Hollister – Nearly one year after the previous contract expired, the city and a local union have struck a deal – albeit one that lasts only until the end of 2007.

The agreement extends the “memorandum of understanding” between the city and Service Employees International Union Local 521 – which represents all Hollister employees except for police, firefighters and management positions – until Dec. 31, 2007.

The agreement first expired June 6, 2006, and was previously extended to Dec. 31, 2006.

In June 2007, some union members appeared before the City Council to point out that they hadn’t received any raises since 2003. As city staff has been cut, the remaining employees have had to take on more responsibilities, workers contended. The City Council approved the new agreement at its meeting Monday.

“It’s a temporary Band Aid in recognition of the city’s financial uncertainty at this point,” said SEIU spokesman Frank Garden.

Garden said it’s “a fair assumption” that the city and SEIU wanted to delay further negotiations until after Nov. 6, when Hollister residents will vote on the sales tax initiative Measure T. The measure would increase Hollister’s sales tax from 7.25 to 8.25 percent, and supporters have said it would help the city undo recent service cuts.

Critics, though, have argued that much of the $3.5 million to $4 million annually in extra revenue would pay only for additional employee benefits. On Tuesday, Administrative Services Director Robert Galvan and City Councilman Doug Emerson both emphasized that if the measure passes, restoring services would be “the number one priority.”

Galvan also said the new deal addresses some workers’ concerns without adding costs. He said through some trade-offs – including an agreement to cap workers’ health-care payments rather than just paying them extra money to meet increased health costs – Hollister will actually save $4,544.16.

The city recently extended similar agreements with unions for the police and fire departments, Emerson said.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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