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Pepper Pike ends employee furloughs, keeps pay cuts
(by Sali McSherry - August 25, 2010)
Pepper Pike ends employee furloughs, keeps pay cuts
By SALI McSHERRY
Furloughs for Pepper Pike employees were eliminated by City Council last week.
For rank-and-file employees, the 15 percent furlough was restored by a unanimous vote, and, for managers, the 15 percent cut was restored by a vote of 4-3. It will cost the city $292,000, according to Pepper Pike Finance Director Prashant Shah.
A 10 percent pay cut will remain in place.
Since March 1, all employees, except members of the police union, which has its own bargaining contract, have been subjected to a 25 percent pay cut due to the city's financial crisis.
Council members in favor of the restoration for managers, including the police chief, service director, building inspector, fire chief and finance director, were Paulette Morganstern, Frederick Taft, Allan Krulak and Clevis Svetlik. Members Jill Miller Zimon, Gail Mayland and Scott Newell opposed it.
Ms. Miller Zimon said she didn't feel comfortable with restoring pay cuts to the managers due to the looming possibility that the city may have to reduce pay later, depending on its finances. She asked for the motion to be separated into two parts, eliminating the furloughs for rank-and-file employees and another for managers.
It would cost the city about $50,000 less if department managers' furloughs were not eliminated.
Ms. Miller Zimon and Mrs. Mayland said they wanted a complete analysis of managers' compensation and how it compares with other municipalities before considering the restoration of pay for managers. Pensions are a drain on the city, they said.
There are severe consequences, Mrs. Miller Zimon said, in a "cycle of pain avoidance." She said she didn't see a $50,000 value in eliminating the furloughs for managers.
Mayor Bruce H. Akers said the managers have taken a hit, and it would be a serious error if the city did not restore the 15 percent to them.
Mr. Newell said the city has to show it is cutting costs.
Mr. Taft said that not eliminating the furloughs is "a bad way to treat our managers, who essentially worked full time anyhow."
Mr. Newell said he was concerned that department managers' salaries were too high.
Whether the managers are overcompensated or not is another question that can be examined in the next four months, Mr. Taft said.
Mrs. Mayland said the city doesn't have the money to restore all the cuts. It would be hard to explain to voters if the city goes back to the ballot, she said. "It's irresponsible." The city has not laid off a lot of employees, she said. She wants to consider part-time positions to fill full-time positions that open up, she said.
Mr. Taft said he believes it's morally the right to give employees back what they initially were told they would be earning this year.
Resident Richard Bain said, "You can't buy peace for four months." The time to make hard choices is now, not four months from now, he said.
Former Councilman Harold Lewis said the city has never been in a financial situation like this, but it's not a "fantastical" crisis, and it can be handled.
Resident Manny Naft said council wasn't being uniform across the board in restoring the 15 percent pay if it doesn't rehire another police officer. He said council is playing politics with the safety of employees and residents.
Mr. Taft said the city needs to get back as close as possible to its normal operation. While it means the city will have to utilize some of its estate-tax revenue for the restoration of cuts, calming the work environment is important, he said.
Mr. Krulak said he's concerned that, at some point, departments would not be functioning properly. "We're only as good as our employees," he said.
Mr. Svetlik said, given the loyalty of the employees, eliminating the furloughs was part of a "good-faith" effort.
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