The Omaha City Council sent a message Tuesday to Mayor Jim Suttle's administration and the firefighters union.
The controversial fire contract, after years of negotiating, was still not good enough.
The heavily amended proposal died after only three council members voted to approve the deal.
The council's decision effectively places the contract in limbo and could set the stage for a long battle before the Nebraska Commission of Industrial Relations, the state's labor court.
There are other options.
Suttle's office and the fire union could go back to the bargaining table and try to accommodate the council's preferences.
They would then have to push a new agreement through the City Personnel Board, the fire union membership and a long City Council approval process.
Another possibility: Council members who opposed the deal Tuesday could vote to reconsider the contract.
Both outcomes seemed unlikely, as all camps hardened their positions.
To avoid what could be a costly legal battle, union president Steve LeClair said the council should reconsider the union's original agreement with the Suttle administration — and approve it.
Otherwise, he said: “Everybody knows where the courthouse is.”
Suttle made a big push for the agreement, saying it would eventually solve the city's pension shortfall by reducing benefits, ending the practice of pension spiking and increasing retirement ages. He threatened to veto the deal if it was amended by the council.
The mayor also warned that the city's AAA bond rating could be jeopardized after Moody's assigned a negative outlook to that rating earlier this month.
“Not moving forward with the fire contract will ensure a lower credit rating, and we are in no position to take this kind of hit on our economy,” Suttle said Monday.
But some members of the business community said the proposed contract didn't go far enough in reining in pension costs and health care benefits.
Councilman Chris Jerram said there was no need for political brinksmanship at this stage.
“The parties have to get back to the table and get this deal worked out,” Jerram said. “I think they eventually will, when cooler minds prevail.
They will realize it's in everyone's best interests to do that.”
Several council-sponsored amendments emerged this week.
The council rejected Franklin Thompson's proposal to immediately switch firefighters over to the city's civilian health plan.
They turned down Jean Stothert's proposals to remove a provision that allows the fire union president to engage solely in union business and to end the contract two years earlier — at the end of 2011.
Five members voted to adopt Jerram and Pete Festersen's changes — which included ending the contract in 2012 and most likely increasing health care premiums for future retirees.
“It's in the laps of the union now. The ball is in their court,” Thompson said. “Meaningful compromise is what will push this deal through. I don't feel the union has gotten to that point yet.”
Aida Amoura, Suttle's spokeswoman, said the administration will follow the fire union's lead when deciding whether to negotiate again or prepare for court.
Stothert and Jerram cautioned the union to carefully consider whether to go to the CIR.
“Litigation is fraught with peril. Sit down at the table and work it out. Control your own destiny rather than have it be determined for you,” Jerram said.Five council members first killed the Suttle administration's contract proposal after a long debate, by voting to amend it in several ways.
But the necessary majority dissolved minutes later during the vote to approve the amended deal.
The contract died after only three members voted to approve revisions sponsored by council members Chris Jerram and Pete Festersen, not the required five.
World-Herald staff writer Jeffrey Robb contributed to this report.
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36 Comments
Posted by: Sean on 08/17/11 @ 7:55 am:
Where oh where did the firefighters get the idea they can be the boss? The taxpayers are the people who pay them. Why are they so greedy. And why does the mayor say he will follow the union's lead? Why do they want to make the taaxpayers suffer while they lead a life of easy street on the backs of us?
Posted by: Mac on 08/17/11 @ 8:19 am:
I'm tired of threats by the firefighters' union to sue Omaha. They react like angry children to reasonable proposals from Jerram and Thompson and Stothert.
We need a far more radical contract revision - - replace the firefighters' pension with a 401(k). Same for the police. This will stop the corrupt bargains between the Mayor and the unions for wage freezes NOW in exchange for gigantic pension shortfalls in the FUTURE. Thank you to the Council members who are standing up to these bullying tactics and Suttle's foolish attempt to steamroll this deal before the Oct. 1 change in the CIR law.
Posted by: Sonny on 08/17/11 @ 8:31 am:
No One wants to deny OFD it's due, but the polarizing mayor,paying the Union president for acting like a thug, and the questionable credability of legal council contributions (Genandt). I will wait for the comments of people who are not OFD, disparaging Stothert and refering to burning homes
Posted by: Ken on 08/17/11 @ 8:40 am:
Wow......the City Council passes amendments to the contact, then kills the contact that they themselves just amended. If this isn't the most obvious political game ever, I don't know what is. The Mayor and Fire Dept negotiated fo 5 years and pased a contract to save the citizens tens of millions. The Council in one action dismisses all this hard work and cost the citizens millions. This is one of the craziest things I have ever seen. The contract guaranteed millions in savings and put the pension back on track, but the Council said no, we'd rather go back to court. The city lawyers and accountants have told them the deal is good, but they still would rather play politics as usual than do what is best for the citizens. When taxes go up, the five who killed the contract will/should all be voted out of office if not recalled now. Congratulations to Ben Gray and Gary Gernandt, the only two who refused to bow to the desires of a small minority of millionaire businessmen. This is a sad day in Omaha. We all need to prepare for the upcoming tax increase.
