San Luis Obispo employee union agrees to new contract
June 13, 2012
After nine months and an impasse, San Luis Obispo’s largest employee group and city management reached a tentative agreement following a fact finding hearing where it was revealed that the city of San Luis Obispo has $63 million in cash and $20 million in reserves.
Members of City Employees Union have agreed to pay the employee portion of their retirement compensation, which would amount to an 8 percent compensation reduction.
As part of the agreement, city management agreed to increase health insurance compensation to mirror that given to the city’s police and fire employees, a 50/50 cost sharing.
Of the 144 members in the union, 139 voted on the proposed agreement. Of those, 101 voted in favor of the proposal and 38 voted to reject it.
In February, San Luis Obispo city Manager Katie Lichtig announced negotiations with the employees’ union had stalled and that their bargaining efforts were at an impasse. On June 1, at the fact finding hearing regarding the contentious negotiations, Lichtig testified that the city had $83 million in cash and reserves.