DWP union accuses of “double fraud” in new lawsuit
The union representing employees of the Los Angeles Department of Water and Power filed a lawsuit against the city on Tuesday to stop the practice of “double taxation” that the union says threatens the solvency of the employee pension system.
The petition filed in Los Angeles Superior Court by the International Brotherhood of Electrical Workers Local 18 also alleges that the practice places an additional burden on residents in both taxes and utility bills.
According to the petition, the city constitution prohibits people who have retired from municipal service and are receiving a pension from simultaneously paying a municipal salary.
“This clear wording in the statute was confirmed by the Public Prosecutor’s Office in 2005,” the union said in a statement. “Suddenly and without explanation, at the end of 2023, the Public Prosecutor’s Office took the view that the definition of ‘city’ in the statute did not apply to LADWP” when it came to practice.
A representative of the city’s prosecutor’s office did not immediately respond to a request for comment.
“LADWP and the Water and Power Employees Retirement System were both created by the city constitution, so it’s just insane that city officials allow the city attorney to say LADWP jobs are not city jobs,” Local 18 executive director Gus Corona said in a statement. “It will be the residents of Los Angeles who will pay the price for this bizarre decision with their tax dollars and utility bills.”
In addition, the collective bargaining agreement between the city and the union “clearly provides that this action, which has profound implications for the department’s employees and its pension system, must be resolved through collective bargaining,” the union’s statement said.
“The city’s actions in this matter clearly violate the contract between the union and the city and show a disregard and disrespect for basic workers’ rights,” Corona said. “The taxpayers and ratepayers of Los Angeles are the same people and they will pay the price if this decision stands.”
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