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View Current Email Update
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Senior
Transportation Engineer Exam |
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Following numerous discussions with Caltrans
management over the delay in scheduling the next
Senior Transportation Engineer exam, PECG has
confirmed that the exam is being prepared. The exam
bulletin will be released on May 17, 2010 and have a
final filing date of June 9, 2010. Applicants will
be able to apply on-line by following the
instructions. Applicants can access the exam
bulletin, beginning May 17, 2010, by going to the
department's exam website at
http://www.dot.ca.gov/hq/jobs/PromoExam.html.
The written exam is expected to be given in August
or September 2010 with the finalized date in the
exam bulletin.
Here is the timeline:
* Exam Bulletin Release Date: May 17, 2010
* Final Filing Date: June 9, 2010
* Location of exam bulletin:
http://www.dot.ca.gov/hq/jobs/PromoExam.html
* Written Exam: August or September 2010. |
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Furlough Fridays - Back On? |
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March 30, 2010
It looks like
Furlough Friday is
back on - at least
for April 2. To
recap, an Alameda
Superior Court Judge
ruled that the
furloughs were
illegal for several
dozen Special Fund
state departments,
covering all but a
few hundred PECG
members. The ruling
covered furloughs
from this point
forward as well as
retroactive pay for
the salary
reductions resulting
from the previous
furloughs. The court
ruling was
automatically stayed
or put on hold
without taking
effect. The Judge
then lifted the
stay, meaning that
furloughs would be
stopped, but the
retroactive pay
would not occur
until the Court of
Appeal hears the
case.
On March 30, the
Court of Appeal
reinstated the stay,
meaning that
Furlough Friday is
back on for April 2.
The parties may file
opposition to the
decision to stay the
ruling by April 7,
at which time the
Court may
reconsider.
Otherwise, furloughs
will continue while
the Court of Appeal
considers the merits
of the case, as well
as the request to
end the furloughs
sooner rather than
later.
What's the bottom
line? It appears
that Friday, April
2, is a Furlough
Friday for everyone.
However, just to be
sure, it might be a
good idea to ask
your supervisor if
you should come to
work that day.
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Judge Orders End of Furloughs
Without Delay |
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March 24, 2010
Dear Colleague,
Based on a Judge's
ruling earlier
today, it appears
that for most PECG
represented
employees, the
furlough program
will end
immediately.
Beginning in April,
most PECG
represented
employees would work
their full schedules
and receive their
full paychecks.
This ruling, which
covers employees of
69 departments and
approximately 97% of
all PECG members,
will take effect
unless the Governor
can convince the
Court of Appeal to
overturn it
immediately.
The Judge's ruling
did not call for the
payment of backpay
at this time,
meaning any backpay
award will be
delayed until the
appeals are
resolved. For
those PECG
represented
employees not
covered by today's
ruling, we will push
for a similar order
and an end to the
furloughs as soon as
possible through the
other furlough
lawsuits which cover
all PECG represented
employees.
In late February,
Alameda County
Superior Court Judge
Frank Roesch issued
a judgment ruling
that the furlough of
employees at 69
different "special
fund" agencies was
illegal. He
ordered an end to
the furloughs and an
award of backpay to
employees of those
agencies, including
PECG represented
engineers and
related employees.
The Governor
appealed that
decision. The
issue decided today
was what portion, if
any, of the decision
should be
implemented now.
Governor
Schwarzenegger will
seek to have today's
decision to end the
furloughs reversed
by the First
District Court of
Appeal. If the
decision is not
overturned by the
Court, employees of
the departments
named in the
litigation will
likely be informed
by their management
to show up for work
on Friday, April 2.
The Governor and
PECG have asked the
State Supreme Court
to take jurisdiction
over the appeals in
the furlough cases
so that a final
decision can be
reached sooner than
if the normal appeal
process continues.
The appeals will
determine whether
any Governor has
furlough authority
in the future.
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Caltrans Director Randy Iwasaki
Resigns |
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March 18, 2010
Dear Colleague,
Caltrans Director
Randy Iwasaki has
resigned to accept a
position as
Executive Director
with the Contra
Costa Transportation
Authority. PECG has
appreciated the
opportunity to work
with him on a wide
variety of projects
and issues. He has
done an outstanding
job for Caltrans and
we wish him well in
his future
endeavors.
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Furlough Update |
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February 26, 2010
Dear
Colleague,
An Alameda
Superior
Court Judge
has ruled
that the
Governor's
furlough
program is
illegal and,
as applied
to some
agencies and
departments,
is an abuse
of
discretion,
arbitrary,
capricious,
and
unlawful.
The ruling
orders the
Governor to
pay all
affected
employees
their full
salary
without any
reductions
pursuant to
the illegal
furloughs
and to
restore any
salary
wrongfully
withheld.
The decision
applies to
more than
97% of
PECG-represented
employees,
regardless
of whether
their
particular
position is
funded by
special
funds or
general
funds. The
lawsuit was
originally
filed by
several
unions
challenging
furloughs of
special fund
employees,
but the
court's
ruling is
much broader
than that in
its
application.
