News Release
July 1, 2010
Concord reaches agreement with Local 1
The City of Concord reached agreement with its last outstanding union Tuesday. Local 1, the union representing Administrative, Technical & Clerical (ATC) and Field and Operation (F&O) employees, voted to accept a two-year contract that includes concessions of approximately $1.25 million a year. The union represents 150 employees.
"We greatly appreciate the sacrifice made by the members of Local 1," said Mayor Guy Bjerke. "I know they voted for this agreement for the sake of the community, and to avoid any interruption in services to our residents. These employees have stepped up to the plate several times over the last few years, and I want to recognize their impressive commitment to the City and to the community."
Members agreed to continue last year's 5 percent pay cut through 13 unpaid furlough days, forego raises, and freeze step increases the first year of the agreement. Future step increases or salary range adjustments will be subject to budget availability. Starting this fiscal year, members will pay 2 percent of their salaries towards retirement costs currently paid by the City, and increase that amount by 3 percent the following year for a total of 5 percent. This with the salary freeze and 5 percent pay cut results in a 10 percent reduction in wages from two years ago. They will also pay half of any future increases in employee medical costs.
The agreement with Local 1 comes on the heels of similar agreements with the City's nonrepresented employees, and police and office/professional unions.
While these concessions represent a significant step in reducing the City's budget deficit, they will not completely close the gap. Reductions in sales tax and property tax revenues as well as $33 million in State take-aways over the last 10 years, have eroded the City's General Fund and created a structural deficit. In spite of the $18 million in reductions that have been made over the last two years, the City will still need to find $5 million in service cuts or additional revenue to achieve a balanced budget that does not rely on reserves.
For more information about the City's budget, visit www.cityofconcord.org or contact the City Manager's office, (925) 671-3150.