MARK SCHUMANN
Though negotiations have just begun between the city and the union representing 270 city employees, it already appears the two sides have set a course that may well lead to arbitration.
The Teamsters union Local 769, which represents 200 blue-collar city employees and 70 technical/clerical workers, including the employees of Vero Electric, is asking for a 10 percent pay raise effective October 1, with an additional 7 percent the following year.
For its part, the city has proposed a draft budget for the 2013/2014 fiscal year cutting $1.4 million from the general fund budget, mostly in payroll and benefits.
The city is also proposing to eliminate two of 13 paid holidays – Good Friday and Veterans Day.
Differences over holiday pay, and the union’s proposal to increase compensation for employees working second and third shifts and weekends, may turn out to be minor issues compared to the question of base pay increases.
Many of the employees represented by the Teamsters work in one of several enterprise departments not covered by the general fund, including Vero Electric, the water and sewer department and the solid waste department. Most city employees have gone four years without raises, while assuming a greater share of the cost for their health insurance and pension contributions.
Some observers have suggested the Teamsters have little if any motivation at this point to compromise.
The city and the Teamsters must also still negotiate on exactly what terms the 100 employees of Vero Electric will be offered employment by Florida Power & Light. If the city and the union cannot reach agreement on pension benefits and seniority, the city would have the option to terminate all of its electric system employees.
That alternative has been described, though, as a poison pill, for the city would get stuck with the pension obligations for all of those employees, rather than being able to transfer those costs to FPL. Exercising the “poison pill” option could cost the city some $14 million.
Indian River Guardian 
You might want to check a few facts. I think the city already has 11 holidays under it’s current contract and they are asking for two additional holidays.
Looks like the union is getting ready to play some hardball.
BTW, is FP&L really setting up offices within our offices during the pending process of the sale? I would think that might be very intimidating for our current employees. Just asking.
There are currently 13 holidays, and the city is proposing to eliminate Good Friday and Veterans Day as paid holidays.
Sorry Mark but there are only 11 current holidays. I can send you a list if you would like.
I stand corrected. The city has, as you say, currently 11 paid holidays. The city is proposing to cut paid holidays to nine by eliminating Good Friday and Veterans Day as paid days off.
The City is also negotiating with Coastal Police Benevolent Association for all sworn officer to and including the rank of lieutenant. The officers want to maintain their competent professional staff, but the City has not
stayed current with pay or benefits, making it difficult for officers to remain on the force. No raises for the past 5 budget cycles, increases in costs for health insurance and pension are driving officers to look at other police agencies for employment. The PBA has made a best and final offer that would cost the City a total of $74,038.19 for officers thru the rank of sergeant. A meager 2.5% general raise and any additional cost to insurance premiums is on the table.