Mayor Nutter is today freezing salary increases, including pay step increases or longevity increases, for union workers and non-represented civil service employees.
The move – which the city said could save about $80 million* over five years if it stays in place – comes a week after contracts expired for the city’s four municipal unions. While the city is legally required to maintain the “status quo” of employee compensation during negotiation, the state Supreme Court has ruled that status quo does not include pay increases.
“If you got it, you got it and if you didn’t you didn’t,” said Managing Director Camille Barnett this afternoon. She said the administration was not making a negotiating move, but rather trying to achieve much-needed savings.
Workers were notified of the move through a mass email. Barnett said the city was not in a financial position to continue paying pay increases. The city has said they need to get $125 million in savings from union contracts over the next four years. The city’s contract proposals to the four unions include no salary increases of any kind.