Union Deal Could Save O.C. Millions

With Orange County facing more than $4 billion in pension, health and bankruptcy-related obligations, a savings of $2.8 million seems tiny. But county officials hope it’s a step in the right direction.

Supervisors today are expected to approve a labor agreement with 1,200 workers that calls for them to get bigger paychecks over the next three years but no future retirement healthcare costs paid by the county.

“It’s kind of a model contract which can set a standard of paying county workers more now and keeping retiree health costs down,” said Supervisor Chris Norby, who supports the agreement.

The agreement would affect only employees who retire after Friday. What affect it would have on negotiations with unions representing more than 16,000 other county workers is uncertain.

Under the proposed agreement with the American Federation of State and County Municipal Employees, Local 2076, the 1,200 workers who determine eligibility of applicants for social service programs will get a 2% raise.

In exchange for the raise, these workers will not get future county-paid retiree medical benefits unless they pay special premiums, said Dianna Garcia, the county’s chief of employee relations.

Pay for these workers ranges from $14.66 to $19.42 an hour. The agreement adds a top rate of $19.81 an hour, Garcia said.

Because of the healthcare savings, “there are no new dollars the county has to pay for this contract,” she said. “According to my figures, the county saves about $2.8 million.”

A union representative could not be reached for comment.

The county still has a long way to go in addressing pension problems.

According to a grand jury report in June, the county must find ways to pay $4.4 billion in pension, healthcare and bankruptcy-associated obligations. That was calculated using the $2.3-billion deficit estimate in the long-term pension pool, $1.3 billion in unfunded employee health-care costs and $800 million in costs for paying debts stemming from the county’s bankruptcy in 1994.