GENERAL LEGAL PRINCIPLES; WAIVER – By Contract/Zipper Clauses/Management Rights Clauses

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Section 7.01.4 of the parties’ contract contains both a restriction on the City’s managerial right to conduct layoffs and a limited waiver of the union’s right to meet and confer over the decision to contract out bargaining unit work. The waiver of the union’s right to bargain is limited by the occurrence of one of the triggering events identified in Section 7.01.4, the City’s loss of Redevelopment Agency (RDA) funding or a general fund deficit of $7 million. Since there is no dispute that the City lost RDA funding in 2012, we conclude that the City was entitled to implement layoffs and contracting out of bargaining unit work subject only to reasonable notice.