“I am very appreciative that the members of Local 39 have stepped forward to help the City meet current financial challenges and achieve a sustainable budget,” says City Manager Kerry Miller. “I know that the terms of this contract represent a great deal of personal sacrifice, and I thank Local 39 employees for their willingness to help us contain costs over the two plus years of the contract.”
The new agreement takes effect immediately and expires in June 2013. Beginning this July, Local 39 members will pay seven percent of their salary toward the employee portion of PERS retirement contributions. The following fiscal year, members will pay an additional one percent to cover the full employee portion. Future Local 39 employees will be hired under a new pension formula (from 2.7 percent at age 55 to 2 percent at age 55).
The new contract also dictates that Local 39 members will pay increasingly higher portions of health care premium costs over the terms of the contract. They will receive a previously negotiated 2.5 percent pay increase in June, with no additional cost of living increases during the term of the contract. The existing 12 annual furlough days will be reduced to six days per year. The cost associated with the salary increase will be offset in the first year by the furlough savings, and in subsequent years through savings resulting from annual leave reforms.
“Beginning in July, City Hall will no longer be closed for monthly furlough days,” says Miller. “Local 39 members will take floating furlough days, allowing us to keep the doors of City Hall open for greater customer convenience.”
Local 39 is the exclusive representative for employees in the miscellaneous bargaining unit, including a wide range of employee positions such as administrative assistants, building inspectors, librarians, mechanics, refuse drivers and zoo keepers.
Other Folsom bargaining units have also acknowledged that current pension costs are unsustainable. The major provisions of Local 39’s new contract are consistent with those contained in new contracts with the Folsom Police Department and Folsom Middle Management. The City’s executive management staff is also paying its full share of PERS retirement contributions. Negotiations with Fire Department bargaining units are underway.