Union sues County Council
MCGEO hoping to force vote on Retirement Incentive Program
The result of a civil suit filed by the Montgomery County employees union could determine whether an early buyout program is part of County Executive Isiah Leggett's plans to balance the county's budget, a spokesman said.
The United Food and Commercial Workers Local 1994/Municipal and County Government Employees Organization has sued the County Council to compel action on the controversial Retirement Incentive Program proposed earlier this year.
At issue is whether the County Council acted appropriately in May when it deferred a decision on approving the buyout program. At the time, the council said a deferral was the same as a denial, but the union says the issue was in the negotiated contract before the council, and as such required an up-or-down vote.
Under the program, county employees within two years of retirement could retire early and receive a one-time $40,000 payment. Leggett (D) said the program would save the county money, but a report from the Office of Legislative Oversight showed that offering the incentives would save money in the short term, but cost the county money over time.
MCGEO filed a mandamus, or a request to force a council vote, on June 15, and a hearing has been scheduled Jan. 14 in Montgomery County Circuit Court.
"It is a court action that we took, and the intent is to get the council to do what we believe it statutorily is obligated to do," MCGEO President Gino Renne said.
The union's position is that the council was required to approve or deny the Retirement Incentive Program, not defer a decision. If the program had been denied, the issue would have gone back to the bargaining table so that an alternate plan could have been negotiated.
County spokesman Patrick Lacefield said Leggett will consider an employee buyout program when looking for ways to save money in the current budget and beyond. He said the future of a buyout program was left in "limbo" when the council deferred a decision on the plan.
The results of the civil suit will clarify the council's decision, Lacefield said.
Councilman Philip M. Andrews, who was council president when the council deferred a decision, said if MCGEO is successful in court and the Retirement Incentive Program comes before the council again, it will be voted down.
"The council would take it up and vote it down given that it makes no sense," said Andrews (D-Dist. 3) of Gaithersburg. "That would have the same effect as what has already been done."
Andrews said the council deferred a decision on the Retirement Incentive Program and requested that an alternative plan be presented.
"The impact of the deferral is denial if there is no other plan that is brought forward to take its place," he said.
Council President Nancy M. Floreen (D-At large) of Garrett Park said she was unaware of the union's court action.
The union and Leggett supported the Retirement Incentive Program, saying it would save the county money in fiscal 2010, which started July 1.
However, a report from the county's Office of Legislative Oversight stated that while it would save between $2.6 million and $3.1 million in 2010, it would cost the county as much as $21 million over the next decade.
A Retirement Incentive Program that was approved in 2008 saved the county $8.5 million in fiscal 2009, but will likely cost the county $12.8 million through fiscal 2019, according to the Office of Legislative Oversight.
"We don't accept their numbers at all," Lacefield said.
He said the report was based on "faulty assumptions" that all of the vacated positions would be filled. That would not have been the case, Lacefield said.
"We think we could have saved the county some money in the short term and beyond," Lacefield said.
Renne said the union has been trying to resolve the issue before the January court date.
"Why are we fighting over something we will need to implement?" Renne asked.