The Cambridge City Council Monday night held a heated hour-long hearing on pay raises for the City's 300-odd Public Works employees.

Several City Councillors repeatedly clashed with City Manager James L. Sullivan over whether the Public Works employees would automatically receive a 10 per cent pay increase this year or if they had to sign a collective bargaining contract to receive the pay boost.

The issue dates back to December, 1968, when Sullivan agreed to give most City employees, including those of the Public Works department, 10 per cent pay increases for 1969 and 1970.

The City Manager said it was understood that only those employees who had not decided to enter collective bargaining would automatically receive the 1970 pay increase. Those- such as the Public Works employees- who chose to bargain collectively would have to sign a contract with the City before being assured of the pay increase, the manager said.

James Cassidy, president of the Public Works employees local, didn't see it that way, and asked the council to vote them the 10 per cent increase immediately. Councillor Alfred E. Vellucei agreed, and accused the manager of using the increase as a "club" over the Public Works employees.

Sullivan replied by saying that, in collective bargaining, the Public Works employees, made other demands- for clothing, sick pay, etc.-which, if granted along with the 10 per cent, would give them increased benefits larger than those granted other city employees.

He went on to say that, under the state's collective bargaining law, City employees who chose to enter collective bargaining with the City Manager were not allowed to come before the council asking for pay raises. To allow this, Sullivan said, would undercut the City Manager's bargaining position.

"You're suggesting that in this meeting we should politely mind our own business?" Councillor Thomas W. Danehy asked the City Manager.

"I'm suggesting that the proper avenue is in a collective bargaining agreement," Sullivan replied.

In the end, the council accepted a motion by Councillor Thomas Coates, calling on the manager to take the lead in setting up new collective bargaining sessions, since it appeared that the employees had difficulty arranging past sessions with the City's bargaining agent.