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The Local Link •
Fall 2009
The Local Link •
Fall 2009
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Court Will Decide If County Shirked Its Duty
130 Montgomery County Employees Look Forward to Day in Court
Who’s in Charge Here?
Renne Report—by Gino Renne, President
According to County Executive Jack Johnson, that announcement means thecounty can continue to borrow money atthe lowest available interest rate.But, what’s the price of earning thatrating? Oh, nothing you’d really notice, just continued plans for furloughs, layoffs,cutbacks, hiring freezes and general penny pinching on county services to residents.What good is the ability to borrow at thelowest available rate if you can’t staff thefacilities you build, or provide the servicesthat your citizens need and deserve?Standard and Poor’s has an answer for that, according to their spokesperson,quoted in a Charles County news account:“Tough times do call for tough measures.Laying people off and furloughs is a prudent move,” said Ana Sandoval,manager of media relations for Standard &Poor’s. “Making not-so-popular decisionsactually helps to strengthen a creditrating.”Yipee!Johnson himself pointed out that hecould dip into the county’s $182 million“rainy day” fund to keep things goingon an even keel, but, he noted: “Theseare things Wall Street won’t allow, usingreserves for ongoing operations.”What, is Wall Street in Prince George’sCounty? Now, I’m not singling out Mr. Johnson,he just happens to be the best example of what’s wrong with a system that enables
the U.S. banking and nance industry
to dictate what happens to us here onMain Street. These bond rating servicesare the same folks who gave a greenlight to the subprime securities that ledto the meltdown of the U.S. economy.Instead of blowing the whistle on the“banksters” and conmen who concoctedthese schemes, Moody’s, Fitch andStandard and Poor’s waved them through.As a consequence, you and just abouteverybody you know, lost up to one-thirdof the money you thought was going tokeep you comfortable in retirement. The biggest losers were pension funds whosestakeholders are working stiffs like youand me. Now, only a year later, these samerating services represent the last word in
decisions made by elected ofcials tryingto keep the ship of state aoat. So your
county executive, even your governor isn’tsupposed to listen to the voters, workingfamilies and citizens in need because hefeels compelled to satisfy the demands of Wall Street and the bond raters.Thank heavens some jurisdictionswere more concerned with sustainingservices than they were about “ratings”.Montgomery County diverted a portion of its rainy day fund for the 2010 budget— and they could do the same for the comingyear.Come November 2010, it won’t be thefolks from Moody’s, Standard & Poor’sor Fitch who go to the ballot boxes. You,your family, your neighbors—the folks upthe street who can’t get a pothole repaired,the guy who couldn’t get into the library towork on his resume, the homeless familyon a waiting list for shelter, the folks whoare having trouble with getting medicalcare for their children…they’re notworried about the county’s bond rating,they’re worried about making ends meet.Chances are they’ll remember that thecounty chose to hold on to the rainy dayfund while the rain was coming down in buckets. Wall Street might be pleased, butMain Street is not.
As we get into the difcult process of
negotiations with Montgomery County, the
Sheriff’s Ofce, with the Prince George’s
County Memorial Library System and theCity of Cumberland, we intend to be as
exible and reasonable as possible, but weare rm in our resolve: Our sacrices andthe sacrices of those who depend upon
us are not a permanent condition. Whennormalcy returns, we expect the samelevel of services to be restored and theresources to provide these services to bereplenished.When things get back to normal.… (Ihear that phrase a lot; even use it myself quite a bit). By normal, I mean when
America nally climbs out of the nancial
hole we’ve been in for the past two years,there will be a day of reckoning. We’ve
all made considerable sacrices during
this recession. The citizens we serve
have endured signicant hardship. We’ve
lost ground on income; but we’ve alsostretched out to cover a growing workloadwith a shrinking workforce. We areholding IOUs, and we will present themfor repayment. I know that the elected
ofcials will express their “profound
appreciation” for our service, but wewill be expecting something a little moreconcrete than appreciation.
