Hayward Declares Fiscal Emergency, Tries to Open Contracts for More Concessions

On May 31, the City of Hayward declared a fiscal emergency, claiming projected deficits of $20-$30 million annually over the next ten years and requesting that all City unions open their contracts to commit to an additional 23% in concessions over the next three years.

City Unions already agreed to $7.9 million in concessions for this fiscal year, and the City has balanced its budget for the year. However, since early this spring, City Manager Fran David has been trying to extract additional concessions, asking the unions to reopen their contracts.

In April, Local 21 Hayward members voted to continue the 5% salary reduction through furloughs, but rejected the idea of opening the contract for further cuts. The following month, seven Local 21 members received layoff notices. On May 31, when the City declared its fiscal emergency, it asked for the following cuts:

  • 1.7% cut to wages
  • 10% cut to health, dental, and vision benefits
  • 7% employee contribution to CalPERS
  • 25% employee pickup of City contribution to 457 retirement plans

The following week, Chapter President Jodi Pascual, Vice President Ramona Portillo, Representative Pam Covington and Director of Field Services Bob Britton met informally with Fran Robustelli, Human Resources Director to discuss impacts of the fiscal emergency and the City’s request to open our contract for concession negotiations. The City offered nothing in exchange for these concessions and rejected any consideration of a no layoff provision. Ms. Robustelli threatened that the City would be forced to cut 20-30% of the City workforce if bargaining units did not accept these concessions.

Local 21 Hayward members will be discussing the fiscal emergency and possible impacts in coming weeks.