ORANGE : City Tries to Buoy Employees’ Morale

The City Council voted unanimously Tuesday to pay the salaries of seven management employees through July 1, when they are scheduled to be laid off, even if they resign earlier.

The move is seen as a way to improve worker morale at City Hall, where a projected $10.7-million budget shortfall for fiscal 1993-94 led the council to vote last month to eliminate 50 city jobs by July 1.

“We’re trying to minimize morale problems,” said Steve Phan, the city’s personnel manager. “Some employees still believe a miracle will occur and they will be able to stay past July 1. We’re saying if you stay and nothing turns up, you won’t get any severance (benefits).”

City officials are making no secret of their wish to have the targeted employees leave City Hall as soon as possible.

“Most of these people will be leaving by the end of the week,” said Councilman Mike Spurgeon. “This gets the (city) departments used to restructuring ahead of schedule.”

If the employees targeted by Tuesday’s vote elect to resign from their jobs, they will receive health insurance coverage from the city through the end of the year. If they decide to wait until they are officially laid off, the city will not make health insurance contributions for them past July 1.

The City Council also ordered the Personnel Department to prepare similar offers for the employees targeted for layoff and represented by the five bargaining units that represent the majority of city workers.

“We hope to be able to offer a severance package to the other groups within the next couple of weeks,” Phan said.