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Sick-leave bill ekes through; DROP remains

Cheers sprang from City Council chambers yesterday after Council passed a controversial bill that would require most Philadelphia employers to provide paid sick leave to workers.

Cheers sprang from City Council chambers yesterday after Council passed a controversial bill that would require most Philadelphia employers to provide paid sick leave to workers.

Council also voted to keep the highly controversial Deferred Retirement Option Plan, but at a reduced cost. The latest DROP plan passed, 14-3.

The paid-sick-leave bill barely made it out of Council by a 9-8 vote. It was opposed by the Greater Philadelphia Chamber of Commerce and the Nutter administration, on the grounds that it might stunt job growth. Council would need 12 votes to override Nutter if he vetoes it.

"It's been a long battle," said Councilman Bill Greenlee, who sponsored the bill along with Councilman Darrell Clarke. "I think it shows the level of cooperation we tried to put forth with this bill and I hope it becomes law."

Under the bill, businesses with 11 or more employees would have to allow workers to earn up to seven sick days a year. Companies that have 10 or fewer workers would have to offer four sick days.

"Mom and pop" stores with five or fewer employees were excluded from the legislation after small-business owners complained that the bill would hurt business.

Andrew Celwyn, 43, and his wife sell herbs out of two stores that they own in the city. They have two full-time employees and six part-time workers.

"I would love to be able to pay for a couple of weeks of vacation for our employees and provide for paid sick leave as appropriate, but, realistically speaking, it just isn't in our budget," Celwyn said, adding that if the bill becomes law, he might not be able to hire new workers or would be forced to slash salaries and health coverage.

Mayoral spokesman Mark McDonald said that Nutter would "now take these bills under advisement."

"It's clear the Mayor doesn't like either," he said.

Under the legislation that Council passed yesterday, city employees would not be able to enter DROP until two years after they reach retirement age, which differs by job.

The current 4.5 percent interest rate would be adjusted, based on U.S. Treasury rates. Employees could collect a lump sum upon retirement but only in exchange for lower pension payments. Police and firefighters would be exempt from the two-year delay.

DROP has drawn criticism because of elected officials who enrolled into the program, won re-election, retired for a day, collected a lump-sum pension payment and then returned to work.

Five Council members who enrolled in DROP did not run for re-election last month. Councilman Councilman Frank Rizzo - who voted in support of yesterday's measure - lost his re-election bid. Councilwoman Marian Tasco is the only member slated to take a DROP payment and likely return in 2012.

Those currently eligible for DROP would be grandfathered in and allowed to enroll under the original DROP rules at any time. Nonuniform unions were displeased, however, that the bill exempts police and firefighters from the two-year delay to enter the program.