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Win-Win Deal at Sewer Plant: Jobs Spared, and Solon Saves Money

Three employees will accept retirement incentives, allowing the city's sewer plant to save about $300,000

 

Solon's sewer plant employees can rest easier: They won't have to worry about layoffs before the end of 2012.

Solon's leaders are also pleased: They have been able to cut nearly $350,000 of the financially struggling plant's expenses.

City officials and the Teamsters Local 436 reached a deal that would pay employees eligible to retire this year a $10,000 incentive. 

That will allow the city to shed the higher salaries of the most senior employees and find some cost savings. Already, three employees -- earning about $297,000 a year combined -- have agreed to take the retirement incentive, said Tom Cornhoff, Solon's human resources director.

That will enable the city to continue its sewer plant restructuring plan without any more layoffs.

Cornhoff said the deal achieved the mayor's goal of preventing layoffs at the plant.

The sewer plant has been struggling with decreasing revenue and increasing cost, resulting in a budget deficit of $340,000 to $400,000 this year. 

City Council raised sewer rates earlier this year, but told water reclamation officials they want to see cost savings.

The city had been exploring outsourcing several of the sewer plant's functions to make up that shortfall, and council already approved a contract to outsource sludge hauling to a private company.

But other functions at the plant handled by union workers were also on the table. This deal with the union will prevent that outsourcing, at least for now.

Related Topics: Outsourcing, Sewer Rates, Teamsters, and Union

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