City Owes Its Top Employees’ Union Big Time

Philadelphians could be living in a hell hole if it weren’t for the patience of Herman J. “Pete” Matthews, Jr., who understands the recession times and the financial doom and gloom through which this city is going.

If he were to blow the whistle and order his men out on strike, all hell would literally break loose.

Although he has many reasons to do so, he hasn’t.

If that call had been made during Mayor Michael Nutter’s last term, it might have crippled his reelection chances.

Together with the city’s white-collar union, DC 47, which represents 3,500 people, and which would normally strike in tandem with DC 33, the two could easily create a major ulcer for the Mayor.

But striking “at this time, when many are without jobs, tax revenue is down, federal and state subsidies have been reduced or cut off completely in many areas of government,” states Matthews, “just doesn’t make sense.” Pete understands his responsibilities not only to his men, but to the taxpayers of this city.

So, many wonder how he manages to keep his hard-working rank-and-file blue-collar membership of almost 11,000 City employees working to the best of their abilities despite the fact their last raise, a hike of 4%, was last given in 2008.

A look at what he has meant to the City employees’ major union is necessary. They remember when he took office as President in 1996, DC 33 was in shambles, on the verge of bankruptcy. The previous administration, led by Jim Sutton, was voted out, leaving behind big bills. This included $35 million of debt to the health-and-welfare fund and members’ health and welfare bills’ not being paid, as well as a $5 million lien on its headquarters at 30th & Walnut Streets, which was on the verge of foreclosure.

When Matthews took office, he began doing things differently, “thinking outside the box,” he remarks.

He took on the health-care provider, and eventually got the same benefits, and more  in many cases, at cheaper rates than the prior administration was paying. To avoid bankruptcy, he had vendors settling to take pennies on a dollar.

His negotiations with creditors resulted in DC 33’s being totally solvent today.

Not only that, but all of his union members have had only one increase in their union dues over the past 16 years. In addition, and as remarkable, his members are still not required to pay into their medical coverage, making them the envy of fellow unionists, be they city employees or not.

Matthews said, “I find our workers love their jobs, understand their responsibilities and look at the City as being under their care.”

He adds, “They also understand what they have been contributing to the City’s treasury by their patience and willingness to help the budget shortfalls.”

 Matthews also stated, “Mayor Nutter has gotten all he will ever get from DC 33 and my membership in these tough times. Now is the time for Nutter to step up.”

In 1992, the Union gave the City back $200 million in contract concessions and another $400 million in lost and deferred wages, health contributions, and work-rule changes.

Matthews said, “When that happened, I know I needed to step up and change the leadership of DC 33.”

The City has managed to lose hundreds of millions in contracting out what District Council 33 workers did more economically. These include $50 million from cost overruns and increases in Synagro contract with the Water Dept.; $32 million in unnecessary contracting-out of Local 394 (Water Dept.) work; $2.5 million in outside contracts in Fleet Management; millions in contracting out work of Local 1510 at Philadelphia Airport under the $40 million annual facilities-management contract to Elliot Lewis Corp.

Over the last four years, operating without pay increases, DC 33 and DC 47 saved the City over $145.6 million in total wages and health and welfare and many other benefits.

For example, when it came to Mayor Michael Nutter’s plan to lay off City workers, Matthews showed him how to avoid the layoffs by placing those destined to be laid off in fully funded positions that were unmanned.

It’s obvious this kind of cooperation reflects the sentiment of the City’s unionized workers. They love their city and were willing to work in partnership with the Mayor.

Despite all their help, Mayor Nutter has never acknowledged their contributions. Matthews has drawn a line which his men and women won’t cross. “No more help without a fair contract,” stated Matthews. Regardless of what the Mayor hopes to accomplish in his coming “State of the City” message, he must include wage and health-care increases this time around for his organized union employees.

Matthews has been president of the union since 1996. Serving with him in the administration is Secretary/ Treasurer Bette MacDonald and Vice President Bobby Davis.

His team is up for reelection this May and it looks as if he will be a shoo-in for a fifth four-year term.

Matthews has never lost touch with the membership of the union and the need to ensure they back up his policies and actions. At meetings, Executive Board decisions are ratified the same night by the delegates in the Headquarters’ huge meeting room.

An announced challenge from  Executive Board member Yvonne Sutton, wife of Jim Sutton from the 1992 contract debacle, is not expected to be received with any enthusiasm by the rank and file. The simple reason is, as a board member, she has voted in agreement with every policy decision offered the rank and file by Matthews and his team.

Locals belonging to the District Council include:

Local 159 of Dept. of Human Services, Prison Guards and Child Welfare (Human Services); Local 222, Fairmount Parks & Recreation Dept.; Local 394, Water Dept. Employees; Local 403, Streets Dept. Highway Division, Street Lighting, Paving, Bridge Repair; Local 427, Streets Dept. Sanitation Division, Trash Collection & Enforcement (residential, commercial);

Local 488, Dept. of Health Employees, Health Centers, Nursing Home; Local 696, Dept. of Revenue Employees, Licenses & Inspections, Revenue Collections, City Commissioners, Law Dept.; Local 934, Philadelphia Housing Dept. Employees; Local 1637, Police & Fire Dept. Civilian Employees & 911 Operators, Police & Fire Administrators, Philadelphia Parking Authority Employees , Public Property;

Local 1510, Dept. of Commerce Employees, Philadelphia Airport Employees & Philadelphia Port Authority Employees; Local 1927, Office of Fleet Management Employees; Local 1956, Philadelphia School Crossing Guards; and Local 1971, Philadelphia Redevelopment Authority, Office of Housing & Community Development, Redevelopment Authority and Philadelphia Housing Development Corp.

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