Posted by: disappointed on 08/17/11 @ 8:46 am:
Im not sure how many people watched this "meeting" but it turned out to be more of a circus. As someone who follows local politics closely i was extremely disappointed in our "leadership". The citizens of Omaha should be extremely disappointed in their elected officials. The proposed fire contract would have saved millions of dollars however a few city council members felt that the appropriate place to political grandstand was on the firefighters backs. Stothert and Thompson would do the public well and vote for the people not for the private sector interests. This council has been in office far too long. 2013 cant come soon enough.
Posted by: MJ on 08/17/11 @ 8:50 am:
Huge mistake by the Council. This poor decision will cost the City millions.
Posted by: politics on 08/17/11 @ 9:27 am:
This was nothing more than politics. The council had been apprised of the contract negotiations throughout, and asked for comments. They new what was going on. They, for a number of years, have allowed the Mayor to negotiate, yet they are unhappy and want everything to go their own way. Face it people, no one is going to get their own way in this world of politics. You will have to compromise during the current situation, and then more on to the next item to get the best you can at that particular time.
Posted by: SEK on 08/17/11 @ 9:38 am:
It's time for a new city council. Nothing more to say.
Posted by: Real Concerned on 08/17/11 @ 9:38 am:
The Mayor is an embarassment to the city. It sounds just like Obama's Lead From Behind. The Mayor needs to show some backbone and get his behind in gear and seriously cut a deal to substantially reduce the penison and health care benefit costs. I see very little being done to cut the high percentage of Captians compared to rank and file personnel. With the obvious high costs so very visable, is the Mayor blind in one eye and can't see out of the other? The probability of being a one-term Mayor has just escalated.
Posted by: TLee on 08/17/11 @ 9:55 am:
If you haven't noticed - OFD is NOT the boss....the city council has been for years as evidenced by 4 years that have gone by OFD without pay raises or a contract! I wonder how many of you would work 24 hour shifts, go into burning buildings when everyone is running out, pry severely injured people out of burning cars, work holidays, weekends on a rotating shift, and not expect to get a raise or a contract that you work everyday for?? What the media does not tell its "taxpayers" is that 33% of every check of every firefighter goes into their pension (every 2 weeks) and that this "bankrupt pension" would only be bankrupt if EVERY firefighter today retired (638 of them). If you know anything about a pension plan, you know that this is not how it works and the city council has continued to use this word "bankrupt" to scare the taxpayers. How many of you put 33% of your paycheck into your retirement?
I think each and everyone of you should put yourselves in the shoes of the OFD, maybe even schedule a 24 hour ride along. You will see what they put on the line everyday for 24 hours (52 hours a week). I wonder if then you will understand the frustration of not getting a raise with the economy that has taken a dive for 4 years, wanting security in your pension that you have put money into, and support from your employer, and health benefits.
The OFD has bent over for the city council and once again they vote a contract down that they themselves ammended.....Interesting and they report that the OFD is playing politics. This was going to save the city millions and take away benefits from OFD and yet it wasn't good enough. The CIR ruling will not be so kind the city of Omaha.
Posted by: Jason on 08/17/11 @ 10:09 am:
The courts are very union friendly, this will come back to bite Omaha. Remember when the police contract was voted down with wage freezes and it went to court and the city ended up have to reinstate raises and back pay raises from the previous year. It ended up costing the city more in the long run. This will happen again, should have passed it with the concessions we could negotiate.
Posted by: Ned on 08/17/11 @ 10:15 am:
Let me put this, and Councilwoman Stothert's comments in perspective. You're negotiating to buy a car. The seller says 30,000, you say 20,000. You then both agree at 25,000. Then, right before you sign the paperwork, the seller says "27,500!". You say, "no thanks, we had a deal". The seller then goes on the news and says, "too bad, a few more concessions, and we would have had a deal". We DID have a deal! She is a politician through and through. If you buy into that "for the taxpayer" stuff she puts out there. Nabity has some investments he'd like to sell you!
Posted by: Boo-Hoo on 08/17/11 @ 10:23 am:
Sorry Firefighters but you don't always get what you want. You hitched your wagon to an inept mayor and now, because he can't deliver on his hollow promises, your union 'leadership' feels the need to sue. Go for it. Better yet, if you don't like what the citizens of Omaha are willing to pay for your services, why don't you go peddle them in some other venue. Don't worry about us -- we can make new firefighters ... not a problem! For once, the City Council has stood up for the people that pay the bills in this town and it's high time that happened.
