AOCDS Agreement Looks Like A Net Win For The County

My initial reaction to the tentative agreement reached between the Association of Orange County Deputy Sheriffs and the County of Orange is it's a win for the county. I think if this were a private sector employer versus union situation, the employer would be considered to have come out ahead.

AOCDS has been fighting for more than a year to prevent the county from auditing their health care fund, and they essentially caved on that one. And agreeing to transition to defined-contribution medical retirement benefit is a big setback for public employee unions in general -- the fear being it will have the ripple effect of other local government agencies pointing to it in their own negotiations and saying, "See - the AOCDS agreed to it!"

My personal opinion is the work slowdowns backfired on the AOCDS. People want their public safety employees fairly compensated, but they take offense when union action effects the operating of the criminal justice system. Plus, I think voters are tired of continual public employee union demands, especially in the case of the police unions. Most people know at least one law enforcement officer or firefighter, and they know they make a good living and can look forward to a better retirement. It's hard for the average joe to sympathize with the labor complaints of deputies making six-figures a year.

Not that the AOCDS didn't score some gains. They'll receive, retroactively, a 4.75% general pay increase for 2006 and a 4.6% increase for 2007. However, the 2007 increase is totally offset by a 2% employee deduction to pay for the medical retirement, and another 2% deduction to offset the county's related unfunded liability. Next year, it's a 3% increase.

Also training officers will get another dollar-per-hour.

A nice score for AOCDS is the re-jiggering if POST pay. Deputies receives (it is my understanding) additional pay each month if they've completed POST certification (the level of extra pay determined by whether they are certified as intermediate, advanced, supervisory). It's similar to how public school teachers can boost their pay by earning additional degrees.

Currently, deputies get a flat dollar amount per month for POST certification of between $250-300. The new agreement would change that to a percentage of base pay. For example, a deputy who has completed advanced POST certification will receive additional monthly pay equivalent to 7.5% of his or her base pay. That would increase to 9.5% in 2008 and 2009.

Back to the medical retirement reform. The new agreement will:

• Reduce the county grant COLA from 5% to 3%.
• Freeze the grants where they are now.
• Reduce grants by 50% when retirees are eligible for Medicare parts A and B.
• Effective Jan 1. 2008, AOCDS members go into a defined-contribution plan. The county will contribute 2%, which will increase to 3% on October 1, 2008.

In effect, for the next couple of decades, deputies will retire with a hybrid medical retirement - part county grant, part defined-contribution, part Medicare.

It will be interesting to see the reactions of other public employee unions to the deal, but I can't imagine it's positive. A year of wrangling and nastiness, and in the end the AOCDS gets a deal that's arguably not as good as what they could have secured a year ago.

Then again, maybe it's that rare thing: a genuine win-win.

Comments

[Bladerunner]

Jubal--

I'd say both sides walk away with their heads up. I thought the County was right in taking the principled stand that the you can't have public funds going into health account without there being a public audit. I like the way they worked that out with both sides getting the results(and paying for it). While the AOCDS have been fighting this as you say, they really lose nothing except an indefensible policy position . I always saw this as a bargaining chip skillfully used by AOCDS.

AOCDS did give up something with the transition machinery towards a defined contribution medical retirement system. And you are right about the public sector significance of this. But you know, law enforcement unions usually go their own way and will do whats best for their membership regardless of effects on other public employees. I suspect the rest of the benefit package was attractive enough to offset this and, of course, there is no change to the defined benefit plans for the current employees. I'm sure other public management teams are watching this.

I don't think the work slowdowns hurt AOCDS at all. I really havent heard one complaint other then people in the courts. It really did put pressure on the courts and gave the 5th floor a real life reason to get out of their normal 2nd gear and get this settled. I don't support law enforcement strikes but a skillfull use of operating by the book instead of cutting corners can bring a welcome sense of urgency to the bargaining table.

[.]

The Cops used their guns on this one. They have pointed them to the heads of every other union member in the State that has a defined benefit program.

