Two San Luis Obispo city employee groups have reached tentative agreements to reduce their salaries by 7.5 percent to help the city balance its current two-year budget, the city announced Tuesday.
The San Luis Obispo Police Staff Officers and the Battalion Chiefs also agreed to forgo any cost-of-living increases for the terms of the agreement, according to a news release from the city.
The city is negotiating about $3.1 million in proposed employee compensation cuts, or 6.8 percent per employee overall. The city’s five employee unions, all with contracts that ended in December, have been in talks with the city on contract changes.
In February, the city said it was deadlocked with the San Luis Obispo City Employees Association, which represents 147 workers.
Tuesday’s announcement leaves the general employees union and the Police Officers Association as the only remaining groups to reach an agreement with city leaders.
The proposed contract changes include a four-year agreement with San Luis Obispo Fire Department battalion chiefs and a three-year agreement with police management.
Both employee groups would pay their full pension contributions. Both unions also agreed to the creation of a two-tier pension plan.
The two-tier plan changes the pension formula for new hires so that they must work five years longer to obtain the same retirement benefits that current employees receive.
It would be the third time police have waived a salary increase during the terms of their contract, according to the city.
Another change is coming to Fire Department battalion chiefs as their union melds with the group that represents firefighters.
The City Council will consider adopting the changes for the two groups at its May 15 meeting.