Mayor Nutter Announces Labor Contract Agreement With AFSCME District Council 33

Philadelphia, August 22, 2014 – Mayor Michael A. Nutter announced that late last night the City of Philadelphia reached a tentative seven-year contract agreement with the representatives from AFSCME District Council 33 (DC 33).  The contract agreement term is July 1, 2009 through June 30, 2016 and includes critical reforms to overtime and pension contributions, work rule changes, health and wellness benefit adjustments and wage increases.  The proposed agreement, which call for no retroactive pay or benefit increases, will add about $127 million in costs to the City’s Five Year Plan. 

“I am delighted that our labor team came to agreement with representatives from DC 33 that meets our long-term goals of reform in the areas of pensions and work rule changes while providing our hard-working City employees with the pay and benefit increases they deserve.  This agreement means that all City employees are now working under contract,” said Mayor Nutter.  “I’d like to thank my labor team for their diligence throughout this process and District Council 33 President Pete Matthews and his team for working with us to get an agreement that is fair to our incredible City employees and taxpayers.”

A summary of contract terms, which must be ratified by members of DC 33, are as follows:

 TERM:  July 1, 2009 – June 30, 2016

HEALTH & WELFARE:

  • $20 million lump sum within 30 days of ratification
  • $1,100 PMPM effective 9/15/14
  • $1,194 PMPM effective 7/1/15
  • Employee contributions will be made pre-tax but the City will not be required to contribute for any employee who waives coverage

WAGES:

  • $2,800 lump sum within 30 days of ratification
  • 3.5% increase effective 9/1/14
  • 2.5% increase 7/1/15

LAYOFF:

In lieu of furloughs, the Union will be covered by Civil Service Regulation 16.0122 and City Council Ordinance 140206 which respectively change the calculation of layoff scores to use the longevity date in the City’s HRIS system for seniority credit and amends the DROP ordinance to remove practical barriers to the use of temporary layoffs when economic circumstances warrant.

PENSION:

  • All employees hired after the date of the award elect to enter Plan 87 and pay an additional 1% of pay over what others in Plan 87 pay or enter Plan 10.  (Result is those who enter Plan 87 will pay 2% more than current effective 1/1/16).  Current employees have 90 days following ratification to make an irrevocable election to move to Plan 10
  • 1/1/15 – employee contributions increase by .5% of pay
  • 1/1/16 – employee contributions increase by .5% of pay.

OVERTIME:

 Sick leave does not count towards overtime on a weekly basis effective 1/1/15.

 STEP AND LONGEVITY:

 Reinstated prospectively effective 9/1/14

 OTHER ECONOMIC PROPOSALS:

  • Comparable worth – Spend remaining $63,000 previously allocated
  • Life Insurance – Increase from $20,000 to $25,000 for actives  effective 1/1/15
  • Legal services fund  – Increase to $15 PMPM effective 1/1/15
  • Tool allowance  – Increase by $50 and add HVAC mechanics to those who get it effective 1/1/15

OTHER PROPOSALS:

  • Child care committee
  • Essential employees committee
  • Grant funded employees pilot program to be discussed
  • RGI continues
  • Withdrawal of the City’s lawsuit and threat to implement proposals

CONTINUITY OF BENEFITS:

 Except as modified, prior contract terms, etc. remain in effect.

READ SUMMARY

READ MEMORANDUM OF AGREEMENT

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