Government jobs no longer safe haven

Layoffs being used to balance budgets

The Atlanta Journal-Constitution

Wednesday, October 01, 2008

The old adage was that government jobs didn’t pay well but at least they were safe, promised good benefits and provided sanctuary during a down economy.

No more.

Recent headlines:

   • Metro and state news

[ Post your comments below. ]

Increasingly governments are being forced to balance budgets on the backs of their largest expense — employees. Governments are slashing pensions, holding off on pay raises, reducing the public share of health care costs and even laying off employees to make ends meet in difficult times.

“People for years have been telling government to run like a business,” said Howard Shook, chairman of the Atlanta City Council’s finance committee. “Well, we are. You open the paper every day and you read about the city and layoffs.”

Atlanta may be the poster child for governments’ harsher treatment of employees. Twice this year, the city has cut back on positions and people to make ends meet, laying off more than 350 employees. The city also laid off a similar number of workers between 2001 and 2002.

Shook is leading a city study committee that right now is looking at slashing pension benefits for new employees and other ways the city can contain costs for existing workers and retirees. Why? The city simply can’t afford the burden of benefits it already owes retirees.

Earlier this month, Cobb County joined in with new pension rules that require new employees to contribute more and work longer before they are eligible. DeKalb County made a similar change three years ago.

“We have people now who are living in retirement longer than they worked for the city. We can’t afford that,” Shook said.

Atlanta has laid off inspectors, parking enforcement officers, city planners, clerical staff and even firefighters.

One former employee, Jonathan Gelber, said he took a planning position with Atlanta in May 2007 “hoping to do some good.”

A year later, he was swept out when the city needed to save some money and Mayor Shirley Franklin and the council couldn’t agree on whether to raise taxes. He was stunned.

“What shocked me was the way they kicked me out the door,” said Gelber. “I understand why they made the decision they made. I think it was inexcusable they showed us so little respect.”

Atlanta’s hardly unique in its treatment of city workers.

Fulton County is looking right now at laying off about 30 firefighters because of new cities taking over some tasks once done by the county. In the past two years, Fulton County also has eliminated jobs in planning, parks and police as part of that transition.

East Point also just closed two fire stations and eliminated more than 80 jobs citywide in an effort to make ends meet in difficult times.

Gwinnett County has blocked new employees from joining the county pension for two years. It also cut its match for its defined contribution plan. And right now department heads are looking at cost-savings measures to be proposed as part of the county’s 2009 budget.

Those changes could eliminate programs and county jobs, according to Michael Comer, assistant county administrator. He said up until this year’s downturn the county has been able to at least keep its pay ahead of inflation.

“Everything definitely is on the table,” Comer said. “It’s a bit of a new day for the public sector to have to go through this.”

Zachary Williams, Fulton County manager, said the days of the safe, secure government job are over.

“The truth is, government jobs do not offer the kind of security they once did,” Williams said.

Fulton, like many other governments, also is hoping to save money among its remaining work force. The county is in the midst of a transition to employees picking up 30 percent of health care premiums. The county now pays 80 percent and used to pay 90 percent.

Finance officials report, at the same time, employees losing ground to inflation. Since 2003, inflation has gone up 19 percent but pay has increased only 10 percent.

DeKalb officials reported many employees there also would have had a hard time keeping up with inflation because the county hasn’t given cost-of-living raises in recent years. Instead, employees have earned 2 to 4 percent increases based on performance.

Wayne Hines, a veteran firefighter, said the cutbacks and penny pinching are definitely hurting rank-and-file employees who are struggling to make ends meet just like everyone else.

“Everyone is feeling it,” Hines said. “With everything going on, you have a bunch of unhappy employees. A lot of us feel betrayed.”

Some worry the changes may make it harder for local governments to attract and retain professionals like lawyers, accountants and engineers who not only can earn more money in the private sector but also now will have to contend with eroding benefits at local governments.

“Why would you take a job where you get less money and no better benefits?” said Angela Parker, Fulton’s public works director.

Part of the financial problem Atlanta is now wrestling with comes from earlier attempts to address its problems retaining employees. The council increased pension benefits in 2001, hoping it would help keep police officers who were getting trained by the city and jumping to suburban agencies.