Unfortunately,
it probably
does not
mean that
furloughs
will stop
immediately
or that
employees
will be
receiving
checks for
back pay.
Superior
Court
rulings such
as this are
subject to
appeal to
the Court of
Appeal,
which the
Governor
plans to do.
The Governor
will also
seek a stay
of the
ruling,
meaning it
would not
take effect
until the
Court of
Appeal hears
and rules on
the case.
Typically,
such
decisions
involving
payment of
money are
stayed on
appeal, but
that will be
determined
by the Court
of Appeal in
fairly short
order.
PECG filed a
parallel
lawsuit in
the Alameda
Court.
PECG's
primary
lawsuit
challenging
the
furloughs
for all PECG
represented
employees is
currently in
the Court of
Appeal in
Sacramento.
Legal briefs
and
additional
written
arguments
required by
the court
have nearly
been
completed
but oral
argument and
a final
ruling by
that court
are probably
several
months away.
In light of
the diverse
rulings
around the
state from
different
courts, the
issue of the
Governor's
authority to
issue
furloughs
will
probably be
ultimately
determined
by the State
Supreme
Court.
In the
meantime, it
is
encouraging
that at
least some
courts are
agreeing
with the
view of PECG
and other
state
employee
organizations
that the
Governor's
furlough
program was
illegal,
should be
rescinded,
and
employees
should
receive all
salary
withheld.
As always,
the PECG
leadership
appreciates
the support
of the
members as
we continue
to oppose
the current
administration's
illegal
actions to
reduce
employee
compensation.
Sincerely,
Shabbir Ahmed
PECG President
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The Status of
Furloughs |
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Dear
Colleague,
In December
2008, when the
Governor issued
an Executive
Order announcing
his intention to
impose unpaid
furloughs on all
State employees,
PECG was the
first
organization to
file a lawsuit
challenging his
Order. PECG's
lawsuit contains
two basic
arguments.
First, the
Governor has no
authority under
State law to
impose furloughs
and his action
would violate
current statutes
which establish
the 40-hour work
week and
prohibit
unilaterally
changing
salaries.
Second, the
furloughs
violate specific
provisions in
the Unit 9
Memorandum of
Understanding
(MOU) which are
not contained in
the MOU's for
the other 20
State Bargaining
Units.
PECG's suit
seeks an end to
the furloughs
and restoration
of back pay for
the salary
reductions
imposed on
PECG-represented
employees.
PECG also filed
grievances
against the
Governor's
Executive Order
as well as his
subsequent Order
imposing a third
day of
furloughs. DPA
has refused to
go to
arbitration,
which would
involve a
decision by a
neutral third
party based on
the provisions
in the MOU.
PECG is now in
court seeking
enforcement of
the State's
obligation to
participate in
arbitration. An
arbitrator could
order an end to
the furloughs
and back pay if
he or she
determines that
the MOU was
violated by
imposition of
the furloughs.
Regarding PECG's
lawsuit, the
first step in
the legal
process is a
ruling by a
Superior Court
Judge. In this
case, the Court
agreed with the
Governor that he
had the
authority to
impose the
furloughs. The
next step is the
Court of Appeal,
a three judge
panel. Briefs
(written
arguments) have
been filed by
both parties and
PECG is awaiting
a court date for
an oral argument
before the Court
of Appeal which
will then issue
a written
ruling, perhaps
this spring.
That decision
will be final
unless the State
Supreme Court
decides to hear
the case.
After PECG filed
its lawsuit,
other
organizations
entered the
fray, filing
approximately
two dozen
lawsuits in
various
California
Courts. PECG's
lawsuit is
furthest along,
awaiting oral
argument and a
ruling by the
Court of Appeal,
but others are
in various
stages in the
process.
Most of the
suits have been
unsuccessful, at
least at the
initial or
Superior Court
level, but three
have received at
least partially
favorable
rulings. In one
case, the Court
ruled that
employees at the
State
Compensation
Insurance Fund
cannot be
furloughed
because of a
provision in the
Insurance Code
(state law)
which prohibits
furloughs in
that agency. In
another case,
the Court ruled
that prison
guards can't be
furloughed
because when
their pay is
reduced, their
workload is such
that it is not
clear if they
will ever be
allowed to take
the time off.
Thus, their
furlough would
actually
constitute a pay
cut, which the
Governor does
not have the
authority to
unilaterally
impose. As with
all the other
Court rulings
thus far, that
case is under
appeal and the
ruling has not
taken effect.
More recently,
an Alameda
Superior Court
Judge concluded
that employees
who are paid out
of special funds
that are not
subject to
borrowing to
help balance the
General Fund
deficit cannot
be furloughed.
The Judge also
questioned the
continuation of
the furloughs
based on a
financial
emergency after
the State Budget
was passed by
the Legislature
last year. In
several
respects, the
ruling is
different than
the decision
issued by the
Sacramento
Superior Court
Judge in PECG's
case. As most
PECG members are
paid through
special funds,
PECG is filing a
request to
intervene in
that Alameda
case so, if the
Court ruling is
ultimately
upheld by the
Appellate or
Supreme Courts,
it would apply
to
PECG-represented
employees as
well.
