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Milwaukee County must offer to reinstate 26 courthouse security guards who were laid off nearly a year ago when then-County Executive Scott Walker replaced them with private guards as an emergency budget measure, according to an arbitrator's decision issued Monday.

Walker was sworn in as governor last week.

The county did not have a true budget crisis at the time and county officials failed to give the union representing the security guards an opportunity to make some alternative cost-saving proposals before laying them off, according to the decision from arbitrator Amedeo Greco.

Greco's ruling also said the $125,000 annual savings from privatizing the courthouse security estimated by county officials was overstated by nearly $53,000.

"It's another example here of penny-wise, pound-foolish," said Patricia Yunk, policy director for District Council 48 of the American Federation of State, County and Municipal Employees. She said Walker's emergency outsourcing move of courthouse security was an example of how his strategy of punishing unions that failed to agree to concessions went awry.

The ruling calls for immediately hiring back the laid-off county workers with back pay, with any unemployment compensation or wages from a new job subtracted. It also called for a guarantee of at least 180 days of work - the amount of time that Greco said should have been given to the security guards' union to react to Walker's privatization plan.

No estimate was immediately available of the cost of the back pay or the number of former county security guards laid off last year who might want their old jobs back. The private firm G4S Wackenhut was hired by Walker to replace the union workers. The Wackenhut guards are being paid up to $10.50 an hour, about $5 an hour less than the union guards made.

The County Board rejected the security outsourcing idea in November 2009, when Walker tried to get the move included as part of the 2010 budget.

But Walker unilaterally ordered it last March, saying the county faced a potential 2010 year-end deficit of about $7 million.

Wackenhut is being paid $1.1 million a year under its contract with the county for security at the courthouse complex, as well as for City Campus, 2711 W. Wells St., and the Vel Phillips Juvenile Justice Center in Wauwatosa.

Acting Corporation Counsel Timothy Schoewe said he couldn't comment on the arbitrator's ruling because he hadn't seen it yet. Acting County Executive Lee Holloway declined to comment. Walker couldn't be reached immediately.

Furlough plans

The ruling came down the same day the prospect of five weeks of unpaid furloughs was renewed by Holloway for 2011 for about one-third of the county's work force, or some 1,700 employees.

The 26 unpaid days would amount to 10% of a year's work schedule and would save the county an estimated $4.8 million.

Workers involved in public safety or public health jobs, county supervisors and other elected county officials are exempt from the furloughs.

Airport workers, whose pay is covered by airport fees, also may be exempt, according to a memo issued to county department heads.

Details of how the furloughs will be implemented will be provided this week, the memo said.

Holloway said it was possible that the furloughs might be canceled, if an agreement can be worked out with county unions.

He said he had spoken with leaders of two unions over the past several days, but declined to give specifics.

Holloway previously has said he would work to resolve long-stalled labor contracts with District Council 48, the county's largest union, as well as other unions that have not agreed to a series of concessions on pensions, health benefits and pay included in the 2010 and 2011 county budgets.

Holloway has vowed to work to quickly to settle contracts during his tenure as acting county executive, which lasts only 30 days.

However, Holloway could continue to exert his leadership by appointing himself or a close ally as acting county executive through the April 5 special election for the remaining year of Walker's term.

Holloway also is an announced candidate in the race.

Unpaid days as alternative

The furloughs follow the authorization included in the 2011 budget, which said the unpaid days off would be imposed if a set of wage and benefit concessions wasn't agreed to by union workers by the start of the year.

The county's largest labor unions have not reached agreement on contracts dating to 2009.

Holloway "is carrying out what was set in the budget" with the furloughs, said Harold Mester, speaking for Holloway.

The furloughs follow a turbulent 2010 budget year in which nearly all county workers took at least two furlough days and some as many as 26, under the leadership of Walker.

Holloway temporarily assumed the role of county executive when Walker resigned at the end of last year after his election as governor.

Union leaders have denounced the furloughs as unfair and have questioned whether they provide much real savings after overtime and other costs linked to the time off are considered.