By Khalida Sarwari
The San Jose City Council voted today to impose a 10 percent reduction in salary and benefits on four labor unions amid a $115 million budget deficit.
The council voted 8-3 to put in place a 10 percent cut in total compensation on the International Brotherhood of Electrical Workers, the International Union of Operating Engineers, the Municipal Employees’ Federation and the Confidential Employees’ Federation.
Councilmen Ash Kalra, Kansen Chu and Xavier Campos dissented.
The council has already reached an agreement on the concessions with six other unions, including the Association of Building, Mechanical, and Electrical Inspectors and Association of Legal Professionals of San Jose. The only group that the city has not yet reached an agreement with is the San Jose Police Officers Association.
With the 10 percent concessions from all employees, the city is expected to shrink the $115 million budget shortfall by about $39 million.
The salary range for full-time employees in the unions is $103,267 to $210,967.
Reed has said retirement costs are “skyrocketing” and contributing to the city’s budget deficit, which will likely force the city to lay off hundreds of workers, including 195 sworn police positions and 64 firefighter positions as well as reduce library service to three days a week.