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Since their
inception, the
furloughs have
been based more
on politics than
on the law,
sound policy, or
financial need.
Before
announcing the
furloughs, the
Governor
acknowledged to
State Employees
that he needed
new law to
authorize
furloughs. When
the Legislature
refused to pass
a new law, he
imposed them
anyway. He
claimed the
furloughs would
save $1.3
billion dollars,
although several
independent
studies have
concluded that
furloughs
actually cost
the taxpayers
money due to the
loss of federal
funds and other
considerations.
Just last month,
the Governor
proposed to pay
PERS $1.3
billion more
than the
required State
contribution to
the retirement
plan in order to
bolster his
argument that
the pension
system is too
expensive. This
additional
voluntary
contribution
(which must be
approved by the
Legislature
before it can be
made) is the
same amount that
he claimed he
needed to save
through
furloughs.
Be assured that
PECG will
continue to use
every available
means to oppose
any continuation
of the furloughs
and to recover
the money
illegally
withheld from
employees'
paychecks during
the past year.
In the meantime,
on behalf of all
the PECG
leadership,
thank you for
your continuing
support of PECG
as we seek to
most effectively
represent you in
these difficult
economic and
political times.
Sincerely,
Shabbir Ahmed
PECG President
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PECG is Now on
Twitter |
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Today, PECG made its debut in the
world of social media with the
launch of a Twitter page at
www.twitter.com/pecg.
The new page will provide members,
the media and the public with
instant information from PECG
including announcements on
legislative activity, lawsuits and
articles featuring PECG leaders and
members.
Signing up is easy! If you already
have a Twitter account, just click
the "Follow" button on our page to
get updates from PECG in your
Twitter feed. If you don't have a
Twitter account, simply click the
"Join Today" button. All you have to
do is set up a user name and
password and you can follow PECG on
Twitter!
An added feature allows you to get
our updates sent to your cell phone
in the form of a text message. Go
to "settings" and click on the
"mobile" tab to add your phone
number, and then turn the alert on
for PECG on your "Following" page.
If you're having problems or have
questions about the Twitter page,
please email Ryan Endean at
rendean@pecg.org.
We've also set up a link to the
Twitter page at our new and improved
web site,
www.pecg.org.
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New PECG Website
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Today, PECG launched a new website
designed to be an easy-to-use
information center for members. The
website address remains the same
http://www.pecg.org/.
The modern website features sleek
graphics, expanded navigation and
lots of useful content. The site
was developed by staff, under the
direction of PECG's Information
Technology Committee.
Please log on and take a look
around. And please let us know what
you think of the new layout. Please
email
web@pecg.org with your comments.
Sincerely,
Shabbir Ahmed
PECG President
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Columbus Day
Holiday |
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September 29, 2009
The Unit 9 Memorandum of Understanding
(MOU) lists the second Monday in
October, typically referred to as
Columbus Day, as one of the "observed
holidays with pay". In February, the
Legislature and the Governor enacted a
change in the law, Government Code
section 19853, which deleted the
reference to that day as a holiday.
The Unit 9 MOU remained in effect
through July 2, 2008. State law
specifies that DPA and PECG "shall
continue to give effect to the
provisions of the expired Memorandum of
Understanding". The MOU incorporates
the Government Code section on holidays
but states that if a provision of the
MOU is in conflict with that code
section, "such MOU provisions shall be
controlling". The MOU, in Article 9,
lists "the second Monday in October" as
a holiday.
On September 25, the Department of
Personnel Administration (DPA) posted a
notice on their website that "Columbus
Day is no longer a State holiday". It
adds that an employee must "receive
prior approval from the supervisor" and
"use leave credit" in order to "take
time off" on that day. Otherwise, "the
absence will be considered absent
without leave".
PECG believes that DPA is incorrect in
their interpretation. As the grievance
procedure, including arbitration by a
neutral third party, continues in
effect, PECG is filing a grievance with
DPA. The MOU provides that employees
can be required to work on holidays but
those in Work Week Group 2 "shall
receive one and one-half the hourly rate
for all hours worked on the holiday" and
those in Work Week Group E (such as Unit
9 Seniors) "shall receive up to eight
hours of holiday credit and four hours
of informal time off."
What should you do regarding working on
Monday, October 12? A long-established
rule in labor relations is - obey now,
grieve later. This means that, in most
circumstances, employees must obey
directions from supervisors and managers
and then obtain an appropriate remedy
through the grievance procedure, which
PECG is pursuing in this case.
Therefore, PECG recommends that you
contact your Supervisor to determine if
you are being ordered to work that day.
If so, come to work and PECG will seek
reimbursement through the grievance
procedure. If you take the day off,
management may charge you paid leave
credits and PECG will pursue
reinstatement of those credits through
the grievance. However, it is important
to obtain clear direction from your
supervisor or manager regarding whether
you are expected to be at work that day
or not.
If you are a supervisor, what do you
tell your employees to do? We recommend
that you obtain clear direction from
your supervisor or manager and then
carry out those instructions.
