30 city workers volunteer for layoffs

Warren promises to maintain health insurance throughout entire period

WARREN -- A second effort by the city to convince employees to accept voluntary layoffs was far more successful than the first as 30 people agreed to participate in the program.

The city asked employees if they would participate in a voluntary layoff program in April, but that program was dropped because only one person volunteered.

"We were more successful this time because we presented a date when they would be brought back and we expanded the number of positions that would qualify," Warren Mayor Doug Franklin said. The layoffs began Monday and end Aug. 2.

As part of the voluntary layoff agreement, the city has promised employees who accepted it that they will be able to maintain their health insurance throughout the layoffs. City-provided health insurance usually only lasts for 30 days during layoffs.

Employees will be eligible to apply for unemployment insurance from the state and also may sign up for the federal unemployment insurance. If approved under that program, recipients may be able to obtain an additional $600 every week from the federal government.

City Auditor Vince Flask is working to determine the possible financial impact the 30 voluntary layoffs will have on the city's budget.

"This layoff will benefit some employees," Flask said. "Because of the federal government's unemployment insurance, those that make $10 per hour, for example, will make more while being laid off than if they continued to work."

Flask recently said he is hoping the city could achieve between $1 million and $1.5 million savings from voluntary layoffs.

Members of three city unions, American Federation of State, County and Municipal Employee locals 74 and 2501, as well as the Policy and Procedure group, were qualified for the voluntary furloughs. These unions represent approximately 270 city employees.

One member of AFSCME Local 2501, one member of Policies and Procedures and 28 members of AFSCME Local 74 agreed to participate in the voluntary layoff, according to the city's Human Resources Department.

Members of the city's police and fire unions were not eligible to participate in the voluntary layoff program.

"We know we may have revenue losses ranging between 20 percent to 30 percent this year," Franklin said. "Some of our largest (tax) withholders cut back or shut down due to the pandemic, so that's going to affect our budget."

"We are a reimbursing employer," Councilman John Brown, D-3rd Ward, said. "If we had to reduce our workforce through mandatory layoffs, we would be responsible for half of the unemployment paid to former employees for up to 26 weeks. We're hoping to get to a point where the city does not have to do mandatory layoffs.

"However," Brown added, "we cannot judge the economic wave that is coming.

"When the federal government changed the tax-filing deadline to the middle of July, it affected our taxes, which are connected with the federal taxes. There's a lot of uncertainty. We won't have a grasp of our taxes, until the federal taxes are done."

Franklin said the city has to be creative in the way in balances its budget, including reducing spending for supplies and the way it utilizes its workforce.

"City governments provide services," he said. "We want to continue to provide services at the same levels that we always have, but that is not going to be possible without people in certain jobs."

The city chose not to allow layoffs in the police and fire department.

"It would not be wise to reduce public safety, especially during this period," Franklin said. "I've been working with and talking to members of the Ohio Mayor's Association, and there is a consensus that the only way out of this is to make people feel they are safe to go to restaurants, nightclubs and their local stores.

"It is when there is a comfort level among residents that they are safe that owners will begin to see their businesses begin to return to normal," Franklin said.

While there is an end date where employees are scheduled to return to their jobs, Franklin said the city constantly is monitoring what is happening in the overall economy.

"We are looking at this on a month-to-month basis," he said. "If we see signs the economy is improving at a faster rate, then they may be called back sooner."

However, if the losses are greater than anticipated, these laid-off employees, as well as others who did not volunteer under this program, may face other consequences caused by the loss of tax dollars.

"We are cutting a lot of other expenses, including office supplies and contracted services," Franklin said. "Because there are less cars on streets, the county is collecting less in gasoline taxes. A part of that money comes to us. The city also is losing from reduced bed taxes because hotels and motels are having fewer people using them."

Franklin emphasized that it will take time to determine which direction Ohio's economy is heading.

"In discussions with other members of the Ohio Mayors Alliance, we are expecting that the next round of stimulus funding will provide help to cities and counties that have been hurt during this crisis," Franklin said.