Coalition of LA City Unions

Coalition of LA City Unions and City Representatives Meet to Discuss City’s Budget Crisis; Implementation of the Coalition’s Binding Contract

Coalition Leaders Prepared to Meet with City Officials Around the Clock to Preserve City Services and Jobs

For Immediate Release: September 13, 2009

In keeping with the Coalition of LA City Union’s June 26, 2009, agreement with the City of Los Angeles, Coalition leaders met under the Mutual Gains process today with Chief Administrative Officer (CAO) Miguel Santana and representatives from the Mayor’s and CAO’s offices. Labor and management discussed the CAO’s report that was issued late Friday, the City’s current financial situation, and potential solutions to bridge the budget gap that has emerged through a combination of bureaucratic inaction that has cost City taxpayers tens of millions of dollars and continuing weakness in the regional economy.

“Unions representing City employees are disappointed that the City has not moved more quickly to implement our contract amendment and begin achieving the significant savings from the Coalition agreement. The City’s bureaucratic inaction has cost taxpayers tens of millions of dollars at a time the City could least afford it – with revenues continuing to decline,” said Cheryl Parisi, Chair of the Coalition of LA City Unions.

“Bureaucratic delays by the City have cost City taxpayers $88 million and made the City’s financial problems worse,” said Bob Schoonover, President of SEIU Local 721.

The Coalition’s landmark contract amendment – approved subsequent to 97 separate meetings between labor and management, agreed to personally with Mayor Villaraigosa, approved unanimously by the Los Angeles City Council on June 26, 2009, and ratified by members three weeks later – contemplated the possibility of a further economic decline and provided labor and management with concrete tools to address any future budgetary shortfalls.

“The financial crisis facing the City of LA is not new,” said Richard Slawson, Executive Secretary, Los Angeles and Orange County Building & Construction Trades Council. “Our agreement contemplated ongoing fiscal challenges and provided rock solid solutions to resolving further revenue shortfalls.”

During today’s meeting, Coalition leaders made a series of information requests regarding parts of the CAO’s report and operational plans, which CAO Santana was not able to back up with solid data. Per the Coalition Agreement, the Unions have begun developing an understanding of the remaining budget challenge and working on solutions that will help City workers represented by Coalition member unions do their share to address these potential challenges.

The CAO asked the Coalition’s assistance in closing a specified amount of the budget gap. Union leaders expressed a continuing commitment to mitigate our share of the budget problem, though the Unions need verifiable information before meaningful discussions pursuant the Union contract can occur.

The Coalition of LA City Unions remains committed to meeting around the clock to assure that critical City services for Angelenos continue and that dedicated City workers remain employed.