These are difficult times with
furloughs, holidays, overtime
compensation, and many other topics in
dispute between the Governor's Office,
DPA, PECG, and other employee
organizations. Resolution of such
issues is typically long, slow, and
difficult, as exemplified by several
grievances and lawsuits by PECG which
are working their way through the legal
process. Be assured that we are doing
everything we can to protect your job
and obtain reimbursement for money which
has been illegally withheld from you.
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Issues Update
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September 3, 2009
The Legislature is entering its
final scheduled week for this year's
session, which is typically the time
when mischief can occur rather
suddenly. New or amended bills have
ranged from cutting back on employee
pensions to turning the State Water
Project over to private interests.
PECG's Legislative Advocates and
Legislative Committee are being
quite active, and thus far
successful, in snuffing out these
last-minute efforts.
The hearing to determine if the
Government Code requires
PECG-represented supervisors to
receive the same raises as their
bargaining unit counterparts will
begin in Sacramento on September 9.
As there are several dozen classes
involved, it is uncertain how many
days (or weeks) the hearing will
last before a decision is rendered.
Not surprisingly, DPA has rejected
PECG's grievances regarding the
Governor's furloughs and a July 2009
pay parity raise for Unit 9
employees. The grievances will next
go to arbitration for a ruling by a
neutral decision-maker or, in at
least one case, to Court to force
arbitration. PECG's lawsuit on
furloughs is working its way slowly
through the Court of Appeal
process.
PECG has endorsed J.J. Jelincic and
Kurato Shimada for election to the
PERS Board of Administration. For
more information on the candidates,
go to the PECG website at
www.pecg.org.
There is also an election underway
for PECG Corporate Officers for the
next year. Every PECG member should
have received a ballot last month
with information on the candidates.
If you have not yet voted, please do
so immediately. The stamped
self-addressed return envelope must
be post-marked by September 10 for
your vote to be counted.
There are also elections of PECG
Officers underway in most of PECG's
seventeen Sections. Please be sure
to vote in that election as well.
As always, thank you for your
continuing support during these
difficult economic times.
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Supervisors and
Managers Pay Issue Update |
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August 10, 2009
Dear Colleague:
Latest Action and Response
The Department of Administration
(DPA) has notified PECG that they
have granted our request for a
hearing on the supervisory pay
issue. PECG filed a claim in late
June with the DPA requesting a
"quasi-legislative hearing." The
purpose of the hearing is to
determine the comparability of
duties between specific supervisory
and rank and file classes for the
purpose of establishing appropriate
salaries. The hearing is currently
scheduled for September 9,
2009. The hearing will be
conducted by an Administrative Law
Judge from the Department of
Personnel Administration.
Background
As almost all of you know, in the
past three years supervisors and
managers received the same
percentage increases as Bargaining
Unit Seniors. This year, that has
not occurred despite many assurances
from the Department of Personnel
Administration and several
Department Directors that the
Supervisors and Managers would
receive their pay increase.
It is certainly true that California
and the nation are in a tough
economic time, unemployment is
rising and the State's General Fund
has been and is facing substantial
shortfalls. However, the pay raises
for PECG-represented employees are
based on achieving parity with their
counterparts in other public
agencies and raises for consulting
engineering and architecture
contracts have not been a budget
issue. With more than 95% of the
PECG-represented employees paid
through Special Funds, which do not
have a deficit, the pay issue should
not be a budget issue.
For the 2008-09 budget cycle, the
Governor proposed funding to fully
pay the raises, the Legislature
approved the proposal, and the
Governor signed the budget
authorizing the funding. There was
no reason to deny the raises.
Seniors in the Bargaining Unit
received the raises while
Supervisory Seniors did not. In a
few cases supervisors are being paid
less than the employees they
supervise.
Despite continual efforts by PECG's
Supervisory Meet & Confer Team to
attempt to convince DPA and the
Governor's Office to provide the
raises; PECG members writing
hundreds of letters to the Director
of DPA and the Governor; and
meetings with the DPA Director and
other Departmental Directors, the
pay increase was not forthcoming.
A meeting was held in June between
PECG's Supervisory Meet & Confer
Team and the Supervisory Vice
Presidents to discuss strategies to
achieve the pay increase. It was
decided that the next step would be
to ask one more time, and failing a
positive response, PECG would file a
claim. We did not receive a
response, so we filed the claim
referenced above at the end of
June. In addition, PECG requested
DPA to take all appropriate steps to
increase both the salary ranges and
the salary rates for all supervising
employees retroactively to July 1,
2008.
Sincerely,
Mark Miller, Vice President
Supervisory
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PECG Launches
Statewide Media Campaign |
View Related Press Release
|
August 4, 2009
Dear Colleagues,
Today PECG launched a major
statewide multimedia campaign
intended to draw attention to the
work of California's public
servants. The campaign targets the
waste of taxpayer money due to the
outsourcing of no-bid contracts for
engineering and related services.
Additionally, the campaign educates
the public that the average public
employee pension is less than $2,000
per month.
The campaign includes a new website,
www.workingforcalifornia.org,
and online advertisements that can
be seen on The Sacramento Bee
and other major political websites
during the month of August.
