Concessions agreed to by Teamsters Local No. 439 would have the union’s members take 12 planned furlough days between now and the end of June 2011.
The agreement, according to the city staff report, would also establish a “second tier” of benefits for local Teamsters members. New hires would see reduced retirement benefits.
Also, Teamsters agreed to forgo any cost of living adjustments.
In exchange, the city will agree to not lay off any union members for the remainder of the 2010-11 fiscal year — 23½ job slots occupied by Teamsters were eliminated in July as part of a raft of budget cuts. The city will also increase its contribution to union members’ health care coverage, but by no more than $75 a month, per member.
The union’s bargaining unit has already OK’d the concessions. All that’s needed for the deal to go through is the City Council’s approval.
According to city staff, the moves would save Tracy $432,000 in general fund spending this fiscal year. General fund spending was tagged at $46.1 million for 2010-11, with a deficit being plugged by $4.8 million in reserve funds.
At a glance
• WHAT: City Council meeting
• WHEN: 6 p.m. Tuesday, Aug. 17
• WHERE: City Council chambers, 333 Civic Center Drive