DC 37 SETS PATTERN FOR CITY CONTRACTS

From the Daily News:

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.

DC 37 also got the more expansive paid family leave, not just paid parental leave, like the state workers in the private sector.

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.