ORANGE : Saving Money Has Price, City Hears

A furlough plan and salary reduction imposed on city non-safety employees last September in lieu of layoffs has created its own slew of problems, even as it saved the cash-strapped city $1.3 million.

Problems cited by city department heads in a report released last week by City Manager Ron Thompson included low employee morale, increased citizen complaints about service, and higher employee workloads in return for lower salaries.

City employee unions agreed to accept the pay cuts last fall in return for job guarantees through June, 1993.

“It’s almost impossible to do 40 hours of work in less time,” Thompson said. “But it’s a better alternative than layoffs.”

But earlier this month, the City Council voted to hold public hearings on possibly extending the furlough plan and salary reductions through June, 1994, after a budget deficit of more than $9 million was projected for fiscal 1993-94.

Adding to the tension is the fact that police and fire employees were exempted from the hour and wage cuts, resulting in tensions between furloughed and non-furloughed employees.

“Employee morale is at an all-time low,” City Clerk Marilyn Jensen wrote in her report. “Motivation is gone.”

Since the furlough program began, the only city departments operating on Fridays are police and fire. City Hall, community services and all public libraries are closed Fridays.