Wages, Pension Contributions Increase In New Contract Between Philadelphia And Its Largest Union
By Tom Rickert
PHILADELPHIA (CBS) --- The City of Philadelphia and its largest public workers union have reached a tentative agreement on a new contract.
AFSCME District Council 33 represents more than 7,000 Philadelphia municipal workers. The union has been negotiating with the city since March on a new deal, and on Friday night, they agreed on a new, 4-year contract.
The new agreement comes with a pay bump. Workers will see wages rise by 3% in 2016, 2017, and 2019. In 2018 they'll receive a wage increase of 2.5%.
The city will also contribute $10-million to the health fund in 2016 and 2017.
District Council 33 President Pete Matthews called it a fair contract in a statement, saying, "With the average wage increases for state and local workers around the country averaging less than 1%, we were able to secure a wage package compounded at 12% over four years."
Matthews also acknowledged the turmoil in public employee pensions around the United States right now. He says the new contract with the city is "a fair agreement which will secure all of our current and future pensions."
Under the new contract, some workers will have to make additional pension contributions in a tiered structure.
There's no change for workers who earn $45,000 or less a year, but higher than that, the contribution rate will rise. Workers making between $45k - $50k will have to contribute .5% additional to the pension, 1.5% additional for the $55k - $75k bracket, and 2.75% additional for those who make up to $100k. Employees making more than $100k a year will have to contribute an additional 3% to the pension fund.
The Mayor's Office says the average salary of District Council 33 workers is about $38,000.
Mayor Jim Kenney called the agreement fair to both the employees and the taxpayers -- and he says it's a "key step" in the process of making the pension fund sustainable.
The contract now heads to the union members for ratification.
