Pension vote becomes key issue in L.A. mayor's race

Local government workers donned yellow "cheese-head" hats and marched around City Hall in protest last year when Mayor Antonio Villaraigosa overhauled the city's pension system.

The pension changes came without labor leaders' consent and the cheesehead hats symbolized union-unfriendly Wisconsin. Villaraigosa and city attorneys argued negotiations with the unions weren't necessary because the new pension plan only applied to future workers.

This week, L.A. mayoral candidate Controller Wendy Greuel officially sided with the cheeseheads. Labor was treated unfairly during last year's pension vote, she said. Negotiating in good faith - collective bargaining - should have taken place, Greuel contends.

Greuel's position makes her popular with union groups like the L.A. County Federation of Labor, which moved to endorse her last week. Greuel's position on the pension issue was considered in her endorsement, labor leader Alice Goff said.

Rival candidate City Councilman Eric Garcetti voted for the ordinance. Defenders says the pension rollbacks will save the city $4 billion over the next three decades.

In a runoff mayoral campaign with few differences between Garcetti and Greuel, the pension issue is a new, stark divide.

The two Democrats have similar voting records on labor issues. But each argues they are better equipped to handle the city's budget, which includes managing

retirement costs, a major worry for L.A.'s fiscal health.

At a closed-door endorsement meeting Tuesday with the L.A. County Federation of Labor, which represents 600,000 workers, Greuel suggested the city's leaders were no better than Wisconsin Gov. Scott Walker, an enemy of organized labor.

Recounting a speech given by her opponent, Gruel told labor leaders Garcetti said: "This will not be a Scott Walker Los Angeles. This will not be Wisconsin. We will support collective bargaining."

"And what happened? The exact opposite happened," Gruel added, according to audio of the meeting obtained by the Daily News. "You need to be at the table. "

"While she won't say it publicly, it appears Greuel would undo the city's pension reforms," Garcetti spokesman Jeff Millman said.

Greuel denies that position.

"I support 99.9 percent of the ordinance that was in there," Greuel said in an interview Friday. "But collective bargaining should have been used. "

Villaraigosa and City Council President Herb Wesson crafted the new pension plan. Under the law, which goes into effect on July 1, the normal retirement age for new civilian hires changes from 55 to 65. New employees will have to work longer, and will receive less in retirement wages than existing workers. Additionally, spouses of retired workers will no longer receive city-funded health insurance.

During a campaign stop in Silver Lake recently, Garcetti explained his vote, saying he stands by the law and there was an "urgency" because of the city's fiscal health.

He also said the law can be adjusted down the road.

"If there are greater savings that can be done in a different way, we can change it tomorrow," Garcetti said. "If they fear that (the city) won't be competitive, for instance, in hiring city workers, let's figure out a better way to get to that. "

The unions contend the ordinance is illegal because it didn't use collective bargaining. A claim against the city was filed earlier this year.

Labor leader Goff said the unions will also challenge parts of the ordinance if they are able to sit down with city leaders.

"Working till 65 won't cut it," Goff said. "That's a 10-year jump, that's ridiculous. "

Chief Administrative Officer Miguel Santana warned in a financial report last month of such challenges. Union leaders may "put pressure on policymakers to unwind the hard fought pension reforms and other labor concessions already adopted," Santana wrote.

Lowell Goodman, director of communications for SEIU 721, argues the unions have already made enough concessions. In 2011, Garcetti came to the unions, after they'd agreed to boost contributions on retirement health care, and assured employees he wouldn't ask for more concessions.

"Barely a year and half later, he went back on his word and voted for this," Goodman said. "Wouldn't you feel betrayed by him? "

Millman said Garcetti disagrees with Goodman's characterization of the SEIU 721 meeting. Garcetti has always been clear future pension reform would be necessary, Millman said.

The first legal hearing in the pension case will be heard days after the May 21 election.

Greuel said she hadn't read the claim filed by the unions, but said she hopes to avoid litigation.

"I want to make sure we resolve the issue of collective bargaining," Greuel said. "That means sitting down with labor leaders and the city to make sure there is no lawsuit. "

Source: http://www.dailynews.com/news/ci_22807248/pension-vote-becomes-key-issue-l-mayors-race?source=rss

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