Well it’s still good to be an L.A. city worker it seems:
City and union officials agreed “in concept” on Jun. 26 to a deal that could save the cash-strapped city an estimated $500 million over two years and cancel most—but not all—planned layoffs and furloughs for the coming fiscal year.
The deal, which still has to be ratified by the 22,000-member Coalition of Los Angeles City Workers, would save money primarily through a delay in scheduled pay raises for 2009-2010 and an early retirement incentive program.
However, the city would make up for the lost income by increasing salaries every six months for three years.
Workers would receive a 2.25 percent increase every July from 2011 through 2013 and a 2.75 percent increase every January from 2012 through 2014. They would also receive cash bonuses equivalent to 1.75 percent of their salaries in November 2011, November 2012, and July 2013. The deal would also allow an estimated 2,400 Coalition members the opportunity to retire early—at no cost to the city.
The union agreed to pick up the tab for their early retirement benefits by having members pay an extra 0.75 percent of their wages into the Los Angeles City Employees Retirement System.
Critics of the deal, however, say the agreement will only be a short-term solution to the city’s current financial problems, and is being used to appease union workers facing layoffs. They say it will cost the city more in the long run.
City officials noted that all of the unions were invited to participate in the initial negotiations and that some opted out.
