L.A. Now Live: Discuss union challenges to recent DWP deal

Discuss a challenge to a deal between Los Angeles and the Department of Water and Power union at 9 a.m. today with reporter David Zahniser.

A coalition of Los Angeles employee unions is challenging key provisions of the labor agreement struck by political leaders and employees at the city’s giant water and power utility, potentially jeopardizing hundreds of millions of dollars in savings for ratepayers over the next four years.

Three months ago, Los Angeles Mayor Eric Garcetti heralded the completion of a deal with the DWP union that would produce new savings by paring back retirement costs and avoiding employee raises for three years. But employee groups from other city departments are now signaling that they may sue over the deal, saying that it would hurt their ability to shift to DWP jobs in future years.

The dispute centers on actions by the mayor and City Council that would impose new financial burdens on employees who want to transfer to the DWP. Hundreds of city workers moved to the utility during the recent financial crisis, frequently securing better pay and benefits while escaping the threat of layoffs.

The transfers drew protests from the DWP’s biggest union, whose pension fund had to pick up nearly $200 million in increased retirement costs for the new arrivals. The new four-year contract with DWP workers is dependent on an accompanying agreement to relieve the utility of much of the added pension expense from employee transfers, said City Administrative Officer Miguel Santana, a top budget official.

Pulling out the changes on employee transfers would jeopardize the entire DWP labor deal, which is supposed to produce $1 billion in retirement savings over 30 years, Santana said.