Sacramento County has secured twelve labor agreements. Included in the two-year contract extensions are provisions that prevent pay increases and establish a two-tiered pension system.

The total number of employees represented by the latest agreements totals nearly 6,000. The total number of employees now covered by contracts that extend into future years is now 8,727.8, or about 75 percent of the approximate total of 11,600 County employees.

Labor and management continue to work on the remaining contracts, including three more covering 1,172 employees that are in “tentative agreement” phase. If final agreement is reached on these three agreements, the percentage of employees covered by extended contracts will rise to 85 percent.

The County and the Organizations have worked collectively to reach agreements that protect the interests of the employees while recognizing the economic pressures the organization is facing.

“We wish to thank the organizations for working with us collaboratively to reach a good, sound business agreement that recognizes the County’s fiscal situation while protecting the rights of the employees,” said Interim County Executive Steve Szalay. “These will help stabilize our costs until the economy turns around, and help us continue to deliver services to the residents of Sacramento. We fully expect our fiscal situation to improve in the next couple of years and look forward to addressing this issue again to insure we are paying fair, equitable salaries and benefits.”

“As an employer, the County is where it needs to be,” Szalay added. “The new agreements provide two years of budget certainty with no compensation increases.” He added that generally Sacramento County salaries are in the median of the comparable market and we have already achieved what other public employers are seeking with concessionary agreements including: employees paying their full share of employee retirement contributions and employees paying 20% of their medical expenses. With the new round of agreements we will begin moving to new and lower retirement tiers and eliminating employee retirement health contributions which will provide long term savings.

Details of the Agreement:

The twelve labor contracts were set to expire June 30, 2011. They will be extended until 6/30/2013, and will include no new raises for two years. The agreement also includes long term savings from pension reform while still providing reasonable pension benefits: all new employees will be hired at new lower tier retirement plans.

New Retirement Tiers:

1.92% at 60 formula (rather than 2% at age 55.5) for non‐safety employees 3% at 55 formula (rather than 3% at 50) for Safety Employees

Retiree Health Subsidy

The partial subsidy of retiree health and dental premiums will be terminated at the conclusion of the extended agreements beginning the payroll period beginning June 30, 2013.