Skip to main content

If these cuts in salaries catch on, is your credit union ready?

NEW ORLEANS — The first New Orleans firefighters were furloughed on Sunday under a plan requiring six unpaid days off by the end of the year to help stem a precipitous decline in city sales tax revenue during the coronavirus pandemic.

The city’s furlough requires almost all 4,700 employees to take the six unpaid days, including police, firefighters and other safety workers, reducing their salaries by about 10% and saving the city $6 million.

New Orleans' firefighters' union says the city's furloughs have had an impact on service. The city has required nearly all of its public employees to take at least six unpaid days off before the end of the year in order to offset COVID-19-related budget issues.

But firefighters say it comes at the cost of public safety and the safety of firefighters.

The firefighters’ union said Sunday the impacts of the furloughs are already being felt. Three trucks were out of service on Sunday because firefighters had to be moved around to fill shifts elsewhere.

While only about 13 people at the department were furloughed on Sunday, prior staffing issues left the NOFD with only about 110 on duty out of about 153 the union considers necessary to be fully staffed, said Aaron Mischler, the union president.

“That’s going to be (the same for) every day for the rest of the year,” Mischler said. “It’s going to get worse, guys are going to be working a lot harder so injuries are going to go up, fires are going to get bigger and emergency calls are going to get worse.”

The lack of staffing could have implications for the department’s response times and ability to properly respond to emergencies, he said.

While no firehouses went understaffed on Sunday, stations on Jefferson Davis Parkway, St. Peter and Basin streets and Elysian Fields Avenue were down to single trucks, he said. Because each of those trucks only has three firefighters on it and rules require at least four people at a scene before firefighters are allowed inside a burning building, that could mean delays in properly responding to serious fires, Mischler said.

By way of illustration, Mischler noted that the trucks in the Elysian Fields firehouse were called out to a fire on the porch of a house on Frenchman Street just before the shift change on Sunday. Because both trucks were able to respond in about four minutes, they were able to keep the blaze from spreading to the home, he said.

But if the fire had been called in 10 minutes later, only one of those trucks could have been sent out and the department would have had to rely on a second truck from a station all the way on Poland Avenue, which could have taken 12 to 15 minutes to arrive, he said. In that time, the situation could have gotten far worse, he said.

Mischler predicted the lower staffing would mean more injuries for firefighters, which would further reduce the departments’ staffing levels. In addition, it means shifting firefighters around to neighborhoods and trucks they may be less familiar with.

“Everyone on the job has a knowledge of the streets of the city, we know where we live, we know the makeup of the streets and where they are generally. It does stand to reason that the people who work those neighborhoods regularly know where the potholes are, know where the fire hydrants are,” he said. “It’s the little things that can make a difference and cut precious seconds off a call.”

The city has said the cuts are necessary to offset COVID-19 spending and plummeting revenues from sales tax. The $6 million in savings hardly makes up for the $41 million in corona virus-related expenses the city has not been reimbursed for.

The city has incurred $92 million in pandemic expenses. But it has only received reimbursement for $52 million from the federal government, an amount dived out by the state based on a formula accounting for population and coronavirus cases. The city hoped to receive more money, but negotiations over aid to local governments were called off by President Trump earlier this week.

 

Comments

Popular posts from this blog

Why Avoiding "I" in Marketing Presentations Matters

  Grant Sheehan, CCUE | CCUP | CEO NCOFCU  You know how things just stick with you? Well, many years ago, my marketing professor started off his class with the following, and it has never left me.  The Power of Perspective: Why Avoiding "I" in Marketing Presentations Matters In the world of marketing, effective communication is paramount. One valuable piece of advice that often comes from experienced instructors and industry veterans is the importance of avoiding the use of the word “I” in presentations and reports. At first glance, this may seem counterintuitive; after all, many individuals feel that personal anecdotes and experiences can enhance a message. However, upon deeper reflection, the reasoning behind this approach reveals itself as essential for achieving impactful communication. Building Objectivity When marketing professionals present their findings or insights, it’s important to establish credibility. Utilizing data, surveys, and feedback from cu...

Letter to Federal Credit Unions (25-FCU-02) Federal Credit Union Post-Examination Survey

    Letter to Federal Credit Unions (25-FCU-02) Federal Credit Union Post-Examination Survey Dear Boards of Directors and Chief Executive Officers: The NCUA has been using a voluntary post-examination survey for examinations of federal credit unions since 2021. This feedback is very important and helps the NCUA evaluate our examination processes; credit unions have used the open-ended questions to submit numerous useful suggestions. To further improve the survey process, the NCUA has arranged to have the post-examination survey administered by an external vendor. The external vendor will begin administering the survey starti...

Open Banking To Hit $94B By 2029—But U.S. Lags Amid Global Surge

NEW YORK—By 2029, open banking is projected to surge globally to a staggering $94.14 billion in value. Yet despite its rapid evolution and expanding global footprint, adoption remains uneven—hindered by inconsistent regulatory frameworks across countries. According to GlobalData, this disparity poses a key challenge for the sector’s success, with the U.S. notably trailing behind global peers in embracing open banking. The U.K. pioneered open banking and continues to be one of the leaders globally. The country has seen the number of users increasing, with there being 12.09 million active users of open banking in 2024 and 223.9 million payments made. This is an increase of 72% compared to the year before. “As open banking continues to flourish, it is positive to see that the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) have outlined how open banking can expand further in the U.K., and also be used in variable recurring payments and e-commerce. With this move,...

Agencies Issue Exemption Order To Customer Identification Program (CIP) Requirements

WASHINGTON--The Federal Deposit Insurance Corporation, the Office of Comptroller of the Currency, and NCUA, with the concurrence of the Financial Crimes Enforcement Network, issued an order Friday granting an exemption from a requirement of the Customer Identification Program (CIP) Rule implementing Section 326 of the USA PATRIOT Act. The CIP Rule requires a bank or credit union to obtain taxpayer identification number (TIN) information from its customer before opening an account, and the exemption permits a bank or credit union to use an alternative collection method to obtain TIN information from a third-party rather than from the customer, the agencies stated in a joint release. The order applies to accounts at all entities supervised by the agencies. "Since the CIP Rule was issued initially in 2003, there has been a significant evolution in the ways consumers access financial services, along with a rise in reported customer reluctance to provide their full TIN due, in part, to...

Fresh First Quarter 5300 Data Is Live. How Do You Compare?

  CALLAHAN RESOURCE Fresh First Quarter Data Is Live. How Do You Compare? The latest NCUA call report data is out, and while you’ve been focused on day-to-day priorities, market shifts might be affecting how you reach your goals. That’s why credit union leaders are already benchmarking performance to spot trends and inform their next moves. Ready to join them? Schedule a free performance analysis session with Callahan to gain a clear view of where you stand. Schedule Now