- April 26, 2024
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A new collective bargain agreement between the city and the General Employees’ Association will help to reduce the city's $40 unfunded liability issue.
BY MATT MENCARINI | STAFF WRITER
Some government workers saw changes to their paychecks starting late December — the result of a new collective bargaining agreement between the city and its staff.
The Ormond Beach City Commission approved an agreement with the General Employees’ Association Dec. 4, with a unanimous vote, which resulted in a 3% salary increase and a bonus for some non-managerial and non-professional positions.
“I think it was a fair contract for both parties,” said Shelly Arzola, the city’s director of human resources. “Our general employees got a fair wage increase and the bonus, $1,000 for full-time employees (and $500 for part-time employees). For the average person covered in that contract, that’s probably about a 3% bonus, as well. In this economy, I think it’s a good raise.”
In exchange for the wage increase, the city was able to make significant changes to its pension plan, moving from a defined benefit to a defined contribution, which Arzola said was “a big win” for the city, as it continues to try and find solutions to deal with $40 million of unfunded liability.
“(The agreement) is another example of the way we chip away at that unfunded liability,” City Commissioner Bill Partington said, at the Dec. 4 commission meeting. “It’s items like that, where our employees work with us to keep the city solvent and in good fiscal footing, that keep us from ending up like the Hostess company.”
Both Partington and Arzola said state legislation limits what they can do in their negotiations with unions, which is another obstacle the city faces with its unfunded liability.
The specific positions included in the contract vary, Arzola said, but generally are clerical and maintenance positions.
“I have staff that works in my office, and they’re administrative and they're not covered,” Arzola said. “It kind of has to do with the level of experience or education.”
The new collective bargaining agreement will expire Sept. 30, but its changes are retroactive to the 2010 fiscal year.
Arzola said both sides will likely return to the bargaining table in May, to begin work on the next contract. Much like the contract certified Dec. 4, the status quo will be maintained until the city and the union reach a new agreement.
The agreement also reduced the number of bankable personal leave hours, from 1,000 to 520, and includes a $87,000 one-time expense to buy down those hours from employees currently over the cap.
