Public Watchdog.org

$48,101 Increase Keeps City Wages Spiraling Upward

07.25.12

Some people in Park Ridge might consider the City’s spending of $48,101 as pretty much a drop-in-the-bucket number, especially when compared to the City’s $60 million 2012-13 budget.

But that $48,101 takes on much more significance as a symbol of the flawed decision-making that has plagued, and often even defined, previous City Councils – and that seems to continue to plague and define some members of the current Council and the bureaucrats who run City government on our “dime,” figuratively speaking.

In literal terms, that $48,101 is the total cost of the raises the Council approved Monday night for non-union City employees: a 1% raise for those employees who merely “meet expectations,” and a 2% raise for those who “exceed expectations.”  Ironically, although not surprisingly, that approval came on a 4 to 2 vote (Alds. Joe Sweeney, Rich DiPietro, Sal Raspanti and Marty Maloney v. Alds. Jim Smith and Dan Knight, Ald. Marc Mazzuca absent) only minutes after a discussion of how Crook County was now projecting $220,507 less revenue from the hapless Uptown TIF than has been budgeted this year. 

Meaning that the Council majority voted to pay out an additional unbudgeted $48,101 in salaries while knowing that it now will have $220,000 less revenue from which to pay them. 

If that sounds shortsighted and irresponsible, that’s because it is.  And, unfortunately, it’s been the City’s practice for the past decade and beyond.

Like their counterparts in Chicago and Crook County, over the past decade or longer the City’s elected officials and bureaucrats, with a few notable exceptions, virtually institutionalized a process of giving raises to union employees, which in turn led them to give raises (albeit in lesser amounts) to non-union employees, which in turn led to further raises for union employees, and so on in an upward spiral.  As can be seen from a schedule recently produced by the City, since 2008 – in the teeth of this recession – the City’s unionized firefighters and police have received raises totaling 13% through next May; unionized public works employees have received raises totaling 12.75%, with more on the way; and non-union personnel have received raises totaling between 7% and 9%.

During that very same period the City, while continuing to raise taxes by approximately 3.5%, was cutting back on various services as Mayor Dave Schmidt led the fight to escape from a decade of deficits totaling multi-millions of dollars that had put the City’s finances in a figurative iron-lung.

In addition to all those raises, City employees also got credits toward their guaranteed defined-benefit pensions that are virtually extinct in the private sector, in part because not only can they be taken as early as age 55 but, also, they have been reported to provide the beneficiaries with as much or more money in pensions than they made while actually working! 

Additionally, unlike almost all private-sector workers, City employees are virtually fire-proof because of poor performance, which would explain why so few of them leave the City for similar positions in other communities.  Plus, City employees run no risk of their employer packing up and moving to Mexico or Malaysia; or of filing for bankruptcy – at least not until after the City bleeds the taxpayers dry.

So although the Council majority wasn’t deterred from those $48,101 in raises by this $220,000 revenue shortfall, it seems to have been mightily impressed by the “white paper” authored by the City’s H.R. Manager, Cathy Doczekalski, and its H.R. Consultant, Michael Suppan, which begins with the flippant, almost dismissive “[t]he process of giving pay raises…[has] been happening since before the birth of Christ.”

Doczekalski and Suppan go on to salt their report with certain buzzwords/phrases – e.g., “loyal”/”loyalty,” “hard working,” “dignity and respect” – in what appears to be an attempt to portray the City’s salaried employees as quasi-serfs.  They also spout the ridiculous assertion that “[w]hether the pay increases are merit increases or Cost of Living (cola) increases doesn’t matter” – thereby demonstrating their inability to grasp the difference between compensation earned for meritorious performance, on the one hand, and what amounts to nothing less than the employer’s guarantee of the purchasing power of the wages being paid, on the other.

Yet when Ald. Knight questioned them about the exact meaning and relevance of those various buzzwords and terms, he basically got deer-in-the-headlights responses from the authors…until Public Works Director Wayne Zingsheim rode to their rescue with tales of salaried employees working extra hours without pay, and laments about “wage compression” – shrinking pay differentials between supervisors and subordinates. 

Zingsheim seemed oblivious to the fact that extra hours without extra pay is a hallmark of salaried employment.  And his only example of any lack of “dignity” or “respect” was the fact of subordinates making more than their supervisors, a/k/a “wage compression.”  

But proposing an actual solution for “wage compression” – other than just giving the salaried employees 1-2% raises – must be above both Zingsheim’s and the Council majority’s pay grade, as suggested by Ald. Maloney’s rationale that: “We say ‘no’ to this group [the salaried employees] because we can, but we can’t necessarily say ‘no’ to some of the unions.”

Why not, Alderman?

According to the final page of the arbitration award for the Fraternal Order of Police issued December 20, 2011, the City’s final offers – beyond which it chose to say “no” to the FOP’s demands – were upheld by the arbitrator in five of six instances.  Keep the champagne on ice for the time being, however, because while that might have been a technical “win” over more extreme union demands, the arbitrator’s findings on Page 35 of the award suggest more of a Pyrrhic victory, “won” by the City’s having given away “effectively 9% over four years, more when longevity is factored in.” 

If you want a little insight into how inter-dependent the various union negotiations and resulting contracts are, check out the first four pages of that award.

What becomes obvious from just this trickle of information is that the Doczekalski/Suppan phobia about the salaried employees possibly joining a union if they aren’t given raises, is that the City and its hard-nosed negotiators already gives the unions such good deals that even the pro-union arbitrators end up endorsing them!

Victory by surrender? 

