Mayor Gavin Newsom today announced a tentative agreement with the Municipal Executives’ Association (MEA) which represents over 900 of the City’s management employees that will generate budget savings of nearly $4 million in the upcoming fiscal year, and an additional $3 million in the following year.
Negotiators for MEA and the City have agreed to five mandatory unpaid furlough days in each of the next two fiscal years. The parties have also agreed that nearly $1 million allocated in the current contract for salary adjustments in fiscal year 2008-09 will be deferred into fiscal year 2009-10.
In total, the City’s managers have agreed to concessions worth 3% of their labor contract next year and another 2% the following year.
“Balancing the budget during this challenging time means calling upon our partners in the labor community to ask for their support,” said Mayor Newsom.
“The City’s managers have shown that they have the best interests of the City in mind and will help us avoid even deeper budget reductions. I am hopeful that other City unions will also step up as MEA has.”
MEA has also initiated an effort to engage City leaders and community stakeholders in discussion of reforming the budget process to better ensure San Francisco’s ability to prepare for future challenging economic times.
“The men and women of MEA recognize the gravity of the budget deficit and its potential impact on the people of San Francisco,” said Eileen Hirst, President of the Municipal Executives’ Association.
“As the City’s managers, we are committed to leading by example and making the sacrifices necessary to preserve vital services.”
In addition to the agreement with MEA, Mayor Newsom also announced that the City’s unrepresented employees, including Mayor’s Office staff, will receive no wage increase this year.
All other City employees are scheduled for wage increases included in previously-negotiated multi-year labor agreements.
Many labor unions are still negotiating with the City following the Mayor’s request for labor’s assistance in balancing the $338 million deficit.
Additionally, the Union of American Physicians and Dentists has agreed to provide savings equal to 3% of payroll in the next two fiscal years.
This savings will be achieved by a combination of unpaid furlough days and reductions in training funds amounting to nearly $1million in personnel cost reductions that will help offset the budget deficit.
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