The city of San Luis Obispo has declared an impasse with its employee union, which represents 147 workers, after negotiations stalled.
The city is asking that the San Luis Obispo City Employees Association agree to a minimum 6.8 percent reduction in total compensation, likely by employees paying their full retirement contribution. The union is also being asked to agree to the installation of a two-tier pension system for future hires.
The city is negotiating about $3.1 million in employee compensation cuts, or 6.8 percent per employee, as a way to balance its current two-year budget.
The city recently reached an agreement with the firefighters union and with unrepresented managers in December. It is still negotiation in closed session with the San Luis Obispo Fire Battalion Chiefs Association and the San Luis Obispo Police Officers Association.