[magkelly]

Scranton, Pa., slashes workers' pay to minimum wage

By Patrick Rizzo


Updated at 5:55 p.m. ET: Unions representing civil servants in Scranton, Pa., filed suit Tuesday after the mayor cut pay for police, firefighters, garbage collectors and other public workers to minimum wage, saying that was all the city could afford. Unions representing police, fire and public workers in the city of 76,000 filed three lawsuits after the city defied a judge's order and issued paychecks Friday that paid 398 city employees at the minimum wage of $7.25 an hour, according to the Scranton-Times Tribune.


The lawsuits against Mayor Chris Doherty include one filed in federal court under the Fair Labor Standards Act accusing the city of failing to pay wages on time and failing to pay overtime. Another lawsuit seeks to hold the mayor in contempt for violating a judges order. Yet another alleges that benefits for disabled police and firefighters were cut without a hearing. The Times-Tribune, quoting City Business Manager Ryan McGowan, reported that as of Monday the city had $133,000 in cash, but owed $3.4 million in vendor bills. One of those bills was health insurance, McGowan said.

Scranton is among a number of cities struggling to pay their bills amid rising labor costs. Earlier this month, Stockton, Calif., became the largest city in U.S. history to file for bankruptcy protection from creditors. Scranton's mayor and the city council have been locked in a dispute over how to raise money in a city that has steadily lost population over the past 50 years and has been hit hard by the real estate slump and the Great Recession that followed. Doherty has argued that the city needs to increase taxes, but council members want to find other ways to raise money. Doherty is a Democrat. The city council is comprised of Democrats.The Scranton newspaper said the city has been designated as financially distressed for 20 years.

Okay, I get it, nothing in the till and the mayor is desperate to avoid bankruptcy, can't get anyone to let him raise taxes, but still these are first responders who risk their lives every day and paying them minimum is an insult. Watch them all walk. The mayor had better hope he doesn't have a house fire or a robbery and it looks like he'll be taking his own trash to the dump besides. To be fair he cut his own salary and that of his own staff too. It's not just these people but still this was a dumb move.

[Wheatfield]

Municipalities raise money to fund things like police, firefighters, EMS and the like through taxes. City council refuses to allow sufficient taxation to pay for services.
Now, to be sure, the mayor has made a very political move, but the entire city council should be sued.
From the outside looking in, it's like American are trying their damnedest to make their country fail.
Americans used to be the most patriotic people in the world.
What happened?

[Parallax]

In this case, and others like it, the tax base isn't there. Sure, the council could raise taxes, then more would likely leave. When the Fed raises taxes people don't leave the country. It doesn't work like that for cities. In addition to that, it's pretty tough to tax the unemployed. Remember, Obama said early on that if he didn't do something that unemployment could go as high as 8%. He did something and it went to over 11%. It's still there in some areas.
As to patriotism and "what happened": We used to be a government "of the people, by the people, and for the people". No longer. It's become a government of the politicians, by the politicians, and for the politicians. After all, we have the best that money can buy.
The government/citizen relationship has become adversarial rather than synergistic.

[stevewig]

Scranton, Pa., slashes workers' pay to minimum wage
......... Doherty is a Democrat. The city council is comprised of Democrats........

Sounds more like they are, in reality, TEA PARTY believers pretending to be Democrats - or they have signed the Norquist Pledge regardless.
Mr Norquist, in any case should be proud of them!

[jogiba]

Maybe their Bible and Guns could solve their problems.

[seacapt]

Scranton was built on , coal , steel and a railroad to move said products. Coal mines closed in the 60's. Foundry work went overseas. Japanese cars gained preferrance , Eriie Lackawana failed in the 70's and was absorbed by Conrail.
Just another example of what happens when we stop producing a tangible product.
Just another example of what happens when we buy foriegn product.
Just another example of what happens when we contract foriegn manufacturing.
.

[jogiba]

Scranton was built on , coal , steel and a railroad to move said products. Coal mines closed in the 60's. Foundry work went overseas. Japanese cars gained preferrance , Eriie Lackawana failed in the 70's and was absorbed by Conrail.
Just another example of what happens when we stop producing a tangible product.
Just another example of what happens when we buy foriegn product.
Just another example of what happens when we contract foriegn manufacturing.
.

Wake up, it's 2012 and it is now a world economy. Republicans are brain dead since they think oil prices are not set in a world economy and Exxon Mobil is a charity that does not want to make the maximum amount of profit from each barrel. The last time I purchased a car made in the US was in the 70's because I buy the best car for my needs and don't care if it was built on the dark side of the moon by purple aliens.
Gingrich: I'm the $2.50 gas president -- Obama is the $10 gas guy - First Read

[stevewig]

Wake up, it's 2012 and it is now a world economy. Republicans are brain dead since they think oil prices are not set in a world economy and Exxon Mobil is a charity that does not want to make the maximum amount of profit from each barrel. The last time I purchased a car made in the US was in the 70's because I buy the best car for my needs and don't care if it was built on the dark side of the moon by purple aliens.
Gingrich: I'm the $2.50 gas president -- Obama is the $10 gas guy - First Read

Evolve or become obsolete!
Living all your life longing for the "good old days" is a recipe for defeat and failure.