Pending OSHA RevisionMay Finally ProtectPublic Sector Employees
When Rep. Lynn Woolsey (D-CA)introduced the HR 2067 – the ProtectingAmerica’s Workers Act (PAW)—in lateApril, she envisioned a major overhaulof OSHA. A Senate version, S 1580, hasemerged, introduced by Senate MajorityLeader Harry Reid on behalf of the lateSenator Ted Kennedy. The Senate bill isidentical to the House version.The PAW Act would sharply increasecriminal penalties for businesses andmanagers that violate OSHA, includingcases of recordkeeping errors. It wouldalso vastly expand OSHA’s authority toshut down workplace operations that itconsiders unsafe until an employer provesotherwise in litigation. And, it would giveemployees a full seat at the table during both litigation and settlement. The textof the legislation also expands OSHA toinclude coverage for public employees,a section of the workforce not currently protected by OSHA.Both bills are in committee, and thereis concern the legislation could be watered
down before going to the oor for a
vote. Kennedy had introduced the samelegislation on two other occasions.Local 1994 continues to press theMontgomery County Council to act onthe negotiated Retirement IncentiveProgram (RIP) that was included in arecent Memorandum Of Understanding between Local 1994 and the county.The RIP was negotiated as a way tomitigate against layoffs in the county.On Tuesday, September 15,Montgomery County Circuit JudgeMichael Algeo rejected the Council’srequest that the court dismiss acomplaint against the Council brought by Local 1994. Judge Algeo’s decisionensures that 130 County employees andtheir families who would be affected by the RIP will have their day in court,scheduled for January 14, 2010.The RIP would provide an earlyretirement option to these 130 eligiblecounty employees. The CountyExecutive and the Union’s professionalactuaries estimated that the programwould save the County $2.6 million
over scal year 2010.
However, the County Council, led by President Phil Andrews, refusedto take an up or down vote on thecollectively bargained program despitethe fact that the Council is requiredto do so under the County CollectiveBargaining Law § 33-108. The lawrequires the Council to either “acceptor reject” a collectively-bargained
item that has a “scal impact on
the County.” Instead, the Council isdeferring its decision, which is notone of its options under the CollectiveBargaining Law.The Council’s intransigence hasforced Local 1994 to use a legal toolknown as a “mandamus” action to
compel the County Council to fulll its
statutory duty. The judge agreed withLocal 1994 that there was a questionabout whether the County Council isfailing to perform its duty, and that thequestion was one which requires a trial.That’s good news for the 130 countyemployees and their families, whohave been left in limbo because of theCouncil’s decision to defer the vote,and are one step closer to getting ananswer about their futures. The Judge’sdecision means that the case will now be scheduled for trial.Local 1994’s President Gino Rennesaid that he is pleased with the court’sdecision but outraged that the union has been forced to go to court to make theCouncil perform its statutory duty.“These 130 families have had their lives and futures put on hold by thoseon the Council who persist in deferringa vote on this bill,” said Renne. “Whatwe want is an up or down vote, as thelaw requires, so that these familiescan get on with their lives and planaccordingly for their futures.“The Retirement Incentive Programwould make a life-altering differenceto them and the union bargained for the program in good faith with the CountyExecutive. The Council must takeaction as it is required to do under thelaw,” Renne said.
T
here were lots of high-ves
and happy talk all around lastmonth in the Prince George’s
County Executive’s ofce in October
when news came down that the countywould retain its AAA borrowing status,courtesy of Moody’s Bond Rating Co.
Local 1994 Pays Tribute toLion of the Senate
The death of Sen. Ted Kennedyon August 26, 2009closed out a legacyof triumph andtragedy. Knownas the Lion of the Senate, Sen.Kennedy waswidely recognized as the leading voice inCongress on behalf of working families,minorities, the poor and the dispossessed.We mourn his passing and honor hisservice.
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