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Nachbar Answers a Question About Layoffs

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Wading into the deep and uncertain waters of labor union negotiations, City Manager John Nachbar took a long time to answer this afternoon when he was asked about the prospect of layoffs.

He exhaled and paused.

Plainly, the question was discomforting.

“We are in the midst of our budget process right now,” Mr. Nachbar said. “I need to know the outcome of the internal process we are going through. I am right in the midst of that. I don’t know the outcome yet.

“I also don’t know the outcome of what will happen in terms of concessions of the (four unions currently) at the bargaining table.

“I can’t say without knowing the outcome of both.”

Question: But layoffs are on the table.

“Oh, it is very much a potential if we aren’t successful, if I am not successful, at the bargaining table.

“We have a very significant structural deficit we are attempting to address. Layoffs are not the primary path I am pursuing at this point.”

What would be the range of a likely number of layoffs, a dozen?

“Significantly more than that. Our structural deficit is roughly in the vicinity of $8.5 million annually.

“If that were to be resolved entirely by layoffs, if that were the only method, you would take $8.5 million and divide by…pick a number.

“It could be 100-plus,” he said, an obviously startling number.

“It could be as many as approximately100 employees,” about one-sixth of the fulltime workforce. “It would depend on the salary and benefits of a position.

“If the salary and benefits of a position averaged $100,000, that would be 85 employees.”

Does the ultimate decision hinge on willingness of the six unions to make concessions?

“Well, we also are working on other reductions within the budget.

“Just for illustrative purposes, if you were going to save $8.5 million annually by way of laying employees off, if the salary and benefits were $100,000, as I said, just for illustrative purposes, that would be 85 employees.”

When, reasonably, do you expect to know the final decision?

“In the coming months. I am in the midst of trying to meet with all of the bargaining groups, including firefighters and fire management, whose contracts do not expire until just before the end of the calendar year. Hopefully we can begin negotiations much sooner. I am in the midst of discussing that with them.”

Before leaving, Mr. Nachbar returned to a point he sought to underscore:

“I want to make it very clear I am not threatening layoffs. Layoffs are not the preferred option. And it is not the option I am presently pursuing.”