Council to Decide on DWP Pact

The Los Angeles City Council will decide whether to give Department of Water and Power workers salary increases of at least 17%, and up to 34%, over five years, after the agency’s board voted Tuesday to approve the new contract and send it to the council for final action.

The contract was narrowly OKd on a 3-1 vote, with board members Silvia Saucedo and Annie Cho dropping their opposition after a last-minute opinion from the city attorney concluded that the board must approve the contract because it sets work rules, but that the power to set salaries rests with the council.

Saucedo questioned whether the agency could afford the highest raises allowed in the contract, but argued for moving it to the council, saying that otherwise “you are going to have about 8,000 employees without a contract in about 40 days.”

Cho said she had “very serious concerns” about the salary provisions of the memorandum of understanding proposed with the International Brotherhood of Electrical Workers Local 18, but also argued for allowing the pact to go to the City Council, which approved bargaining instructions that resulted in the proposed deal.

Cho and others were frustrated when told they could not separate the salary provisions from the rest of the contract for the vote. “The council has set the parameters,” Cho said. “We should move it forward even though we are very uncomfortable and somewhat disturbed to be given issues in a packet as all or nothing.”

Board member Gerard McCallum II voted against the contract, warning that increases in natural gas prices and other financial uncertainties argue against locking in potentially large raises over five years. He said it would be “intellectually insincere” to vote for the contract while he has concerns about the salary increases.

The board members questioned why they had to approve a resolution including the salary increases when they were not involved in negotiating the contract.

“The process has to be stopped and corrected,” McCallum said.

The board had refused two weeks ago to vote on the contract after some council members and union leaders complained that the raises set DWP salaries much higher than those for employees in other city agencies.

Most blue-collar city workers agreed to pay freezes last year.

A recent study by the city administrative officer showed a gap between DWP workers’ pay and that of other departments, officials said.

Equipment mechanics at most city agencies are paid up to $61,700, but can make $67,067 at the DWP. A DWP automotive dispatcher II is paid 61% more than a colleague doing the same job at another city department.

The board was under pressure Tuesday to act after the leader of the DWP union warned of a possible strike if the contract is not in place by Oct. 1. In addition, Mayor Antonio Villaraigosa called on the board Monday to move the contract to the council so a decision could be made by the city’s elected officials.

The board that voted Tuesday was appointed by former Mayor James K. Hahn. Villaraigosa on Monday named five new board members, but they have not been ratified by the council.

City Council sources predicted the panel would eventually approve the contract to avoid labor unrest and because it was negotiated in good faith. However, some council members are likely to raise concerns about the size of the raises and the disparity of pay between city agencies.

Councilman Greig Smith is “not on board,” and needs to be convinced the contract is justified, said his chief of staff, Mitchell Englander. “There are still some very serious salary disparity issues that have to be addressed,” Englander said.

The council will get an internal city study showing that dozens of DWP jobs pay more than similar positions in other departments. In addition, the city’s Executive Employee Relations Commission received a study Tuesday showing key DWP positions pay more than comparable jobs with other utilities in the state.

Councilman Tony Cardenas is among those who have questions about the new DWP contract.

“The people have entrusted the City Council to now ask the tough questions in regard to this contract,” Cardenas said. “Those questions will be asked, and we will make a determination of whether or not this is a fair contract which also preserves the city’s faith that power will continue and water will keep flowing.”

The DWP, a semi-independent city agency, generates revenue through water and power fees; its surpluses of more than $150 million have been tapped each year by the City Council to help cover costs of other city departments.