[mikemike]

[seacapt]

Wake up, it's 2012 and it is now a world economy.

Yes and cities like Scranton and Detroit and countless smaller cities and towns are suffering because of it.
If the "99%" "Occupy Movement" worked to influence change in trade policies or lobbied for tariffs on imports to be used to "stimulate" American manufacturing instead of hanging out in parks smokin weed , they might actually accomplish something . It is the 1% who profit most from outsourcing.

As a side note I assure you there is a big difference in the quality of iron & steel produced in the US and what comes here from Japan , China and Pakistan.

[Blue]

Scranton, Pa., slashes workers' pay to minimum wage

By Patrick Rizzo

...

Okay, I get it, nothing in the till and the mayor is desperate to avoid bankruptcy, can't get anyone to let him raise taxes, but still these are first responders who risk their lives every day and paying them minimum is an insult. Watch them all walk. The mayor had better hope he doesn't have a house fire or a robbery and it looks like he'll be taking his own trash to the dump besides. To be fair he cut his own salary and that of his own staff too. It's not just these people but still this was a dumb move.

All city employees aren't first responders. Some were backhoe operators, some were librarians etc. It is a crappy deal for the employees. However, there was apparently $5000 left in the bank after payroll was met at minimum wage.

Municipalities raise money to fund things like police, firefighters, EMS and the like through taxes. City council refuses to allow sufficient taxation to pay for services.
Now, to be sure, the mayor has made a very political move, but the entire city council should be sued.
From the outside looking in, it's like American are trying their damnedest to make their country fail.
Americans used to be the most patriotic people in the world.
What happened?

What are they going to tax? If they overtax property, they may start rivaling banks on foreclosures.

Maybe their Bible and Guns could solve their problems.

Since they are yellow dog Democrats, that likely won't work because the odds are they are gun banners and atheists.



There are TeaParty Democarts out there. Regardless:

Doherty is a Democrat. The city council is comprised of Democrats.The Scranton newspaper said the city has been designated as financially distressed for 20 years.

They should have been worrying about infrastructure and a new business paradigm at least 15 years ago, not until they had $5000 in the bank.

Yes and cities like Scranton and Detroit and countless smaller cities and towns are suffering because of it.
If the "99%" "Occupy Movement" worked to influence change in trade policies or lobbied for tariffs on imports to be used to "stimulate" American manufacturing instead of hanging out in parks smokin weed , they might actually accomplish something . It is the 1% who profit most from outsourcing.

As a side note I assure you there is a big difference in the quality of iron & steel produced in the US and what comes here from Japan , China and Pakistan.

It would have taken only a radio controlled plane to take town a sky scraper made from some chinese steel.

Wake up, it's 2012 and it is now a world economy. Republicans are brain dead since they think oil prices are not set in a world economy and Exxon Mobil is a charity that does not want to make the maximum amount of profit from each barrel. The last time I purchased a car made in the US was in the 70's because I buy the best car for my needs and don't care if it was built on the dark side of the moon by purple aliens.
Gingrich: I'm the $2.50 gas president -- Obama is the $10 gas guy - First Read

Why wake up the Democrat City council now from their nice 20 year coma?

[jogiba]

Yes and cities like Scranton and Detroit and countless smaller cities and towns are suffering because of it.
If the "99%" "Occupy Movement" worked to influence change in trade policies or lobbied for tariffs on imports to be used to "stimulate" American manufacturing instead of hanging out in parks smokin weed , they might actually accomplish something . It is the 1% who profit most from outsourcing.

As a side note I assure you there is a big difference in the quality of iron & steel produced in the US and what comes here from Japan , China and Pakistan.

Right, get three guys in a pickup and that is what kind of info you get about quality of steel products made outside the US.
Great Go Cycles Inc.
Steel Bicycle Frame - Maxway - Bicycle Frame Manufacturer

[Tom S.]

Municipalities raise money to fund things like police, firefighters, EMS and the like through taxes. City council refuses to allow sufficient taxation to pay for services.
Now, to be sure, the mayor has made a very political move, but the entire city council should be sued.
From the outside looking in, it's like American are trying their damnedest to make their country fail.
Americans used to be the most patriotic people in the world.
What happened?

City revenue is based on property taxes, which have to be voted upon by the people. The city council can propose a property tax increase, but they don't have the power to implement it without a vote from the people. Five years ago when property values were high, cities were spending money like it was going out of style. When property values tanked, so did tax revenues. Cities that weren't prepared or had over extended themselves were caught with half (or less) of the income coming in.

[Nesster]

Just curious, and too lazy to find the answer myself: did the big shot managers and administrators also get minimum wage?

[Nesster]

City revenue is based on property taxes, which have to be voted upon by the people.

Not in my New Jersey!