Stockton, Calif., council approves labor deals, letter to community

By Caroline Salls

Pittsburgh, July 25 - The City of Stockton, Calif.'s city council has approved labor agreements with six of the city's nine employee labor groups, according to a news release.

Agreements were approved for the 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; and Stockton Police Management Association (SPMA).

The unions have all voted to ratify the agreements. The final step in the process was council approval, the release said.

The city said the agreements include concessions previously agreed to or imposed under its fiscal emergency in previous fiscal years, as well as additional changes.

Agreement terms

Specifically, Stockton said 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; reduction and elimination of longevity pay; and elimination of retiree medical benefits.

The adjustments result in a reduction in total cost savings of $1.36 million, while the savings to the city's general fund is $450,000.

"This is a huge sacrifice by employees who have already given over the last through years through furloughs and pay and benefit reductions," vice mayor Kathy Miller said in the release.

"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.

"These employee agreements will go a long way to helping Stockton recover and move our city forward."

In addition to the agreements reached with the six represented labor groups, Stockton said equivalent modifications were made to the compensation plan for unrepresented employees, who work in the city manager's office, city attorney's office, city auditor's office, city clerk's office and human resources department, as well as various other employees and not represented by a labor union.

Negotiations

As previously reported, the city entered into an AB 506 confidential mediation with interested parties in March.

On June 26, the city council adopted a pendency plan budget, which is the financial operational plan and budget for fiscal year 2012-2013. The city said the plan included changes in compensation and conditions of employment for all labor groups.

Negotiations continued after the adoption of the pendency plan, resulting in the six agreements, the release said.

Community letter

According to a separate news release, the Stockton city council approved the publication and dissemination of an open letter to the community about the city's bankruptcy.

"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 in the release.

The city said the letter focuses on questions that have been asked by citizens of Stockton, including why the bankruptcy process 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.

"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," council member Susan Eggman said in the release.

"It starts the beginning of our recovery and getting the city on sound fiscal footing."

Stockton filed for bankruptcy on June 28 under Chapter 9 case number 12-32118.

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