Radio advertisements will air in Los
Angeles on KNX 1070 News
Radio and KABC 790 Talk Radio,
in San Francisco on KCBS All News
740 and in Sacramento on KFBK
News Talk 1530. The radio ads
can be heard during the morning and
evening commute times and are posted
at
www.workingforcalifornia.org
As always, the PECG leaders
appreciate the continuing support of
the membership during these
difficult economic times.
Sincerely,
Mark Sheahan,
PECG President
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Update on the State
Budget, Furloughs and Bargaining |
|
July 29, 2009
The Governor has
signed the package of bills revising
the current State General Fund
Budget for the 2009-10 fiscal year
to address the $26 billion
shortfall. The budget passed
by the Legislature reinstated about
a billion dollars of transportation
funds for local agencies, so the
Governor used his blue pencil to
make some additional cuts before
signing all the bills. This
should mean, for the time being,
that the State Budget is balanced.
The State should be able to borrow
funds as needed to get through cash
flow problems, although a new budget
deficit could begin to take shape,
depending on the economy, in coming
months.
In the final Budget
package, the Legislature did not
authorize the Governor's ongoing
furlough program but included the
savings generated by the furloughs.
This essentially means that PECG's
lawsuit challenging the Governor's
lack of authority to impose
furloughs will remain unaffected by
the latest budget activity as the
suit heads to the Court of Appeal.
The Governor's
earlier proposals to further target
state employees were rejected.
The fourth furlough day, the 5% pay
cut, and the weakening of retirement
benefits while increasing employee
payments all fell by the wayside.
Many of you wrote letters to the
Governor and your legislators urging
them to disapprove the Governor's
proposals which, combined with
lobbying by PECG and other
like-minded organizations, were
successful. However, some of
the issues, such as reducing
retirement benefits for new hires,
will be raised again, perhaps when
the Legislature returns from their
recess in August.
In addition to the
lawsuit, PECG has also filed
grievances challenging the
Governor's furlough Executive Orders
as violating the Unit 9 Memorandum
of Understanding (MOU). On
July 28, the Governor hired a high
priced private attorney who filed a
suit against PECG, seeking an
injunction to stop PECG from going
to arbitration. It is ironic
that the Governor has hired an
expensive attorney to file a lawsuit
claiming that going to arbitration
would cost considerable time and
money, even though arbitration is
much less expensive than going to
Court.
On other actions,
PECG is proceeding with its claim
which will result in a DPA hearing
to determine if supervisors should
receive the raises paid to
Bargaining Unit employees in July
2008, based on the state law
requiring equal pay for comparable
work.
For Unit 9, the DPA
and PECG Bargaining Teams have been
meeting to negotiate a new contract.
In light of the current economic
situation, little progress had been
thus far in that arena.
As always, the PECG
leaders appreciate the continuing
support of the membership during
these difficult economic times.
Mark Sheahan
PECG President
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State Budget
Agreement |
|
July 21, 2009
The Governor and Legislature
have reached agreement on a
revision to the 2009-10 State
General Fund Budget which is
intended to close the $26
billion shortfall. The
Governor had proposed an
additional 5% pay cut for state
employees or a fourth furlough
day per month; increased
employee payments to PERS and a
reduced retirement and benefit
plan for future hires;
additional layoffs; closures of
state parks and other
significant program reductions;
and diversions of Special Funds
from infrastructure and other
projects to help balance the
General Fund Budget. PECG
worked closely with legislative
leadership and coalitions of
like-minded organizations to
oppose these proposals by the
Governor. In the end, his
proposals were rejected.
The Legislature did agree to
incorporate the Governor's three
day per month furloughs into the
Budget as projected savings.
PECG has challenged these
furloughs in the Courts as well
as through contract grievance
arbitration. PECG's attorneys
are analyzing this latest budget
agreement to determine if it
helps, hurts, or has no impact
on PECG's challenges to the
furloughs. PECG has also taken
action to enforce the Unit 9 MOU
provision which specifies that
pay raises for Unit 9 employees
will continue based on the pay
parity provisions and salary
survey in the MOU. PECG is also
pursuing its challenge to the
Governor's failure to provide
pay raises to PECG-represented
supervisors and managers last
July when Unit 9 employees
received their latest salary
increase.
I want to personally thank all
of you who took the time in
recent weeks to send a letter to
the Governor and your
legislators, urging their
support of PECG's position on
these issues. Your letters have
been an important part of PECG's
efforts to convince the decision
makers not to inflict
unnecessary damage on those of
us who serve the public on
infrastructure and other
important programs, funded
primarily through Special Funds
and federal funds which have no
impact on the General Fund
deficit. Through lawsuits and
other procedures, we will
continue to seek to recover the
money which we believe has been
illegally withheld from your
paychecks in recent months and,
with your support, we will
continue to oppose further
damage to your compensation and
working conditions. As always,
all of us at PECG who work hard
to represent you appreciate your
continued support.
