STOCKTON, CA - The Stockton City Council approved labor agreements with six of the nine labor unions in the city Tuesday night.
The agreements come after the city ended its 90-day mediation period with creditors and started the process to file for bankruptcy.
According to City of Stockton spokesperson Connie Cochran, tentative agreements were reached with the labor unions, then voted to be ratified by union members and finally approved by the city council.
The agreements include:
- a 62-hour employee furlough this fiscal year
- 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
- reduction and elimination of longevity pay
- elimination of retiree medical benefits.
Cochran said changes will save a total of $1.36 million and the General Fund will save $450,000.
The six unions that agreed to adopt the agreements include:
- 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)
Employees not represented by a union will see equivalent changes to their pay and benefits. Those employees work in the City Manager's Office, City Attorney's Office, City Auditor's Office, City Clerk's Office, Human Resources Department, and various other offices.
The city council also voted to publish and release a letter to the community explaining Stockton's plan in filing for Chapter 9 protection.
"We want to provide a single communication that describes for our community what has taken place and what can be anticipated," Mayor Ann Johnston said. "The media has done a great job of covering meetings and specific occurrences, but we need to communicate with those who have not been able to attend meetings or follow stories in the newspaper and on television. In the letter, we focused on the needs and interests of our community."
The letter was posted on the city's website Tuesday night. Cochran said it addresses questions asked by Stockton residents including why it is necessary; how it will impact the community; what the plan is for operating the City while in bankruptcy; how the City will emerge from bankruptcy and where to get additional information.
CLICK HERE TO READ THE LETTER
"The questions that I have received from members of the community indicate that there is a lot of misinformation that gets repeated, creating more questions and concerns," Councilmember Diana Lowery said. "A single source of information that covers all aspects of interest to community members is extremely helpful."
"The purpose of Stockton's bankruptcy is to protect the health and welfare of our City by maintaining services that are essential to our community," Councilmember Susan Eggman said. "It starts the beginning of our recovery and getting the City on sound fiscal footing."