Dive Brief:
- Memphis City Council approved a supplemental retirement program for sanitation employees in the city, while rejecting a fee increase that was seen as the way to make that plan possible.
- The labor union had recently negotiated a compromise in exchange for the retirement plan. Workers agreed to an increase in their daily routes and also consented to a reduction of positions.
- Members of the Council were doubtful that the negotiated terms would reduce savings enough to cover costs, prompting one member to introduce an amendment that would release the government from paying the supplemental retirement if savings weren't generated.
Dive Insight:
Some members of the City Council felt that a supplemental retirement plan was unfair to other city workers and residents who will see an increase in collection fees. The council adopted the proposed amendment, however, the administration is reviewing whether the vote was legal, since significant alterations to the amendment may mean that the process must be started over.