Mayor would cut S.F. workers' week to save cash as Bay Area cities go broke

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(02-08) 22:32 PST SAN FRANCISCO -- More than 10,000 San Francisco city workers - from librarians and gardeners to secretaries and street cleaners - would be laid off and most rehired for jobs with shorter hours under a controversial plan being examined by Mayor Gavin Newsom.

The idea, which sprouted in the mayor's budget office and was described to his department heads Monday, would reduce the workweek for a large swath of the city's 26,000 full-time employees from 40 hours to 37.5.

Newsom's budget office estimates that paying workers for 2.5 fewer hours of work each week would save more than $50 million a year as the city grapples with how to close a devastating $522 million budget gap for the 2010-11 fiscal year.

Health and vacation benefits would not be affected, though pensions - which are calculated based on workers' salaries - would reflect the shaved schedules.

"We have to look at unprecedented tools to close an unprecedented shortfall," said Tony Winnicker, spokesman for the mayor. "These times call for unusual measures, so we have to look at all options."

Meeting with unions

The mayor has the authority under the city charter to reduce workweeks after consulting with union leaders, and the plan doesn't need approval from the Board of Supervisors. Layoffs, though largely a formality, would be required because 40-hour workweeks are inscribed in union contracts with the city.

Micki Callahan, the city's director of human resources, said her staff would bring the idea to union leaders this week. She said the mayor is open to alternatives proposed by the unions but that he needs concessions to balance the budget.

If the idea is accepted, workers will begin receiving layoff notices soon and could opt to reapply for the positions with shorter weeks, which would be filled based on seniority.

There may not be a position for everybody, however, because some regular layoffs probably still would be required, Callahan said. But the plan would avert much more dramatic layoffs, she said.

"It is absolutely true we are going to have to reduce positions overall," she said.

Making the plan more controversial, though, is that it won't apply to all city workers. Police officers, firefighters and deputy sheriffs probably would be exempted. Those departments have mandatory staffing levels and reducing workers' hours would mean paying increased overtime, eliminating any cost savings.

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