SCEA declines City request to renegotiate labor contract

The City of Stockton has asked the Stockton City Employees' Association (SCEA) to reopen its labor agreement entirely and renegotiate it from scratch. In a February 16 letter to SCEA attorney Joe Rose, interim human resources director Di Smith asked SCEA to renegotiate contract provisions relating to salary and benefits. But during a March 4 meeting between SCEA and City representatives, Smith confirmed the reopener request was not limited and would apply to all provisions of the Memorandum of Understanding (MOU).

Smith's February 16 letter proposed a timeline forcommencement of negotiations within two weeks and completion no later than the end of April. The letter cites the City's financial condition as the basis for the request to renegotiate the entire MOU.

By letter on March 11, 2011, SCEA declined the City's request.

SCEA and City officials negotiated the MOU over eight months in 2008. The MOU was ratified by SCEA members on October 12, 2008, and approved by the City Council on December 9, 2008. At the time, the City's financial challenges were known, contemplated, and openly discussed. This is why the MOU contains several significant concessions and reforms, such as:

• A two-tier system for retiree health payments, so that new employees hired on or after January 1, 2009, will make contributions to a retiree medical trust during their working years in lieu of a promise of City-paid Retirement Medical Allowance and Retirement Medical Supplement;
• Unpaid work furloughs;
• Salary adjustments based on a percentage of growth in renewable City revenues from the prior year rather than the unrelated Consumer Price Index; and
• Reopeners to discuss in year 2011 the revenue growth formula and health care.

Since entering into the MOU, SCEA members have voluntarily agreed to additional economic concessions. The total value of economic concessions made by SCEA is $5.23 million. The savings from SCEA concessions in Fiscal Year 2010-2011 alone total $2.64 million.

Copies of the City's letter requesting to reopen and reneogitate the MOU, and SCEA's response declining the request are available from members of the SCEA Board of Directors.

SCEA's MOU remains valid through June 30, 2014.