First for background on how the City of Los Angeles lost control of its own water and power department, here is my
article giving some of the back story. And now
some specifics from Catherine Saillant and David Zahniser of the LA Times on what has been agreed upon.
(photo by Genaro Molina / Los Angeles Times / July 1, 2013)
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By Catherine Saillant and David Zahniser August 22, 2013, 1:31 p.m.
A tentative
Los Angeles Department of Water and Power labor deal that holds the
line on raises for three years, reduces pensions for new hires and sets a
path for changing outdated work rules signals a turning point in labor
power at City Hall, Mayor Eric Garcetti said Thursday.
“Today
the balance of power at the DWP shifts to the people," Garcetti told a
packed news conference where he outlined the details of the pact. The
mayor thanked voters for electing him and praised the City Council for
standing “firm as a city family during these negotiations.”
“We showed the power that we have. It’s the power
of the people," Garcetti said, flanked by most of the City Council
members, City Atty. Mike Feuer, Controller Ron Galperin and key city
staff. “This department will now be managed by its owners, the people of
Los Angeles.”
The city
struck the four-year agreement with Local 18 of the International
Brotherhood of Electrical Workers late Wednesday. It includes three
years of no raises followed by a 2% raise in the final year, lower
pension benefits for new employees and the creation of a
labor-management panel that would seek to revise work rules that drive
up costs.
It also sets aside 2% of DWP workers’ pay as a contribution toward
active workers' healthcare. Total savings from the deal will be $456
million over four years and $6.1 billion over three decades, officials
said.
The accord was struck after weeks of push and pull among the mayor,
council leaders and labor officials. At one point Garcetti threatened
not to sign the agreement if more concessions weren't made by the union.
The rest of the story can be found at the
LA Times website.and here is the background on why this agreement is so
critical to the city's future.
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