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Local Governments need to take a pledge

Original post made by Peter Carpenter, Atherton: Lindenwood, on Feb 21, 2010

Faced with dropping revenues and unsustainable employee pay and retirement costs local governments need to act NOW. While negotiating changes with unions will be necessary over the long term there is something that each local government could do today to begin controlling its long term costs.

They could take this pledge:

"Given the economic pressure which we face and our inability to quickly change our agreements with our employee unions, we therefore pledge to hire no new or replacement employees after 31 December 2010 until we have been able to negotiate new, more affordable retirement programs for the positions involved."

Comments (2)

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Posted by Just Wondering
a resident of Menlo Park: other
on Feb 22, 2010 at 8:41 pm

Would you suggest the same to the automakers as well Peter, since they are in the exact same predictment?
Of course not, since that would be equivalent to cutting off their nose off to spite their face!
Just more "expert advice" from our local know-it-all.

 +   Like this comment
Posted by Peter Carpenter
a resident of Atherton: Lindenwood
on Feb 22, 2010 at 9:04 pm

Peter Carpenter is a registered user.

In case you are just wondering there is a big and fundamental difference between the car companies and local governments.

The automakers have to make more and better cars in order to sell more cars in order to make more money. Adding new employees or paying existing employees more MAY help them produce more and better cars, or it may not.

Local governments have a different problem which is how to live within their limited fixed income. They have to find out how to provide the same level of service without raising their labor costs.

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