From: Chiang, John
Sent: Wednesday, April 08, 2009 12:14 PM
To: ALL SCO
Subject:

 

Dear SCO Colleagues:

 

I would like to share a few thoughts with you.

 

First, my heartfelt thanks and appreciation for the hard work, dedication and professionalism that so many of you have exhibited as the State grapples with the most challenging economic crisis since the Great Depression.  Being forced to delay more than $3 billion in payments in February because there was insufficient cash in the State Treasury was not a choice I wanted to make.  But the cash management plan, as painful and frustrating as it was to millions of Californians, was necessary to avoid a financial meltdown before the Governor and Legislature could patch together a mid-year budget fix that provided increased revenues and reduced expenditures.  I know many of you were affected both personally, by having your hard-earned tax refunds held up, and professionally, by hearing from a righteously angry public.  Thank you for the professionalism you all have shown in handling such an extremely difficult situation.

 

Secondly, I have consistently maintained that any furloughs of state employees should be enacted as part of the collective bargaining process, requiring an agreement be reached at the bargaining table and approved by the members of the collective bargaining unit and the Legislature before going into effect.  With just a few exceptions, all SCO rank-and-file employees belong to the Service Employees International Union (SEIU).  As a result, the SCO traditionally has adopted the provisions spelled out in the SEIU bargaining agreements, including any changes to work conditions and compensation.  At this time, the Legislature has not yet enacted legislation approving the latest agreement, which calls for members to be furloughed one day a month.  That furlough day can be chosen by the employee with the approval of his or her supervisor, and will result in a salary reduction of 4.6%. 

 

Consistent with my position that every Californian must contribute to restoring the well-being of the State’s financial health and because I feel strongly that there should not be a double standard – one for an organization’s leaders and another for its workforce – my senior staff and I will also take one furlough day per month and reduce our respective salaries by a 4.6% upon ratification of the SEIU contract by the Legislature.

 

Sacramento Superior Court Judge Marlette this week issued a judgment in the lawsuit filed by the Governor against the Constitutional Officers, ruling the Governor can impose a two-day per month furlough for employees of these independently elected statewide officials.  The Attorney General, on behalf of these Constitutional Officers, plans to appeal this ruling in the coming days.  Filing the appeal will automatically stay the judgment unless the Governor obtains a special Court of Appeal order requiring the furloughs to take effect immediately.  As you know, I maintain the position that involuntary furloughs cannot be implemented unless the courts have directed such action or, as previously mentioned, it is included in a collective bargaining agreement that is ratified by the appropriate parties. 

 

We will weather this economic storm and California will emerge stronger than ever, due largely to the dedication of public servants like you who serve this great State.  Thank you again for your dedication and professionalism.

 

Sincerely,

John Chiang