Cook County Public Defenders Blog

Why Your Last Paycheck Was 1% Less

Dear Brothers and Sisters:

Many of you noticed that you received a smaller paycheck on September 5th than you usually get.  While we disagree with the County’s reason for taking away our money, it is something we had been anticipating for at least four weeks. On August 3, 2008, I sent an email burst to all members on the local’s list (you can get on this list by sending an email to board@cookcountypd.org with your name and worksite) alerting them to the status of the 1% situation.  Here is the content of the email burst:

Dear Sisters and Brothers:

I wanted to send this message to you in a e-mail, as opposed to posting it on the website, because I thought it would be a more appropriate method. I received news last week at the convention from Peter Schmaltz, regional director for Council 31 and one of the main men who negotiated our last contract. The news is not good.  It is about the AFSCME pay plan which everyone over step three has been receiving since the second paycheck in June.  This you will recall was an extra one percent that was to be added (to all steps after step three in Grades two three and four) in addition to the 2.75% pay increase that we received in June of this year.  The county and the local had agreed at the table on this, partly as a way to offset the increase in the health care contributions, but last year, the County was pretending they didn’t know what we were talking about.  Then in June, after we began to look for a date for arbitration over the issue, our paychecks showed that they followed the agreement.  Everything seemed fine in July, but then I received news from Peter Schmaltz that the County is going to take the one percent away from us and that we will have to arbitrate the issue anyway.  

So, there is a good chance that your check may look different this week.  Your salary may be one percent less then the last pay period.  Please check your pay stub for any disparity. Be mindful that we are trying to speed up the arbitration process so we can get our money back as soon as possible-assuming they take it away.  And I say that because the County has a track record of saying one thing and doing another.  I will keep the members posted on further developments on this issue.

In Solidarity, K. S. Galhotra

President, Local 3315 

16 Responses to “Why Your Last Paycheck Was 1% Less”

  1. stu smith Says:

    I have contacted an attorney specializing in labor law. My understanding is that the union forgot to sign the agreement giving us the extra 1%. Sounds like negligence to me (and to him). Sounds like the union would be on the hook for the money we have lost due to their negligence. We will probably be filing a class action and of course anyone who wants to opt out can.

  2. Bruce Mosbacher, Executive at Large Says:

    Stu:
    Although I was not at the bargaining table for the last contract, I think it will be difficult for the County to convince an arbitrator that there was no agreement on the 1% when we received that 1% for several checks as agreed to. Where did the computer get the idea to pay us an extra percent? Moreover, it is my understanding that it was the County that proposed the 1% union “bonus” at the table. So I doubt your attorney will want to waste his time unless and until we are unable to win our claim. In that case of course, you would still have the burden of proving negligence. As I was not there, I have no idea if you could.

    Bruce

  3. stu smith Says:

    I guess thats the difference between a radical attorney and one who is not. Radical attorneys fight for their clients and whether they ar wating their time isn’t the issue. I do think the negligence claim is good however. From what I understand the pay increase was signed by the company and the union rep “forgot”. Sounds like negligence to me especially when his job is to represent us.

  4. Bruce Mosbacher, Executive at Large Says:

    Stu

    I’ll cop to not being a radical attorney. Never found that the radical approach is very successful here in Cook County…either before the bench or a jury.

    Please let us know when the lawsuit is filed so all the members can follow its progress.

    Bruce

  5. Dan Walsh Says:

    Stu:

    You talked to a lawyer who learned facts that the County at first gave the money to us and then took it back. Thus, the County clearly ratified and incorporated the 1% agreed increase and then took the 1% back. This lawyer then advised you that there’s a possible class action lawsuit here? I’m asking. For what? Didn’t the County reneg? How can you blame one party (AFSCME) for another party’s (the County’s) breach?

    Any lawyer worth is salt would say that there is no negligence on AFSCME’s part because you can’t prove proximate causation on the part of AFSCME.

    I suppose you could litigate the issue of whether AFSCME should have anticipated the County’s breach? But that’s really remote, given the County’s conduct, i.e., ratifying the 1% agreed increase and then taking it back. Are there cases that say a party had a duty to anticipate another’s breach of contract? Remember the damages have to be caused by the breach of the defendant’s duty.

