Montgomery County officials might be going back to the bargaining table with unions representing county employees.
On Thursday, Montgomery County Council members were set to vote on resolutions indicating their intent to approve or reject collective bargaining agreements with four unions. But the items were pulled off the agenda because the county is discussing them again with union representatives.
The agreements, made before the public health emergency began, needed the County Council’s approval. But County Executive Marc Elrich said the unions have approached the county, understanding that the agreements might need to be changed because of the coronavirus pandemic.
Elrich and Council President Sidney Katz plan to meet with each of the three unions to discuss the agreements.
The three-year agreements were negotiated with the Municipal and County Government Employees’ Organization (MCGEO Local 1994), International Association of Fire Fighters (IAFF Local 1664), and Fraternal Order of Police (FOP Lodge 35). MCGEO represents government employees.
The agreements, negotiated in late March, include pay raises, retirement benefits, stipends, tuition assistance, meal and uniform allowance, and other benefits.
Elrich told Bethesda Beat on Wednesday that when the agreements were submitted to the council for consideration, there was record-low unemployment.
“Obviously, things have changed. … I was approached by the unions saying that they understood the situation that we’re in and they were willing to discuss the situation,” he said. “I’ve talked with the council president and we’re going to have a discussion with them.”
At the council’s meeting on April 16, several council members criticized Elrich for not renegotiating the contracts with the unions.
“The county attorney sent over an opinion to the council on the restriction of not renegotiating a contract,” Elrich said Wednesday. “The council would not want an executive renegotiating a contract that is already before them. … That’s not a good way to run the operations. There is little flexibility with actually renegotiating the contract unless and until the council takes action.”
The council did not take action on the agreements Thursday since Elrich and Katz are planning on meeting with the unions.
“The thing about the contracts is we were able to get the first multiyear agreements in a very long time. The contracts are all pretty reasonable. … I thought we were able to resolve a lot of things that have been in dispute,” Elrich said.
The negotiation process included working their way through the contract together, Elrich said, instead of sending counterproposals back and forth.
“I was very happy with the way that we were able to get negotiations done and that the contract request was pretty reasonable,” he said. “None of them are extraordinary.”
When asked what could be renegotiated, Elrich said there are “things we can do and there are going to be things that we’re going to be talking about.”
Elrich’s negotiated agreements included pay adjustments totaling $28 million — $22.4 million of which would be supported by taxes. That includes employee benefits, such as retirement contributions.
The annualized cost of the pay adjustments is $38.2 million — $30.4 million of which would be supported by taxes. The annualized cost exceeds this fiscal year’s cost by $10.2 million.
Gino Renne, president of the local MCGEO chapter which represents close to 7,000 county government employees, said Monday that the three unions had a conference call with Elrich and Katz on Friday.
“We’re trying to expedite the conversation and hopefully get to a point where we can all agree to whatever it is,” he said. “It’s an unknown. That’s where we are.”
Renne said all three unions “accept” that the county’s fiscal situation is uncertain because of the pandemic.
“We get that. The county’s challenge with the budget goes far beyond the contracts,” he said. “The contracts are not causing any challenges to the budget, per se.
“But in the overall scheme of things, I think the total amount, if they were enacted in their current form for all three unions, is negligible. … It’s certainly not a number that’s going to have any impact on the county’s ability to deliver services going forward.”
Jeff Buddle, president of the local IAFF chapter, which represents about 1,200 fire and rescue employees, said the cost of the IAFF agreement is “relatively small in the context of the county budget.”
He said the unions hope that the structure of the agreements will stay in place.
“We do understand that these are unique economic times given the pandemic and the effect that it’s had on the county,” he said. “When does the revenue that otherwise would be there come back and how much federal assistance will Montgomery County receive at the end of the day?”
Renne said the employees should be prioritized in the budget, especially because many are on the front lines of the health crisis and risking their lives.
“We all know what we’re up against. … What we’re trying to do is avoid, to the extent that we can, a ‘food fight’ over pending agreements, if we can,” he said. “We’re going to hold out hope that we might be able to do that.”
Renne said that if elected officials are not “prepared to properly compensate” employees and make sure they have adequate resources for their jobs, they “have no business being in the decision-making process.”
Service increments, or step increases that provide more pay depending on the number of years worked, of 3.5% were included for both union and non-union employees.
General wage raises, to help employees keep pace with inflation, would be 1% for FOP, 2.25% for IAFF, 1.25% for MCGEO and 1.25% for non-union employees.
Renne said the step increases are not new costs to the budget because every year, some employees reach the top of their pay grade and don’t receive step increases or some leave the union or their jobs. They’re “pretty much the same year to year,” he said.
Employees who belong to the FOP also would receive salary schedule raises of 3.5%. MCGEO members who did not receive a step increase during the recession of fiscal year 2011 would receive an additional 1.25% raise .
Elrich negotiated for lump-sum payments of $1,000 for MCGEO employees not eligible for step increases in fiscal year 2021, which begins on July 1.
Elrich also recommended changing the percentage of annual salary contributed for retirement benefits by MCGEO employees, nonunion employees and the county.
The county’s contribution would increase by 1% and the employees’ contribution would decrease by the same amount. That would allow for the employees to receive an additional 1% pay bump.
Any MCGEO employees who participate in the state retirement plan and part-time employees who don’t have retirement plans would have additional 1% general wage increases, as well.
FOP employees would also receive 3.5% longevity raises, a tuition assistance cap of $135,000, cellphones, and a 3.5% raise for employees not at the top of their pay grade.
More benefits for MCGEO employees would include 2.5% to 3.5% longevity raises and a $1,500 stipend for Health and Human Services employees in the Crisis Center.
Union employees in the IAFF would also receive 3.5% longevity raises for those with 20 or 24 years of service and $65,000 for tuition assistance.
The council’s work session on the agreements has not been rescheduled yet.
Briana Adhikusuma can be reached at briana.adhikusuma@moco360.media.
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