Unions angered by request from Metro Louisville to accept wage freeze

LOUISVILLE, Ky. (WDRB) -- Metro Louisville wants to freeze the wages of city employees as it tries to plug its budget hole, but the idea is not going over well with the worker's unions.

Union representatives tell WDRB News they will not allow the city to balance the budget on the backs of its workers.

Metro Louisville’s Director of Human Resources, J.P. Hamm, sent a memo to the employee unions requesting that they agree to the freeze.

“In addition to the potential cuts and reductions to our city services and staff, our constituents have asked if Metro employees would be willing to accept a true zero percent (0%) wage increase,” Hamm said in the memo.

“As a result, we are reaching out to our unions to see if they would be interested in assisting us in an endeavor to meet this challenge.”

Tracy Dotson, the president of FOP Lodge 77, which represents Metro Corrections officers, said his first reaction was anger.

He said it did not take long for him to get a response from his members.

“My members have been emphatic,” said Dotson. “The resounding answer is ‘no.’”

The wage freeze request came after Metro Council voted to cut the budget, turning aside Mayor Greg Fischer's plan to raise the insurance premium tax to fill a $35 million budget hole caused primarily by rising pension costs.

“It's pretty cowardly for the council to put the public servants, both public safety and labor, in a position to shoulder this burden,” said Dotson.

There was anger as well from the head of the city's police union.

Nicolai Jilek, the president of the River City FOP, called the request an insult, and said he will not even put it to a vote of his members.

Jilek said the FOP has been without a contract since last summer, and police salaries have failed to keep up with inflation for more than a decade.

“Our morale and frustration with the city is at such a high level that I don't know what they were thinking by asking me take it to my membership for a vote,” Jilek said.

Saulette Davis, president of AFSCME Local 2629, said her members have also rejected the wage freeze request.

She said Fischer’s administration needs to “cut from the top.”

Metro Council Kevin Kramer, who opposed the tax increase, applauded the steps Fischer is taking to address the budget issue, and urged the unions to reconsider.

“A cost-of-living freeze is reasonable,” he said. “It's only one year.”

City spokesperson Jean Porter had this response to a question about potential savings of having no cost-of-living increases:

"As CFO Daniel Frockt testified at the 2/14/19 budget committee meeting, wages/COLAs and associated fringes are expected to grow by about $10.5M in the coming year, so that gives you a sense of the potential savings — 1.7M non-union and $8.8M union."

Kramer said the freeze could save the city up to $8 million and, without it, more difficult decisions lie ahead.

“The mayor has already talked about cuts and layoffs which we would really prefer not to have happen,” Kramer said.

Metro Council President David James, who supported the tax increase, said he is concerned the wage hit will not just be for one year, as pension costs continue to balloon.

The budget deficit is projected to be $65 million in four years.

“That will help get us through this year, but then we have to deal with next year also,” said James.

But Kramer said the wage freeze is an important part of getting pension costs under control.

“We've got to find a way to make sure that we've laid the groundwork to protect those pensions going forward,” Kramer said. “This is one piece of that protection.”

But Dotson said he is concerned the attempt to freeze wages is just the beginning.

“Wage freezes, replacing workers, privatization, all that stuff is a violation of my collective bargaining agreement for my members,” he said. “But how far is Metro willing to go? That's the question.”

The employee unions plan to say more at a news conference outside Metro Hall Monday morning.

Mayor Greg Fischer’s office did not respond to a request for comment. He must submit a budget proposal to Metro Council by April 25.