The San Joaquin County Board of Supervisors ratified an agreement with its labor union Tuesday that calls for three unpaid furlough days per year for all employees, eliminating four floating holidays for new employees and several employee concessions regarding health care coverage. The furlough days equate to a 1.15 percent salary reduction.
The agreement, approved last week by the Service Employees International Union, will save the county an estimated $16.7 million for the 18-month term of the memorandum of understanding and an ongoing annual savings of about $8.3 million, county Human Resources Director Cynthia Clays said in a report to the board. The county will also save $2.2 million annually for benefit changes for exempt, executive, senior management and confidential units, Clays said.
"Thanks for the compromise," SEIU President Patrick Ikeda told the Board of Supervisors Tuesday. "It is painful for both sides."
Three key elements of the MOU include cost sharing in health premiums to address the continuing increases of health care costs, cost sharing in retirement contributions to help offset the escalating cost of the county's defined pension benefit, and short-term cost savings through furloughs.
SEIU represents more than 4,500 county workers. The MOU will expire on June 30, 2013.
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