Electrical Workers Labor Group to Pay Pension Contribution

Roseville City Council approved an agreement with International Brotherhood of Electrical Workers, or IBEW, requiring employees to soon pay their full employee retirement contribution, which is currently paid by the city.

Councilmembers unanimously approved the agreement during Wednesday’s meeting; Councilwoman Carol Garcia was not present.

The agreement states that starting Aug. 6, employees will have to pay their full eight percent employee contribution to CalPERS.

With electric rates on the rise – the has raised rates by 20.45 percent over the past 18 months and expects a rate increase of 17 percent next year – this is one way the city plans to cut costs. For 2011, this agreement will save the city $450,000 and for the 2012 fiscal year will save the city $950,000, according to city documents.

“We have a responsibility to control our costs,” said Roseville Human Resources Director Stacey Haney.

Haney said negotiations with IBEW took about nine months, with 16 sessions and a 3-day mediation, but the group was unable to reach an agreement.

This stirred up some concerns during Wednesday’s council meeting because of the recent approval of a . The salary increases were honoring contracts approved in 2009 and 2010.

City Treasurer Russ Branson said the discussion of employees paying their portion of CalPERS started about a year ago.

IBEW representative Patrick Waite said he’s concerned employees would leave the city in search of other employment, like one employee, Sam Brown has already done. Brown accepted a job with Pacific Gas & Electric.

“I am the one that is leaving the City of Roseville,” he told councilmembers. “I will be able to maintain my standard of living and increase my pay. I’m not willing to take the risk of future loss.”

Councilman John Allard said that financially, this was something that needed to be done. One of the biggest concerns Allard said he hears from the public is in regards to pensions.

“It is an issue and a concern by our public,” Allard said. “This is a long-term issue we have to address. It’s not something that’s easy to do … but it’s something we have to do.”

City staff plans to negotiate similar agreements with the other city employee groups, such as management and the city manager, in the near future.