Thursday, August 26, 1999
Skipped-paycheck plan upsets workers
Councilman, union chief object
BY JANICE MORSE
The Cincinnati Enquirer
HAMILTON — Some city workers remain confused, frustrated and upset about a controversial payroll change that would result in one fewer paycheck for them this year, union leaders and others say.
City officials Monday said they thought most employees were feeling better about the situation, as City Council voted 4-0 to implement the plan, with three council members absent.
But the situation remains volatile, said two union leaders and a city councilman.
“I think there's still a lot of commotion over why it had to get to this point,” Vice Mayor Adolf Olivas said Wednesday.
Mr. Olivas attended Monday's special meeting but left before council voted on the pay plan change — a vote he said was unexpected. “If I had known it was coming up, I would have adjusted my schedule or requested that they put off the discussion and the vote until I could be present,” he said.
Mayor Tom Nye disputes that, saying all members of council were notified that the pay issue would be discussed at the meeting.
Mr. Olivas said he is concerned about the effects of the planned change.
“I think animosity is building among the employees,” he said. “The council is disregarding the voice of the employees, and I'm afraid the only way to resolve this will be through the courts — but that won't resolve the hurt feelings of the employees.”
Under the plan, about 500 salaried employees, who are usually paid every two weeks, would wait three weeks for their first October paycheck — and a week's pay would be held in reserve until they leave the city's employ.
Officials said the changes are needed to implement new software that will help ward off potential Y2K problems, streamline the payroll process, and comply with state and federal regulations.
But Mr. Olivas called those changes excuses. He thinks the real reason for holding back the pay is to create a budget surplus “that makes the budget appear healthier than it is.”
He said the week's pay that is being held back will “float” in the city's general fund.
City Manager Steve Sorrell said that money totals about $400,000, but he denied that there were hidden budgetary reasons for making the payroll change.
“This is not being done because of a budget issue,” he said.
Employees who would suffer financial hardship as a result of the withheld pay are being offered four options: “cashing in” a week's vacation or other earned time, obtaining a no-interest credit union loan, receiving their longevity pay earlier than usual, or receiving a week's pay in advance and repaying it through bi weekly payroll deductions.
But those measures don't seem to address the larger issues: the fact that the change would result in lower annual pay than contracts specify and that it could affect pensions, which are based on an employee's three highest years of salary, said Bill Quinn, president of the Hamilton Professional Firefighters Association.
Mr. Sorrell said he hoped the employee options, developed with union leaders' input, would help make the change more palatable. He said he was somewhat surprised Tuesday to hear reports that some employees remained upset.
“We tried to make it equitable to everybody,” he said.
However, Mr. Quinn said many of his organization's 109 members have contacted him for answers in the wake of council's vote. “I'm not able to give them answers because a detailed plan is not available,” he said, adding that he intended to consult with a certified public accountant on the matter.
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