Politics & Government

Village, DPW Union Reach Agreement Days Before Budget Repair Bill Takes Effect

Village will see savings as workers agree to more for pensions and health care.

Department of Public Works employees reached an agreement on an one-year extension with the village, just days before the governor’s budget repair is set to go into effect.

Village Manager Chris Swartz said, however, the action of the Village Board had nothing to do with the bill. Instead, he said, the agreement was  in the best interest of the village.

“We approved something that was good for both parties,” Swartz said.

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The Village Board approved the contract for the DPW workers unanimously on  Monday after discussing it in closed session.

Union President Paul Wasemiller said the union asked for a contract extension about a week ago.  Members have been prepared to contribute to toward their pensions ever since Gov. Scott Walker asked public workers to do so.

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Wasemiller said the deal calls for employees paying 5.8 percent of their pension costs starting July 1. The contract also includes a wage freeze and an increase in contributions to health care insurance premium from 10 percent to 12 percent starting in 2012. The concessions mirror those called for in the governor's budget repair bill.

Additionally under the agreement, the village will be able to change the employees' health care plan - possibly to the state plan.

Village President Guy Johnson said Shorewood will see savings this year that it wouldn't otherwise would not have realized.

"We looked at it as a fair deal... the fact that they will start with the 5.8 percent this year," Johnson said.

The village is facing a budget shortfall of $347,000 as a result of an estimated 50 percent reduction in state aid and 15 percent cut in transportation aid, if the governor's 2011-2013 budget is approved by the Legislature. Village officials anticipate losing an additional $200,000 as a result of a freeze on the tax levy.

But the concessions would save the village $35,000 to  $40,000 in 2011, and $70,000 to $80,000 next year, although numbers may change and it is difficult to calculate the savings right now, Johnson said.


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