Union: City's contract proposal is 'ridiculous'

Let the snarlin' begin.

Representatives for Mayor Nutter met and exchanged contract proposals yesterday with leaders of the city's largest union, and AFSCME District Council 33 President Pete Matthews had a quick reaction to what he saw.

"The city's proposals were totally, totally, as far we're concerned, ridiculous," Matthews told reporters after the brief session at the Crowne Plaza Hotel in Center City.

The city's 24-page proposal included a four-year wage freeze and major concessions in pension contributions and work rules, as well as a major restructuring of health-benefit plans.

Currently the city funds benefit plans that are largely managed by the unions themselves.

Calling rising health benefit costs "a significant threat" to the city's finances, the city's proposal said there would have to be "changes in benefits, carriers, vendors, plan design, plan administration and employee cost-sharing." The proposal was not specific about the changes needed.

The union's proposal called for a four-year contract with 6 percent raises at the beginning of each year and enhancements in health benefits, work rules, sick leave and vacation.

Negotiators typically make aggressive opening proposals and expect to drop many demands as talks progress.

But the city's dire financial condition makes this negotiation potentially contentious. Matthews said he'll negotiate over wage and benefit increases, but ruled out giving away anything won in earlier contracts.

"There is no middle ground on concessions," Matthews said. "What we don't have, we'll negotiate, but what we have, we keep."

The city's chief negotiator, private attorney Shannon Farmer, said little to reporters after meeting with Matthews and about 20 other union leaders. "We look forward to bargaining in good faith to hopefully reach an agreement," Farmer said. "Obviously, this is a difficult time for a city." *