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One of those sweetheart union deals has been withdrawn at the last minute. If you read the headlines, "The contract contains no salary increases in 2009, a 2 percent increase in 2010, and a maximum increase in salary based on inflation of 7 percent from 2011 to 2013.", you would think this is a good thing.
BUT, then you find out the pensions are going up, unfunded, "The contract worked out between MWD executives and the labor unions would have given employees a permanent pension of 2.5 percent of their yearly salary per year of employment when they retire at 55, up from 2 percent per year." That is a 25% INCREASE in the pensions.
But, here is the kicker, "Much criticism of the deal had stemmed from fears that unions could renegotiate a lower give back for the retiree medical fund in five years.
If that happens, the savings estimated from this deal could turn into debt."
A 25% pension increase unfunded and in five years the medical portion can be overturned. This is a government agency dealing with a union. Now that it has been stopped, will it get better or worse?
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BUT, then you find out the pensions are going up, unfunded, "The contract worked out between MWD executives and the labor unions would have given employees a permanent pension of 2.5 percent of their yearly salary per year of employment when they retire at 55, up from 2 percent per year." That is a 25% INCREASE in the pensions.
But, here is the kicker, "Much criticism of the deal had stemmed from fears that unions could renegotiate a lower give back for the retiree medical fund in five years.
If that happens, the savings estimated from this deal could turn into debt."
A 25% pension increase unfunded and in five years the medical portion can be overturned. This is a government agency dealing with a union. Now that it has been stopped, will it get better or worse?
More...