Las Vegas, its largest union go to arbitration

Las Vegas’ budget outlook is even more unstable following a decision by members of the city’s largest union to reject a proposed labor settlement.

Members of the Las Vegas City Employee Association voted 420-193 to reject a proposal from the city that would have increased workers’ hours per week from 38 to 39.

The vote, which was certified Feb. 13, was the subject of a closed session by the City Council on Wednesday.

By rejecting the proposal, which had backing from the union’s board, the rank-and-file members put the decision in the hands of an arbitrator.

If the arbitrator rules workers are entitled to return to 40-hour weeks, the subject of the grievance that led to the settlement proposal, it could cost the city $5 million to $7 million annually, City Manager Betsy Fretwell said.

Fretwell described a return to 40-hour weeks as “something we have been striving to do” but that “we couldn’t absorb that kind of financial impact in one year.”

The city’s current year budget includes about $470 million in general fund spending. The 2014 budget is expected to be similar, but city officials project revenue to fall short of spending by about $10 million. The gap could be as wide as $30 million if the Legislature, governor and Clark County Commission don’t approve a one-fourth-cent sales tax hike to help fund police in Southern Nevada.

In addition to the City Employee Association grievance issue, the city is at an impasse with International Association of Firefighters Local 1285 over a labor contract. That issue is scheduled for mediation in March, Local 1285 President Scott Johnson said.

The City Employee Association vote was the result of a dispute that is rooted in an agreement struck more than two years ago in which the association agreed to labor agreement concessions that saved the city $22.5 million.

The agreement was in response to the recession, which dramatically reduced property values and consumer spending, two areas that generate taxes that fund local government.

Among the concessions was a reduction from 40- to 38-hour weeks for employees.

Union employees said the intention of the deal was that they would return to 40-hour weeks on Jan. 1. In March, the city told the union it disagreed workers were due to return to the 40-hour week on that date, prompting the union to file a grievance.

In an attempt to settle the grievance the city offered a package that would return workers to a 39-hour week by eliminating one break per day, according to a summary on the union website.

The summary also said the settlement promised to return workers to a 40-hour week if the sales tax increase is approved by lightening the city’s funding burden for the Metropolitan Police Department, which serves the city and unincorporated areas of the county.

The settlement agreement would cap at 250 the number of vacation hours new hires can accrue.

The union’s leadership endorsed the agreement, even posting a message on its website that listed 10 reasons the rank-and-file should approve the pact.

The membership, however, rejected the overture. Opponents of the deal distributed a flier to members outlining their objections.

Among the problems in the proposed settlement were, they said, the return to 40-hour weeks is premised on the police tax winning approval, and it lays the groundwork for more concessions in the future.

The rejection highlights a dissonance between rank-and-file members who voted against the measure by a 2-to-1 margin and union leadership who endorsed it.

It’s not the only sign of instability within the union. The board also told members it no longer will use the legal services of Bruce Snyder, the group’s attorney since 2001.

He was replaced by Jeffrey F. Allen, who lists among his clients fire and police unions in Las Vegas, North Las Vegas and Henderson.

The move raised eyebrows behind the scenes because some City Employee Association members are concerned their group has been pressured to make more concessions than the International Association of Firefighters Local 1285, which represents firefighters.

City Employee Association President Lori Giessinger had little to say about union business.

When asked about the decision to dismiss Snyder, she said, “That was an internal board decision.”

When pressed further Giessinger cut the questioner short.

“I just answered your question and am actually kind of done with this conversation,” she said and hung up the phone.

Contact reporter Benjamin Spillman at bspillman@ reviewjournal.com or 702-383-0285 .