The San Luis Obispo City Council unanimously approved a three-year contract with the city’s largest employee group Tuesday night, ending a declared impasse.
The agreement with the San Luis Obispo City Employees Association includes a 6.8 percent reduction in total compensation, equaling about $952,000 in savings over the three-year contract. It will save the city an estimated $362,000 this year. The union also agreed to no cost-of-living or other salary raises for three years.
The contract, which expires in December 2014, implements a two-tier pension system for future hires. Future employees will receive less in terms of retirement benefits. The projected savings will come from all employees paying their entire retirement contribution; the city up to now paid the full contribution.
The union represents maintenance and utility workers, inspectors, engineers, planners and administrative support.
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This had been the first time an impasse had been declared with the union. The union had been working without a contract since negotiations began in December.