City, white-collar union reach terms
Mayor Nutter's goal in his first contract talks with the city's municipal unions was to play for time. He sought one-year, status-quo deals that would give him the breathing room to come up with big solutions to the pressing problems of fast-growing pension and health-care costs.
Mayor Nutter's goal in his first contract talks with the city's municipal unions was to play for time. He sought one-year, status-quo deals that would give him the breathing room to come up with big solutions to the pressing problems of fast-growing pension and health-care costs.
So far, he has largely gotten what he wanted.
Yesterday, leaders of District Council 47, the city's 3,372-strong white-collar union, grudgingly approved a one-year deal that closely resembles the contracts Nutter had already struck with police and blue-collar workers. The agreement still must be ratified by the union's membership. Only the city's smallest union, which represents 2,280 firefighters and paramedics, has yet to reach a deal with the city.
"We will literally go right back into contract negotiations in another month or so," Nutter said, acknowledging that the one-year deals are stopgap measures. "So you don't have to get everything you might want in a one-year deal when you know you're going right back for a multiyear deal."
The city's new contract with DC 47 of the American Federation of State, County and Municipal Employees would give union members a $1,100 bonus, but it does not call for any permanent raises. Also, the city's contribution to the union's health-care plan would remain the same.
"While we do not embrace this contract, we accept this contract as a way to break the stalemate," said Cathy Scott, president of DC 47, at a news conference with the mayor after the deal was signed.
Scott had been holding out for a two-year contract with some pay increase and higher city health-care contributions. The contract she got, she said, falls short of the "expectations of many in our membership."
"We are realistic. We are recognizing the city's position financially. I do think people will be disappointed," Scott said, adding she nonetheless expected the pact to be ratified by her members.
The union did win a few concessions from the city, in addition to the $1,100 bonuses.
If the contract is ratified, DC 47 would also have the ability to bid on projects that the city otherwise might award to outside contractors. The city also agreed to provide $75,000 for a program to prevent workplace violence, and $50,000 to help union members gain certification.
Like those of the police and blue-collar unions, DC 47's leaders have also agreed to participate in a joint labor-management Healthcare Evaluation Committee, which Nutter described as a "first-ever comprehensive effort" to control costs while preserving quality benefits.
"I believe we now have the critical momentum to find a new way of providing high-quality care at the lowest possible cost," Nutter said, later saying that the committee is expected to begin meeting within weeks.
In addition to health care, Nutter is also concerned about the city's increasing pension obligations. In February, he proposed issuing a bond of at least $3 billion to prop up the city's massively underfunded pension fund. That deal would take time to pull off, and if the city is successful, it could have implications for the next round of labor talks.
"They bought time, and they paid somewhat of a premium for it," said former Managing Director Phil Goldsmith, referring to the bonuses union employees will receive. "The issue now is will the time be well spent and provide results that benefit the city, the union and the taxpayers."
