Philly halts pay hikes for city workers

July 7, 2009 6:15:09 AM PDT
Philadelphia's mayor plans to stop planned pay increases for more than 20,000 city workers. Mayor Michael Nutter announced Monday that the city will halt increases typically given to employees as they rise through the steps on the city pay scale. The change is expected to save about $8 million this fiscal year and about $80 million over the next five years.

But a union leader says Nutter's plan violates a contract he agreed to last year and she plans the fight it. Cathy Scott says District Council 47 of the American Federation of State County and Municipal Employees has pointed out many sources of revenue and ways to cut spending that the mayor has ignored.

Philadelphia is facing a projected budget deficit of more than $1 billion over the next five years.

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