Faced with the prospect of declining revenues and higher costs because of the COVID-19 pandemic and a request for more school funding, Mayor Joseph S. Solomon disclosed Wednesday that he requested both municipal employees and police to forego built-in pay raises for the fiscal year starting July 1.
Solomon gave both unions the option of either foregoing their raises or accepting layoffs in order to trim costs.
On Wednesday, Solomon announced that municipal employees Union Local 1651 has rejected a pay freeze and, as a consequence, he will commence laying off 50 employees, or about 5 percent of the workforce, staring in 15 days. He said the layoffs would be for the year and are projected to save $1.6 million. He said those laid off would be eligible to self-pay for their health coverage through COBRA.
“In this economy, we simply cannot ask our taxpayers – many of whom have unexpectedly lost jobs within the last few weeks or are otherwise struggling – to foot the bill for these raises. It is just not feasible or fair to our taxpayers. This is a situation none of us could have anticipated even a few months ago,” Solomon said in a statement.
“Our economy has been turned upside down by this pandemic, and we must pitch in together to get our community through this crisis. I thought that a compromise was the best solution for our taxpayers, as well as for our Union employees and their families. During this unprecedented time of economic instability, when most municipalities are facing drastic losses in revenue, I believed it was a fair and equitable request to ask our Union to forego a 2.75 percent raise in exchange for job security and continued healthcare for themselves and their families so that we could keep our budget balanced while saving our taxpayers from additional hardship.”
The police also rejected the mayor’s offer to forego scheduled raises in favor of job security. However, Solomon said the department, which is budgeted for a complement of 200, is currently at about 150, and given the issues they face because of the pandemic he is not prepared to implement layoffs at this time.
Under the contract approved earlier this year, Warwick firefighters are not scheduled to receive a raise in the upcoming fiscal year.
Solomon has been following the deliberations of the School Committee as they wrestle with their budget. Last week, Superintendent Philip Thornton advanced a $181.4 million budget calling for an additional $11.9 million in spending. In the last week, the committee has looked for ways to trim the request, recognizing that even if the city were to raise the tax levy by the maximum of 4 percent it would fall shy of the $11.9 million by about $4 million. At its request, Solomon extended the time for the committee to finalize their budget.
In a release, Solomon pointed to the impact the pandemic has had on residents and businesses.
He pointed out that Warwick’s tourism and hospitality industries comprise a large portion of its tax base, and many hotels and restaurants are shuttered due to the crisis. As of April 17, the Providence Warwick Convention & Visitors Bureau estimated that the impact of the loss of meetings, conventions and sporting events booked by the PWCVB is currently $18.2 million in direct spending for canceled events and an additional $16.3 million in postponed business.
According to data from the PWCVB, Warwick’s hotel occupancy and revenue rates plummeted by more than 45 percent for the month of March, and that was just the beginning of the COVID-19 crisis. Warwick receives approximately $9 million in revenue from the airport, hotel taxes, and meal and beverage taxes. Projections show that these revenues could decline as much as 33 percent in the coming year, he said.
Walter Hartley, president of Local 1651, said the mayor did not share with the union how much he was looking to save nor that he was talking to other unions to forego negotiated raises. At the time, he said the mayor projected about 40 layoffs.
Hartley said conducting a membership vote given restrictions on gatherings was challenging, but accomplished with the use of Zoom. He said about 190 of the 270 membership participated in the vote.
Harley said the union remains open to additional talks and as it has in the past will work with the administration.
“Nobody wants to see layoffs,” he said.
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Drew
The police were never in discussions with the mayor and did not reject any proposal
Thursday, April 30, 2020 Report this
wwkvoter
Claris, I kinda thought that too. I think any such request should be to every worker who is getting a raise, not just some. It has to be fair and across the board.
If we are not careful, this could turn into chaos very quickly. because the money shortage is severe and unprecedented. Even with another max tax increase, all of that was going to just pay the increase in existing retirement and health insurance and probably only part of any requested school increase.
There already was zero headroom. Now covid has knocked our tax revenue down more than at any time in history.
Giving up a 2.75% raise will look like the least of our problems, and soon.
Just watch.
Thursday, April 30, 2020 Report this
FASTFREDWARD4
More to come . wait till people see how much the state is in the hole. I say 1 trillion. and you cant point the finger to anybody. read the history. the 30s now just cry the feds send money. Hold on this could hurt a lot of people. plus the souls we lost. So very said.
Friday, May 1, 2020 Report this
Happy
Absolutely no one wants to give back a raise they bargained for!
Absolutely no one is going to refuse their stimulus check!
Absolutely no one cares about where the money will come from that the School Committee is requesting!
Absolutely no one will put up with a 4% tax increase!
Happy May Day to all!
Friday, May 1, 2020 Report this
thepilgrim
Lay-off as many union employees as possible. City could only benefit.
Friday, May 1, 2020 Report this
Reality
Solomon has to be kidding. His suggestion is laughable. Unemployment in RI is now over 20% and climbing. Seventy five percent of Rhode Islanders have been finanically impacted negatively. It's a fact tax collections will be slow and in some cases will be nonexistent.
For the city workers in Warwick it is business as usual. No layoffs....salary increases (you read that right) and pensions that are guarenteed by the hard pressed taxpayers. This is obscene. The contract that Solomon refers to was negotiated by Avedesian and Solomon could have refused to honor it but he didn't. Joe's election took precedent. The city workers should experience what the people who pay them have felt. Salary cuts, furloughs, 401k's reductions etc.
It s time we get leadership out of the Mayor's office. Taxpayers can t afford nothing less.
Friday, May 1, 2020 Report this
JamesBruder
Sorry I misspoke, our city employees work their butt off. I’m crying thinking about their sacrifices.
Friday, May 1, 2020 Report this
JamesBruder
I’m laughing at all The commenters that think a 3 month pandemic gives every mayor the right to cross out every union contract. Try again clowns.
Friday, May 1, 2020 Report this
Finster
I find it funny that the only place the mayor looked to cut was with the union who has the lowest payed workers. So lay off the DPW workers who pick up the yard waste, if the citizens want it done they can bring it to the site off Sandy Lane themselves and see how heavy those wet bags become. How about the school department give some of the money back that haven't used since mid march...How many times can the janitors clean the vacant buildings, no buses running, no heat needed in schools now,
Here is a suggestion to save money Mr Solomon, be like Cranston and sell off the sewer plant, sell off the water system to Providence Water and contract out the trash pickup....How many employees will that cut off your list...Maybe that is why the city of Cranston is doing so much better because they do not have to worry about those systems and employees and equipment.....
Saturday, May 2, 2020 Report this