Online Services Government Employment Education Business Tourism Need Help
Mayor's Office Heading City Letter Head

August 2, 2002
For More Information Contact:
Diane Gonzolas, Citizen Information Center, 441-7831
Jeff Stump, NAGE, 467-5830

City and NAGE Sign Three-Year Contract
Union also agrees to personnel cost reductions

Mayor Don Wesely today signed a new three-year contract with the National Association of Government Employees (NAGE), Local R9-38, which represents 475 full-time employees. The contract includes the separate agreement with the City to reduce personnel costs by nearly $818,000 in the City’s fiscal year 2002-2003 budget, which begins September 1.

"NAGE has worked with us very cooperatively, both on the three-year contract and on the agreement to help us control personnel costs as we worked on the tight City budget," said Mayor Wesely. "With NAGE’s help, I was able to propose a balanced City budget for the next fiscal year that includes no lay-offs of NAGE employees."

NAGE members voted in June to delay a four-percent negotiated raise for 13 pay periods, saving about $447,300. In addition, the union voted to give up the city contributions to its Post Employment Health Plan (PEHP) for the coming fiscal year, a savings estimated at $370,500, bringing the total savings to $817,800.

The negotiated pay increase for NAGE employees is 2 percent in the second year of the contract and 2.5 percent in the third year. NAGE employees who are not at the top of their pay ranges are also eligible for merit increases each year of 3.5 percent under the terms of the new contract..

The Mayor presented a balanced budget for 2002-2003 to the City Council on June 24. The projected budget shortfall of $5.5 million was eliminated through a series of program changes and personnel savings.

The Mayor began talking with the five City unions in December 2001 about the impact the budget gap could have on personnel and services. Personnel costs account for about 71 percent of the city’s tax-supported budget. The five city unions represent about 93 percent of all city employees.

InterLinc Home Page

Media Release