Des Plaines manager says he'll refuse pay raise
In a troubled economy, CEOs who accept generous pay raises don't go over well with rank and file employees.
It's even less popular when companies are lay off staff or cut salaries and benefits.
That's why Des Plaines City Manager Jason Bajor says he won't take a pay raise next year.
The city council is presently evaluating Bajor's job performance, so no raise has been offered yet, although it is customary. Bajor has been with the city since 2000 and his current yearly pay is $138,000.
"I'm well paid and I'm very fortunate compared to many other people and I think it's important for me to be mindful of that," Bajor said. "We laid off 12 employees. The city is under a lot of fiscal constraints.
"I'm a CEO in the public sector. When your organization is going through difficult economic times, that's not the time to take a pay raise."
Bajor said he recognizes his bosses, the taxpayers, are struggling to pay mortgages and keep their jobs.
Bajor isn't the only suburban manager waiving an increase.
Wheeling Village Manager Mark Rooney's salary for this current year was frozen last November in a joint decision he made with his village board. Rooney makes $140,000 yearly.
Bajor said he doesn't expect other Des Plaines department heads to follow his example, though he said some already have come to talk with him about doing it.
However, his move may help the city's position in ongoing contract negotiations with several unions, he said.
"We're asking them to make concessions or accept a lesser wage increase," Bajor said. "If you as a CEO are not making any sort of sacrifice, then I think you lose credibility in those discussions. It's the price of leadership."
Asked whether the city would consider freezing salaries entirely until the economy turns around, Bajor said "that hasn't been ruled out, but we're not there yet."
With the staff cuts, scaling back operations, and privatizing some city services, the 2009 operating budget is $56 million, an increase of 1.3 percent from the previous year. The city's overall budget is $120 million, which includes capital programs.
"The result of that was we only did a 1 percent property tax increase, which is better than a lot of other communities," Bajor said.
A salary freeze for all department heads could be on the horizon, if the city were going broke, Des Plaines Mayor Tony Arredia said.
"I don't think we're in that boat right now," he said.
Arredia added, he wouldn't support such a move.
"The big majority of the staff in the city is union - police, fire, public works," he said. "We can't really do that because of the union contracts we got. I think that's a good move by (Bajor) to show the rest of the staff not to expect too much."