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SEIU encourages postponing wage increases

January 23, 2009
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SANTA CRUZ, CA — The Service Employees International Union (SEIU) Local 521 is encouraging workers to postpone pay raises and cost of living increases to prevent the layoff of up to 40 city workers, according to the San Jose Mercury News.
An agreement must be made today or the city will have no choice but to begin cutting back hours and laying off workers to counter the city''s $7 million deficit, the story stated.
Councilman Mike Rotkin said: "It didn''t hurt that Obama suggested that people give up their salaries so others could keep their jobs. I don''t know how much we had to pay him to say that, but it was very helpful."
All of the unions functioning in the city except the SEIU have agreed to curb their pay raises for the time being; City Council members even cut their monthly stipend by 1o percent, the story noted.
City leaders remain confident that an agreement will be made before drastic measures need to be taken, the story added.
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