Salary raises for the guards. Board Meeting 12/13/10

The issue of salary raises for the guards was brought to the floor. It was suggested it is not in the co-ops best interest to approve a multi-year contract. This is because it is very hard to predict future operating expenses, and any shortfall in our budget could result in higher maintenance charges. Since the boards primary responsibility is to the shareholders I agree, but I also believe this benefits the guards as well. If we approve a contract with 4 years of increases what would happen if we start running huge deficits? Obviously a future board would certainly consider letting the guards go and hiring private security as an easy solution to avoid large carrying charge increases. A motion was brought to the floor for a 3% increase and was approved, although some members were disappointed it wasn't higher. The truth is that careless disregard of expenditures is wrecking many states economies. They will probably be bailed out by the taxpayers. If this board operates the same way the shareholders will be the ones footing the bill. Coming to think of it we would be paying for both bailouts. Ain't that a kick in the head.

UPDATE: A compensation package for eligible retirees, and health insurance for the newly hired guards will be forthcoming. I had not included this in the original blog as I wasn't sure all the details were worked out.