Blowing up the benefits package

Source: Robert Barkin, American City and County, February 25, 2014

Without the financial ability to deliver on benefit promises made to employees, local and state governments are changing the rules of the game. ….

…. Adding contractors rather than employees

In Rancho Cordova, Calif., outside Sacramento, the city of 67,000 residents has more contractors for its services (90) than it has full-time employees (68), says Stacy Peterson, the HR manager. “It gives us flexibility to reduce contracted services when development is down,” she says.

The city has private companies maintaining roads as well as providing city planners and inspectors, she says. Many of the contract employees have served the city for five or even 10 years, but their employers handle all of their pay and benefits….