Sincerely,
Mark Sheahan
PECG President
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Please Tell the
Governor What You Think About His Latest
Attack on State Employee Pay |
|
July 15, 2009
The Governor and Legislature are
slowly moving toward an
agreement to close California's
now $26 billion budget
shortfall. Yesterday, due
to PECG's strong opposition and
the opposition of other groups,
the Governor's demands for
unilateral pension and
healthcare rollbacks were
dropped from the negotiations.
It's very important that
you visit
the PECG website
and contact the Governor to
tell him that you are
outraged and frustrated by
his latest attack on state
employee wages. It's easy
and will only take a few
minutes of your time.
Thank
you for helping on this very
important issue.
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Furloughs, Pay
Cut, Pay Parity |
|
|
July 10, 2009
The week after announcing a
third furlough day for State
employees, the Governor is now
threatening to add a fourth day.
His latest budget proposal to
the Legislature seeks a 5% pay
cut on top of the three furlough
days, but his office has made no
secret that he plans on adding a
fourth furlough day if the
Legislature does not approve the
direct pay cut. This would slash
State employee pay by nearly 20%
since the first of the year.
PECG will immediately challenge
these additional furlough days,
but experience thus far has
shown that the Courts are slow,
if not reluctant, to reverse the
Governor's Orders without going
through a lengthy court hearing
process.
PECG is actively pursuing
additional legal actions,
coalition efforts, a media
program, and legislative efforts
to attempt to block these
additional cuts to the pay of
PECG members and other State
employees.
The Unit 9 MOU specifies that
PECG members will receive a pay
parity salary increase each year
through July 2008 and
"thereafter". As DPA has not
agreed to provide the pay
increase on July 1, 2009, PECG
has filed a grievance. When it
is denied by DPA, PECG will
appeal the issue to a neutral
arbitrator for a decision.
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State Budget
and Furlough Update |
|
July 8, 2009
One week into the new fiscal
year, there is still a $26
billion State General Fund
Budget deficit but the Governor
and Legislature cannot agree on
how to resolve the problem.
While there is an agreement on
many of the pieces needed to
address the Budget shortfall and
cash flow problems, the Governor
has refused to sign any bills
unless an entire package is
presented to him at once.
Thus, on June 30 he vetoed
several bills which would have
provided more cash for the state
to issue checks in July.
This ongoing inaction has
resulted in serious
consequences. While the
Legislature adopted a Budget in
February for the current fiscal
year, meaning there is spending
authorization for the state to
pay its bills, there is not
enough cash in the General
Fund. This means that the State
Controller has started to issue
IOUs, rather than checks, to
some of the state's vendors and
to taxpayers waiting for an
income tax refund. Based on a
federal Court ruling, state
employees cannot be paid with
IOUs, but how much available
cash will be in the state's
coffers by the end of July is at
present uncertain. One of the
three major rating houses
downgraded California's bond
rating again to BBB, the lowest
of any state, because of
California's inability to
address its fiscal problems.
The Governor issued another
Executive Order, adding a third
furlough day for state
employees. He returned to the
Furlough Friday concept of
closing state offices, beginning
July 10, rather than the current
self-directed program. PECG's
lawsuit challenging the initial
furlough order is working its
way toward a hearing in the
Court of Appeal. That suit
challenges the Governor's
authority to reduce work hours
and salaries for PECG
represented employees. PECG
also filed a grievance on the
basis that the furlough order
also violates the provisions of
the Unit 9 Memorandum of
Understanding (MOU) which is
still in effect. DPA has
refused to abide by the contract
provisions which require the
selection of a neutral
arbitrator, so PECG will seek a
Court Order directing
arbitration for that grievance.
Meanwhile, the Governor
continues to outsource
engineering and related services
at more than twice the cost of
state employees.
For Supervisors, PECG has filed
a claim with DPA which would
require DPA to provide the same
July 2008 raises to
PECG-represented Supervisors
that comparable Unit 9 classes
received. The hearing has been
agreed to but not yet
scheduled. PECG is developing
an appropriate legal challenge
to the latest furlough order as
well.
The Governor and legislative
Republicans are seeking to
utilize this Budget crisis as an
opportunity to achieve some of
their other longstanding goals
unrelated to the Budget. One of
these is a proposal by the
Governor to implement a new tier
two retirement plan for new
hires which would provide lower
retirement and health plan
benefits. Current employees
would be affected by the
Governor's proposed increase in
employee contributions to PERS.
All this would require
legislation which PECG and
others are opposing.
The Governor has broadened his
legislative goals to include
some anti-labor proposals for
schools, developing a database
for welfare recipients in order
to cut health and welfare
programs, and suspending
Proposition 98 funding for
schools to reduce the Budget
deficit.
Emails have been circulating to
urge state employees to file for
unemployment insurance in light
of the third furlough day. Such
efforts may be viewed as a form
of protest but will not be
successful in obtaining
benefits. There are two
relevant programs. One is
limited to employees earning
less than $2,455 per month. The
other is a work share program
for employees who are furloughed
more than 10%, but only applies
if the employer is willing to
sponsor the program and pay for
the benefits. The Department of
Personnel Administration has
made it very clear in writing
that the state will not approve
or participate in either of
those programs.
