Also in this playlist...
This transcript is automatically generated
-- the mayor of cash strapped Scranton Pennsylvania to another story reaching a deal.
With this city unions to pay public workers back wages.
Plus interest -- Chris -- attracted national attention when he slashed the pay of city workers.
-- minimum wage -- -- -- five an hour.
Saying this city did not have enough money.
To make the one million dollar payroll David Lee Miller is live -- -- Pennsylvania with details on the deal.
Said David -- what is the reaction to all of this.
So for Heather no one here is -- uncork the champagne bottles because to a great extent this was a controversy.
That was resolved two weeks ago at that point in time the -- that there had been an increase in tax revenue flow and he was able to restore full page.
Nevertheless the mayor did remain in possible contempt of court for violating the collective bargaining agreements with the unions here in Scranton.
But this week and everything changed in the mayor in the union struck a deal.
Under this deal.
The city is going to pay the unions a total of 700000.
Dollars in back pay in addition to interest it.
It's going to be collected at 6%.
They'll total about 5100 dollars the head of the firefighters union says he is relieved but he does remain bitter with.
It was simply and so connecting these guys train fast.
This guys train every day.
Put their lives on the line.
And you know to require them to do their jobs 715 dollars and cents.
One thing worth noting here is that when the mayor decided that everyone was going to be paid minimum wage he -- every -- together.
The mayor receives a salary of 50000 dollars a year he too was getting seventh when he -- and our other.
So David -- how did this deal come about to begin -- -- Clinton has been in financial trouble Ford for decades.
The mayor in this City Council last week came up with a recovery plan as a part of that plan.
Taxes are going to be raised here a little more than 30% real estate taxes over three years and by raising taxes the city.
Then pave the way.
For this state to give this city a combination loaning grant totaling more than two million dollars.
That money is going to be used to -- wages that are -- and it's a debt that the mayor here readily acknowledges.
Simply deserve -- paid.
They have done a good job for a city that's never question we have an obligation to pay them -- having money and so we have to work on that to make sure that we have the funding in place.
-- -- for the people listening to citizens the sources that they asked -- but also to the employees who work for those.
Clinton still faces a very difficult financial.
Future -- this city still has more than 250 million dollars in -- it's going to take years and years for full recovery.
And I -- -- -- live from Scranton Pennsylvania force this morning thank you are right on the topic.
Filter by section