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Archived News Release from 2011

For Immediate Release

All But One of Redwood City’s Labor Groups Agree to Budget Concessions City Asks SEIU to Join Other Groups to Help Solve Budget Problems

Redwood City, CA - May 24, 2011 - In addition to Redwood City’s Police Officers’ Association (POA), Police Sergeants’ Association (PSA), and Executive Management Team (EMT), two of the remaining three Redwood City labor groups have now agreed to concessions in order to help the City bridge its budget gap over the next three years.

The International Association of Fire Fighters (IAFF) and the Redwood City Management Employees Association (RCMEA) have agreed to significant concessions as part of implementing long-term structural changes to reign-in skyrocketing employee costs. The Service Employees International Union (SEIU), still in negotiations with the City, is now the only Redwood City labor group that has not committed to the concessions necessary to put the City on a more stable financial foundation.

The City Council had set a goal of achieving $5.6 million in salary and benefit reductions over the next three years, and gave each labor group a target savings figure, calculated by applying each group’s total percentage of the City’s payroll, to the total concession figure. Each group was asked to work with their members to determine how best to reach their target.

It’s gratifying that most of our labor groups have met this very difficult budget challenge and achieved significant expenditure reductions - a demanding, but necessary, structural change,” said City Manager Bob Bell. “It’s crucially important that the members of SEIU now do their part, and I’m hopeful we will come to an agreement soon.

Labor groups that have reached agreements with the City have agreed to a two-tier retirement system (new employees having a later retirement age and reduced pension formula), and an employee contribution to health care premiums. In addition, most groups will now be paying a larger contribution into their pension funds.

The City continues to work with SEIU to develop alternatives for employee cost reductions that will contribute to the City’s target reductions over the next three years.    

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Bob Bell
City Manager


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