With a huge budget deficit, high
unemployment, an economic
recession, and inaction in the
Capitol, state employees and all
Californians are going through
difficult times. The PECG
leadership appreciates your
continued support as we seek to
work with the decision makers
and other organizations to
resolve the problems and to
challenge illegal and self
defeating actions by the
Governor and others which do
harm to PECG members and the
services you provide.
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State of State
Budget and Furloughs |
|
July 1, 2009
The Legislature and the
Governor have failed to
reach agreement on
anything as the 2008-09
fiscal year came to a
close at midnight on
June 30. Democratic
Legislators passed
several bills by
majority vote to attempt
to reduce the deficit,
but the Governor vetoed
all bills which didn't
eliminate the entire
deficit in a manner
satisfactory to him.
Efforts by the Democrats
to implement a number of
program cuts while
increasing taxes or fees
on tobacco and oil
drilling died as
midnight on June 30
passed without
agreement. The
Legislature also sought
to cut $3.3 billion from
the 2008-09 budget by
reducing education
spending and shifting
redevelopment funds.
As a result, the Governor
says the General Fund budget
deficit now exceeds $26
billion. He will issue an
Executive Order adding a
third furlough day per month
for State employees.
Ninety-five percent of
PECG's members are paid
through Special Funds which
are not part of the General
Fund deficit. The furloughs
mean that State employee pay
will be cut further while
the State continues to
outsource the work of
PECG-represented employees
at more than twice the cost,
despite the Governor's
Executive Order telling
departments to stop
outsourcing goods and
services. PECG will be
filing legal challenges
against the third furlough
day. PECG's lawsuit and
grievance challenging the
original two-day furloughs
are working their way
through the court system and
administrative processes.
In the last couple of days,
the Governor demanded that
any budget solution also
include a new tier-two
retirement plan to be
imposed on new employees to
greatly reduce their
retirement and health
benefits even though any
impact on the budget
wouldn't be felt for
decades. He also proposed
that current as well as new
State employees pay more
money into the retirement
system so the State would
pay less. Neither of these
proposals got anywhere but
could continue to be an
issue in the budget
discussions.
State Controller John Chiang
stated he will begin issuing
IOUs on July 2 to state
vendors and local
governments. The first IOUs
will probably be sent to
those who are entitled to
State income tax refunds.
While the State isn't out of
cash yet, the Controller is
trying to reserve some funds
to pay constitutional
obligations to schools and
bondholders later this
month.
The status of State employee
paychecks at the end of the
July will depend to an
extent on whether the
Legislature and Governor can
reach agreement on a budget
deficit solution in the
coming weeks. Based on a
federal Court ruling, State
employees cannot be paid
with IOUs.
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Update on State
Budget and Staff Reductions
|
|
June 17, 2009
The Governor has
proposed $24 billion in General
Fund spending cuts to eliminate
the currently projected State
Budget deficit. This proposal
would greatly reduce or
eliminate many State programs
while creating a $4.5 billion
reserve. A ten-member joint
legislative Budget Committee has
put together a package of bills
to revise the budget for the
upcoming fiscal year beginning
July 1 to address the new
deficit. They are seeking to
resolve the crisis by reducing
but not eliminating programs and
would spend the Governor's
proposed multi-billion dollar
reserve during this fiscal
crisis. The Governor has opposed
borrowing to help address the
shortfall.
Part of the
Governor's proposal is a blanket
5% pay cut for all State
employees, both General Fund and
Special Fund, on top of the
current two day per month
furloughs. The joint Budget
Committee rejected the pay cut
proposal, although the issue
could be raised again. Earlier,
the same Committee unanimously
approved continuing the historic
ratio of 90% State staff to 10%
outsourced staff for Caltrans
Capital Outlay Support, its
primary engineering program. For
the first time in several years,
the Administration agreed with
that split, rather than trying
to increase outsourcing, so the
issue was easily resolved. The
Legislature found that a State
Engineer costs the taxpayer
$103,000 per year, including
salaries, benefits, and
overhead, while an outsourced
Engineer costs $232,000 per
year, not including the cost of
advertising, awarding, and
overseeing the contract.
The Governor
earlier announced 5,000 layoffs
for State employees over the
next year. This actually means a
reduction of 5,000 positions
which can include attrition and
not filling vacancies. More than
two-thirds of the reductions are
in the Department of
Corrections. Eighteen PECG
members received notices of
layoff for an unspecified date.
Thus far, all but four of those
employees have been placed in
vacant positions and PECG is
working with DPA and the
departments to resolve the
problem for the four remaining
employees.
A newspaper
reported that a UCLA economist
said the Governor's proposed
budget cuts could result in
60,000 layoffs in State
government over the next year or
so. The economist later
clarified that this number
referenced reductions in
positions in State government,
local government, and education
(colleges and schools) which
could occur through normal
attrition as well as layoffs.
Thus far, neither the Governor
nor Legislators are proposing
any reductions beyond the
previously announced 5,000
General Fund positions for State
employees.
