DATE: June 9, 2020
TO: Mayor and City Council
FROM: Assistant City Manager/Interim Director of Human Resources
SUBJECT
Title
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Service Employees International Union, Local 1021 for Implementation of an Unpaid Furlough in Fiscal Year 2021 and Authorizing the City Manager to Execute the Agreement
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RECOMMENDATION
Recommendation
That Council adopts a resolution (Attachment II) approving a Side Letter of Agreement between the City of Hayward and the Service Employees International Union, Local 1021 for implementation of an unpaid furlough in Fiscal Year 2021 and authorizing the City Manager to execute the agreement.
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SUMMARY
The City of Hayward is experiencing an unexpected drop in revenues as a result of State and County Shelter in Place Orders due to the COVID-19 pandemic. As a result, the City has taken a number of cost-saving measures to limit the impact this crisis has on its employees and residents, such as reducing expenditures, laying off temporary staff, and seeking concessions from its employee groups.
The City and the Service Employees International Union, Local 1021 (SEIU) have met and conferred in good faith and have reached a tentative agreement in which SEIU members will be required to meet a thirty (30) hour unpaid furlough obligation in fiscal year 2021. If certain financial indicators are met, employees would be required to meet an additional furlough obligation of twenty-five (25) hours, for a total of fifty-five (55) furlough hours in FY 2021. The proposed agreement would result in a General Fund savings of approximately $376,135 and a total projected savings across all funds of $692,856 in FY 2021.
In recognition of SEIU agreeing to an unpaid furlough in fiscal year 2021, full-time employees will be permitted to cash out up to forty (40) hours of vacation leave in FY 2021, and part-time employee...
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