Emotions ranged from disbelief to despair to downright anger Friday as 15,000 San Francisco city workers received pink slips. But Mayor Gavin Newsom reiterated that his controversial plan to rehire them under shortened workweeks would wind up saving thousands of jobs.

Newsom ordered the layoff notices be sent to most of the city's 26,000 workers and said the overwhelming majority of them will be hired back within two weeks to work 37.5 hours a week instead of their current 40 - meaning they'll see a 6.25 percent cut to their paychecks.

The plan will save $50 million in the city's general operating fund, which has a $522 million deficit for the 2010-11 fiscal year. It will save another $50 million in departments that don't receive general fund money like the port and airport.

Bob Muscat, head of Professional and Technical Engineers Local 21, also is chairing the Public Employee Committee, comprised of many unions working together to come up with a counterproposal.

Muscat said that one idea is to reduce the city's outsourcing of labor and that the group wants to present its plan to Newsom next week. He said the unions will file a lawsuit if no compromise is reached.

"If he continues on this plan, then I think we'll be left with no choice," Muscat said.

City workers were irate Friday, commiserating as they showed each other their layoff notices. Some wore pink in protest.

"People are very upset. Many were in tears, and some were very, very angry," said Sin Yee Poon, the incoming chief elected officer of Service Employees International Union Local 1021. "There is a lack of fairness."

Many unions, including the SEIU, gave back raises last year to help balance the city's budget.

Certain workers safe

Many say it's unfair that some city workers are being laid off while others - including police officers, firefighters, Muni drivers, attorneys and a host of managers and department heads - are not.

At an impromptu news conference Friday morning, Newsom tried to quash those complaints by saying he'll be asking for a 6 to 6.25 percent pay cut from all unions, even those whose members will continue to work at least 40-hour weeks for staffing reasons or because their work hours are enshrined in the city charter. But those unions will have to agree to the pay cuts.

In 2007, Newsom gave police officers and firefighters a 23 percent pay raise spread over four years, which his critics said was an overly generous package intended to win their support as he ran for re-election. Both unions are due a 6 percent wage increase next year.

John Hanley, head of the firefighters union, said his group is open to meeting with the mayor to talk about givebacks but would not pledge to forgo their coming raises. "A labor group would never promise that," he said with a laugh.

The police and firefighters' unions both agreed to givebacks last year: 5 percent over two years for police and 5.75 percent over 2 1/2 years for fire. Still, the mayor's office will be asking them for more.

Muni operators due 7% raise

In addition, the Transport Workers Union representing Muni operators is due a 7 percent raise. That group recently rejected a package of contract concessions. The heads of TWU and the Police Officers Association did not return calls for comment.

Newsom said he and his chief of staff will continue to take the 15 percent pay cut they took this year.

"Unlike the headlines you guys write, my trust fund doesn't exist," the mayor said. "I've been looking around for it."

He added that everybody in his office earning more than $100,000 a year will continue to take 10 percent pay cuts. He said he's also asked his department heads to take 10 percent pay cuts.

"We're all in this together," he said.

Another concern among workers is how the layoffs will affect their benefits and pensions. Their health benefits and vacation and sick leave will not change, though their pensions will be impacted because they are based on wages. The mayor has said he hopes it encourages some workers to retire.

Many workers also are concerned because Newsom has said not everyone will be rehired. He said Friday his attorneys have advised him not to reveal the number who won't be rehired.

"I've been lawyered up, guys," he told reporters. "And you can quote me on that."

This article has been corrected since it appeared in print editions