Be assured that
PECG is continuing to work
closely with the Administration,
Legislative leaders, and
affected departments to insure
that any negative impact on
PECG-represented employees and
the services you provide are
minimal during these difficult
economic times. PECG is also
actively monitoring the current
outsourcing efforts by various
departments to ensure that the
Governor's Executive Order which
prohibits new or amended
contracts for services is not
violated.
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Governor's
Executive Order Prohibiting Contracting |
|
June 8, 2009
The Governor has
issued an Executive Order
prohibiting State departments
from entering into contracts for
goods and services, amending
existing contracts, or issuing
purchase orders for goods or
services. A freeze on
contracting will be in place
until departments submit a plan
to reduce their contracting by
at least 15%. Exceptions to the
ban include projects funded by
federal stimulus dollars or
other specified sources,
emergencies involving human life
and safety, and other listed
exceptions. The Order also
exempts so-called public-private
partnerships that require no
direct State expenditures, a
situation that doesn't currently
exist for State infrastructure
projects.
PECG will be
meeting with departments and
Administration representatives
to ensure that the outsourced
services are ended as required
by the Executive Order.
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Governor's Pay
Cut Proposal |
|
May 29, 2009
Governor
Schwarzenegger has asked the
Legislature to approve a 5% pay
cut for all state employees as
part of his effort to eliminate
the $24 billion General Fund
Budget deficit entirely through
cuts and reductions. The
Governor has concluded that when
the voters rejected the ballot
measures on the May 19 Special
Election, they were saying that
budget deficit elimination
should be achieved entirely by
cuts.
Thus far, he is
acknowledging that his proposed
pay cut would require
legislative approval. The
savings to the General Fund
would be $470 million, plus an
additional $415 million for
cutting the pay of Special
Funded employees, including PECG
members. Cutting the pay of
Unit 9 employees and
PECG-represented Supervisors and
Managers would do nothing to
alleviate the General Fund
Budget crisis and would be on
top of the furloughs the
Governor already imposed. PECG
will urge the Legislature to
disapprove the Governor's pay
cut proposal and will continue
our challenges in Court and in
arbitration to overturn his
furlough mandate.
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The Status of
the State Budget |
|
May 27, 2009
Just three
months after the Legislature and
Governor supposedly solved the
$42 billion state General Fund
Budget deficit, the Governor and
Legislative Analyst now say
there is a new deficit in the
amount of $21 billion to $24
billion. About $6 billion
is the result of the voters'
decision not to approve
Propositions 1A through 1E on
the May 19 Special Election
ballot. Those measures
would have authorized about $6
billion of borrowing and
transfers of funds, as well as
extending some tax measures for
an additional year or two.
The major cause
of the State Budget deficit is
the continuing economic
recession which dramatically
reduced income, sales, and
capital gains tax receipts. The
Governor and almost all
legislators are saying that tax
increases won't be part of the
solution, so additional budget
cuts are the probable outcome if
the elected decision-makers can
achieve a consensus on what to
do.
Almost all
PECG-represented employees,
including Unit 9 and Supervisory
members, are paid through
Special Funds, which are not
facing a deficit, rather than
the State's General Fund.
However, as we have seen
repeatedly in the past,
Governors tend to impose cuts on
all state employees regardless
of whether there is need to do
so.
In February, the
shortfall was addressed through
a combination of program cuts,
tax increases, and proposed
borrowing. In the process, the
Governor imposed two day per
month furloughs on all state
employees, which reduced pay by
nearly 10%. PECG is still
challenging the Governor's
authority to unilaterally impose
such furloughs in the Courts and
through grievance arbitration.
If either challenge is
successful, employees could be
repaid the money withheld from
them. The Legislature, with the
Governor's urging, also
eliminated two state holidays
and changed the rules on
overtime compensation.
To address the
new deficit, the Governor has
proposed drastically cutting
funding for education, cities,
and counties, as well as
releasing some non-violent
offenders from the prisons. To
date, the Governor's only
proposed action regarding state
employees is to eliminate about
5,000 General Fund positions,
two-thirds of which are in the
Department of Corrections.
Although the Governor announced
these would be layoffs and about
a dozen PECG members received
layoff notices with unspecified
effective dates, it appears that
in many cases the reductions
will be achieved by eliminating
unfilled positions or through
normal attrition. Any PECG
member who would be affected is
protected by the provisions in
the Unit 9 Memorandum of
Understanding which obligates
the state to offer positions to
Unit 9 employees facing layoffs
before filling them in any other
manner.
These are, of
course, difficult economic times
for all of us. Be assured that
PECG will continue working with
the Administration, the
Legislature, and others to
develop common sense solutions
to these problems while
protecting the interests of the
PECG membership and the public
we serve.
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Governor's
Proposed Layoffs |
|
May 15, 2009
In his May revise in
General Fund programs
released yesterday, the
Governor proposed 5,000
layoffs of employees in
departments wholly or
predominantly funded by
the General Fund. Which
departments have not
been determined.
Departments are
preparing lists of
employees by
classification and
submitting them to the
Department of Personnel
Administration (DPA).
PECG will be meeting
with DPA to discuss the
Governor's proposal and
its potential impact on
PECG represented
employees.
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