Posted by: Something's not kosher here on 08/17/11 @ 11:04 am:
So LeClair, who is paid by the city of Omaha, is threatening to take the city to court because people outside of his closed door "negotiations" are asking questions. Why are WE paying this union mouthpiece instead of the OFD union members? Mr. Mayor, why is he on the city payroll???
Posted by: Paulo on 08/17/11 @ 11:10 am:
I am proud of the Omaha City Council. For way too long, the city unions have used strong arm tactics to manipulate the mayoral elections in this city. Anybody who runs for mayor must have the support of these strong unions who get out the vote. The payback is always in the next contract negotiations. Being able to retire at age 45 with a pension for life is over. I know economically it will be difficult to convert to a 401k, but businesses and other cities have done it. While Ben Gray and Gary Gernandt are the mayor's lapdogs (shame on you Ben), the other city council members have shown backbone and courage. Reasonable pay for reasonable work, no more, no less than what is fair. The city lobbied for revisions in the CIR, lets see where they come down on this - I bet the city wins this time around.
Posted by: To Sonny: on 08/17/11 @ 11:11 am:
FYI, the fire fighters also assisted Stothert with her campaign. They went door to door for her and put up hundreds of Stothert signs around town......then, as a true politician, she turned on them. She made promises and did not follow through.....like the promise to support 4 men on a truck. Now she is the leader of the Gang of 5 on the Council and she is going to cost tax payers millions by listening only to the millionaire elite who run this town from behind closed doors. Open your eyes, the contract was a negotiation between two parties. In negotiation neither party gets everything. The fire fighters gave up millions. Rome wasn't built in a day. This contract is a huge step in the right direction....or should I say was going to be a huge step forward. Instead the Council chose 3 steps backwards.
Posted by: Danny on 08/17/11 @ 11:24 am:
If this contract goes to the CIR,the outcome is NOT a done deal!
Omaha city government would be again derelict in its duty if they cave in for fear that the CIR will rule totally in the Unions favor.
Posted by: leader on 08/17/11 @ 11:43 am:
i am glad the city council "voted down" this contract. the insurance premiums for current and retired employees are way to low.
notebly though, the city council knew what was in this contract even before it was placed on the council agenda a few weeks ago (in executive session, the council reviews on going labor issues, including contract negotiations). seems like we could have avoided the political grandstanding that occurred; 15 minutes of fame anyone?
Posted by: To Sean... on 08/17/11 @ 12:17 pm:
Greedy?......I haven't had a raise in over 4 1/2 years. During that time I have had two pay cuts, lost vacation days, sick days and now pay more for insurance. The majority af fire fighters have that same reality, yet we are willing to do even more to help the city in these hard times. We are being paid below the average of comparable cities. Those are facts, not innuendo. The contract calls for us to work 5 more years before receiving a pension which will be 5% less. We will also be paying more into the pension. We will be paid exactly the average wage of comparable fire departments. Rather than throwing around the same old tired line of how greedy we are, please explain which part of the above contract proposal points is greedy. Seriously, please point it out. Is the desire to be paid average considered greedy? This contract would have saved the city millions and millions of dollars.
Posted by: taxpayer on 08/17/11 @ 12:53 pm:
Greedy? Yes,with an undefined retirement plan, a backbreaker all in itself for taxpayers. Yes, retiring at 45, while we work to pay our portion of your plan. Yes, making more than the average taxpayer, although a dangerous profession at times, for a job you chose to do. Go to CIR? Well, I expect the playing field has been leveled out some with the new restructering. I'd rather try it this time, than cave in to the union(who is blustering "go to court" as they know the CIR is changing) and a mayor who is in their hip pocket.
Posted by: ha on 08/17/11 @ 12:58 pm:
I don't run into burning buildings or pull people from mangled cars but I do care for them after the firefighters finish their JOB. I also work weekends, and holidays and depending on the economy sometimes get a raise but its not a guarantee. Nothing in life is guaranteed. I will also be working past the age of 45.
Posted by: TAXPAYER2(ALSO!) on 08/17/11 @ 12:59 pm:
Greedy? Try 2 years of mandatory furloughs(4 weeks each year), coupled with a 12% paycut, no o.t., & health beneifts cut(while premium is increased), still all the while paying taxes to support you're bloated pay package. Thanks for the cuts you took and the work you do, but remember we have too taken cutss and still are asked to pay increasing taxes.
Posted by: BC on 08/17/11 @ 1:07 pm:
Ken - I think you have a few things wrong.
