Furloughs Give Way to Pay Cuts

Link to August 3 New York Times article, "More Workers Face Pay Cut, Not Furloughs".

Excerpt:   The furloughs that popped up during the recession are being replaced by a highly unusual tactic: actual cuts in pay.

Local and state governments, as well as some companies, are squeezing their employees to work the same amount for less money in cost-saving measures that are often described as a last-ditch effort to avoid layoffs.

Closer to home, Rockford Illinois considers the idea.

Link to August 7 Rockford Register-Star article, "Rockford aldermen, staff consider wage cuts to trim budget".

Excerpt:    Aldermen also received a handout on pay cuts. If the city were able to cut salaries by 5 percent across the board, it could save as much as $2.7 million in its general fund and nearly $900,000 in nongeneral-fund departments, such as human services.

For that proposal to make the light of day, the city’s three unions — police, fire and municipal workers — would need to agree to it, “but I think most people could look at the numbers and see we made some tough choices,” said Ald. Venita Hervey, chairwoman of the City Council Finance and Personnel Committee.

“We’ll get to the point where we’ll lay off or reduce wages. That’s the bottom line,” she said.