First ones fired are first ones on the job, city ordinance says
As the economy improves, hundreds of recently unemployed workers want their jobs back and city officials intend to make sure they get them.
A new ordinance passed Tuesday night by the Santa Monica City Council mandates that large businesses must first attempt to rehire any employees laid off stemming from the Sept. 11 terrorist attacks and the recession.
“In our community we believe the economy must work for everyone,” said Santa Monica Mayor Mike Feinstein. “Residents, owners and workers alike must have rights.”
But businesses reeling from the recession say they should have control over who they hire, not elected officials.
“This ordinance is stunning to me because they are forcing companies to hire in the order they made layoffs, but companies are going to have to refocus their business practices,” said Kathyrn Dodson, the executive director of the Santa Monica Chamber of Commerce. “Only those businesses know who they are going to need in order to get back on a good economic footing.”
Feinstein also said the first employees fired when the economy turned south were those trying to organize local unions. The ordinance is aimed to protect free speech as much as ensure economic justice.
“Here was a case where we were concerned that the 9-11 events were being used to let go or cut pay of workers who had chosen to express their free speech rights and organize in the work place,” he said. “In addition to the social justice angles and free speech angles, we want to be seen as a good city to work in and to protect the seasoned and knowledgeable workforce here.”
Dodson would not comment on Feinstein’s statement except to say, “I have seen no facts whatsoever about that.”
Businesses that generate revenues in excess of $5 million a year and cut large numbers of workers after the attacks must first send a letter to the last known address of past employees inviting them back to work before they hire anyone new. If no response is made after 10 business days, new employees may be hired.
“Primarily those employees at hotels and restaurants — the ones dependent on tourism — have been hit the worst,” said Councilman Kevin McKeown. “Business is coming back, and it’s coming back faster and stronger than we anticipated, and as it comes back, we just want to make sure employees that were there for years get first dibs on their old jobs.”
Dodson said using earnings from last year’s robust economy is an unfair bench-mark.
“Any company that made $5 million last year, which was a very good year, will be hurt by this,” she said.
Representatives from Loews and Merigot hotels were unavailable for comment, but Loews representatives have previously expressed support of the measure.
Opponents of the measure say even though occupancy rates have returned to near normal levels since September, the hotel rates have remained below market rate.
The Santa Monica Chamber of Commerce has voted to oppose the city’s ordinance. Chamber officials said the measure will only further injure local businesses trying to recover from the first economic recession in more than a decade.
“There is really no (legal) precedent for this, as the city attorney herself said at the council meeting,” Dodson said. “This could hurt the economy and drive away business.”
“What I think is happening to the hotels is that the occupancy rates are coming up but not the room rates,” said Councilman Ken Genser. “The city’s taxes are going to be much lower than usual this year.”
Genser said although he was troubled by the legality of the city’s new law, he feels it was the proper move.
“There are legitimate questions whether the city has the right to legislate something like this. But when I looked in my gut, I felt these are hardworking people whose lives were turned upside down due to no fault of their own,” he said. “My feeling was that we should try to help these people get their jobs back.”
“My feeling was that we should try to help these people get their jobs back.” — — KEN GENSER Santa Monica City Councilman
Originally published in the Santa Monica Daily Press print edition on November 29, 2001. Read the original PDF.