Unions' pay key to town budgets

By Nick Grabbe and KRISTIN PALPINI
Staff Writers

Published on June 19, 2009

Town Meeting has started debating budgets that call for the elimination of many positions while the remaining employees get 3.5 percent cost-of-living raises.

But one employee union has indicated that it might give up its raises in exchange for avoiding layoffs, leading Town Manager Larry Shaffer to speculate that other unions might follow suit.

The contracts that provide for the raises were negotiated before the economic collapse last fall caused inflation to subside and the state to cut back on local aid. These contracts call for additional 4 percent "step" increases for about half the employees.

The Service Employees International Union, or SEIU, represents 70 employees, generally at lower pay levels, who work in the libraries, Town Hall, Bangs Center and Department of Public Works. Last week, the union said it would "seriously consider" a quid pro quo involving raises and layoffs, Shaffer said.

The teachers union, known as the Amherst Pelham Education Association, typically sets the standard on pay issues. Shaffer has been talking to all the municipal unions in an effort to persuade them to relinquish the cost-of living adjustments, called COLAs, which would enable the town to avoid eliminating $380,000 worth of non-school positions. But most municipal unions have said they would consider giving up their COLAs only if the teachers agreed to.

But the SEIU chapter broke with that position. It said it might give up its COLAs, saving $78,000, in exchange for avoiding four layoffs.

"This windfall is not just monetary," said Selectman Aaron Hayden. "We'll have access to the services of these four people."

Shaffer said Monday that although the SEIU position could be a "gateway" to other deals, he has "no understanding that anything further will happen."

"The members did not say no to anything," said Tina Swift, the union president. "They decided to continue the dialogue regarding COLAs and layoffs. It was a pretty positive thing."

At Town Meeting on Monday, a proposal to delay the budget debate for a week to give officials and the unions more time to talk was rejected.

Vince O'Connor of Precinct 1 noted that state employees are entering the second year of a wage freeze and that inflation is running at less than 1 percent.

"If we contemplate going to the public for support of an override, passing budgets with these COLAs when the majority of our constituents have none is a terrible mistake," he said.

Carol Gray of Precinct 7 urged Town Meeting members to call union members and urge them to consider making concessions to preserve jobs. The amount of money saved would be much greater than the amount saved by controversial cuts such as those to War Memorial Pool and the Jones Library hours.

"Think how much easier our discussions will be if we don't have to talk about the schools cutting 50 jobs," Gray said. "These aren't just numbers; they are people."

But Brian Morton, chairman of the Finance Committee, said this "could be a dangerous road to go down" because Town Meeting has to complete its budget action by June 30, when the fiscal year ends.

"We cannot unilaterally take the COLAs away, but we can ask the unions to reopen talks," he said. "We need to respect employees."

Shaffer said if all the COLAS were eliminated, the amount of money saved would be just a third of the amount of the cuts that are necessary to balance the budget.

"To expect anything dramatic between now and next week is whistling past the graveyard," he said.