Villaraigosa Proposes 10% Salary Cuts

April 20, 2009

Los Angeles - Los Angeles mayor Antonio Villaraigosa announced on Sunday a new cost-cutting measure that will close the city’s $530 million budget deficit. In his proposal, the mayor said employees from local agencies should have their salary cut by 10 percent, including those who are working from police and fire departments which used to be exempted in contingency plans.

Villaraigosa is holding talks with firemen and police union representatives in an effort to have a mutual agreement, saying that salary cuts can prevent massive layoffs from happening.

In an interview, city hall spokesman Matt Szabo said that it is important for everyone to participate in the cost-cutting measures, adding that salary cuts are the only way to close the looming budget deficit.

“The 10 percent salary reduction can save at least $200 million and can prevent layoffs of nearly 2,800 employees”, Szabo added.

The spokesman also urged his constituents to cooperate with the local government’s contingency plans including unpaid day off, delay of salary raise, and higher contribution in worker’s health benefits and pension plans.

Meanwhile, Coalition of LA City Unions released a statement saying that local government should instead allow employees to have early retirement—with up to five years ahead of schedule.

“This can be more helpful in pumping money into the economic sectors which mostly needs financing”, the organization said.