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EWEB Manager Opposes Pay Cuts
Saturday, October 17, 2009 9:52 PM


(Source: The Register Guard)trackingBy Greg Bolt, The Register-Guard, Eugene, Ore.

Oct. 17--Asking employees to accept recession-related pay cuts is unnecessary and could do more harm than good, the general manager of the Eugene Water & Electric Board said.

Randy Berggren said EWEB isn't experiencing the kind of revenue crisis faced by Oregon's tax-supported agencies, many of which have negotiated concessions with union-represented employees out of necessity. Asking employees to sacrifice when there's no clear reason to do so not only would break faith with workers, he said, and it wouldn't provide enough savings to have any meaningful effect on water and electricity rates.

"I don't take it lightly," Berggren said of the concessions idea, first raised by EWEB Commissioner Joann Ernst earlier this month. "The concept has merit, but only in the context of an organization, public or other, that is truly dealing with a financial crisis. That's not our position right now."

Ernst suggested the idea in e-mails to fellow commissioners, noting that city of Eugene workers and others were making concessions.

Stagnant revenues, especially income tax revenues that the state and school districts rely on, have prompted many government agencies to seek concessions from workers. State government is implementing unpaid days off, or furloughs. Many school district employees have accepted furloughs and waived cost of living increases, as have numerous municipal workers.

"I think it is time for EWEB to do something," Ernst wrote to her fellow commissioners. She mentioned a wage freeze, furlough days or a delay in scheduled raises, and said any savings could be used to reduce or eliminate a possible EWEB rate increase next year.

But no one else on EWEB's five-member com- mission supported the idea, and Ernst said it takes agreement by at least three commissioners to move an issue onto the board's agenda. She said she will continue to monitor the economy and ratepayer comments on the issue.

Berggren said EWEB's situation is different from other public agencies in several ways that make concessions unnecessary, for now. For one thing, the utility isn't experiencing the revenue crisis that other public agencies are, because EWEB gets its revenue from water and electricity sales rather than taxes.

EWEB commissioners, with a vote, can raise rates. By contrast, state law sets the state income tax -- although lawmakers can vote to raise them, as they did earlier this year -- and curbs local property tax increases.

EWEB earlier this month approved a 5 percent electric rate increase to cover an increase in the cost EWEB pays for electricity from the Bonneville Power Administration.




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