The de Blasio administration struck a deal for a new
44-month contract with the largest city workers union — giving raises that will
likely set a pattern for the entire city workforce, officials said Tuesday.
Under the $1 billion contract, the nearly 100,000 members of
District Council 37 will get wage hikes of 2% in the first year of the
contract, 2.25% the next year and 3% the year after that.
Mayor de Blasio announced the contract at City Hall with DC
37 Executive Director Henry Garrido.
In addition, there are more healthcare givebacks:
The city
also struck a deal with the Municipal Labor Committee, which represents all
city worker unions, to save cash on employee health care.
New rules
will require workers to go to outpatient health centers, instead of hospitals,
for some kinds of treatment.
And new
employees for their first year must join the HIP Health Plan of New York, the
cheapest health care plan the city offers, but will be able to switch to a
pricier plan after that.
But city
negotiators were unable to persuade the union to pay higher health care
premiums.
The labor
umbrella group said the health care changes would save the city $1.5 billion in
employee health care costs over the next three years.
We predicted DC 37 would settle and we are not surprised. One union settles and others are now stuck by arbitration precedent with the same settlement so this is basically the UFT contract. Compounded, it comes to a little over 2% annually that we are paying for much of with the healthcare givebacks.
Analysis will follow.
2 comments:
Can you explain how a 3 year contract is really 44 months? 2% and then 2.25% and then 3%, but not yearly, over 3 years and 9 months. Honestly, I don’t understand.
By delaying time for raises, city saves a fortune. Zeros for a few months matter.
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