Mayor Garcetti: Ratepayers Will Save $4B Over 30 Years Under New DWP Contract

LOS ANGELES (CBSLA.com) — Mayor Eric Garcetti Thursday discussed the new contract deal with the Department of Water and Power union leaders.

"I'm pleased that we reached an agreement that pushes forward with DWP reform," Garcetti said Wednesday when the agreement was announced.

During an 11:30 a.m. news conference Thursday, Garcetti said the new deal will save ratepayers $4 billion over 30 years.

Under the agreement, union workers will not get raises for three years, and in the fourth year, they will receive a two percent raise.

Eleven percent of new workers will start at lower salaries than current workers, according to Garcetti.

Employees are required to contribute two percent more to the health and pension plans and will be reimbursed by the city.

Overtime will also be limited.