San Jose and Police Union reach agreement Thursday, January 29, 2009 By KLIV San Jose - The City of San Jose and the negotiators representing the Police Officers Association union have settled on the terms for a new contract. The deal comes as the city is facing a budget deficit. The agreement takes into account the city's financial difficulties and provides officers with a retroactive 3.75% raise this year and a 1.75% pay hike next year. However, it does not improve retirement or benefits for union members, which the city said was key to making it work. Mayor Chuck Reed said even in a tough budget year, the city had to provide salary increases to maintain the department's standards. At the same time, it would not encourage officers to retire early. A high turnover rate would result in more money being spent to recruit and train new officers. City councilman and former police officer Pete Constant points to the key to success in negotiations. He says the main ingredient is the funding for the retiree medical healthcare. He expressed happiness that the agreement came without having to go into arbitration. Those possible costs would have been too much for the city given the financial outlook for the next few years. The agreement must still be ratified but it sets an example for the firefighters union to consider as they work for a new contract with the city of San Jose.

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