MEMPHIS, — A lawsuit over a 4.6 percent pay cut for Memphis workers continues to grind its way toward a May 19 trial date.
The Commercial Appeal reported that the pay cut came in 2011, during a difficult budget cycle. Thirteen labor organizations filed suit the following month, arguing that it violated their negotiated agreements with the city. The two sides met for mediation this fall, but it was unsuccessful.
The City Council voted in this year's budget cycle to reverse the pay cut, but that may not ease tensions between the city government and employee labor unions.
Mayor A C Wharton's administration is calling for moving new employees and those with less than 10 years' experience from the city's current pension plan to a 401(k)-style retirement plan.