Fight Forward!

DC37 reaches deal with city
April 2004

On April 20, 2004, negotiators for District Council 37 and the city reached a tentative agreement for a new contract. The deal, which must be ratified by members of DC37, calls for a first-year bonus and 5% in raises in the second two years of the contract. It also inlcudes initial lower starting salaries and benefit concessions for new hires. The agreement, which sets a pattern for other municipal unions including Local 1180, did not go as far as Mayor Bloomberg had initially insisted in terms of givebacks. It represents modest gains in a difficult economic and political environment. Other municipal labor leaders expressed concerns about some of the provisions, and at the April 21 membership meeting Local 1180 members discussed the deal and what it means for the local's own negotiations with the city, set to begin May 10.

What's in the agreement

The DC37 agreement runs from July 1, 2002, through June 30, 2005. It includes a $1,000 bonus on July 1, 2002, a 3% raise on July 1, 2003, and a 2% raise on July 1, 2004. These economic gains are slightly less than what TWU Local 100 won in its December 2002 contract, which has historically served as the unofficial pre-pattern pattern. The mayor had insisted for several years that the only raises he would allow would have to be paid for by so-called "productivity gains," a fancy term for givebacks by workers. In the end, the first-year bonus and second-year raise are not paid through givebacks, but the city says the third-year raise is.

The concessions that form the basis of that claim are a 15% cut in the pay of new hires for the first two years of their employment, and reductions in holidays, vacation days, sick days and night differentials for new hires. An additional 1% wage increase in the final year of the contract is possible if labor and management officials agree on further "productivity gains."

How it affects Local 1180 members

The DC37 deal now becomes the pattern for other city contracts, including Local 1180's. The wage package—the $1,000 bonus, 3% and 2% increases and the 15% cut for new hires—is not technically binding on 1180 and other unions, as wage matters are negotiated separately. Historically, however, it has been almost impossible to improve on wage gains set by the "pattern" contract.

The benefit concessions for new hires, on the other hand, are part of the citywide contract that governs non-economic issues, and these are binding on 1180 and other municipal unions. The city's largest union, which is DC37, negotiates the citywide agreement for all the city's unions. At a closed door Municipal Labor Committee (MLC) meeting on April 22, as well as publicly in some of the city's newspapers, a few other union leaders complained about being handcuffed by the concessions made by DC37.

The United Federation of Teachers (UFT) and Patrolmen's Benevolent Association (PBA) both asserted that the lower starting wage was counter-productive to the ongoing need to recruit more teachers and police officers in light of the larger suburban salaries that potential recruits can earn..

Labor principles in a tough environment

Local 1180 will be affected less than DC37 and some others by the new hire provisions, because the vast majority of 1180 members promote into 1180's ranks and are not new hires. But even if it affects 1180 less directly, the lower starting salaries and benefit cuts are matters of concern. Solidarity is the watchword of labor power, and these provisions shortchange future city workers even as they protect current members. Some critics called it "selling out the unborn." On the other hand, the mayor had insisted on more concessions than he got, and the political and economic climate have not been great for labor.

Local 1180 will begin its own negotiations on May 10. Solidarity within our own ranks will be key to getting the best possible contract under these conditions.

If you'd like to voice an opinion about the DC37 contract or 1180's own negotiations, please visit the 1180 bulletin board by cliking here.

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