Mayor Richard Daley's administration faces a new lawsuit filed by four retirees from Chicago's trade unions. The retired union workers are challenging a 2005 decision to deny them back pay as part of contract settlements. The federal lawsuit is seeking class-action status that could include more than 1,000 other retired workers.
The suit, filed late January 2006, alleges that the city actively encouraged workers to retire through an early buy-out program but hid a plan to refute back pay for hours they worked before leaving the payroll.
"Had the city told the workers that it was going to deny them their back pay, the workers would have held off their retirement," the lawyer for the plaintiffs stated. "There would have been an uproar, and people just would not have retired. It's unfortunate that the city attempted to nickel-and-dime these workers in this back-door way."
The dispute stems from a four-year labor contract between Chicago City Hall and more than 30 unions that replaced an agreement that expired July 1, 2003. Under the terms of the new contract, 8,000 active union members will receive back pay for the more than two years spent negotiating the deal, but workers who retired during that time will not.
The suit seeks back pay, an adjustment of retirees' pensions, compensatory damages, legal fees and costs.