Something to be re-learned from the current housing crises is
that making long-range financial decisions can be very complex.
When evaluating your ability to pay you must consider all the costs
over time, not just the
”
minimum monthly payment.
”
The same principle should apply to financial decisions made by
politicians and the best check on that is an informed public, but
what happens when the politicians intentionally keep the public in
the dark? That’s the current situation regarding the negotiations
between the City of Hollister and the Service Employees
International Union (SEIU) Local 521.
Something to be re-learned from the current housing crises is that making long-range financial decisions can be very complex. When evaluating your ability to pay you must consider all the costs over time, not just the “minimum monthly payment.” The same principle should apply to financial decisions made by politicians and the best check on that is an informed public, but what happens when the politicians intentionally keep the public in the dark? That’s the current situation regarding the negotiations between the City of Hollister and the Service Employees International Union (SEIU) Local 521.
Comments by members of the union dominated the public input portion of the last Hollister City Council meeting. Public input is for people to address items not on the agenda. Council members are permitted a short comment, but the law prohibits them from taking any action on those issues. That law is in place so citizens can prepare their positions and present them – at least that’s the theory. In this particular case, the theory is meaningless. Ever since negotiations began, the city council has exercised their legal right to freeze the public out completely.
A parade of union members came to the podium to support their offer to the city, but only the city administration knew if their presentations were accurate because the public had been kept blindfolded; the question is why?
SEIU Local 521 represents about 4,000 public-service workers in Monterey and San Benito counties; approximately 43 of those workers are employed by the city. SEIU’s primary function is to secure more pay, benefits, jobs and protection for its members. On the other hand, most union members probably believe that their employer’s primary function is just the opposite.
SEIU is aggressive; they use their war chest when required, as they constantly reminded the city council much to the officials’ chagrin. They were a large contributor to the city’s successful campaign for a sales tax increase. Of course, the union had a critical self-interest in keeping the city solvent and its own members employed.
On the other hand, reality is always a check and balance on desire. SEIU is still operating on extensions of the contract that expired June 30, 2006. When one considers the city’s financial condition, it probably benefited both parties to wait for renewal. The city needed union concessions on cost-of-living allowances (COLA) and the union needed to wait until the city was financially stable before they tried to have the increases restored or draw a contract for the future. Now those negotiations are taking place – behind closed doors. There is simply no reason for this secrecy.
It is understood that the city does not want to give away its strategy just as the union does not want to give away its final position – posturing and horse trading are mandatory. However, the mere disclosure of offers and counter-offers does not compromise the process; after all, the union knows that information, the city manager knows, the only people who don’t know are the majority who will pay the bills.
Some of the union’s arguments, such as the lack of COLA increases, are perfectly reasonable. After all, even those on Social Security get COLA increases, although they are based on national, not local, factors – that’s an important distinction. Other arguments, such as implying that enterprise funds can pay more, did not make sense. As both a taxpayer and a ratepayer all the money comes from my personal budget – the technicalities of fund accounting does not matter.
The critical information is the total cost of employing workers. Employees tend focus on their take-home pay for a 40-hour week, but that is only a small part of the cost – and getting smaller. City management tends to focus on current costs, but that is only a small part of the cost – and also getting smaller as retirement and heath costs skyrocket. Someone needs to focus on both the current and future burdens being placed on the tax and ratepayers – remember us? To that end, it would be educational for the city to calculate those critical numbers and allow the public, including the employees, to see the all the bottom lines – today’s and tomorrow’s.
