICER Meeting: COUNCIL Date Report #: Subject: September,21, 2009 CAO-006-09 File # By-law #, EMPLOYEE GROUPS CONTRIBUTION TO BUDGET SHORTFALL Recommendations: It is respectfully recommended that Council approve the following: 1. THAT Report CAO-006-09 be received; 2. THAT Council consider the results of the employee response to budget shortfall; and provide direction on the following for the 2009 budget year: a. Approve the recommendation in report CAO-004-09 and confirm:. i. part-time employee position terminations ii. full-time employee position temporary (13 week) layoffs; OR b. Specify any aption that Council may wish to take. 3. THAT the affected employees and the employee group Representatives be advised of Council's decision. ~~sol~-hon ~ C- 535-9 Attachments: Attachment #1 -Non- Affiliated Results of Request for Assistance Re: Budget Shortfall REPORT NO.: CAO-006-09 Submitted by: ~~ Franklin Wu, Chief Administrative Officer FW/MMlgj PAGE 2 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BpWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-4169 REPORT NO.: CAO-006-09 PAGE 3 BACKGROUND AND COMMENT 1. BACKGROUND At the special Council meeting of August 31, 2009, the following Resolution C-483-09 was passed: Moved by Councillor Trim, seconded by Councillor Robinson. THAT Appendix ~4 to Report CAO-004-09 -Staffing Adjustments be amended as follows: WHEREAS the President of CUPE Union has approached the Mayor and Councillors expressing concerns with respect to three full-time employees to be laid off; NOW THEREFORE BE IT RESOLVED THAT the Chief Administrative Officer be authorized to meet with the CUPE and Fire Association Presidents to explore the opportunities that the employees are prepared. to assist in the cost cutting exercise; THAT the Chief Administrative Officer review with the department Directors the proposed non-bargaining staffing as outlined in ReportCAO-004-09; THAT the Chief Administrative Officer report back to Council the results of the Staffing posilion review; THAT the working notice provided to all part-time employees be extended; and THAT the Chief Administrative Officer report back at the next regular Council Meeting:. 2. MEETING WITH EMPLOYEE GROUPS In accordance with Council's direction, the Chief Administrative Officer and the Director of Corporate Services met with the President of CUPE Local 74, and with the President and Vice President of the Fire Fighters' Association. The two affiliated groups were asked consistent questions in order to provide equal opportunity to comment on the budget shortfall assistance. In addition the same questions were asked of the Non-Affiliated employees by providing a confidential ballot containing the same questions and opportunity to put forward suggestions. REPORT NO.: CAO-006-09 PAGE 4 The same questions posed to all groups are as follows: 1. In light of the current budget shortfall, are you willing to assist the Municipality financially? (Yes or No ) 2. What contribufDOns or suggestions would you ask the Municipality to consider to assist in the. budget shortfall for 2009, and would the suggestions be applied to the 2010 budget? 3. For the 2009 budget shortfall, if there are no suggestions put forward or the suggestions are not feasible would you consider adjusting wages in either of the following ways: a. A wage reduction of 1 % (yes or no ) b. Days off without pay? (1, 2, or 3 days ? ) 4. !n light of the economic situation, for 2010 would you consider a reduction of either of the following: a. A wage,reduc6on of 1 % (yes or no ) b. Days off without pay? (1, 2, or 3 days ? ) In the meeting with the Fire Fighters' Association, the contribution of days off without pay was explored, and the Association and Management came to the conclusion that the overtime required to cover the days taken would not produce any savings for the Municipality, and as a result it was mutually agreed that this option would not be considered by the Association. 3. RESULTS AND RESPONSE FROM EMPLOYEE GROUPS: Each employee grouip was asked the same questions identified above, with the following results from each of the employee groups: REPORT NO.: CAO-006-09 PAGE 5 CLARINGTON LOCAL 3139 FIRE FIGHTERS' ASSOCIATION: The Association responded with the following a-mail notification: (quoted as written) "Just to inform you that at last night's Association meeting, the. membership voiced that they have suffered enough in not having any increases to their benefits as well as the Municipality being able to invest monies put aside for wage increases and for 3-6-9 . They. also wanted Mme to advise you that there is no interest to take unpaid days off nor accepting a wage cut to overcome budgetary shortfalls in which they had absolutely no control of." "That being said the Association is willing to discuss other ways that may help financially without taking it from our members pockets." 2. COPE LOCAL X4: CUPE Local 74 brought the questions to a membership secret ballot vote, the results of which have been conveyed as follows: CUPE Local 74 voted 78% "NO" to any concessions. They suggested that allowing additional vacation days to be purchased would assist in generating revenue, however they did acknowledge that scheduling these days could be problematic in some departments. They don't believe the budget problems were created by CUPE, and as such the shortfall should not be made up from CUPE concessions. 3. NON-AFFILIATED EMPLOYEES: The Non-Affiliated employees have no representative tq speak on their behalf; consequently an opportunity was presented to submit their individual response in a confidential ballot. The results from this,group are identified on attachment #1. While the Non- Affiliated group results identify that 68% were willing to assist in the shortfall efforts, the same. number of employees stated that they were not in favour of a reduction of wages. The comments received were numerous and inconsistent. As noted on the attachment, many of the suggestions have been incorporated into the approved budget adjustments outlined in Report CAO-004-09, and others will be considered by the applicable departments in the upcoming 2010 budget preparation. 4. CONCLUSION The results and the comments from the groups are inconsistent and include many aspects of the budget that have been accommodated through Report CAO-004-09, however there were concerns clearly expressed that any contribution or adjustment should be applied equally across all employee groups and elected officials. Also noted was as a concern that any adjustment affecting pension values would be unacceptable. Given there is no unanimous conclusion from the employee groups, any financial contribution should remain a voluntary donation to be made by any REPORT NO.: CAO-006-09 PAGE 6 employee of their own volition without running the risk of breaching the collective agreements. It is recommended that Council provide direction as outlined in the recommendations to this report regarding the termination and layoffs proposed in Report CAO-004-09. Reoort~ CAO-006-09 Sentember 16. ~n09 Attarhment 87 2009 Attachment 1) In light of the current budget shortfall are you willing to assist the Municipality 44 YES 11 NO 10 Did not artici ate For the 2009 budget shortfall, If there are no suggestions put forward, or the suggestions are not feasible, would YOU consider adjusting your wage in either of: A wa a reduction of 1% 11 YES 44 NO Da s off without a 13 NO Da s 13 1 Da 12 2Da s 17 3Da s 3) Again, in light of the economic situation, for 2010 would YOU consider a reduction of the scheduled 3% increase with either of: A wa a reduction of i% 15 YES 40 NO Da s off without a 21 NO Da s 6 1 Da 6 2Da s 21 3Das 2009 -Contributions or suggestions brought forward to the Municipality for consideration. 2010 -Contributions or suggestions brought forward to the Municipality for consideration. A number of suggestions were submitted, many of which have been incorporated into the 2009 budget adjustments in CAO-004-09 and a number of which may be considered for the 2010 budget.