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 First Responder Credit Unions Are Built to Adopt Blockchain Faster

  For years, blockchain in financial services lived mostly in the world of experimentation—proofs of concept, pilot programs, and innovation labs that rarely touched day-to-day operations. That era is ending. Today, blockchain adoption is moving from experimentation to scale. Across payments, capital markets, and banking infrastructure, financial institutions are beginning to operate on new rails—powered by tokenized money, programmable assets, and always-on settlement models. For credit unions serving first responders, this shift presents not just a technology opportunity, but a strategic one. Blockchain Is Becoming Core Infrastructure The most important change isn’t the technology itself—it’s how it’s being used. Blockchain is no longer about testing what might work. It’s increasingly being deployed as infrastructure to solve long-standing problems in financial services, including slow settlement, trapped liquidity, manual reconciliation, and limited operating hours. Cr...

Sunday Reading - Budweiser 101

Draft Horses   Budweiser 101 Perhaps best known for its Super Bowl Clydesdale ads, Budweiser   is among the world’s most popular beer brands. It was among the first beers to achieve national distribution in the late 19th century, thanks to its revolutionary refrigeration and pasteurization techniques, setting the stage for the modern US beer industry.   Founded in the 1850s as the “Bavarian Brewery,” the company was acquired in 1860 by Eberhard Anheuser. He sold half of it to his son-in-law,  Adolphus Busch ,   in 1869, forming the partnership that would become Anheuser-Busch in St. Louis, Missouri.   In the 1870s, Carl Conrad , a St. Louis distributor, traveled through a Bohemian town called “Budweis” in German and drank a pale lager. Upon returning home, he worked with Anheuser-Busch to brew its own light lager, marketing it under the ...

Health Coverage Tailored for You! Allstate Health Solutions

Health Coverage Tailored for You!  Allstate Health Solutions At the National Council of Firefighter Credit Unions ( NCOFCU), we can help credit unions and their members find health coverage that supports their lifestyle and budget . Through our partnership with Allstate Health Solutions , you get access to flexible health plan options — including short-term medical, supplemental coverage, dental, and more — designed to fill gaps and bring peace of mind when life shifts or coverage matters most. Why choose Allstate Health Solutions?   https://ncofcu.allstatehealth.com/ Flexible health plan options — Explore short-term medical, supplemental accident, critical illness, and dental coverage that fits your needs and budget. Coverage made simple — Find and compare plans quickly with our easy online experience. Support for transitions — Ideal for periods between job-based coverage, changes in life circumstances, or when you want supplement...

Letter to Credit Unions (24-CU-03) Consumer Harm Stemming from Certain Overdraft and Non-Sufficient Funds Fee Practice

      Letter to Credit Unions (24-CU-03) Consumer Harm Stemming from Certain Overdraft and Non-Sufficient Funds Fee Practices Dear Boards of Directors and Chief Executive Officers: If your credit union assesses overdraft or non-sufficient funds (NSF) fees that your members cannot reasonably anticipate or avoid, your credit union may be exposing itself to heightened reputational, consumer compliance,...

Harper Issues Letter to CU Execs Outlining NCUA’s Approach to Overdraft, NSF Fees - Henry Meier, Esq

Legal and compliance expert,  Henry Meier, Esq,  says this is an “unequivocal warning” to credit unions to address the issue sooner than later. The issue of overdraft and non-sufficient funds (NSF) fees has gone from a business practice that was seen as simply part of the credit union business plan, to a topic fraught with political and social ramifications. Much of the fee debate began earlier this year when the CFPB issued a proposed rule to clamp down on banks and credit unions issuing what  Director Rohit Chopra called “junk fees.”  From there, the overdraft and NSF issue became worrisome for many credit union leaders who have or continue to have some kind of reliance on the fee income. On Tuesday, NCUA Chairman Todd Harper  posted the guidance letter  on the agency’s website that gave credit unions a very clear picture of the NCUA’s stance on its approach to overdraft and NSF fees – these fees may be a significant legal, consumer compliance, third-part...

'Tis the season for fraud! Teller questions if member fraud is suspected.

