Council Rejects Imposing Contracts

SAN DIEGO -- A proposal to impose a one-year contract on three of San Diego's municipal labor unions following the recent collapse of negotiations was rejected Monday night on a 4-4 vote by the City Council, a city official said.

Talks with the San Diego Municipal Employees Association, American Federation of State County and Municipal Employees Local 127 and Deputy City Attorney's Association broke down Friday.

In light of the impasse, Mayor Jerry Sanders asked the City Council to force a contract on the unions that includes no pay raises, changes the pension system for new employees and consolidates health care plans.

The tie vote forces the mayor's office and unions back to the bargaining table.

The vote followed a City Council hearing that was attended by hundreds of city workers. "In our judgement, the mayor's last, best and final offer is not an offer that contains a fair set of terms for a new contract," said Ann Smith, attorney for San Diego Municipal Employees Association.

Raises would cost San Diego about $14 million. "It's money we just don't have," Sanders said.

Sanders said the contracts he recommended "contain important reforms that are critical to the health and well-being of the city."

Sanders has said reforming San Diego's pension system for new hires is "critical to the city's financial well-being." He said it would save the city $48.5 million over the next 11 years.

Union officials say they are most bothered with the proposed pension structure, which would be similar those offered in the private sector and require employees to work longer to collect a smaller benefit.

Smith called the proposal for a new pension system a "rush to judgement," that creates "new and different problems that the city will regret."

Joan Raymond, president of AFSCME Local 127, last week called the mayor's pension plan "egregious," saying it would hinder the city's ability to attract and retain quality workers.

She didn't rule out a strike. "Our workers are very, very upset," Raymond said. "They are frustrated and they have authorized our negotiating team to call for a strike vote if necessary. We haven't gotten there. I hope that we will continue to make some progress, but with the mayor's announcement today, it is not looking very good."

Kevin Faulconer, Donna Frye, Jim Madaffer and Brian Maienschein voted to support Sanders' proposal. Toni Atkins, Ben Hueso, Scott Peters and Tony Young voted no.