Mayor Gavin Newsom will be rescinding most of the 17,000 pink slips he sent out in March after reaching a deal with city labor unions that will save thousands of jobs and millions of dollars.
The deal, which was announced Tuesday afternoon, includes 12 unpaid days off per year over the next two years, which amounts to a 4.62 percent wage reduction. Also, The City agreed to other cost-saving measures, such as the selective closing of nonessential services between Christmas and New Year’s Day.
Because of the deal, which still needs to be ratified by the unions, no more than 500 city workers will be laid off by June 30, when Newsom must present a balanced budget to the Board of Supervisors.
The agreement doesn’t preclude future layoffs, but outlines specific terms for any more job reductions, Newsom spokesman Tony Winnicker said.
“We have come a long way in terms of limiting the job loss but also protecting services and closing the deficit,” Winnicker said. “Employee unions stepped up.”
Union leaders say the new agreement is a much better plan than the mayor’s initial proposal that called for firing 17,000 of the
26,000 city workers and rehiring many of them at 37.5-hour workweeks.
The deal will save The City an estimated $200 million over the next two years. Newsom is working to close a $483 million budget gap for the current fiscal year, which ends in June.