Bladerunner is right Cop unions go their own way but this time they are taking everybody else down with them. And who is kidding who the job actions backfired, the Cops had no other option but to cave. The County out manuvered AOCDS. The County may have lucked out because the job actions backfired but the County was smart enough to exploit its luck.

No question the audit position by AOCDS wasn't defensible but they should have recognized that a year ago and not made it a do or die issue only to die after a year.

[It works for me]

. & Matt- What world are you living in? The deputies have been trying to get this deal from the get go but Moorlach refused to give the negotiator any authority to negotiate. He basically admitted he was screwing with us for a year because he wouldn't let Mauk sit in on the negotiations until after the work to rule job actions. The job actions finally got the BOS to negotiate acording to the law. Maybe penalties should be legislated against government agencies when they refuse to follow the MMB act. As for screwing over the other unions on the health care issue - look at what OCEA gave up for medical retirement. It now costs their retirees double for health insurance. AOCDS got a much better deal in the defined contribution plan. If invested correctly it will probably give the deputies more money for insurance than the current plan. In addition the county is paying $750 a month to OCEA members for health coverage and only $620 a month to AOCDS. AOCDS saves the county $130 per month for every one of its members and the county insinuates that we are not using the funds correctly? Makes no sense to me. Maybe its all the medically marijuana that they've been smoking!

[Green Machine]

Jubal,

This is a much better deal than the one offered a year ago AND its completely retroactive so there's no harm done with the wait.

The hybrid medical benefit trust is a reall innovative idea created by AOCDS. The County isn't nearly on par with AOCDS when it comes to managing medical care. I'm sure other public unions will look at AOCDS's plan, but I think they'll look at it as an opportunity to solve a problem rather than with dismay as you seem to allude to.

Blade has it right. AOCDS received enough offsetting benefit (POST pay) to more than make up for the money they are contributing to their medical trust fund. In essence, its really a shell game. The POST pay doesn't appear to be a "payraise" but it nets the same result. In the mean time the money paid in to the medical trust is the same net amount, but the county gets to alleviate it's debt liability so it truly is a win/win.

As for your assessment of the work to rule....you are way off base. I know the Register referenced your site, but my read on the story is a little different. Your posting as well as the Register's news story overdramatized the situation and added to the "appearance" of a crisis. There really was not crisis, and the public was not up in arms. In fact AOCDS was more than ready to continue with the work to rule at a moments notice, but the County came back to the table after Sheriff Carona and DA Rackaucas called for a hiatus.....it sounds to me like the Work to Rule did exactly what the Deputies wanted. It got the County off of its Duff and it brought the negotiations to a succesful conclusion.

In the end, the county could have negotiated in good faith and achieved a similar result in a much shorter period of time. But there was no desire to do so. I suspect this was based more on politics than inability to reach consensus....at least IMHO.

Kool Aid anyone? AOCDS has apparently convinced its members that changing from a defined benefit plan to a defined contribution plan is a victory. This so called union has agreed to this while every other union in the State is fighting to keep defined benefit programs. Sorry AOCDS your kool aid won't sell outside Orange County. Oh by the way Richman and Moorlach will probably add you to their Christmas lists.

[Just 1 or many AOCDS Members]

I am not happy with the proposal AOCDS and the County came up with. The first year is acceptable. The second year is not. The County agreed several years ago to provide retirment medical benefits and we agreed to pay into that and did not take a wage increase. The county has not done their part and has not funded it properly now we must fund it out of our wage increase and help the county to fund a second retirement medical program. If they didn't pay for the fisrt one how can I trust they will pay for a second? The third year is an insult. After this contract matures the Deputies will be several years behind most other agencies in regards to salary. For example Anaheim gets 12% for Advanced POST and 10 % for Intermediate. At the end of this contract we will be at 9% for Advanced and a flat bonus for Intermediate. Don't give in...vote 'No'.

[plow boy]

Jubal,

Nice job at attempting to act that you actually know what's going on. You are a moron!