  When a credit union employee suspects a member may be subject to fraud, they should initiate a careful conversation focusing on the nature of the transaction and external influences. The goal is to help the member identify red flags without the employee asking for sensitive personal information that the credit union should already have on file.  Initial Verification Questions    .pdf Before discussing the specifics of the suspicious activity, the employee should confirm the member's identity in accordance with established internal protocols.  Questions About the Transaction/Activity If the member confirms they are conducting a suspicious transaction (e.g., a large wire transfer or purchase of gift cards ), the employee should ask questions to help the member pause and think critically:  "What is the purpose of this transaction?" "Do you personally know the person or business you are sending money to?" "Have you ever met the...

Advice On Winning Over Gen Z In ’25

NEW YORK—As 2025 approaches the close of Q1, how can credit unions win over Gen Z? By tailoring credit rewards for a digital-first generation, a new report recommends. Gen Z is reshaping the workforce and redefining financial behaviors. As of 2024, this generation is poised to surpass Baby Boomers in workforce size and will make up 30% of the workforce by 2030. This rapid growth presents a major opportunity for financial institutions to tap into a younger, digitally native audience with distinct spending habits and financial needs, emphasized a GlobalData report authored by Zachary Johnson, specialist, campaign execution & strategy, financial services at VDX.tv. “Unlike previous generations, Gen Z’s economic journey has been shaped by inflation and delayed career starts due to the pandemic and skyrocketing living costs. These factors have made them highly dependent on credit, with Gen Zers being 23% more likely to own a credit card than Millennials at the same age, and carrying...

NCUA: More than $1.3 Million will be Available; Applications Due by May 22

ALEXANDRIA, Va. (April 13, 2020) – Recognizing the immediate needs of credit unions and their members in the COVID-19 pandemic, the National Credit Union Administration is committing the majority of the 2020 Community Development Revolving Loan Fund appropriation for COVID-19 assistance. “The NCUA recognizes that federally insured credit unions will face unpredictable challenges and costs as a result of the COVID-19 pandemic,” NCUA Chairman Rodney E. Hood said. “The increase in available grant funding will help more low-income credit unions to continue offering quality and affordable financial services to their members and communities. I encourage all eligible credit unions in need to consider applying for these grants as a means to ensure service to their members.” The agency is committing $1,375,000 for grants to eligible low-income credit unions, an increase of $575,000 from the $800,000 originally announced on March 31. This funding will supplant the traditional Community Developm...

What Does PTSD in a Firefighter Look Like? A New Brain Scan Can Show You

Link Post-traumatic stress disorder (PTSD) is often described as one of the invisible scars that firefighters and others accumulate after years of dealing with trauma in their jobs. Now the scars are invisible no longer. A new tool—the SPECT scan—is offering a new way for firefighters and others with PTSD to visualize their injuries. SPECT stands for single photon emission computed tomography, and it creates 3-D scans of the patient’s brain that look at blood flow and brain activity, KTLA reports. Those scans can then be used to generate a treatment plan tailored to the specific patient based on the visual effects of PTSD. Retired Firefighter-Paramedic Matthew Fiorenza, a PTSD sufferer, told the station that the scans also help make the illness more tangible. “Looking at a picture of my brain, it just took the stigma out of it,” he told KTLA. “It’s like, okay, I’m not crazy.”  

Chairman Hauptman’s Remarks for FLEC Public Meeting (Trump Accounts)

  As Prepared for Delivery on February 6, 2026 Meeting Focus: Implementation and Outreach for Trump Accounts Good morning and thank you to our colleagues at the U.S. Department of the Treasury and members of the Financial Literacy and Education Commission for convening today’s important discussion. I also want to express my appreciation for this body’s leadership in encouraging savings and advancing the broader goal we all share—ensuring that every American has a meaningful opportunity to build financial capability, resilience, and long-term financial security. There’s a lot to like about Trump Accounts, including how easy it is to start the process when filing your taxes. These accounts were clearly designed with behavioral economics in mind. That is to say, things that are easier to do are more likely to get done. Trump accounts also turn all these kids into investors. The more Americans that identify as investors, the better off we are. Investing done by regular people turns Mar...