Editorials
Councilman calls for fiscal responsibility during town contract negotiations
By Lee Chowaniec
Apr 11, 2008, 16:36

At Monday evening’s Lancaster Town Board meeting, Councilman Dan Amatura alerted the board on their acting fiscally responsible during contract negotiations with town employee unions and other bargaining representatives.

Amatura referred to the Buffalo News article of April 6th titled, ‘Public Pension Bomb’ ticking away. The News article spoke on contributions for pensions for police, firefighters, teachers and other public employees increased from $1 billion to $8.4 billion over a seven-year period.

While Amatura declares that the unions have a complete headlock on the pension issue in Albany, he suggested that the town act on behalf of the best interest of the taxpayers in what they could control.

“We are negotiating contracts now”, said Amatura. “It is very important that we look at them closely because 10 years, 15 years down the road a lot of what we give them can come back to bite future taxpayers.”

“Every year we give them a three (3) percent raise, and over the three years of the contract’s life, that amounts to more than ten (10) percent, after compounding."

“Then you throw all the benefits on top of that, that takes it to (15) fifteen percent.”

“Its’ something we have to look at during contract negotiations this year.”

Supervisor Robert Giza responded that in Tier 1 the individual paid for all pension costs. Then they went to Tier 2, Tier 3 and Tier 4 and the worker was asked to take over greater responsibility.

He further sated that years ago the pension plan was in trouble and there was a big peak in the cost, but that there were years the municipality didn’t pay into the fund because the fund was doing well because of stock market investment returns.

Giza: “I know you couldn’t change anything with the present group; if you want to go forward…”

Amatura interjected by saying, “Where I’m coming from is that years ago I sat in on the negotiations and when we give them things we always get concessions back. With going to a single health provider, we had to give something back.”

“Well, this was the time for the town to save some money. Why does it always have to be a give-and-take situation? Eventually this is going to come back and bite us!”

“The people that retire 20 years from now are gone, and the other taxpayers are stuck with having to pay the bill.”

“This is something we should really look at when we negotiate the contracts this year. We have to get the board members involved in the negotiations; at least look at it before we settle.”

Giza responded, “If your going to give something, you should be able to get something. But, there are leverage points.”

Amatura responded that the town could not keep giving 3% raises every year because over the 3-year contract it amounts to more than 10%.

“Keep in mind that we are also in a recession and we can’t afford to do this,” added Amatura. “Some people can’t afford to pay their taxes. We can’t keep doing this, it’s irresponsible.”

Amatura declared that in the last three years, since he has been on the board, everyone has gotten a 3% raise and the taxpayers are complaining about this.

Giza: “That’s not the way it starts off, that’s the way it’s done.

Giza replied that they give directions to the attorney and the economics, and how to deal.

“That’s fine,” said Amatura. “But, the attorney’s that represent us don’t win in this town. We do, and as board members, we should look into this. That’s all I’m saying.”

Giza responded, “The bottom line is that you don’t give something, it goes to arbitration.”

“Then so be it,” said Amatura. “Then we’re not responsible for giving them the raise!”

“They deal with the arbitrator,” Giza responded. I don’t know.

Comment

The town is in the midst of negotiating police contracts and will consider Blue and White Collar contracts in the near future.

Considering elected officials and salaried staff gets the same benefits and entitlements as the White Collar union, should it be considered a conflict of interest when the town negotiates the White Collar contract?



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