Gene Wieneke

Friday, December 23, 2005

The Giveway in Detail

I would like to report on the incentive packages that the City Manager used in the so-call layoffs and “encouraged” retirements in 2004. I’m sure we would all like to look forward to such a deal.
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For both those terminated and those who resigned, the incentive he gave is as follows: 1) Six months of health and dental insurance in which the City continued to contribute its standard percentage. 2) Eighteen additional months of health/dental insurance at the COBRA rate; no City contribution. 3) One week of pay for each year of service plus an additional amount of bonus weeks. 4) Full pension contributions for all pay received. 5) Finally, the payoff of all accrued vacation time per State law.
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The formula for the additional weeks, over and above accrued vacation time, differed based on total service. The minimum was “plus two weeks” and the maximum was “plus ten weeks”. Here are three examples of the formula. An employee with less than 5.99 years of service received one week of pay for the number of years served plus two additional weeks. An employee with 16.0 years of service received 16 weeks “plus ten” weeks for a total of 26 weeks. (Half a year) Those with 30 years of service received 30 weeks plus 10 weeks for a total of 40 weeks.
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That was not the end of his generosity. All employees who took retirement instead of termination received an additional 10% calculated on the total cost of their compensation package. It includes accrued vacation, extra weeks of pay and the cost of health insurance and pension expenses.
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Finally, here is another twist that needs a public response from the Manager and the Members of the Council, individually. The Manager gave three of the twenty-seven employees who chose to be terminated the very same 10% incentive as the retirees. The employees are Pat Breitenstein, Nestor Fedak and Linda Segovia. Only three!!!
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Some more questions concern Mr. Breitenstein. The City estimated that his total package would be paid off on 9/16/05. Remember, the personnel actions took place in early 2004. Why was he rehired on a part-time basis during this summer (2005)? Why did he resume full-time employment before his severance package expired? Was the "layoff" of a 25 year employee necessary and what did it save the City?
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The bottom line of the Manager’s generosity with your money is $1,098,989 not counting the pension contributions and the accrued vacation costs.
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Coming very soon is the reason I do NOT called the terminations a layoff.

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