BREAKING: Mayor to Reduce Employee Wages

Albuquerque Mayor Richard Berry announced Friday that he will reduce wages for thousands of city employees to help balance this year’s budget.

In some cases, the administration reached agreement with union leaders on how to carry out the cuts. In others, Berry will simply impose his administration’s last, best offer because negotiations hit an impasse.

Affected by the latest round of wage cuts are the four AFSCME unions representing blue collar, security, clerical and transit workers. A fifth AFSCME union for mid-level managers is still considering whether to ratify an agreement with the city.

Each of the wage cuts announced Friday are for reductions of less than 2 percent. The mayor has previously announced wage cuts for the Police and Fire departments.

Below is the mayor’s news release:

July 16, 2010

Berry
Administration Reaches Agreements with Two AFSCME unions; Implements Wage
Reductions for Three Others

Mayor Richard J. Berry announced Friday that his administration has
reached agreements with two of the AFSCME bargaining units and has implemented
a wage reduction for the reaming three.

A tentative agreement has been reached with AFSCME Local 3022, which
represents management employees. Management union employees are expected to
vote on their agreement sometime next week.  Details of the tentative agreement
are not available until after the ratification vote.

AFSME Local 1888, which represents security employees has overwhelming
ratified an agreement in which those who make more than $30,000 will receive a
1.5 percent pay cut and two unpaid holidays. Security employees who make less
than $30,000 will not receive a salary reduction. 

A similar agreement was reached earlier in the week with negotiators
representing AFSCME clerical employees in which those making under $30,000
would not receive a salary reduction.  But, union members voted overwhelmingly to
reject the tentative agreement forcing Mayor Berry to implement a 1.21-percent cut for
all clerical union employees.

 ”I was hopeful we could reach agreements with all of the
city’s bargaining units, but I am pleased that we did reach some form of agreement
with three out of the five AFSCME unions,” Mayor Berry said.  “Our employees need to
know that we worked in good faith to come to resolution in a fair and equitable
manner in which the lesser paid employees would receive less of a cut. We
offered a sliding scale to every AFSCME union; however, all but two said
no.”

Mayor Berry
also implemented salary reductions for transit and blue collar union employees
after federal mediation failed to produce an agreement and union leaders
rejected the city’s offer of sliding scale cuts with employees making
under $30,000 receiving no salary reductions. AFSCME Local 264 transit
employees will receive a .48 percent pay cut and AFSCME Local 624 blue collar
employees will receive a 1.77-percent cut.

The cuts were based on the amount that was de-appropriated by the
Fiscal Year 2011 budget.  The budget was approved last month by the City
Council and signed by Mayor Berry.

Mayor Berry‘s
announcement marks an end to months of negotiations between the city’s
seven labor unions. Under the Fiscal Year 2011 budget – which began July
1 – $8.97 million in wages were required to be cut.  The budget was crafted to
make up for a potential $66 million shortfall this year.

Earlier this month, Mayor Berry
announced wage reductions for the fire and police unions. The 2.47-percent wage
reduction for the fire union was implemented after mediation failed to produce
a resolution with the Albuquerque Area International Association of
Firefighters Local 244. All Albuquerque Police Officers’ Association
Members received a 2.41-percent reduction after a mediation failed to produce
an agreement between the union and the city. The City implemented a sliding
scale for non-union employees in which the highest paid would receive a
3.5-percent wage reduction.

Along with the salary reductions, all city employees will pay 20
percent of their health insurance costs. Previously city employees were paying
17 percent. The changes will be reflected on the July 23 paychecks.

The Mayor and the City Council all took 5-percent pay reductions.