DENVER — With layoffs likely due to the City of Denver’s projected $200 million budget shortfall in 2026, the city's career service board approved changes to the city’s layoff procedures on Tuesday.
The board, which is comprised of mayoral appointees, voted 4 to 1 to make the changes.
The changes will make it easier for the city to lay off longtime city employees by removing some of their protections.
For instance, senior city employees will no longer be able to “bump” less senior employees from their positions to avoid being laid off.
While length of service still matters, the new rules direct managers to also consider other factors when it comes to layoff decisions, such as performance history, skills, and abilities.
"The rule change is an important step toward ensuring our workforce meets the needs of our residents even during difficult economic times," said Denver Mayor Mike Johnston. "I appreciate the board’s careful consideration and the many city employees who shared their feedback and helped shape a rule that meets the needs of our employees and our community."
Labor leaders say the changes betray longtime city workers.
“They feel the city has let them down,” said Ronnie Houston, a member of the Teamsters Union who attended Tuesday’s meeting. "They kept this city running for the 20 years they were there, and now it means nothing. It's a sad day in Denver, Colorado."
Kenneth Lundberg, a solid waste worker for the city, says the timing is also suspicious.
It comes just six months before more city employees can begin collective bargaining.
“The residents gave us the voting power. They voted for us to have the bargaining contract,” said Lundberg. “They could have at least waited until we got this contract situated before they wanted us to force us to have layoffs.”
"They're trying to scare the people, the employees, from signing up and getting that bargaining done for us,” said Lundberg.
Former mayoral candidate Dr. Lisa Calderón spoke to the board during a recent public comment session and pushed against the rule change. She was also at Tuesday’s meeting.
“Mayor Johnston overspent the budget, and instead of him rectifying that, finding other ways to correct his mistake, the workers are paying for it, and it’s unacceptable,” said Calderón. “I think this is a really underhanded move by the mayor, quite frankly.”
Kathy Nesbitt, the executive director of the Office of Human Resources, said the rule changes move the city closer to a merit-based system.
"These changes are a necessary step to ensure we retain the best people to serve the residents of Denver, prioritizing performance history, abilities, skills, and length of service," said Nesbitt. "Rule 14 is now better aligned with our merit-based system."
The city says the rule changes add protections for employees who are within 90 days of retirement.
Reinstatement rules were also refined. The city says former employees eligible for reinstatement will be listed for one year from the date of their layoff within their department or agency.
The city says any employee who is laid off will still receive 30 days’ notice.
“They made it seem like they're giving [longtime city employees] a few wins, but in actuality, there's still a lot of room for arbitrary decisions, bias, and retaliation,” said Calderón. “The workers that I'm hearing from are the ones who have been standing up for their rights, raising concerns, and they're really concerned that they are going to be the first to go, and this matrix allows that to happen.”
So far, the city hasn't announced any layoffs, but some city leaders have signaled that layoffs are unavoidable given the projected budget shortfall.
Layoffs are expected to begin in August and could come in several rounds.
It’s something city workers can’t help but think about, given the environment.
“People are worried about if they're going to have a job within a month or so,” said Lundberg.
Over 850 people, most of them appearing to be city workers, attended Tuesday's meeting virtually.
On Monday, eleven Denver City Council members sent the career service board a letter, urging them to reject the proposed changes, saying it was "lacking in transparency, and misaligned with the city’s values."
"As we prepare for fiscal challenges ahead including federal funding reductions and budget shortfalls it is more important than ever to maintain the trust and morale of the city’s workforce," the council members wrote. "Layoff procedures must be fair, objective, and defensible not rushed and arbitrary."
