The agreement would still leave an $800 million shortfall in promised benefits
The city of San Diego’s leaders signed off on a tentative agreement Friday with labor unions that they say would shave $323 million off a $1.1 billion shortfall in money needed longterm to pay lifetime health care for retired city workers.
The City Council voted 6-2 in closed session to authorize Mayor Jerry Sanders to move forward with the proposed deal he has spent months negotiating with labor. Council members Carl DeMaio and Lorie Zapf opposed the plan as being too generous to employees.
The agreement would lower the city’s retiree health care liability and forestall what could be a protracted legal battle with unions while ensuring that city workers aren’t left without health care promised by the city when they retire.
Under the proposal, San Diego workers would be required for the first time to contribute part of their paychecks toward the benefit beginning in April 2012, when the deal kicks in.
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