City officials say employees continue to leave at a rapid pace. Increasing benefits for police did make other employees angry and create calls for enhanced benefits for others.

Patrick O’Connor, the Fulton finance director, said the financial pressures overwhelming the banking industry and building trades would inevitably force governments to react and cut back on its No. 1 expense, people.

“People thought money market funds were safe,” said O’Connor. “The whole world has turned upside down.”

Comments

By MW

Oct 3, 2008 12:11 PM | Link to this

I have been a government employee for 14 years. For most of that time, we rank and file employees have heard, "We've got to start running like a business" Problem is that government is not willing to give perks associated with private employees. How can you expect government employees to act like private employee when they don't receive the benefits such as higher salaries, bonuses, expense accounts, ect.

By JB

Oct 2, 2008 3:48 PM | Link to this

My first reaction to the headline..."Good!"

By Georgia Barnacle

Oct 2, 2008 3:35 PM | Link to this

Perhaps it it time to rethink the myth that governments should be run like a business. From what we have seen in the last couple of weeks about how these fine Wall Street businesses have operated do we really want government to work the same way?

Until the last decade of the 20th century there was an understood trade off between the Public Servants who did the real work of Government and each and every Administration and the public. Government Service was just that Service and in some ways a sacrifice. Since it was understood that when times were good no Government could afford to pay its workers anything like what most could earn in the private sector this was compensated for by better benefits and in some cases a more relaxed atmosphere in which to work. Sine the 1980's this has changed. One by one the benefits were reduced or eliminated and the working environment became much more "corporate" and stressful. However, the pay did not significantly change for the vast majority of Government Employee's. Oh, payroll costs went up -- sometimes dramatically -- but this was due to Government becoming much more top heavy and at the upper levels of Government the pay did increase.

I would challenge Mr. Bennett or anyone at the AJC to get the data on where the Personnel Services money in the State of Georgia really goes. I think if you go back ten or twenty years and compare the cost for the top 10 percent of State Employees to the overall cost for all State Employees you would find that the same trend we have seen in Business does hold true. Only those at the top are getting the pie.

By SadGovtWorker

Oct 1, 2008 7:39 PM | Link to this

Check out the State's benefits. Same story..used to retire with 90%, in the 80s it went to 60% and this year..30%. Employee portions of everything has gone up ahead of inflation while raises (except for teachers) have averaged around 2% (below inflation rate). The worst is how much I get to hear from everyone about how they pay taxes and thus all the things that I "owe" them.

Commenting is open from 8 a.m. to 5 p.m. M-F, except on Tuesday when it's open until 9 p.m.

Post a comment



Remember me?

You may use the following formatting:
Bold: **this text will be bolded** = this text will be bolded
Italic: *this text will be italic* = this text will be italic
Link: [text to be linked](http://www.ajc.com) = text to be linked



There will be a delay of up to 5 minutes before your comment appears.


*HTML not allowed in comments. Your e-mail address is required.

Request a comment be removed

 

Inside AJC.COM

Grade the Falcons

Rate the Falcons defeat of the Chargers in four categories, including offense and coaching.

World AIDS Day

See how the different nations spread awareness though rallies and remembrances.

Private Quarters - Splurge

Former Braves catcher Javy Lopez and his wife Gina show us their Suwanee home.

Macy's Tree Lighting

Been away for the holiday? Here's what you missed with the Atlanta's annual event.

Planning your meals

Back to a busy work week? Here are 10 delectable and easy dishes to fit into each day.

Weekend away

Which city's skyline is above? See where Metro Atlantans visited over the weekend.

Week in Entertainment

Ashton Kutcher. Demi Moore, Aretha Franklin, Idina Menzel, "The Shield," and more!

Year in Review

Remembering Skip Caray, Bernie Mac, Isaac Hayes and those who passed away.

My Style

Erin Edmond is a fan of bright colors, vibrant patterns and feminine silhouettes.

Search AJC Archives

1985 to present     1868 - 1939 Advanced search

Kudzu.com services Find the right people for the job

Keyword     Business Name

AJCPets » The community for Atlanta pet lovers

Do Good Search for non-profit causes near you