Berkley Cuts Benefits, Freezes Pay to Save $702,000

The voted Monday night to freeze pay and cut benefits for its nonbargaining employees, a move that will save the city an estimated $702,000 by the end of 2012.

Berkley already has renegotiated its contracts with the Berkley Public Safety Command Officers Association and American Federation of State, County and Municipal employees in the bargaining units. In combination with Monday night's move, the city will save an estimated $1.3 million between now and 2012 through employee concessions, Finance Director David Sabuda said.

The city and the  officers union remain in contract negotiations.

The amendments for 2010-12 include the following changes for nonbargaining employees:

• no pay increases through 2012;
• changes to health care, including introduction of co-pays and new prescription coverage, which will save $676,000;
• reduction by half of longevity payments, which recognize long-term service, to five eligible employees in 2011 and 2012, saving the city $25,000; and
• in a noneconomic move, Columbus Day in October will be removed as a holiday and Martin Luther King Jr. Day in January will be added.

It was with a heavy heart that the council voted in favor of the compensation changes.

"This is one of those good news, bad news things," Councilman Steve Baker said.

The good news, he said, is that the move brings nonbargaining employees' compensation in line with other contracts and provides a savings to the city.

That bad news?

"This is people we're talking about here," he lamented. "The money's still going out the door. It's just going out of employees' pockets instead of the city's."

Mayor Marilyn Stephan said that because the city has been conscientious about its budget, potential moves at the state level that could mandate a 5 percent pay cut for public employees, along with requiring them to pay 20 percent of their health care costs, could be devastating to those who've already made sacrifices.

"This is one of the most difficult votes for me to make," she said.

Councilman Daniel Benton agreed it was not an easy decision, but said "it's the responsible thing to do."

"We, as residents of Berkley, owe a debt of gratitude to the city employees," he said, noting that the city's employees have made concessions without labor strife.

"We've had to tighten our belt. We tightened it so much, we had to go out and buy another belt. An inexpensive belt," he said to chuckles.