WARWICK – Warwick Mayor Joseph J. Solomon announced Wednesday that up to 50 city employees will be laid off due to anticipated declined revenue the city is facing as a result of the COVID-19 pandemic.
In a statement, Solomon said he offered Union Local 1651 a proposal to not have a schedule 2.8% pay raise this coming fiscal year in order to avoid layoffs. However, the union rejected the option, Solomon said, and stated that the union preferred a layoff in lieu of eliminating the scheduled pay increase.
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Solomon said the city could not ask its taxpayers, several of them who lost their jobs within the last few weeks, to foot the bill for the raises as it is “just not feasible or fair” to city taxpayers.
“This is a situation none of us could have anticipated even a few months ago,” Solomon said. “Our economy has been turned upside down by this pandemic, and we must pitch in together to get our community through this crisis. I thought that a compromise was the best solution for our taxpayers, as well as for our Union employees and their families.”
The city is expecting a significant financial hit from the pandemic as its tourism and hospitality industries make up a large portion of its tax base. As of April 17, per the city’s website, the Providence Warwick Convention & Visitors Bureau estimated an $18.2 million loss in direct spending for canceled events that were booked by PWCVB, and an additional $16.3 million in postponed business.
The city receives about $9 million in revenue for airport, hotel, meal and beverage taxes and those revenues could decrease by 33% in the coming year, the city said.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