    And, finally, Stu, my experience with class action lawyers is they are usually not radical attorneys. Their goal is to get a class certification, which enables them to seek attorney’s fees. They don’t fight for their clients, as much as are guided by their interest in obtaining a class settlement. The class settlement translates usually into a nominal amount for each class member (e.g., a 25% discount at Blockbuster) Class action lawyers are rarely concerned with making their clients whole again by restoring their economic loss.

    Class action lawyers are also looking for “deep pockets.” I am not sure that AFSCME would have the kind of deep pockets that most class action lawyers are looking for. Stu, even a radical attorney, would tell you that there is no case here.

  6. stu smith Says:

    I think Dan is too cynical about our brethren. Indeed, some attorneys specialize in class actions where the recovery per plaintiff is small and they get attorney fees. some class actions have clear damages (our raise) and the attorney can negotiate for fees from the defendant or, more likely, take some portion of the recovery. If he takes 1/3, which is fairly standard and there about 400 attorneys involved and each loses 1%, thats a lot of money. If the pay average is $80000 we are talking about $800000 for 1 year. Attorney fees of over 250000! And the layers all get 2/3 of what they lost.
    As to the negligence: I though I mad it clear. If the union forgot to sign the agreement and the county upon realizing it stopped payment, that is the union’s fault. By the way, AFSCME can come up with the money if need be.

  7. Dan Walsh Says:

    Cynical? Moi? Good luck with your lawsuit Stu.

  8. Bryan Bowen Says:

    Can someone from the board weigh in on this issue? Is anything happening with the arbitration regarding the now-missing 1%? Did AFSCME’s representative somehow neglect to sign the provision granting us the 1%?

    Is this thing on?

  9. Kulmeet Galhotra Says:

    Bryan, please see my most recent post in the President’s Message column for an update- or call me.

  10. JD Says:

    Sounds like Kulmeet won’t answer brother Bryan’s question (the answer is not in the President’s message). Also, if we win the class action, will AFCSME just raise our dues in order to pay the damages? Sounds like we will have our dues raised in order to pay ourselves the 1%!

  11. Kulmeet Galhotra Says:

    JD: The case is set for arbitration in December. That’s in the message and it answers the brother’s question about what is “happening with the arbitration”. And isn’t the objection that the question wasn’t answered Bryan’s? Plain and simple, we had an agreement with the county and they reneged. Now we’ll let the arbitrator decide. We are not going to have the hearing here, on the blog.

    The dues structure is not based on AFSCME and any damage claims against them. Your belief that our dues would go up like that is similar to those who accuse Obama of being a muslim- a lot of people may think that but they are just wrong.

    And our dues (assuming you are a local member) are not nearly as high as dues paid by carpenters, plumbers, electricians, and even teachers – most of whom get paid less then we do.

  12. Bruce Mosbacher, Executive at Large Says:

    JD

    What class action are you talking about? The one that brother Stu is fitin to file? Chances are about as good that he will file as that are clients won’t be back.

    Bruce

  13. Bruce Mosbacher, Executive at Large Says:

    our clients

  14. Steward Says:

    Bob:

    I think Bryan, Stu and JD are frustrated because you won’t give a straight answer as to whether the AFSCME rep failed to sign the agreement. It is a yes/no answer not the beat around the bush answer you gave.

    Reading between the lines, it appears that the AFSCME rep did fail to sign it but Bob is saying the local has some back up arguements to enforce the agreement.

  15. Bruce Mosbacher, Executive at Large Says:

    Steward:

    The 1% issue is going to an arbitrator in December. That hearing is not unlike a trial. This website is moitored by our management and probably read by the County as well. I’m sure you don’t let the State know your theory of the case before opening statements of your trials. Why would you expect brother Galhotra to spell out our theory or version of the facts here???
    As he said in posting 9 above, he is willing to take member’s calls.

    Bruce

  16. Catering Fort Lauderdale Says:

    Matchless wedding ideas are highly in demand nowadays. Audiences would be inclined to invest on having their wedding in castles, beaches, parks or have themed weddings than having a traditional one.

Leave a Reply