STOCKTON, CA – The Stockton City Council approved labor agreements with six of its nine employee labor groups Tuesday, July 24.
In total, the adjustments result in a reduction of $1.36 million; the General Fund savings is $450,000.
The employee labor groups are Stockton Mid-Management/Supervisory Level Bargaining Group (B&C); Stockton City Employee’s Association (SCEA); Operating Engineer’s Local 3 Units, Operations and Maintenance Unit, Trades and Maintenance Unit and Supervisory Unit Municipal Utilities; Stockton Police Management Association (SPMA).
Shortly after the conclusion of the 90-day mediation process with the City`s largest creditors, including labor union representatives, the City had reached tentative agreements with the six labor unions and confirmed that the agreements will be honored in bankruptcy.
Employee labor groups have agreed to both permanent and temporary concessions to help the City balance its budget during the last several years.
In summary, the agreements include a 62-hour employee furlough for fiscal year 2012-2013; lower retirement benefits for future employees; reductions and changes to vacation leave; changes in sick leave and elimination of “cash value” for sick leave; elimination of one holiday; reduction in overtime pay calculations; and reduction and elimination of longevity pay; and elimination of retiree medical benefits.
“We are extremely grateful to our employees who worked so hard throughout the confidential mediation process and have helped us address the City’s fiscal crisis,” said Vice Mayor Kathy Miller. “These agreements represent to our other creditors that our employees understand the depth of this crisis and the needs of our community and have been willing, time and time again, to do their part to help our City.”
In addition to the agreements reached, equivalent modifications were made to the compensation plan for unrepresented employees, who are employees in the City Manager’s Office, City Attorney’s Office, City Auditor’s Office, City Clerk’s Office, Human Resources Department, and various other employees not represented by a labor union.