Workers praised; contract questioned (OS's union in negotiations)

http://www.omaha.com/article/20100414/NEWS01/704149877

By Paul Goodsell
WORLD-HERALD STAFF WRITER

No one objected outright Tuesday to proposed union contracts that would give 3.5 percent pay raises to City of Omaha civilian employees in both 2011 and 2012.

The raises would follow wage freezes in 2009 and 2010.

The City Council held a public hearing on a contract with City Employees Local 251, which represents about 600 workers, as well as similar agreements with smaller groups of civilian management employees. Final votes are expected next Tuesday.

Besides the wage issues, the labor contracts also call for higher employee contributions for health insurance and increased pension contributions from employees and the city.

City Council President Garry Gernandt acknowledged that the wage freezes have helped the city deal with the economic downturn. He praised civilian workers for “always stepping up to the plate.”

But some City Council members said they remained concerned that the proposed agreements would not adequately deal with rising health care spending or shortfalls in the city’s civilian pension fund. That fund has been hit by investment losses and the city’s reduced number of civilian employees who pay into the pension system.

FULL story at link.