The City is sending out 15,000 layoff notices Friday under Mayor Gavin Newsom’s plan to rehire workers as part-timers for a savings of $50 million. He is also asking department heads to give up 10 percent of their pay and is in talks with Police and Fire employees to give up pay raises.
Newsom held a press conference Friday morning defending the 37.5-hour work week proposal against criticism from union labor leaders and members of the Board of Supervisors.
He said 15,000 layoff notices are going out Friday and an “overwhelming majority” of the workers who receive the pink slips will return as part-time workers, with 37.5-hour work weeks, instead 40 hours. The move would save The City about $50 million in salaries.
“The reason I am doing this is to save people’ jobs and to save city services,” Newsom said.
Not moving forward with the part-time proposal would mean thousands of city workers would lose their jobs, he said, as The City must close a budget more than $500 million deficit by July 1.
Newsom also said that every city worker is being asked to give up 6.25 percent of their wages, even those not impacted by the part-time proposal.
Some supervisors have questioned why police and fire workers are not part of the part-time proposal. Newsom said that The City is in talks with those labor leaders about having the workers agree to not receive pay raises next year, which would represent a 6.25 percent wage cut.
“As difficult as this is, I think it’s appropriate with the cards that have been dealt,” Newsom said.
The mayor must submit a balanced city budget by June 1 to the Board of Supervisors for review and adoption.
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