Reno agrees to no layoffs if workers take no raise

RENO, Nev. (AP) - Reno city officials have agreed to not lay off any city workers who agree to skip raises for the next year and let the city miss one payment to its health insurance plans.

But the city says it can only keep its promise as long as the economy doesn't get worse.

Reno officials held a labor session last week and agreed to the plan for its next fiscal year, which begins in July.

The city council has been appealing to employee unions to give up two 2.1 percent raises over next year. Reno has been looking for ways to avoid laying off up to 60 employees, including 19 firefighters.

Its latest deal assumes that there will be no growth in property tax revenues in fiscal 2009-2010, an increase in franchise fees and a decline of 17.5 percent in consolidated taxes.

The union representing Reno firefighters had offered to forgo pay raises to help avoid layoffs. But city officials previously said they could not guarantee everyone their jobs because of economic uncertainty.

The city council says the concessions by workers will save the city enough money to save their jobs.

City council officials say they hope the plan works in the same way it did last year, when workers agreed to save the city 2.1 percent in employee pay.