Panel OKs Pact With DWP Union

A Los Angeles City Council panel approved a new labor pact with the Department of Water and Power’s largest and most powerful union Thursday, agreeing to a buyout and severance package before the city embarks on unprecedented layoffs in the department.

But the package, which is scheduled to be considered behind closed doors by the full council today, came under fire from one of the panel members, Councilman Joel Wachs. He said the contract is overly generous and sends the wrong message to the public and other DWP workers.

Supporters, including one of organized labor’s strongest advocates on the council, Jackie Goldberg, say the city needs to take unprecedented actions in unprecedented times.

The city’s utility department, which has a $7.5-billion debt, is attempting to pay down $4 billion by 2003 to prepare the nation’s largest municipal power company for competition in a newly deregulated market.

To accomplish that, DWP General Manager S. David Freeman has said that he needs to lay off 2,000 employees, mostly mid-level managers, architects and engineers.

The contract approved Thursday covers only the DWP’s service and line workers, the International Brotherhood of Electrical Workers. Freeman is negotiating with the department’s other two unions--which will take the heaviest hits during the layoffs--to develop severance and buyout packages.

The IBEW contract, which is being voted on by the union’s members, has been slightly changed--to reduce costs--since last week, when it was approved by the Water and Power Commission. It now allows employees to take a five-year credit to reach retirement; it is no longer intended for those workers who are at retirement age and who want to boost their pensions.

The overall package, for the IBEW and the other unions, could reach $500 million, some sources said. Others put the figure closer to $400 million.