In a move expected to save $30 million over six years, the city of Chicago reached an agreement with Laborers Local 1001 to cross-train new employees at a lower wage.
Mayor Rahm Emanuel said a new "hybrid" position will be created to train employees in all jobs under the Department of Streets and San, including tree trimming, graffiti removal and sanitation removal.
That means faster service for residents as Streets and San can easily move employees from one job to another. It also shows a shift in the mayor's relationship with unions after he threatened last year to lay off workers if work-rule changes weren't made.
Lou Phillips, business manager for Local 1001, called it a "historic day."
“This agreement is proof positive of the results that can be achieved through the cooperation and partnership between Laborers’ Local 1001 and the City of Chicago,” Phillips said in a statement.
“This is a perfect example of the city and labor working together to craft an innovative solution that protects jobs, saves taxpayer money, and allows us to provide services more efficiently,” said Emanuel.
New employees will start at $20 per hour, much less than the current entry rate of $33 per hour. Employees also will receive rate increases based on the number of hours worked instead of pre-negotiated rate increases.
If Chicago hires 50 new employees each year, it will save $30.4 million by 2017, Emanuel said.
Phillips said the union will find out Tuesday night, and because the change impacts new hires only, there won't be a vote.
"It's a new day, we have to be flexible," Emanuel said. Veterans will get preference for hiring.