First, members of the council said they would vote yes, IF all the amendments were passed. A few of them failed. Five of them voted for the last amendment because it was in the right direction but not enough for them to push the contract through. I say that Ben Gray and Gary Gernandt are the more inept and most bought off members of the city council and have to go. Jean Stothert is by far the most respectable member on the board because she is actually looking out for the taxpayers instead of being bought off by the union like Suttle, Gray, and Gernandt. My thought is that those three will end up going next election because people are tired of the union bullying us and putting us in a stranglehold.
Posted by: derick on 08/17/11 @ 1:11 pm:
I wonder if this contract still pays for fertility treatment and lasik for FD families. Hopefully not. Can't say that as a taxpayer I really benefit from a wife having 20/20, or a set of twins.
This is how the process works people. If the Mayors 'deal' was final, the CC wouldn't need to vote. Suck it up FD, do what you think best but don't be blinded by what you want because what is fair and reasonable is what should matter.
Posted by: BC on 08/17/11 @ 1:12 pm:
'To Sonny: on 08/17/11 @ 11:11 am' - so you are mad that you were unable to buy her off?
Posted by: BC on 08/17/11 @ 1:18 pm:
'To Sean... on 08/17/11 @ 12:17 pm' - yeah, well everybody in the private sector has faced that too and still are. Why do you think you should start getting raises again when the economic problems are not over yet? Let me put this simply - you can't ask for more money when there is no more money. That's what this is all about. Until the private sector rebounds, don't expect the public sector to be giving out anything. Just remember - the private sector is what pays for the public sector so how does it make any sense to be giving public sector workers a raise when the private sector is not? That's the greediness.
Posted by: ron on 08/17/11 @ 2:08 pm:
I think you citizens oughta layoff the firefighters, comparable salarys with other cities are good enough. if you.ve realized a loss of standard of living yourselves , and are jealous, blame it on weak general union membership in this region. Or become a firefighter yourself. How would you like it if some knucklehead thinks you make too much and demands that you take a cut?
Posted by: MomofFireFighter on 08/17/11 @ 2:26 pm:
Unless you are a public servant and go to work everyday risk your life to save the lives of others you have NO BUSINESS criticizing the members of the Omaha Fire Department that do so. These men and women are not greedy or selfish. They have made concessions to get the new contract to the table. Now for the City Council to come up with more requests...when is it going to stop. The Council voted to accept two of the amendments to the contract which would have at least settled the "having no contract issue since 2007". They (the Council) could have requested the other changes when this contract ended in 2012....so who is dragging their feet and playing "hardball", I think it should be obvious, the Omaha City Council.
Posted by: TLee on 08/17/11 @ 3:07 pm:
To Ha - I too care for the very ill at a trauma center after OFD brings the patients in, work weekends and holidays. Yes I will work past 45 years old too, but at 45 or 50 could you physically, mentally and emotionally do the same work you did at 25 as a firefighter/paramedic? Think about it..You are NOT comparing apples to apples.
Again, I repeat, they put 33% of their paycheck into the pension plan.....after 20 years of working and putting that kind of money into a pension/retirement plan, how would you feel about city council members and the rest of the city of Omaha trying to bargain to take that away for your future?
Posted by: To BC on 08/17/11 @ 3:14 pm:
The private and public sectors are different, and are governed by different laws. Sean's point is completely valid.
Posted by: LZ on 08/17/11 @ 3:19 pm:
When I see 2 fire trucks one ambulance and 7 firefighters or EMT's take one little old lady who was awake out of an independent living facility to the hospital. I have to ask is this the best use of man power. No it does not take that many trucks and men to do this job. There are and has been problems within this fire dept. Most stems from the union leadership or lack of. It's time to reign in this out of control city dept.
Posted by: Simple Truth on 08/17/11 @ 3:59 pm:
I think the world of firefighters. Thanks for all you do. But I despise unions.
Posted by: platte cat on 08/17/11 @ 4:30 pm:
the city council is crazy---i am so glad we just got annexed so i can help vote these rotten politicians out of office------all they think about is how to get the rich a heck of alot richer and they don't give a hang about the taxpayers.
Posted by: BC on 08/17/11 @ 4:41 pm:
'To BC on 08/17/11 @ 3:14 pm' - yeah they are completely different. The private sector has to provide for itself whereas the public sector has to have the private sector provide for it. And I was talking to "To Sean", not "Sean". He makes a valid point. "To Sean" doesn't.
Posted by: Kevin on 08/17/11 @ 7:53 pm:
More rhetoric from the union. Our way or no way.
Posted by: Kevin on 08/17/11 @ 7:56 pm:
platte cat --
Seems to me that the mayor and the unions are the ones causing the gridlock.