Administration has negotiated one year contracts for 2020 with the city's three labor unions. We understand that it may seem strange to approve labor contracts with a 3% wage increase at this time, with economic downturn and likely recession upon us. However, this contract is in alignment with the wage increases granted in December 2019 to non-union staff.  

We are fortunate that we are able to provide for this planned and budgeted wage adjustment for 2020 as we head in to an uncertain future. The city's finances are strong and we are in an exceptional financial position compared to many others. Agreeing to this contract sets the stage for us to maintain our strength and stability going forward in to economic uncertainty. Many other organizations will be in much more difficult positions in the coming year, because they have longer contracts with wage increases in 2021 and 2022 already agreed to.  In Shakopee our labor unions have seen that challenges are forthcoming and have agreed to shorter contracts so that we may work together to ensure we are delivering cost effective, efficient services going in to the future.

The 2020 budget includes funding for these wage increases, but the 2021 budget is unlikely to have similar flexibility. This is why administration altered course and modified all of our offers to only include the year 2020. Negotiations for 2021 will begin in the fall, when we have a greater understanding of the economic impact of COVID-19, and a better view on the challenges and priorities going forward.