(Source: The Register Guard)

By 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.