Coalition Reaches Agreement with Mayor That Terminates Mandatory Furlough Plan
August 9, 2008
On August 7, 2008, the Coalition of City Unions reached agreement with Mayor Antonio Villaraigosa on a plan to avoid mandatory furloughs, saving the City of Los Angeles $23 million while preserving critical City services.
The City’s 2008-09 budget adopted in May required civilian employees to save $23 million through mandatory “short-term layoffs” – better known as furloughs. The mandatory furloughs would have negatively impacted City service delivery. The Mayor’s Office, Coalition, and City officials used the mutual gains bargaining process to negotiate an alternative agreement that returns $18.25 million from the Employee Benefits Trust Fund to the City’s General Fund – savings that will not require service reduction.
“We are proud to have worked closely with the Mayor to achieve budget savings without causing harm to City workers and without cutting critical City services,” said Cheryl Parisi, Chair of the Coalition, which represents 22,000 City workers. “This is proof that the mutual gains bargaining process works for union members and works for the City of Los Angeles.”
Mayor Antonio Villaraigosa issued the following statement to media on August 7: “Today, the City and its workers have stepped up and shown that we all are committed to keeping our City running in the black and at full-speed.”
City workers will pay slightly higher co-payments for prescription drugs, resulting in $1.62 million in savings to the City – a major reduction from the $23 million initially put on the backs of City workers. Thanks to everyone’s hard work we have reached an agreement which doesn’t punish City workers and allows the City to maintain the quality of service residents expect.
The City and the Coalition have agreed to close the remaining $3 million gap for this fiscal year together through a voluntary furlough campaign, the details of which will be forthcoming.
Si Se Puede!!!
How Did Agreement Happen?
August 9, 2008
When the City revealed a $400 million shortfall earlier this year, City employees affiliated with Coalition member unions stepped up to the plate to help. Union members from the front lines submitted hundreds of ideas of how the City could generate new revenue and operate more efficiently. Some of these ideas have been implemented through the “Mutual Gains” process while others are still in the research & development stage.
The final City budget included mandatory furloughs – unpaid days off (really, a cut in pay) – that were projected to save the City $23 million. These furloughs not only would have hit members hard but they also would have resulted in serious cuts in critical City services.
The Coalition stepped up to the plate and – through the Mutual Gains Process established during bargaining – engaged the Mayor and his staff in an effort to find ways to save the City money while avoiding furloughs and service reductions.
Our collective efforts, backed up by the strong support of Coalition union members, led to this historic agreement!
Click on links for more updates.
Coalition Reaches Agreement Over Furloughs
News Updates July 31, 2008
Coalition Stands Firm on Civil Service Protections
Can 4 out of 5 Civil Service Commissioners be Wrong?
Coalition Continues to Fight Layoffs and Cuts
City Employees Step up/Speakout to Save City Services
Coalition Works to Protect Services and Avert Layoffs
L.A. City Workers Take
Initiative in Attacking Budget Problem
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