We’re not opposed to City employees, including the salaried employees, receiving fair compensation.  And we’re certainly not opposed to City employees being represented by unions.  But we most certainly are opposed to aldermen and supervisory personnel who seem to care more about special interest groups – in this case, the salaried employees – than about the taxpayers who pay the wages of those employees, some of whom would gladly take those City jobs.  Without raises.

As was demonstrated Monday night, the City’s salaried supervisory personnel (with the notable exception of Finance Director Allison Stutts) and at least four of our seven elected aldermen are seemingly more concerned about pandering to this one special interest group than about undertaking the admittedly more difficult task of forging a long-term, comprehensive and economically realistic wage policy – especially when there’s already the specter of an 11% City property tax increase looming this coming November?

But when you can make a special interest temporarily happy simply by giving away $48,101, why do any heavy lifting?

To read or post comments, click on title.

9 comments so far

When are you going to call out your fellow library board members for giving the all of the non-union library employees a 2% across the board raise May 1st? Where was the merit in that?

EDITOR’S NOTE: We haven’t decided yet. But when we do, you’ll be able to read about it here.

A 1-2% raise hardly seems unreasonable…and it appears to be merit based…so what’s the issue?

Also, how is the $220K from the TIF connected to the

Merit-based?! Good grief … The entire employee performance appraisal system for the City is garbage. Managers afraid of even poorer performance if they give a worker a low score … Driving up the positive “merit-based” outcomes.

Plus, I think Ramirez hit the nail on the head – you can’t allow employees to work off the clock no matter how hard they beg to “volunteer!” If the HR Manager knew her job she’d agree. I

I am getting more and more disappointed with this city …. Services, staff and council.

EDITOR’S NOTE: Somebody needs to understand that “salaried” employees are never “off the clock” because they’re never really on it.

Unfortunately, this City has been so screwed up for so long that digging out from under will take awhile. Fortunately, at least the City’s finances have actually gotten measurably better over the past 3 years.

The library 2% raise across the board has no merit to it? Evaluations on each employee were still given, and they all were rated at Meets/Exceeds their job performance OR HIGHER.

So giving them each 2% would have happened either way. If they did it on strictly merit, wouldn’t there be a chance for the OR HIGHER group to get 2.5% or more? Even more money could have possibly been used towards the raises, but were not.

The raises were also BUDGETED as well.

EDITOR’S NOTE: Your last point is probably the most meritorious one, although we’re not sure just how much of a difference that distinction really makes.

Frankly, we don’t understand how merely satisfactory performance (a/k/a “meets” standards) entitles one to a raise. Isn’t that simply doing what you were hired to do for the wages you agreed to accept? And from what we’ve seen and heard, the “performance” standards might be a combination of “gentlemen’s Cs” and grade inflation.

A story in the Advocate says Larry Ryles has announced for mayor. He wants to be a full-time mayor and bring more retail to town so that Park Ridge will be like it was when his wife was growing up here. What do you think?

EDITOR’S NOTE: We think commentators should stay on the topic of this post – including what candidate Ryles thinks about the City’s employment issues.

“Somebody needs to understand that “salaried” employees are never “off the clock” because they’re never really on it.”

THIS. When I was a salaried employee in the private sector, my workweek ranged from 45 hours a week to 90. We were very occasionally rewarded with a comp day during the times of consecutive 90-hour weeks.

Of course I had plenty of coworkers who snuck out the door at 5:00 on the dot as much as possible (because it was frowned upon to ever leave on time, but that’s another issue), but those were the employees who were less likely to get merit increases (in the years we even had money for increases) because their evaluations weren’t as positive as those who were willing to put in the long hours.

The mentality of expecting maximum compensation for working as few hours as possible is infuriating to me. As is the expectation that salary increases are a given no matter how tight the budget is. If you don’t like it, please leave and give someone else a chance at the job(s). I’m sure plenty of people would be happy to work hard for the salary outlined upfront without complaint.

EDITOR’S NOTE: Agreed.

One way to judge how the City’s working conditions – including compensation – compare to other municipalities’ is to determine how many City employees have voluntarily left their City jobs to take similar jobs with other municipalities. Perhaps what the City’s HR people term “loyalty” is actually inertia, or conscious knowledge of how good they have it here.

You hit it on the head about people leaving to work elsewhere. It seems like nobody leaves and almost nobody gets fired (other than the most recent City Manager). Why should the City be afraid of unions when it provides its employees with as good or better wages and bennies as the unions could get them?

EDITOR’S NOTE: Good question.

Does anybody know what candidate Ryles thinks about what our city employees should be paid and whether they deserve raises?

EDITOR’S NOTE: Not us.

Didn’t know where to post this so put it here. Did you know the Library pays part time employees overtime to cover full-time employees when they go on vacation? And this happens in departments that are non-essential. Why are salaried full timers not covering for each other like required in the private sector? Most companies did away with hiring “temps” long ago.

EDITOR’S NOTE: No, we didn’t – because, as we understand it, it doesn’t.

When full-time staff take vacation time off, some of their hours may be covered by a part-time employee – but only in certain situations, and then only for a limited amount of the full-time employee’s hours; e.g., a full-time employee in Circulation taking a week of vacation will have some of his hours covered by a part-time employee, but only those hours required for keeping the department running smoothly. The Library never replaces all of an FTE’s hours; and in some departments (Administration and Technical Services), no vacation hours are covered by a part-time employee.

Part-time employees do not get paid overtime unless they would work more than 40 hours in any one week period, and we understand that does not happen. Part-time staff typically work 20 hours per week or less. If they are asked to work extra hours to cover another shift, they are paid their regular part-time hourly rate.



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