Wage Concessions

Twenty-seven blue-collar county workers were saved from layoffs yesterday when County Executive Robert R. Neall accepted their unions' belated request for wage concessions."

THE AMERICAN fascination with captains of industry dates back at least to the great robber barons of the late 19th century. But in the booms of 1980s and 1990s, modern corporate titans - from Lee Iacocca, the blustery Chrysler savior, through Jack Welch, General Electric's philosopher-king - took on the sheen of pop culture heroes. And along the way, CEO pay - 42 times that of average worker pay in 1980 - shot to an obscene level by 2000, 531 times that of workers. The terrible bursting of the U.S. economic bubble the last few years has underscored that this tsunami of CEO pay not only wasn't lifting everyone else's boats, but also that the big shots had been busy arranging pretty posh life rafts for themselves.

County Executive Robert R. Neall's long honeymoon ends today when hegoes head-to-head with angry labor leaders vowing to fight wage cutsand layoffs.Gov. William Donald Shaefer's latest plan to slash another $7.9 million in aid to Anne Arundel has forced Neall into the sort of conflict with county workers he so far has been able to avoid.Neall had persuaded employees to forgo this year's cost-of-livingincrease and, just a week ago, absorbed an expected $9.3 million cutin state aid without reaching into their pocketbooks.

US Airways Chief Executive Officer David N. Siegel told nervous shareholders and labor leaders yesterday that the airline's survival will be paid for in part with sacrifices from employees, suppliers and lenders. His statement was the strongest indication yet that the Arlington, Va.-based airline's plan to avoid bankruptcy will include significant wage concessions from management and other employees, who made similar sacrifices when the carrier suffered severe losses through much of the 1990s.

A chart accompanying an article about USAir Group Inc. appearing in yesterday's Business section incorrectly stated the wage concessions sought by the airline from its employees. Under the company's plan, no wage reduction would apply to the first $20,000 of base pay. A 10 percent cut would apply to the next $30,000, 15 percent to the next $50,000 and 20 percent to salary above $100,000.The Sun regrets the error.USAir Group Inc., the struggling company that is Baltimore's chief air link with the rest of the country, unveiled a $400 million cost-cutting program yesterday based on wage concessions it says are necessary to save the airline.

County Detention Center Director Richard Baker told three newly hired officers Friday that their services would no longer be needed as of Dec. 5."It was very unpleasant," Baker said. "They knew they were the junior members, but they're the ones losing their jobs."The three officers are the newest members of the 98-member Fraternal Order of Anne Arundel Detention Center Officers, the only county union that rejected wage concessions requested by County Executive Rober R. Neall. As the three officers last hired, they were the first to leave under the union's contract.

US Airways Chief Executive Officer David N. Siegel told nervous shareholders and labor leaders yesterday that the airline's survival will be paid for in part with sacrifices from employees, suppliers and lenders. His statement was the strongest indication yet that the Arlington, Va.-based airline's plan to avoid bankruptcy will include significant wage concessions from management and other employees, who made similar sacrifices when the carrier suffered severe losses through much of the 1990s.

A visibly weary Anne Arundel County Executive Robert R. Neall sat in his fourth-floor office late last night and wondered aloud at the power of one piece of paper.The piece of paper was a letter, addressed to the County Council and drafted earlier that evening, in which he agreed to restore $6.6 million in wage concessions for 11,000 county and school workers if the county suffers no further cuts in state aid.For Neall, the letter was a means to an end, a compromise move in return for which the council -- reluctant to pit itself against county employees -- would approve his revised fiscal 1992 budget.

The governor's latest budget-balancing plan dooms county employees' hopes of being able to avoid giving up part of their paychecks, County Executive Robert R. Neall said yesterday.The executive had promised to give back all or part of $6.6 million in wage concessions if the county escaped further state cuts. But, he said yesterday, "That's forgotten. (The governor's plan) swamps what the wage concessions would have generated."Not only that, the executive said, but the state's disastrous economic situation means another pay cut for 11,000 school and county employees is not out of the question.

Anne Arundel Executive Robert R. Neall won his battle to reduce the county budget yesterday by making a promise he doesn't expect to have to keep.The County Council unanimously approved Mr. Neall's revised fiscal 1992 budget, but only after the executive agreed in writing to restore $6.6 million in wage concessions if the county suffers no further cuts in state aid.That possibility, Mr. Neall said, is akin "to the sun rising in the west. I don't have any doubt as to what the state's going to do."

