Questions and Answers Related to YCEA Board of Directors’ Recommendation

To Defer Transfer of CalPERS 7% Employee Contribution

 

Question: Why has the YCEA Board recommended deferral of the 7% without knowing the actual cuts or layoffs that would result from the membership receiving the benefit of the employer paying the 7% employee contribution?

 

Answer:  The economic problem confronting this country and our state is undeniable.  The economic downturn and its effect on County revenue is also undeniable.  A significant portion of the County's projected deficit is based upon the County assuming responsibility for the 7% employee contribution.  While rough estimates can be determined, the County is at the beginning of their budget cycle.  If the decision regarding deferral is not made now the County will have no other choice but to advise departments to anticipate a 7% increase in their salary line item.  The impact on department budgets may not be known for several months as departments wrestle with how to absorb the impact or recommend personnel cuts.  In order to implement reductions by July 1, the County would have to issue layoff notices by June 1.  The YCEA Board is convinced that if deferral is not approved, the number of members affected will be significant and they do not believe it is fair or appropriate to put our members through the turmoil if it can be avoided. Please refer to Ryan McNally, YCEA President’s letter to the membership for further detail.

 

Question: If the membership approves the deferral of the 7% will layoffs still occur?

 

Answer: There are so many variables beyond the control of the County or YCEA to give an absolute guaranteed answer to this question.  It is likely that even if the membership defers the 7%, additional cuts and potential layoffs will be necessary.  YCEA’s priority and focus is protecting the jobs of those we represent.

 

Question: What are the benefits of approving the deferral?

 

Answer:   Next year would be a terrible year to be at the bargaining table and expect a salary increase, without a strike.   An extension of our contract would provide protection against mandatory work furloughs, a shift in the health insurance premium greater than the 20% and an effort potentially to reverse or minimize the financial impact of the longevity merit step increases.   The County could also attempt to take other things away from us as the contract is completely open for negotiations. 

 

Question:  Could the County request another deferral and what would YCEA's position be if they requested a deferral beyond July 1, 2010?

 

Answer:  At this time, it is impossible to determine the economic conditions in 2010 or if the County would once again request a deferral.  The YCEA Board has made it clear that they will not recommend another deferral of the 7% Employee Contribution provision of our contract. Ultimately, it is always the members’ decision on such important matters affecting their contract.

 

Question:  Why does President Ryan refer to this as a salary increase in his letter to the membership?

 

Answer:  Ryan's reference to this as a salary increase is correct.  When the County assumes responsibility for the employee 7% contribution to CalPERS, they will be increasing their salary budget by that amount (approx. $2.5 million), the employee will also realize an increase in their net take-home pay of spendable income. 

 

Question: What is YCEA doing to prevent or reduce the number of layoffs affecting YCEA members?

 

Answer: The YCEA Budget Deficit Committee has been meeting with the County and alone to evaluate this problem and to develop a strategy to protect our members.  The Committee has evaluated organizational charts for each department and position allocation lists for the last several years to identify positions that have been created during the County's economic upswing and those positions that should be considered for cut should further reductions be necessary after the deferral of the 7%.  These are essentially positions created at the management level.  The Committee is also gathering information regarding nonessential services and discretionary spending to evaluate the necessity for these expenditures.  YCEA Executive Director Gary Stucky will also be appearing before the Board of Supervisors on Tuesday, April 7, to recommend strongly that the Board adopt policy guidelines to oversee and direct administration/management on matters related to personnel reductions and non-mandatory expenditures.

 

Question:  Why should the membership agree to suspend the language pertaining to Y-Rating of an employee's salary when they are affected by a layoff?

 

Answer: Given the possible magnitude of layoffs; retaining this provision will have the effect of increasing the number of members actually laid off from employment. In the past, the Board of Supervisors have approved applying the Y-rate to employees affected by layoffs when they have been transferred to other departments that had been willing and able to absorb the elevated salary. In this case, almost all if not all departments will be affected by revenue reductions.  Another department will be less inclined to hire an employee from another department if they are obligated to maintain a higher salary.  If employees who are initially affected by layoffs retain their higher salaries, additional cuts at the lower level will have to be implemented in order to realize salary budget reductions required.  Additional layoffs will not only affect a greater number of our members, but the more members that are laid off will also mean a greater workload pressure for those that remain employed.

 

Question: How are layoffs applied?

 

Answer: Layoffs are determined based upon countywide seniority.  The employee's seniority is measured from initial hire date. If an employee separates from the County and then returns, their seniority is measured from the most recent date of hire. Seniority credits are reduced based upon time-periods when employees are in a leave of absence without pay for more than a half a month.  If layoffs are necessary, layoffs occur by classification within the department.  Employees have the right to bump into positions at a lower level if they held the position and obtained permanent status in the classification.  An employee can also bump within a classification series if he/she has obtained County permanent status and acquired more seniority credits than other employees acquire. We have also posted the County's rules and regulations pertaining to layoffs as a separate PDF file for your review.

 

Question: What are the terms and conditions of the voluntary time off (furlough) program?

 

Answer:  The County rules and regulations currently contain provisions for allowing voluntary time off.  YCEA has not recognized these provisions since the “Sunset” date in 1999.  We have posted the provisions in a separate PDF file for your convenience and review.  If the membership approves the YCEA Board of Director’s recommendation to activate this program, will be during the term of our agreement and will again sunset on June 30, 2011.

 

Additional Questions: If you have additional questions, please plan to attend one of the meetings to ask your questions before voting on this important matter.  Thank you for your time and serious consideration of the YCEA Board's recommendation.