DC 37 SETS WAGE PATTERN FOR CITY WORKERS FOR THIS ROUND OF BARGAINING; IT DOES NOT COME CLOSE TO KEEPING UP WITH INFLATION

It's all over except for the voting. DC 37 has a tentative pattern-setting contract agreement with the City for five and a half years at 15.25% and a $3,000 ratification bonus. Because of pattern bargaining where one City union settles, which sets a pattern, then other unions basically receive financial terms that adhere to the pattern, this is basically what the next UFT contract will be like.

This is from City.gov:

The tentative agreement is retroactive, beginning on May 26, 2021, and expiring Nov. 6, 2026. It includes wage increases of 3 percent for each of the first four years of the contract, and 3.25 percent in the final year. The agreement also includes a lump sum ratification bonus for all DC 37 members, a major investment in a child care trust fund established and administered by DC 37, dedicated funding for improved retention and recruitment efforts, and a committee to explore flexible work options — including remote work. The parties have also agreed that as of July 1, 2023, every employee covered by this contract will earn at least $18 per hour — a rate which exceeds the minimum wage.

The salary increases:

May 26, 2021: 3.00%

May 26, 2022: 3.00%

May 26, 2023: 3.00%

May 26, 2024: 3.00%

May 26, 2025: 3.25%

May 26, 2026: 0%

The contract ends on November 5, 2026.

More on the DC 37 agreement from The City:

While far below the pace of inflation, which was 6% in 2022, the annual increase is more than double the 1.25% yearly Adams provided in his preliminary budget. 

Workers are also slated to receive a one-time bonus of $3,000 upon ratification of the contract.

City employees still owe those $1.1 billion in healthcare savings we wrote about Wednesday.

Back to The City piece:

The deal was a major test for Adams, a retired NYPD officer who won his election in 2021 in part because of his endorsements from labor and his rank-and-file bona fides. For months, negotiations for anticipated pay raises were tied up in a protracted battle over a cost-saving scheme to change retirees’ free health care coverage to a controversial Medicare Advantage plan. 

The planned Medicare Advantage shift originated in deals struck by former Mayor Bill de Blasio and the unions to pay for raises by finding health care savings.

As the largest public sector union, DC37 sets the pattern for wages and other benefits that other unions follow in their own negotiations. Nearly all of the city’s roughly 300,000 unionized staff are working under expired collective bargaining agreements.

The United Federation of Teachers is expected to bargain with the city next. The UFT and DC37 jointly represent 60% of the city’s workforce.

UFT reaction in Chapter Leader Update:

DC 37 reaches a tentative contract agreement

DC 37 reached a tentative five-year contract agreement yesterday after its members have been working without a contract since May 2021. Their tentative contract offers 3% increases in each of the first four years, and a 3.25% raise in the fifth year, plus additional money for salary adjustments, a child care trust fund and a ratification bonus. W

While we know the financials of DC 37’s tentative agreement will have implications for all municipal unions because of pattern bargaining, the fight must continue in our own negotiations. We will be closely analyzing the tentative agreement, which must be ratified by DC 37 members before taking effect, to determine its full value and see how we can maximize that financial package to get the most for our members in our own negotiations. We will also continue to push at the bargaining table on our noneconomic working-condition demands. Among our priorities are paperwork reduction, health and safety, time and autonomy, and special education.

For those who would like to see how City employees are doing compared to inflation, take a look at the chart below that compares DC 37 salaries in their last two contracts with inflation. 2017-22 uses actual inflation data. 2023-26 use these projected inflation rates:  5.8% for 2023, 2.5 for next year, and 2.0 for each year after. 2017 is the base year and the base salary is $50,000. Thanks to my nephew for doing this.