WASHINGTON -- As they attempt to forge the much-anticipated tax-cut bill, negotiators for the Clinton White House and the Republican-led Congress are deeply divided over what new benefits, if any, should go to the working poor.Each side frames the issue differently. Republicans insist that the heavily burdened middle class, which they say hasn't had a tax break in 16 years, should have first claim on family tax cuts -- not workers so poor they hardly pay any taxes at all.The White House, in response, argues that it is unfair for a family with four children making $80,000 a year to get a $2,000 credit while a family with four children living on $18,000 a year gets nothing at all.The rhetorical flourishes on both sides far exceed the actual differences between the proposals.

United Airlines' unions indicated their willingness yesterday to make sizable wage concessions in return for a majority stake in the nation's second-largest carrier -- a move that underscored a significant shift toward a more collaborative relationship between airline labor and management.With the industry awash in losses, airline leaders like Stephen M. Wolf, chairman of UAL, United's parent, have said that lower labor costs are necessary for the survival of the nation's largest carriers.

County Executive Robert R. Neall panicked an already frightened workforce Monday when he spelled out procedures for laying off county employees.A bill introduced to the County Council on Monday night spoiled the good news that Neall is restoring wage concessions for 4,000 employees a month early, thanks to a smaller-than-expected cut in state aid for the current fiscal year. Beginning June 5, workers' paychecks again will reflect their full salaries.The Board of Education, which ordered its 7,000 employees to takefour furlough days, also is expected to restore the wage concessions.

When County Executive Robert R. Neall presents his budget May 1, themost controversial element promises to be a new $10 million "rainy day fund."The fund proposal has union leaders seething. Even some County Council members who support the concept say they question whether so much should be put into a surplus account at a time when moneyfor programs, projects and employee salaries is so tight."It's absolutely ludicrous," said Tom Paolino, president of the Teachers Association of Anne Arundel County.

About 150 Anne Arundel County employees met with their boss yesterday to hear a pep talk and some assurance their jobs were safe -- at least until June 30.County Executive Robert R. Neall told employeesthat Gov. William Donald Schaefer's latest round of budget cuts may cost Anne Arundel $15 million in state aid, but that can be made up without furloughs, layoffs or additional wage concessions."

The governor's latest budget-balancing plan dooms county employees' hopes of being able to avoid giving up part of their paychecks, County Executive Robert R. Neall said yesterday.The executive had promised to give back all or part of $6.6 million in wage concessions if the county escaped further state cuts. But, he said yesterday, "That's forgotten. (The governor's plan) swamps what the wage concessions would have generated."Not only that, the executive said, but the state's disastrous economic situation means another pay cut for 11,000 school and county employees is not out of the question.

The first county union to decide on wage concessions has chosen unpaid holidays to save the job of one employee.Twenty-four deputy county sheriffs voted unanimously Monday night to take five unpaid holidays, said Deputy Charles E. Nelson, treasurer of the Fraternal Orderof Police Lodge 106, which represents the deputies.Nelson said the concession will cost members an average of about $550 each.For that price, the deputies saved the job of one of their members who would have been laid off had they voted to oppose concessions.

The county has enough money in pay-as-you-go capital projects and reserve funds to keep county employees from having to accept wage concessions, the County Council's auditor has determined.County Auditor Joseph Novotny will present a plan to council members today that could save county and school workers wage concessions requested by County Executive Robert R. Neall.The council is expected to approve a revised fiscal 1992 spendingplan when it meets this afternoon. Neall's proposed budget cuts county spending to cover a $20.8 million deficit and includes $6.1 million in wage concessions for 11,000 county and school employees.

For just a moment Monday, it looked as though County Executive Robert R. Neall -- who knew what he wanted and seemed so adept at getting it during this financial crisis -- was finally being put in his place.After hours of debate over Neall's revised, reduced fiscal 1992 budget, the County Council handed out a photocopied letter bearing the executive's signature, in which he promised to restore $6.6 millionin employee wage concessions if the county escapes further cuts in state aid. If the state cuts less than $6.6 million, Neall promised togive back the difference.

Anne Arundel Executive Robert R. Neall won his battle to reduce the county budget yesterday by making a promise he doesn't expect to have to keep.The County Council unanimously approved Mr. Neall's revised fiscal 1992 budget, but only after the executive agreed in writing to restore $6.6 million in wage concessions if the county suffers no further cuts in state aid.That possibility, Mr. Neall said, is akin "to the sun rising in the west. I don't have any doubt as to what the state's going to do."