Lay o ff Pro ce s s in the Public Se cto r Ex am ple : Fir e Dep t . Cu r r en t Sit u at io n : 1 Pu b lic Safet y Dir ect or , 9 Bat t alion Ch iefs , 3 6 Cap t ain s , 9 2 Fir efigh t er s Or g ch ar t aft er layoff: 1 Pu b lic Safet y Dir ect or , 3 Bat t alion Ch iefs , 1 5 Cap t ain s an d 9 2 Firefigh t er s .
On go in g s av in g s o f $ 2 M h o ldin g th e n u m be r o f Fire figh te rs co n s tan t. Th is wo u ld b e a m an a gem en t la yo ff in t er m s o f pThoes6itBCs io nwit s .h t h e lea s t am ou n t of t en u r e as BCs wou ld b e d em ot ed u n les s s om e r et ir e. Th e t op 3 in t er m s of t en u r e at t h e BC level ar e all eligib le t o r et ir e. For ever yon e of t h os e wh o r et ir es , R t h at ’s on e les s d em ot ion .
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Bat t alion Ch ief
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Bat t alion Ch ief
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Bat t alio n Ch ief
Bat t alio n Ch ief
Pu b Sa fet y Dir
Act in g Fir e Ch ief
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R
Keep in g t h e Fir efigh t er n u m b er at 9 2 , t h e b ot t om 3 0 in t er m s of t en u r e wou ld b e laid off at an avg. s alar y of $ 4 1 K (p er t h e las t collect ive b ar gain in g agr eem en t ). Tot al s avin gs fr om s ala r ies $ 1 .4 3 4 MM on an on goin g b as is . Healt h car e for 3 0 FF is ab ou t $ 5 7 0 K a yea r for a t ot al on goin g s avin gs o f $ 2 MM. Bu m p in g r igh t s is a civil s er va n t s ’ r u le.
R Bat t alio n Ch ief
As s u m in g t h e Act in g Ch ief r et ir es s in ce h e h as 3 1 year s an d r et ir in g is b et t er for h im in t er m s of h is r et ir em en t , we will s a ve $ 1 8 5 K a year wh ich is h is s alar y, $ 1 9 K for b en efit s . If n o BCs r et ir e, 6 will b e d em ot ed t o Cap t ain , b r in gin g t h e Cap t ain t ot al t o 4 5 . Th at m ean s 3 0 Cap t ain s will h ave t o b e d em ot ed . For each Cap t ain t h at r et ir es , t h at ’s on e les s t h at is d em ot ed . If n o on e r et ir es t h at 3 0 t h at ar e d em ot ed t o FF.
Bat t alio n Ch ief
Battt im alion t alion Batst alion Over e d at a was Bat n ot availab le. As u ch , Ch ief Ch ief over t im e is n ot in clu d ed in in com esChuief s ed in calcu la t ion s .
Se e Pg 2 fo r im pact o f accru e d v acatio n , co m p tim e & te rm in al pay to w ard s re tirePos miteionn Elim t in at ed Eligib le for Ret irem en t Cap t ain Firefigh t er s Dem ot ed Laid Off
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Im pact o f accru e d v acatio n , te rm in al pay an d co m p tim e accru al to w ards re tire m e n t
On t h e p r eviou s p age, I a s s u m ed t h e m os t s ever e cas e in t er m s o f t h e n u m b er of p eo p le we wou ld h ave t o lay off wh ich wo u ld occu r if n o on e wh o is eligib le t o r et ir e d id s o (b es id es Act in g Ch ief Bloh m ). Le t’s lo o k at w hat w o uld happe n if th o s e w ho w e re e lig ible to re tire at e ach le v e l in the re s tructuring did s o . Wh at w o uld w e hav e to pay o ut in accrue d v acatio n, te rm inal pay and co m p tim e ? Th is d o es n o t in clu d e t h e im p a ct o f ch a n gin g t h e h ea lt h ca r e p la n t o a h igh d ed u ct ib le p la n an d
Name
Level
Salary*
Value at Current Pay* *
Days of Terminal Leave
Value of Terminal Leave
$185,000
Days Accrued as of 12/31 243 ***
Acting Chief Blohm John OÕBrien Joseph LaBruno
Chief
$166,500
155
$106,204
BC BC
$154,781 $154,781
199 243
$114,079 $139,303
150 135
$ 85,989 $ 77,391
Henry Setkiewicz Steven Manzetti Ken Metcalfe Frank Daliani Total
BC BC BC C
$154,781 $137,695 $137,695 $127,954
218 229 139 242
$124,971 $116,786 $ 70,887 $114,685 $847,211
145 135 135 145
$ 83,123 $ 68,848 $ 68,848 $ 68,716 $559,119
Salaries do not include overtime, overtime is included when determining the retireeÕsday rate for accrued time payout, ** used 265 as the average number of days worked to calculate value. *** 244 is the maximum number of days an Firefighter can accrue per Blohm. $10.3MM projected 2008/09 health care costs/542 full time employees = $19K/employee in health care benefits. $847,211 + $559,119 = $1,406,330. 1 ItÕsstill unclear to me if we have to return this money, but weÕll leave it in. Retiree information was not available as such not included in the cost per employee calculation for healthcare costs.
One Battalion Chief would have to be demoted to Captain, in my example, because only 5 have enough time to retire (25 years) with full benefits. There is only one Captain who has 25 years so the balance would be demoted in lieu of retirement, in my example. If we eliminated the following positions: Chief, 6 Battalion Chiefs, and 30 Captains where everyone at each level of the restructuring who could retire did so, we would incur $1,406,330 in cost for year one only. It would save 7 Firefighters from being laid off. We should not give them an incentive to retire since these accrued banks are sunk costs, they are at the high end of the org chart so they canÕt go much further. We are better off allowing them to voluntarily retire than offering more money to them. In Summary, what would we save on an annual basis: Year 1: $2MM minus $328,5001 for used portion of the Safer grant, minus $1,406,330 in accrued time banks equals $265,170. Year 2 and forward: $2MM