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Union rejects proposed contingency clause; city says clause limited to state action or failed voter tax rate
Summary
Local 51 rejected a proposed clause—referred to in the negotiation as the 'Austin clause'—that would let the city seek contract adjustments following state legislative action or a failed voter-approved tax rate; city officials said the clause would only trigger after disclosure and 30 days of negotiation and would be limited to the affected fiscal year.
Union leadership told city negotiators they reject the contingency clause the city proposed—an approach the union said resembles a clause adopted in Austin that allowed the city to negate portions of its collective-bargaining agreement. "Local 51 is rejecting the city's request to include this clause for multiple reasons," Jesse Esterline, 2nd vice president of Local 51, said.
City Chief Financial Officer Robert Cortinas and staff described the city's intent to limit the clause's scope. Cortinas said it would apply only in two circumstances: a change in applicable state law that materially reduces the city's ability to generate revenue, or if a voter-required tax rate to fund the budget is rejected by voters. He said the process would begin with disclosure of financial information, at least 30 days of good-faith negotiations with the union, and—if no agreement were reached—a written CFO report to city council for action limited to that fiscal year.
The union rejected embedding such language in a multi-year contract, saying it could become a permanent mechanism to reduce contract terms even after the underlying fiscal situation passed. Union leaders said they would instead propose alternative language committing both sides to meet and confer and asked the city to circulate proposed wording for review.
